Annuity Rescue Center Blog

Ten Questions to Ask When Hiring a Financial Advisor

Mon, 19 Apr 2010 17:47:00 -0400

For many consumers, hiring a Financial Advisor is one of the most important decisions they can make. But some are better prepared than others. Forbes posted a brief article with tips to help consumers do their homework before hiring a financial advisor. Recommended questions include:

Will the advisor discuss solutions to clients' short and long term goals? How well do they relate?
What is the advisor's career history?
Can clients speak with someone in the office regularly?
What kind of reports and statements will the advisor provide?
Can the advisor provide references?
Will they explain their portfolio strategy?
How does the advisor get paid--commissions, fees or both?

For the full article, visit http://bit.ly/c2IThd.

As a consumer, what do you find to be the most difficult part about researching a prospective Financial Advisor? In your experience, what is the best way to find an Advisor--through a referral, through an industry organization, through a consumer advocacy group, or some other source? Do you believe that most consumers do their homework and follow steps similar to those described in the article? Do you think there are any other questions that consumers should ask prospective Advisors--but don't?

Jefferson National Securities Corporation

Americans Regaining Wealth

Mon, 29 Mar 2010 11:02:00 -0400

According to a recent article by the Associated Press, Americans are now doing better financially. Household net worth across the United States has continued to rise for three consecutive quarters, bringing it to $54.2 trillion according to new data from the Federal Reserve.

Driving these results is an increase in stock portfolios. Higher home prices helped slightly. However, in order to get back to its pre-recession benchmark of $65.9 trillion, Americans' net worth would still need to rise another 21 %.

In past recessions, consumer spending has been a powerful engine driving the economic recovery. But in the current recession, most Americans are still cautious. They are more focused on building net worth and eliminating debt before their spending resumes. One good sign for the future of the economy is that consumer spending is projected to increase 2.2 % this year, according to the National Association for Business Economics. A small but noticeable increase.

To read the full article visit: http://bit.ly/bYnN0H

Do you think the economy is on the verge of a recovery? What factors are most important in driving this rebound? Do you think stock values, real estate, net worth and consumer spending will continue their upward trend? Have you seen your net worth rebound in the past year? If so, what are the primary factors contributing to your success? Has your financial advisor played an active role in helping to get your investments in order and your personal balance sheet back on track?

Jefferson National Securities Corporation

Diviners Divided: Economists clash, sow confusion

Tue, 23 Mar 2010 13:46:00 -0400

Experts are divided on the future state of the economy. While some economists and Wall Street strategists are optimistic and believe we are about to embark upon a robust recovery after the crash of 2008, others predict a dreaded "double dip." Part of the problem in predicting the future is that the economic signals driving the market have been so mixed. In the past year, the Dow is up 61%, the S&P 500 is up 68% and the Nasdaq is up 81%. GNP grew at a 5.9 % in Q4 '09, its best showing in six years, and the volatility index is at a new low. But consumer confidence has plunged, new home sales have fallen to their lowest level in nearly five decades and unemployment is still high.

The confusion that many individual investors are feeling right now is right in line with the confusion of economists and Wall Street professionals. One expert may suggest that it's a great time to buy stock, while another would implore you to sell, and still another would advise you to sit on the sidelines and hold onto your cash. Now more than ever, it is critical to work with an advisor you can trust to develop a long term strategy and stick to it.

You can read the full article from The Associated Press here: http://bit.ly/bBLDNQ

Do you believe the economy may be on the cusp of another dip? If so, what factors concerns you the most? Or do you believe that the economy is already on the path toward recovery? If so, what indicators are influencing your opinion? Do you see the current market as more of an opportunity to buy and hold, a time to use tactical strategies, or still a time to sit on the sidelines and wait?

Changing Standards for Brokers and Insurers

Tue, 02 Mar 2010 17:06:00 -0400

Adding to the ongoing discussion around fiduciary standards, a recent Wall Street Journal article examines the congressional debate surrounding whether to hold brokers and insurers to a higher fiduciary standard. The industry awaits the decision on a bill which may be unveiled as early as next week. One lawmaker said that brokers may as well be "croupiers and Blackjack dealers" without a rule to get them on higher moral ground. The article also quotes a study conducted by RAND for the Securities and Exchange Commission which concluded that many investors do not understand the difference between brokers and advisors.

To read the full article, visit the Wall Street Journal's blog at:
http://blogs.wsj.com/financial-adviser/2010/03/01/trust-isnt-a-given/ Do you think that most consumers understand the difference between the "fiduciary standard" used by financial advisors versus the "suitability standard" used by brokers? Do you think brokers and insurers should also be held to some higher standard of trust such as the fiduciary standard? What do you think the outcome of changing these standards would be for consumers? Do you think these changes would be effective in influencing financial professionals to act in the best interest of the client?

