Barron's Names Jefferson National to Top 50 VAs for 3rd Consecutive Year
July 20 2015, Louisville, KY – For the third consecutive year, Jefferson National’s Monument Advisor is named to Barron's list of Top 50 Annuities. Recognized as one of the best “Annuities Designed for Tax-Deferred Asset Accumulation,” Jefferson National’s Monument Advisor is the industry’s first1 and only Flat-Fee2 Investment-Only Variable Annuity (IOVA). Designed as an innovative tax-advantaged investing platform for Registered Investment Advisors (RIAs) and fee-based advisors, Jefferson National’s flat-fee IOVA features more than 350 investment options including 69 alternatives—the industry’s most underlying funds3 and the most liquid alternatives4 utilizing strategies like those favored by hedge funds and elite institutional investors.5
“A record number of RIAs and fee-based advisors are adopting our innovative Investment Only VA because it’s tailor made to fit their practice—and it provides greater value for their clients,” said Mitchell H. Caplan, CEO of Jefferson National. “Advisors and their clients can benefit from the power of low-cost tax deferral, a broad selection of investment options and alternatives, and a powerful portfolio management platform, to accumulate more wealth, generate reliable retirement income streams and create a lasting legacy.”
As Barron’s notes, “Because of the complexities and costs, many advisors say that only investors needing an additional tax-deferred vehicle should use a variable annuity, and then the focus is on tax-deferred savings, not guaranteeing income.” It points out that tax-deferred variable annuities offer “potential for greater returns, but only those with the lowest fees make the most sense.” Emphasizing the importance of keeping expenses below the industry average of 1.4%, it highlights 14 variable annuities with ultralow fees, including Jefferson National’s “flat $240 annual charge (which would be a 0.12% fee on $200,000).”
After maxing out qualified plans, including IRAs and 401(k)s, low-cost no-load Investment-Only Variable Annuities like Jefferson National’s Monument Advisor are an effective way for advisors and their clients to invest more tax-deferred, to help increase returns by 100 bps or more, without increasing risk.6 To determine the top 50 annuities, Barron’s used basic assumptions, including an investor’s age and the size of the investment.
1Mogel, Gary S. (2005, June 6), Flat-fee variable annuity makes its debut. Investment News. Retrieved from http://www.investmentnews.com/article/20050606/SUB/506060708
2Jefferson National’s Monument Advisor has a $20 monthly flat insurance fee. Additional low-cost fund platform fees ranging from .10% - .35% will be assessed for investors wishing to purchase shares of low-cost funds. See the prospectus for details. Certain low-cost funds may only be available to you if you retain certain investment advisors.
3Morningstar Data as of 04/30/15.
4Morningstar Data as of 04/30/15.
5Alternative products typically hold more non-traditional investments and employ more complex trading strategies, including hedging and leveraging through derivatives, short selling and opportunistic strategies that change with market conditions. Investors considering alternatives should be aware of their unique characteristics and additional risks from the strategies they use. Like all investments, performance will fluctuate. You can lose money.
6The Tax-Efficient Frontier: Improving the Efficient Frontier with the Power of Tax Deferral, by David Lau, Jefferson National, June 2010.