Independent Review of the Jackson National Perspective Advisory Variable Annuity
What Will Be Discussed in this Annuity Review
In this review, we’ll be covering the following details about the Jackson National Perspective Advisory Variable Annuity:
- Product Type
- Current Rates
- Realistic long term return expectations
- How it is 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 pondering over financial products that can provide you with the opportunity for a high return, along with a stream of income in retirement, then the Jackson National Perspective Advisory Variable Annuity could be an alternative for you.
But, before you go out and sign on the dotted line and make a long term commitment on this – or any – annuity, it is important that you first obtain a good, solid understanding of how the product works, and how it may or may not work to your benefit.
If you have been reading over the information about the Perspective Advisory annuity from Jackson National Life Insurance Company, then you may notice that, just like any other annuity, this product can perform quite well in some areas, but there are also some other areas where it may not do very well for you. This will typically depend on your particular financial goals, your risk tolerance, and your time horizon before retirement.
Due to all of the different variables that are involved, it can be all that much more important that you have a good understanding of how variable annuities work. You also need to keep in mind that the purchase of any type of annuity should be considered a long term commitment, as once you are in one, it can be somewhat difficult – and expensive – to get out of it.
Annuity and Retirement Income Planning Information that You Can Trust
If you have never been to our AnnuityGator.com website, please allow us to officially welcome you here. We comprise a team of financial pros who are focused on offering our site visitors non-biased, yet comprehensive, annuity reviews. We’ve been at 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 the Internet in the hopes of finding more in-depth details about the Perspective Advisory variable annuity from Jackson National, 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
While these claims may initially sound enticing, it is critical to keep in mind that when something sounds too good to be true, it usually is. With that in mind, before you move forward with buying an annuity, be sure that you have checked out all of the product’s “small print” and that you know exactly how the annuity may – or may not – work to your advantage.
You may also have noticed that there are numerous websites that are marketing annuities for sale, but that really only repeat what you can find right here on an authority site like ours. And, even though you may be able to get some of the information that you need from such “copycat” sites, we dare say that you will be able to obtain the most comprehensive details right here.
Just so that we are perfectly clear here, we feel that annuities can be very attractive financial alternatives for many people – as long as they fit in well with your overall financial goals, both short- and long-term.
The annuity review that you are on right now is offered to help you with making sure that you are moving in the right direction with your annuity purchase. It will also offer you some good tips in terms of what to look for regarding both the benefits and the drawbacks of variable annuities.
So, if you are ready to get started, let’s go!
Jackson National Perspective Advisory Variable Annuity at a Glance
|Product Name||Perspective Advisory|
|Issuer||Jackson National Life Insurance Company|
|Type of Product||Variable Annuity|
|S&P Rating||AA (Very Strong)|
|Phone Number||(877) 565-2968|
Opening Thoughts on the Jackson National Perspective Advisory Variable Annuity
Jackson National Life Insurance Company is a multi-billion dollar insurance and financial entity that offers a wide variety of products to help with keeping its clients’ money safe, while also earning a return.
The company has a key focus on annuities, and because of that – along with its financial strength and stability – the company has earned numerous awards and accolades. For example, for the year 2016 alone, Jackson National Life Insurance Company was rated as the number one seller of annuities in the United States (based on statistics from LIMRA).
Other key milestone for 2016 include being the number one seller of new variable annuity sales (per Morningstar), as well as being ranked as the 12th largest seller of fixed rate deferred annuities in the United States, and the 20th largest seller of fixed indexed annuities (FIAs) in the United States for that year.
Due to the company’s financial stability, and its timeliness of paying out its policy holders’ claims, Jackson National has achieved high ratings from the insurer rating agencies. These include the following:
- 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)
Because of the constant market volatility that we’ve seen over the past decade or so, variable annuities have dropped a bit in terms of their appeal to investors, as they tend to present more risk than other annuity alternatives like fixed and fixed indexed.
However, similar to any other product that you will find out there in the market place, it is also true that variable annuities can perform quite well in some circumstances, but not very well in others.
Variable annuities also have a bad rap 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 Perspective Advisory Variable Annuity
Jackson National describes the Perspective Advisory variable annuity as an annuity that offers you the freedom to create your own distinctive portfolio plan with quality investments, optional benefits, and tax deferral. According to Jackson National, the Perspective Advisory variable annuity is a retirement vehicle that is designed to let you adapt your investment choices to your evolving needs and goals.
With the Perspective Advisory annuity, there are more than 90 different investment options to choose from. These come from world-class money managers, as well as Jackson-exclusive investment options.
As with other annuity products, the growth that you experience on your account is allowed to continue tax-deferred until the time of withdrawal. This can allow your money to grow and expand over time exponentially.
The Perspective annuity also offers some other key features, such as a standard death benefit, and the option of choosing an enhanced benefit that provides the potential to increase the amount of money you provide when the time comes.
There are also some living benefits that can be offered via the Jackson National LifeGuard Freedom Suite of Living Benefits. These could allow you to have:
- Guaranteed income that lasts as long as you need it
- The freedom to receive lifetime income without having to compromise your investment strategy
- The ability to control when and how you withdraw your money – which could essentially allow you to better manage your tax consequences
In order to help with future health care related costs, the Perspective Advisory annuity also offers both a nursing home waiver and a terminal illness benefit. With the nursing home waiver, you can make a one-time withdrawal, penalty-free, of up to $250,000 as a result of a nursing home stay that lasts at least 90 days. Likewise, with the terminal illness benefit, you may also be able to withdraw up to $250,000 if you have been diagnosed with a terminal illness that has a life expectancy of one year or less.
