What will we cover in this annuity review?
In this annuity review, we will be going over the following details regarding the Jefferson National Monument Advisor Variable Annuity:
- Product Type
- Current rates
- Realistic long-term return expectations
- How this annuity 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.
For investors who are considering the purchase of a variable annuity, it is important to have a good understanding of how these products work – and how they may, or may not, work well for you.
While a variable annuity can provide some benefit, both during the “accumulation” phase, as well as when it is paying out an income stream, the inner workings of these products can tend to be a bit confusing.
One reason for this is because variable annuities have a number of “moving parts” – and, depending on the actual product that you purchase, as well as any other optional riders that you add, you could find yourself wading through a twisted maze of “fine print” in order to determine just exactly what is happening with your money.
Unfortunately, many investors opt not to read over all of the product’s details, instead relying on the advice of their insurance or financial professional. This, however, could be a big mistake – especially when you’re considering the fate of a large chunk of your retirement savings.
If you have been leaning towards purchasing the Jefferson National Monumental Advisor variable annuity, then you may have noticed that – just like other annuities in the marketplace – this product can perform quite well in some areas, where in other areas it may not really perform up to par.
If you really want to know how this annuity works – including the good, the bad, and yes even the ugly, we can help you to sort it all out – which in turn, can allow you to reach a better conclusion as to whether or not this is the right annuity for you.
Annuity and Retirement Income Planning Information You Can Trust
If you have never been to our website before, then allow us to personally welcome you here to AnnuityGator.com. We are a team of annuity experts who are highly focused on offering in-depth, yet non-biased, annuity reviews. We have been doing this for quite some time now – much longer than our competitors – and because of that, we have come to be a trusted source of annuity information.
When gathering information about annuities via the Internet, it is possible that you have come across many conflicting details about these products. This is not entirely surprising, though, as there is a myriad of annuities available today, and there are numerous thoughts about these financial vehicles.
You may also have attended an annuity seminar in the recent past where the presenter went over the details about the Jefferson National Monument Advisor Variable Annuity, or some other similar product. You might even have set up a time to meet with this advisor following the event. In fact, it could even be your need for more details on this annuity – prior to making a purchase commitment – that has ultimately led you here to our website today.
In your quest for annuity product details, you may have noticed that there are many other websites out there that tout on about the annuity products they offer. Yet, while there are some very good sites online today, many of them are really only after your contact information – and in vying to obtain these details, they will work to “lure” you in by making claims about their annuities such as:
- Lowest fees
- Highest income payouts
- Guaranteed lifetime income
- Top-rated companies
But, as enticing as these claims might sound, it makes it even more important for you to verify that they are actually true before you commit to placing a large chunk of your retirement savings into such a product.
That’s where we come in.
If you have landed on our website today seeking more details on the Monument Advisor Variable Annuity from Jefferson Nation, then you are definitely in the right place. In fact, we dare say that this website is the only place online where you can find the whole story about this annuity and not just the positive aspects of it. In providing you with the entire picture, though, we feel that it is really the only way to make a well-informed decision regarding whether or not this product is the right annuity for you and your specific financial needs.
If you have spent any amount of time researching variable annuities, you may have noticed that financial and insurance advisors will oftentimes provide you the details on all of the positive attributes of the annuity, yet they will gloss over any of the aspects that could be considered as drawbacks.
As an example, when it comes to variable annuities, these products allow you a way to obtain a higher return than that of a fixed annuity – and you can also do so without having to pay tax on your gains each year (until the time you make withdrawals). However, because there are also certain costs and risks that are involved with variable annuities, you really need to know exactly what you’re getting into, and what to expect, before moving forward.
In order to be perfectly clear here, we do want to state before we go any further, that we believe annuities can provide investors with some very good benefits – provided that the product fits in with your other key financial goals.
The annuity review that you are reading right now was put here with the intent of assisting you in understanding all of the small print that is associated with the Jefferson National Monument Advisor Variable Annuity.
So, if you are ready to get started, let’s dive in!
