What’s Covered in this Review?
In this annuity review, we will be going over information regarding the Jackson National Elite Access Advisory Annuity, including:
- Product type
- Current rates
- Realistic long term investment expectations
- How it is best used
- How it is most poorly used
Annuities can be complex. That’s where having an Annuity Investigator who loves math comes in.
We make the complex, simple.
If you’ve been considering the pros and cons with regarding to 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 about 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 Variable Annuity
Issuer Jackson National Life
Type of Product Variable Annuity
Standard & Poor's 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 ratings 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 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:
|Surrender Charge %||6.5||6||5||4||3|
As a side note, if you withdraw funds prior to turning age 59 1/2, you may also be responsible for an additional 10% “early withdrawal” penalty from the IRS.
All of that being said, while the Elite Access Advisory annuity can offer you some nice benefits, the reality is that there is really not any financial or insurance product that is perfect in every scenario. But, unless your needs and goals align with this particular annuity in a number of areas, it is likely that there may be a better annuity out there for you.
But without doing any type of analysis, and/or knowing exactly which questions to ask, it can be difficult to know which annuity will be the best one for you and your specific circumstances. But it can be helpful to know some key tips when shopping for this type of product. click here in order to obtain our free annuity shopper’s guide so that you can feel more confident in your decision going forward.
The Annuity Gator’s End Take on the Jackson National Elite Access Advisory Variable Annuity
Where it works the best:
- For those who are seeking the opportunity for a higher rate of return
- For those who have a higher tolerance for risk
Where it works the worst:
- If you have a low tolerance for risk
- If you are seeking protection of principal
- If you do not intend to use the lifetime income feature
When you’re trying to decide upon any type of financial vehicle, it is important that you first know what your primary goals are – both for the short and for the long term. In doing so, you’ll be in a much better position to weed out the products that aren’t right for you, and to then narrow down which ones may be.
With regard to the Jackson National Elite Access Advisory variable annuity, there certainly are some likeable features, such as the numerous investment choices, and the ability to truly diversify and customize a portfolio for your needs.
But, if you truly want to know whether or not the Elite Access Advisory annuity is right for you, it is possible to have it tested using our variable annuity calculator. We can run the figures for you, using your particular circumstances – and we will do so for you at no charge. So, if you are interested in learning more, then please contact us via our secure online contact form here.
Any Additional Questions? Notice Any Mistakes in this Review?
We know that this annuity review ran a bit lengthy, so if you have read all the way through to the end, we’d like to commend and thank you for doing so. It’s our feeling, though, that it is better to provide too much information when it comes to financial matters as versus not enough.
With that in mind, if you feel that this annuity review of the Jackson National Elite Access Advisory Variable Annuity was helpful, then please feel free to forward it on and share it with anyone else who think might also benefit from it. If, however, this review only generated more questions in your mind, then please let us know, and we will be happy to answer them for you.
Plus, we know just how quickly information about annuities and other financial products can, and does, change. Therefore, if you happened to notice any details that need to be updated, please also lets us know and we will get to work on updating it.
Are there any other annuities that you would like to have reviewed?
No problem! Just contact us and let us know the names of the annuity – or annuities – that you would like to know more about, and our highly trained annuity geeks will get right on it. Then, be sure to check back often to AnnuityGator.com for the new information.
The Annuity Gator