More Conversations with Serious Savers: Part 6

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.

Ralph Picard, Owner Resort Pointe Custom Homes (www.resortpointe.com)

I understand the value of investing over time, and I'm a firm believer in tax-deferred saving for reaching my retirement goals. I first started using variable annuities in my 50's as a way to catch up and save considerably more than an IRA or other qualified plan would allow. But my VA was charging asset-based fees of nearly 2 percent, costing me thousands of dollars every year.

A retirement goal like mine means generating some serious, lifelong income. But I looked at VAs with income guarantees. I ran the numbers. And I came to the conclusion that guarantees are designed to ensure that the annuity company gets the best return--not to ensure that I get the best return.

What I needed was a more cost-effective way of saving in a variable annuity. So my advisor told me about Jefferson National's Monument Advisor. With a simple flat-insurance fee of $20 a month¹ instead of the typical asset-based M&E, Monument Advisor helped me save thousands more every year. For me, there is no question it's a far better fit than the typical variable annuity.

¹ Jefferson National's Monument Advisor has a $20 monthly flat insurance fee with no transaction fees on more than 97% of underlying funds. Additional fees ranging from $19.99-$49.99 will be assessed for investors wishing to purchase shares of ultra low-cost funds. See the prospectus for details. Like other variable annuities, the customer pays fees of the underlying funds selected plus the fees of any advisor hired. The base contract does not provide a Guaranteed Minimum Death Benefit (GMDB). The Death Benefit equals the contract value, and is subject to investment risks. An additional GMDB is available for an additional fee. Please see the prospectus for details.
The 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.