Jefferson National Monument Advisor Variable Annuity at a Glance
|Product Name||Monument Advisor|
|Issuer||Jefferson National / Nationwide|
|Type of Product||Variable Annuity|
|A.M. Best Rating||A|
|Phone Number||(866) 667-0564|
Opening Thoughts on the Jefferson National Monument Advisor Variable Annuity
Jefferson National was founded in 1937, so this insurer has more than 80 years in the business of providing clients with a way to grow their savings, and to also receive an income in retirement.
The company has been recognized as an innovator of tax-advantaged investing solutions, and its products are offered by nearly 4,000 Registered Investment Advisors (RIAs) and fee-based financial advisors nationwide. This company is headquartered in Louisville, Kentucky, and it offers its products in all 50 of the U.S. states, plus the District of Columbia.
Jefferson National holds in excess of $5 billion and has nearly $516 in its high-quality investment portfolio, with roughly $42 million of total statutory capital and surplus. Throughout the years, the company has won more than 50 different industry awards, including being recognized as the DMA “2010 Financial Services Company of the Year.” Today, Jefferson National is a part of the Nationwide family of companies.
When you really drill down to what a variable annuity is supposed to do, these products are primarily designed for two key missions in mind. These are to grow principal and to produce income.
But the reality is that variable annuities are not really all that good at producing income – primarily due to the risk that these financial products present to the investors, as well as to the insurance companies that provide them.
Because the value of a variable annuity can fluctuate so much, insurance carriers can really only guarantee a small amount of income – oftentimes even less than that of a fixed annuity, which is “safer”. With that in mind, for each dollar that you put into a variable annuity, the product is only going to promise you less income that its fixed annuity counterpart, but still have you endure sleepless nights worrying about the risk of your principal. Therefore, if your key reason behind obtaining a variable annuity is to obtain a steady lifetime income stream, then this product may not be the best option for you.
When it comes to the investment side, a variable annuity can offer investors the opportunity of unlimited growth. But along with that also comes downside risk. There can also be a number of fees.
Before we get into the gritty details, there are some required legal disclosures here…
This is an independent annuity product review. It is not a recommendation to purchase or to sell an annuity. Lincoln National Life has not endorsed this review in any way, nor do we receive any type of compensation for providing this review. This annuity review is meant solely to be an independent review at the request of our readers so that they may see our perspective when breaking down the positives and the negatives of this particular annuity. Prior to committing to the purchase of any type of insurance and/or investment vehicle, it is critical that you do your own due diligence, and that you also talk with a properly licensed professional if you have any questions that relate to your specific situation. All of the names, materials, and marks that have been used in compiling this annuity review are the property of their respective owners.
For additional information on how to compare annuities so that you can decide which may be the best one for you, click here in order to obtain our free annuity report.
How Jefferson National Describes the Monument Advisor Variable Annuity
Jefferson National describes the Monument Advisor as the industry’s first flat-fee variable annuity. This variable annuity offers more than 380 different investment options, from more than 40 fund families.
In addition, there is no surrender period, nor surrender charges – so those who own this annuity are able to fully liquidate the contract at any time. In addition, the use of a powerful technology platform can enable the creation and management of model portfolios within the annuity.
There are three different strategies that can be used with the Monument Advisor variable annuity. These include:
Strategy #1: Create your own portfolio of tax-inefficient funds. Here, advisors can use the company’s technology platform and fund selection to create model portfolios for their clients.
Strategy #2: Use a third-party investment advisor. The Jefferson National technology platform will also support the need for multiple money managers.
Strategy #3: Use a Jefferson National allocation model, powered by CAPPTRUST, in order to meet various investor needs.
Jefferson National essentially revolutionized variable annuities when it launched the Monument Advisor, and the company claims to have saved clients more than $60 million in insurance fees, while also allowing consumers to maximize the value of tax deferral.
How an Insurance or Financial Advisor Might “Pitch” this Annuity
As a flat fee variable annuity, the Monument Advisor from Jefferson National would likely be pitched by an insurance or financial advisor as a way to spend less in administrative and management charges, and in turn, accumulate more money in the annuity contract.