Monument Advisor is One of First VAs to Add Ivy Asset Strategy Fund and Ivy High Income Fund

Thu, 10 Dec 2009 17:58:00 -0400

Jefferson National is proud to announce that Monument Advisor is now one of the first VAs to offer the award-winning Ivy Asset Strategy Fund and the Ivy High Income Fund. By expanding Monument Advisor's lineup of unique investment options, Jefferson National strives to help fee-based advisors and their clients diversify retirement savings and manage risk in this challenging market. Ivy Funds was named the "Best Fund Family" in the mixed asset category for 2008 by Lipper Inc. In addition Ivy Funds was ranked #3 and its affiliate Waddell & Reed was ranked #1 in Barron's 2008 Fund Family Rankings for 5 year performance.* For more important information and all the details, read the press release at http://www.jeffnat.com/media/pr.cfm?docid=222 * Past performance is no guarantee of future results.

More Conversations with Serious Savers: Part 6

Tue, 03 Nov 2009 12:49:00 -0400

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.

More Conversations with Serious Savers: Part 5

Tue, 13 Oct 2009 11:51:00 -0400

Jim Brown, CFP, President, J M Brown & Associates, Inc

Helping clients plan for a long and rewarding retirement is important to me. So I'm a big proponent of tax-deferred compounding. Deferring gains can help you accumulate more. And the tax advantage can be even more powerful if you enter a lower tax bracket in your retirement years. It can provide diversification without current tax implications. And tax-deferral can also benefit clients with "tax-inefficient" investments, such as REITs, bonds, and actively managed stock funds that generate short-term capital gains and ordinary income, currently taxed as high as 35 percent.

The key is finding the right kind of variable annuity. Most traditional VAs charge asset-based fees that can erode performance, and surrender fees that can keep investors locked-in for years. But when Jefferson National came out with Monument Advisor, we took a real good hard look at it. They really did their homework. We liked the flat-insurance fee. We liked what they were doing in terms of underlying funds. There's no commission, and that means no conflict of interest. It can work for just about any type of professional, but especially for fee-based advisors like us. Monument Advisor will definitely have an impact on the industry. And I believe it will make a difference. It's only logical.

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.

More Conversations with Serious Savers: Part 4

Fri, 02 Oct 2009 14:52:00 -0400

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.

More Conversations with Serious Savers: Part 3

Wed, 16 Sep 2009 16:58:00 -0400

Howard Smith, Changing Parameters

I've always appreciated the power of variable annuities to provide tax deferral for my clients. It's a win/win situation. While you're working, let it grow. Once you retire, it becomes a source of income for you. So when I needed a VA that would let my clients maximize tax-deferred accumulation and allow me to provide active management--all at a reasonable cost--Monument Advisor was the right match for my fee-based practice.

And in today's volatile markets, we need more strategies than ever to respond to trends and maximize returns. That's another great benefit of Monument Advisor. It offers more than 175 underlying investment options, one of the broadest rosters in the industry, including Rydex funds designed for dynamic trading, and alternative funds, such as commodities, real estate, hard currency and hedge-like funds.

With one flat-insurance fee of $20 per month no matter how much clients invest1, a broad selection of underlying funds, online trading and automated management tools, Monument Advisor is to variable annuities what Costco is to retail shopping. It offers the lowest cost with all the features. When it comes to Monument Advisor, we were driven by what's inside.

More Conversations with Serious Savers: Part 2

Thu, 03 Sep 2009 15:15:00 -0400

Don Bell, Retired Oil & Gas Engineer:

I was investing a large part of my long-term savings in variable annuities so my assets could compound and grow tax-deferred. Then, I realized what it was costing. I was paying 1.5% in M&E and considered that low-cost. But my insurance fees were averaging close to $60,000 a year.

I vowed to stop the bleeding before the fees could eat away any more of my earnings. I talked to my financial advisor and he introduced me to Jefferson National's Monument Advisor. It has a simple flat-insurance fee of $20 a month--just $240 per year.¹ That was a lot of money I could be saving.

I exchanged two American Skandia annuities for Jefferson National's Monument Advisor. The process was simple and seamless thanks to Jefferson National's online 1035 exchange kit.² I hope to leave a meaningful legacy for my children and grandchildren with the help of Monument Advisor.

¹Jefferson 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.
²Before exchanging, review current annuities for possible loss of benefits and any surrender charges that may be incurred.
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.

More Conversations with Serious Savers

Thu, 27 Aug 2009 11:54:00 -0400

Aaron Grey, CFP, Partner, Denver Money Manager:

You'd be surprised how many clients don't really understand M&E charges or what they're really paying for in a VA. They get into the product with no guidance as to how they should invest. The next time they give them a look--maybe years later--they're barely posting a return.

