If you’ve been considering the pros and cons regarding purchasing a variable annuity, then it may mean that you’re getting closer to retirement time or that you are planning ahead so you can grow your principal to help with income generation in the future. In this case, the Jackson National Elite Access Advisory variable annuity could be a viable option for you.
However, before you charge full steam ahead and commit to purchasing this annuity – or any annuity, for that matter – it is important that you have a good understanding of how the annuity works, and whether or not it could be a good fit for your current and future financial needs.
Throughout the past several years, many investors have been considering annuities as a way to grow their savings on a tax deferred basis, and also to help them ensure that they’ll have an ongoing income in retirement.
But if you’re also likely painfully aware, the stock market has been extremely volatile – which can lead to more risk when you’re invested in equities, in turn, leading to many sleepless nights hoping that your money is safe.
Annuity and Retirement Income Planning Advice You Can Trust
If you have never visited our AnnuityGator.com website, please allow us to officially welcome you here. We are a team of financial pros who are focused on offering our site visitors non-biased, yet highly comprehensive, annuity reviews. We’ve been doing this for a number of years now, much longer than our competitors have – and because of that, we are considered to be a highly trusted source of annuity information online.
So, if you’ve been researching variable annuities the Internet in the hopes of finding more in-depth details about the Jackson National Elite Access Advisory Variable Annuity, then you are certainly in the right place.
You may, however, have found in your quest for information that there are other websites that will tout some fairly bold claims with the sole purpose of obtaining your contact information. These may come in the form of:
- Low fees
- Higher income payments
- 7-8 percent return
- Guaranteed income for life
Even though these claims may sound inviting, deep down we all know that when something sounds too good to be true, it probably is. So, do you really want to take a chance on these “promises” with your retirement funds?
Nope – didn’t think so.
There are a number of websites out there online that just simply repeat what they’ve read from authority sites like ours.
And, while you may be able to attain at least some of the information you need from such “copycat” websites, we dare say that you’ll get the most comprehensive information right here.
It is possible that you were invited to, and attended, an annuity seminar recently. At that seminar, the presenter may have gone over the details regarding the Elite Access Advisory variable annuity, or a similar product. It is also possible, though, that he or she highlighted the positive features of this product, while only quickly glossing over any potential drawbacks.
In order to be perfectly clear before we move forward, we do feel that an annuity can be a very attractive financial vehicle for many investors – provided that it fits in well with your overall current and future financial goals.
The annuity review you are currently reading is offered here to help you ensure that you are going in the right direction, as well as to provide you with a guide in terms of what to look for regarding both advantages and drawbacks.
So, if you’re ready to begin, let’s dive in!
Jackson National Elite Access Advisory Variable Annuity at a Glance
|Product Name||Elite Access Advisory
|Type of Product||Variable Annuity
|S&P Rating||AA (Very Strong)
|Phone Number||(877) 565-2968
Opening Thoughts on the Jackson National Elite Access Advisory Variable Annuity
Jackson National Life Insurance Company is a multi-billion dollar entity that offers a wide variety of insurance and annuity products that can help keep its clients’ money safe, while also earning a return. The company has a key focus on annuities.
For just 2016 alone, Jackson National (Jackson) attained a number of high rankings, including:
- Number one seller of annuities in the United States (per LIMRA)
- Number one in new sales of variable annuities in the U.S. during 2016 (per Morningstar)
- 12th largest seller of fixed-rate deferred annuities in the U.S. during 2016 (per LIMRA)
- 20th largest seller of fixed index annuities in the U.S. during 2016 (per AnnuitySpecs)
Because of its strong and stable financials, Jackson National Life Insurance Company is rated very highly by all of the primary insurer rating agencies. These include:
- A+ (Superior) from A.M. Best
- AA (Very Strong) from Fitch Ratings
- AA (Very Strong) from Standard & Poor’s
- A1 (Good) from Moody’s Investor Services
(All above ratings are accurate as of March 31, 2017)
Due in large part to the consistent ups and downs of the stock market over the past few years, variable annuities have fallen somewhat out of favor – primarily because of the risk that they may present. But, just like any other type of financial product out there in the market place, variable annuities can perform very well in some areas, and not so well in others. A big part of this is also due to the specific financial goals, time horizon, and risk tolerance that you possess.