How a Financial Advisor Might Pitch this Annuity
If you have already discussed the Jackson National Perspective Advisory variable annuity with a financial or insurance advisor, it may be that they focused primarily on the advantages, such as the opportunity to obtain a high return. They may also have discussed with you the additional living benefits that are available, as well as the death benefit on this product, which allows you to leave a legacy to those you love.
Unfortunately, even though insurance and financial companies work hard to present a nice, rosy picture of their annuities, it is essential that you know the entire picture, as the risk that you can endure in a variable annuity could be detrimental to your long-term savings. Because these particular types of products are exposed to market fluctuations, you may actually have many sleepless nights if the market tanks – taking your retirement funds with it!
Because of their exposure to risk, variable annuities are not nearly as popular as they were a number of years ago. Given that, a financial advisory may just simply gloss over the possible drawbacks.
In addition, financial pros may also key in on the fact that annuities can provide an ongoing income stream in retirement. But, if one of your key reasons for purchasing an annuity is for the income benefit, it is highly recommended that you first take into consideration the projected income from this annuity, as there may be other products out there that can offer a higher level of guaranteed income – along with more protection from a downward moving market.
Because there is no “perfect” product or investment, it is important to know clearly what your priorities are right from the beginning. This is especially the case before you move forward with signing an annuity contract because once you are in, it can be difficult – and costly – to get out.
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.
What About the Fees on the Jackson National Perspective Advisory Variable Annuity?
Typically, variable annuities tend to be some of the more costly investment vehicles that are available in the market today. And, while the Perspective Advisory annuity from Jackson National Life has the ability to earn a high return, it could be substantially minimized when you take into consideration all of these charges.
For instance, these include contract expenses – which consist of a 0.25% annual mortality and expense risk charge, as well as an annual administration charge of 0.05% (although this particular charge can be waived for contracts with quarterly contract anniversary values of $1 million or more).
There is also an annual contract maintenance charge of $35 (but if you live in New York, this is reduced to $30). And, this charge may also be waived for contract anniversary values or surrender values of $50,000 or more).
Plus, even though you are allowed to withdraw up to 10% of the contract’s value penalty free, if you take out more than that within the first three years of purchasing the annuity, you will incur a surrender charge. The amount of this charge is as follows:
- Year 1 = 2%
- Year 2 = 2%
- Year 3 = 1%
(It is also important to note that if you are under the age of 59 1/2 and you take such withdrawals, you can also incur an additional 10% early withdrawal penalty from Uncle Sam).
The Annuity Gator’s End Take on the Jackson National Perspective Advisory Variable Annuity
Where it works best:
There is no one-size-fits-all investment that is right for everyone. But, if you are leaning towards purchasing the Jackson National Perspective Advisory Variable Annuity, then it could be a viable option for you if you are seeking the ability to earn a higher rate of return than a fixed annuity, while also taking guaranteed lifetime income in the future.
Where it works worst:
Certainly with most variable annuities, because of their added risk that investors may incur, these are not good options for those who are looking to keep their principal safe, and/or who do not have a high tolerance for risk. Also, if you don’t plan on using the lifetime income feature, this may not be the best annuity for you.
When considering any type of financial investment, it is essential that you determine first what your primary goals are. That way, you will be much better able to go through the process of eliminating the insurance and financial product options that won’t fit in with your plan.
In the case of the Jackson National Perspective Advisory Variable Annuity, there can definitely be some attractive features, such as the 90+ different investment options, and the ability to diversify your holdings within the annuity. Plus, when the market is moving up, you could also find that you attain a higher return than you could with a “safer” financial option.
Likewise, you can also obtain tax-deferred growth of your money – which in turn, can allow your funds to grow and compound exponentially over time. Plus, you can count on at least some amount of guaranteed income down the road.
But, in order to really know whether or not this particular annuity will be a good fit for you is to have it tested. We can do this for you. The calculator and resulting spreadsheet are free. So, if you are interested, please let us know and we will be happy to run the figures for you.
Have Any Additional Questions on the Jackson National Perspective Advisory Variable Annuity? Did You Notice Any Mistakes in this Review?
We admit that this annuity review ran a tad bit long – so we truly appreciate you sticking with us throughout it all. Our thought, however, is that we would much rather provide you with “too much” information than not enough – especially when considering that the purchase of an annuity is a long term financial commitment.
If you did feel that this annuity review was helpful, then, by all means, please feel free to forward it on to anyone else that you think might also benefit from it. Alternatively, if this review brought forth, even more, questions, then please also let us know that, too.
Also, as many humans do, we can at times make mistakes. So, if you happened to notice any mistakes in this review of the Perspective Advisory variable annuity from Jackson National Life Insurance Company, please send us a message here via our secure online contact form so that we can make the corrections as soon as possible.
Any other annuities that you’d like to see reviewed?
If there are any other annuities that you would like to see reviewed, please let us know that, too, and we will get our team of qualified annuity “geeks” on the case and have more reviews available on our website soon.
The Annuity Gator