FAQ

• What is an Annuity?
• What is a Variable Annuity?
• What is the difference between a fixed annuity and a variable annuity?
• How does tax deferral work? Why is it beneficial?
• Is a flat insurance-fee variable annuity like Monument Advisor right for me?
• How is Monument Advisor different than other Variable Annuities?
• What are M&E Expenses?
• What is a surrender charge?
• What if I currently have a Financial Advisor?
• Is there a limit to how much I can save tax deferred?
• Do you have specific questions about Monument Advisor or Jefferson National Life Insurance Company?
• What is the VA Rescue Movement?
• Aren't there benefits to the additional riders and fees that other variable annuities offer?
• Is there a minimum investment required in Monument Advisor?
• How do I open an account with Jefferson National?

A product sold by a financial institution, which is designed to accept and grow funds from an individual and, upon annuitization, provide a stream of payments to the individual at a later point in time. Annuities are typically used to generate a steady cash flow for an individual during their retirement years. (Source: Investopedia.com)

A life insurance product that provides tax deferral during the accumulation period and may be annuitized to provide income for life during the payout (or retirement income) period. Within variable annuities are professionally managed subaccounts, or funds, that allow customers to pursue different investment strategies and goals. Variable annuities fluctuate in value depending on the performance of the subaccounts.

A fixed annuity is an insurance contract in which the insurance company makes a fixed payment to the annuitant for the term of the agreement until the annuitant dies.

Tax deferral refers to investment earnings such as interest, dividends or capital gains that accumulate free from taxation until the investor withdraws/takes possession of them. Investors benefit from tax deferral in two important ways:

1. Instead of paying taxes on the return of the investment, tax is paid only at a later date, allowing the investment to grow over time.
2. Investments are typically made when an investor is earning a higher income and is taxed at a higher rate.

Withdrawals may then be made after retirement, when a person expects to be earning little income and, therefore, may be taxed at a low rate. (Source: Investopedia.com)

Higher-earning investors who have reached their contribution limits in 401(k) plans or IRAs might benefit additionally by saving for retirement in a flat insurance-fee variable annuity rather than in a taxable account or other variable annuity. According to a study conducted by Jefferson National and Professor Ira Weiss, Ph.D., entitled "Increasing Retirement Income through the Power of Tax Deferral", conservative, moderate, and aggressive investors with a time horizon of 4, 10 or 14+ years respectively may be better off in a flat insurance-fee variable annuity than in a taxable account, such as a mutual fund. As always, we recommend that you consult with a financial professional before making any investment decision.

Monument Advisor is an excellent tax-deferred vehicle for active traders, asset allocators, asset locators and investors seeking low cost options as well:

• Active Traders: Our partnership with Rydex provides a full suite of tradeable funds (See prospectus for limitations on transfers)
• Asset allocators: Core options reflect a wealth of traditional asset classes, including domestic equity, international equity and bonds to build strength through diversity (Please see underlying investment option prospectuses for risks associated with investing in these funds).
• Asset Locators: In addition, individuals who invest in tax-inefficient funds such as REITS, bond funds, and commodity funds will not have to incur short-term capital gains when investing through a tax-deferred investment vehicle like Monument Advisor.
• Low-cost options: Monument Advisor provides two families of low-cost index funds from Nationwide and Vanguard. Transaction fees ranging from $19.99 - $49.99, depending on the number of transactions per year, will be included.

Monument Advisor is different in five important ways:

• One flat monthly insurance fee of $20.¹ The fee is only $20 per month, regardless of how much is invested or how much the annuity account grows vs. an average fee of 1.35% of assets for other variable annuities.
• Zero commissions. No sales bias. Jefferson National does not pay a commission to sell Monument Advisor. Commissions paid to sellers of other variable annuities are 4% - 7% of your initial contribution (source: variableannuityfacts.org).
• Over 200 options from 20+fund managers. You can direct how assets are invested across all asset classes. According to Morningstar, the average variable annuity offers just 38 investment options.²
• Zero surrender charges. Assets can be withdrawn at any time without having to forfeit a percentage of the annuity's account value in the form of a surrender fee. Surrender periods for most other variable annuities are generally 5-9 years. However the IRS may charge a 10% tax penalty on any withdrawals taken before the age of 59½
• Simple management tools. Automated asset allocation models, one-click client account management, and better control.

Also known as the Mortality and Expense risk charge, these additional fees compensate the insurance company for risks that it assumes under the annuity contract. According to Morningstar (12/07), the typical VA charges an annual 1.35% M&E charge, which is deducted from the performance of the underlying funds—making it difficult for investors to see the exact amount they are actually paying.

In contrast, Monument Advisor does not have any M&E charges. Investors only pay the flat monthly insurance fee of $20,¹ regardless of how much you invest or how much your annuity grows.

A fee levied on a life insurance policyholder upon cancellation of his or her life insurance policy.

Monument Advisor does not charge any surrender fees. You can access your money whenever you need it (Although the IRS may charge you a tax penalty of 10% on any withdrawals taken before the age of 59 ½).

If you currently have a fee-based Financial Advisor or Registered Investment Advisor (RIA), we encourage you to discuss the benefits of a flat insurance-fee variable annuity with him or her. If you currently have a variable annuity, you may be able to save thousands of dollars annually by making the switch.³ If you do not have a VA, and you have maximized your contributions to a 401(k) or IRA, you may be able to accumulate more for retirement by saving through a flat insurance-fee variable annuity than by investing in taxable investments.

There is practically no limit to what you can save tax-deferred. Monument Advisor has a contribution limit of $10,000,000. Deposits in excess of $10 million are subject to company approval.

Please complete the information request form or call us at (866) 667-0564.

Individuals like you may be spending thousands of dollars more on variable annuity insurance fees than you should. So we want to let as many people as possible know that there are smart alternatives. We encourage you to do our research, take our Challenge, and, ultimately, spread the word about the savings possible with a flat insuarnce-fee variable annuity and the advantages of accumulating more savings in a tax-deferred investment vehicle.

In certain situations, yes. However, in speaking with dozens of experts, we have found there are very few situations in which the additional fees make sense. We encourage you to talk to a financial professional to determine whether such fees make sense for you. Be sure you have all of the facts before committing to these additional fees.

Yes, our minimum investment is $25,000. We encourage you to contact Jefferson National to learn whether Monument Advisor is the right product for you.

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