More Conversations with Serious Savers: Part 4

When it comes to planning retirement, you're taking aim at a moving target. There's longevity risk, the decline of pension plans and the uncertain future of Social Security. And the job just got tougher, as the current economic crisis is rewriting the financial playbook. According to a recent survey by AARP, if the economy does not improve, over 6 in 10 workers aged 45 and older say they will likely delay retirement and work longer. And nearly 6 in 10 think they are not saving enough. That's where a tax-deferral can help. Below is the first of several conversations we've had with investors and advisors about the benefits of saving more with low-cost no-load variable annuities. Stay tuned over the next several weeks as I post their valuable insight.

Scott Scharpen, Principal of Stockamp & Associates

My long term plan is to retire early while still accomplishing several important goals--saving for my two children's education, continuing to grow a successful company, and having enough to fund a charitable mission. I understand the value of tax-deferred earnings over time. The enormous impact it will have on my family's financial security, and our ability to give back to society.

I had been using variable annuities for years because they provide tax-deferred savings. But most annuities charge an asset-based M&E well in excess of 1%, and that takes a substantial chunk out of the principal each year. You don't have to be a math whiz to realize this is not a good deal. My losses to annuity fees had been averaging thousands of dollars a year.

Before fees could drain any more from my earnings, my financial advisor introduced me to Jefferson National's Monument Advisor. With a simple flat-insurance fee of only $240 per year¹, it was a no-brainer. You start running the numbers and the growth potential is significant over 10 or 20 years of retirement saving. Monument Advisor allows you to pour so much more directly into your investments and watch it appreciate. The strategy is not just for me and my family. It's not just to fund our retirement. Because of Monument Advisor, we'll have more money to help others. It's hard to imagine why any investor doesn't want to do this.

¹The results presented here are not representative of the experience of other clients. Past performance is no guarantee of future performance or success.
An investor should carefully consider the investment objectives, risks, charges and expenses of the investment before investing or sending money. For a prospectus containing this and additional information, please contact your financial professional. Read it carefully before investing. The summary of product features is not intended to be all-inclusive. Restrictions may apply. The contracts have exclusions and limitations, and may not be available in all states or at all times.
Variable annuities are investments subject to market fluctuation and risk, including possible loss of principal. Your units, when you make a withdrawal or surrender, may be worth more or less than your original investment.
Variable annuities are long-term investments to help you meet retirement and other long-range goals. Withdrawal of tax-deferred accumulations are subject to ordinary income tax. Withdrawals made prior to age 59 1/2 may incur a 10% IRS tax penalty. Jefferson National does not offer tax advice. Annuities are not deposits or obligations of, or guaranteed by any bank, nor are they FDIC insured.
Variable Annuities are not suitable for everyone. You should consult with a financial professional to determine if a VA is suitable for you.