I want the lowest fees and best performance for my clients. That's the advantage of Monument Advisor. It has no load, no administrative charges, no surrender fees and no asset based M&E. All the riders are stripped out. There's just one flat-insurance fee of $240 a year fee for tax deferred accumulation, no matter how much you invest.¹

With a flat-insurance fee instead of an asset based M&E, I'm saving my client thousands of dollars every year. In a challenging market like today's, every percentage point in performance counts. Do the math--the flat-insurance fee starts making sense.

¹Jefferson 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. 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.

Conversations with Serious Savers: Part 7

Thu, 20 Aug 2009 14:06:00 -0400

Marvin Gish, Retirement Planning Consultant and Retired Engineer:

Jeff Nat really has the best of both worlds. It has the absolute lowest fee--plus all the funds I could want. I've been using VAs for years. I maxed out my 401(k) and my IRA, and I could have gone into a taxable account, but the benefits of tax-deferral were much more important to me.

The ability to build more wealth for the long term is very important to me. And the savings with tax-deferral is so powerful when you can use something like a Flat-Insurance Fee VA. If you are suddenly paying one-tenth of the cost--and it never goes up--that's a substantial amount that you can re-invest into your account instead of paying to some insurance company for fees. The savings really add up.

Variable Annuities involve risk, including the possible loss principal. 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. Monument Advisor is a variable annuity designed as a long-term investment vehicle that can accumulate investment earnings tax-deferred. Variable Annuities are not suitable for everyone. Investments are subject to risk, including possible loss of principle. A $20 insurance charge is deducted each month and does not increase with contract value; there are no asset-based mortality and expense or administrative charges and no surrender charge. There are other charges that you might pay from your contract value, but only if you elect certain contract and investment options. Withdrawals are subject to ordinary income tax, and if taken before age 59 ½, a 10 percent federal income tax penalty may apply. Monument Advisor is issued by Jefferson National Life Insurance Company (Dallas, TX) and distributed by Jefferson National Securities Corporation, FINRA member. Policy series JNL-2300-1, JNL-2300-2.

Conversations with Serious Savers: Part 6

Wed, 12 Aug 2009 15:50:00 -0400

Ken Benoit, Commercial Real Estate Developer:

Maximizing tax-deferral is very important to me. Not only is tax-deferral essential for retirement planning; I also see it as an effective estate planning tool. By deferring taxes, I can accumulate more, make my money last longer and leave more to my heirs.

I see variable annuities as an excellent alternative to get more access to tax-deferral after maxing out other investments like Keogh's, IRAs, and 401(k)s. And there is such a significant difference with Jefferson National. I was already in a no-load, low-cost VA. But when I saw Jeff Nat's Flat-Insurance Fee VA, I knew I was looking at an annuity that offered top quality fund selection and rock bottom cost. Jefferson National's Monument Advisor is truly the best of the bunch.

Conversations with Serious Savers: Part 5

Thu, 06 Aug 2009 10:37:00 -0400

Jim Pilliod, Retired Marine Engineer and MBA:

What do I think of Jefferson National's Monument Advisor? Their Flat-Insurance Fee is great. I don't know of any other VA with such a reasonable fee structure. How does it compare on cost? Monument Advisor is the best available today. That's it. The best. The savings are great. It allows for better tax-deferred compounding.

VA Riders are not an important factor for me. I am simply interested in the ability to generate more tax-deferred compounding. In my opinion, VA riders would not be worth the extra fees. The more stripped down, the easier it is to understand and the more desirable it is. I want my VA to be nice and clean and easy to understand.

Conversations with Serious Savers: Part 4

Fri, 24 Jul 2009 10:16:00 -0400

Ted Kerr, President of Kerr Financial Group and Investment Advisor Representative with Commonwealth Financial Network:

As the financial quarterback for my clients, it's my job to manage risk and be the specialist for their accumulation and retirement planning strategies. Accumulating wealth is critical in preparing for retirement. And to maximize long-term saving, I believe few things can beat the power of tax deferral. I have very few clients where tax deferral wouldn't be appropriate.

Once clients max out their 401(k)s and IRAs, I've hit on a new alternative that offers the most efficient way to potentially accumulate: Jefferson National's Monument Advisor, the industry's first variable annuity with a flat-insurance fee, designed to help owners save more, faster.

The typical VA charged asset-based fees for everything from M&E to insurance guarantees, and that meant clients weren't saving as much as they could. But a flat-insurance fee VA like Monument Advisor cuts the cost of tax deferral and eliminates fees that can chew up a client's return, giving it the edge over traditional VAs.

Monument Advisor is truly a landmark in the evolution of variable annuities. I really think it's true that Jefferson National is redefining the annuity industry.