Advisors will also likely tout the numerous investment options – nearly 400 different funds from over 40 different fund families – that may be chosen from. Because of that, the Monument Advisor annuity can be presented as a way to diversify your investment options.
Due to its many low fee-related benefits, and its vast amount of funds to choose from, it is probable that an advisor may even suggest that you do an “annuity rescue” and exchange a current annuity that you already own for the Monument Advisor.
This, however, could prove to be tricky and costly – depending on whether or not your current annuity is still in the surrender charge period, and/or if it has an income guarantee. For example, if you are currently paying an additional amount of premium for an income guarantee on your annuity, you are only able to access the guarantee(s) as lifetime income – often at a certain percentage per year – and not as a lump sum.
Therefore, you can only obtain the actual value of your investments, and not the guaranteed value. So, for instance, if the investments in your current annuity contract are worth $100,000 but the guaranteed value is closer to $140,000 or $150,000, then you are only able to get the $100,000 if you opt to transfer over to a different annuity.
How Do the Fees Work on the Jefferson National Monument Variable Annuity?
Unlike most other variable annuity products, the Jefferson National Monument Variable Annuity offers a flat monthly fee, rather than annual charges. Here, an annuity owner could pay as little as a flat $20 per month fee. And, there are no Management & Expense (M&E) charges, nor any surrender charges or surrender period.
However, don’t get the impression that investing in this annuity is completely free. That is because the flat fee of $20 that is charged adds up to a minimum yearly expense of $240… and this amount could actually be considerably more.
As with other variable annuity products, there are also additional charges, based on the underlying investments that are selected. Here, this annuity charges additional fund platform fees that can range from .10% to .35%.
The Annuity Gator’s End Take on the Jefferson National Monument Advisor Annuity Product
Where this annuity works best:
- For those who are seeking the potential for higher growth (as versus a fixed annuity)
- For those who are seeking diversification in their investments
- For those who are seeking lower fees
Where this annuity works the worst:
- For those who are risk adverse
- For those who do not plan on using the lifetime income feature
In analyzing any type of financial vehicle, it is important for investors to determine what their overall goals are. In some cases, for example, a product may appear to offer the “best of both worlds,” such as the opportunity for growth, along with a stream of lifetime income. Yet, it is essential when considering the product to also have a good understanding of what you may be giving up in order to attain such benefits.
In the case of the Monument Advisor variable annuity from Jefferson National, there are some positive, and unique, features, such as the low, flat fees, along with the ability to choose from nearly 400 different investment options.
But there are also some tradeoffs that you need to think about – which can still include being exposed to the risk of a market downturn – which could end up reducing a substantial amount of your hard earned savings.
Given this, the only way to really know if the Jefferson National Monument Advisor annuity will be a good fit for you is to have it tested. We can provide this service to you, so just contact us and we will use our annuity calculator to provide you with a better illustration of just exactly what this annuity may be able to return for you.
Have Any More Questions on the Jefferson National Monument Advisor Variable Annuity? Did You See Any Mistakes in this Annuity Review?
If you have any additional questions regarding the Jefferson National Monument Advisor variable annuity, or if you see any information that doesn’t look quite right, please contact us and we will be happy to walk you through your questions and concerns.
We also realize that this annuity review went a bit on the long side – and for that, we thank you for sticking with us through to the end. However, it is our thought that providing a little “too much” information on an annuity is far better than not providing enough – particularly when someone is trying to make a decision that can have life-long financial implications.
Given that, if you did benefit from the information in this review, then please feel free to share it by forwarding it on to anyone else whom you know that may also benefit from it. We are always happy to help others in determining whether or not a particular annuity may be right for them.
Also, if you happened to notice anything in this review that may be outdated or in need of revision, please let us know that, too and we will make the necessary updates as soon as possible.
Are there any other annuities that you would like to have us review?
If so, let us know the name of the annuity (or annuities, if there is more than just one), and our team of annuity geeks will get on it!
The Annuity Gator