For example, in terms of the investment aspect of these annuities, they can offer an investor the opportunity for unlimited growth. This, however, will typically come hand in hand with downside risk as well.
Variable annuity products are also known for incurring a substantial amount of charges and fees. This not only can include an up-front sales commission for the agent who sells you the annuity, but also annual management and administration fees from both the annuity itself, as well as the investments that are inside of it.
With all of this in mind, it is more important than ever that investors thoroughly review the variable annuity that they are considering, as once you have committed to purchasing one, it can be difficult – and quite costly – to get out.
Before we get into the gritty details, here are some legal disclosures…
This is an independent product review, not a recommendation to buy or sell an annuity. Jackson National Life Insurance Company has not endorsed this review in any way, nor do we receive any type of compensation for providing this review. This review is meant to be an independent review at the request of readers so that they may see our perspective when breaking down the positives and negatives of this particular annuity. Prior to purchasing any type of investment or insurance product, it is important that you do your own due diligence and that you consult a properly licensed professional if you should have any specific questions that relate to your individual circumstances. All names, marks, and materials that were used for this review are the property of their respective owners.
For more information on how to compare annuities in order to determine which one may be right for you, click here
to obtain our free annuity report.
How Jackson National Describes the Elite Access Advisory Variable Annuity
Jackson National describes the Elite Access Advisory variable annuity
as a variable annuity investment platform that is designed to help you seek opportunities and to manage risk throughout the economic cycle by providing diverse investment options, alternative assets and strategies, expertly constructed portfolios, and important tax advantages.
This annuity offers more than 100 different investment options – so it is easy for investors to build a portfolio that suits them the best. Plus, the portfolio can also be rebalanced on a monthly, quarterly, semiannually, or yearly basis.
Just some of the investment managers that are affiliated with this annuity are the American Funds, BlackRock, Eaton Vance, Franklin Templeton, Goldman Sachs, Invesco, and J.P. Morgan Asset Management.
How a Financial or Insurance Advisor Might “Pitch” this Annuity
If you’ve been offered the Jackson National Elite Access Advisory variable annuity by a commissioned insurance or financial advisor, then it is likely that they will be focusing on the positives of this annuity, while possibly not highlighting the aspects of this annuity that could be considered drawbacks. One such drawback is the risk that the investor takes when purchasing a variable annuity.
Today, variable annuities are not nearly as popular as they were a number of years ago. Rather, index annuities – which offer the opportunity for index-linked return, along with the safety of principal – have become much more sought after. One reason for this is because they can guarantee safety, yet provide a higher return than a regular fixed annuity.
With that in mind, it is probable that a financial professional will key in on the ability of a variable annuity to possibly provide a higher return, as well as diversity in investment options. Also, because people are living so much longer today, one primary fear that many retirees have is that of running out of money. The guaranteed lifetime income from an annuity can help to rid that fear.
Yet, if one of your primary reasons for obtaining an annuity is to have a lifetime income stream in retirement, then you really need to consider the projected income from this particular product, as there may very well be other annuities out there that can offer you a higher level of guaranteed cash flow, as well as more protection in a downside market.
On top of that, there are a number of fees that come with this annuity, so you need to be aware of where, how, and how much you could be charged, both while the annuity is in the accumulation phase, as well as when you receive income from it.
What About the Fees on the Jackson National Elite Access Advisory Variable Annuity?
Annuities – and in particular, variable annuities – have somewhat of a bad rap for charging fees. And rightly so. That’s because there is often a long list of charges and fees you need to look out for.
With the Elite Access Advisory annuity from Jackson National, you will run into a number of charges
, which in turn can have a negative impact on your overall return. These fees include an annual contract maintenance charge of $50 (although this can be waived for contract anniversary values or surrender values of $50,000 or more).
There is also a mortality and expense risk charge of 0.85 per year, and an administration charge of 0.15% (this, however, may also be waived for those who have annuity contract values of $1 million or more).
In addition to the fees that are associated with the annuity itself, you’ll also run into charges having to do with the investment options that are offered inside of the annuity. In this case, the expense range can run anywhere from 0.55% all the way up to 2.35% per year. (So much for rewarding long-term customer loyalty!)
Plus, even though you are allowed to withdraw up to 10% of your contract value in the Elite Access annuity in any given year without penalty, if you take out more than that within the first five years, you’ll also be hit with a surrender charge. The amount of this charge can be as following: