Jeff Nat Monument Advisor ebook

Monument Advisor ebook

Flat is beautiful.®

Monument Advisor: Insights, Answers & Benefits Imagine a no-load, Investment-Only Variable Annuity (IOVA) that provides greater potential accumulation, total transparency and the most underlying funds in the industry across all asset classes. That’s Monument Advisor from Jefferson National.

Inside ANNUITY RESCUE: How a tax-free 1035 exchange can rescue your clients’

retirement assets from unnecessary fee drag.

ASSET LOCATION: How a simple asset location strategy that leverages our

low-cost IOVA can potentially add 1-2% of additional performance every year.

Inside Monument Advisor 1

What is Monument Advisor?

2

How to Save Clients Thousands in Fees with Annuity Rescue PAGE 3

3

Harness the Power of Tax Deferral

4

Using Asset Location to Increase Performance

5

What our Powerful Platform Means to your Practice

6

Who Benefits from Monument Advisor?

7

Implementing Monument Advisor into your Practice PAGE 19

8

Contact Us

PAGE 21

PAGE 1

PAGE 5

PAGE 11

PAGE 7 PAGE 9

JEFFNAT Monument Advisor ebook

WHAT IS MONUMENT ADVISOR? | ANNUITY RESCUE | THE POWER OF TAX DEFERRAL | ASSET LOCATION A POWERFUL PLATFORM | WHO BENEFITS FROM MONUMENT ADVISOR? | IMPLEMENTATION | CONTACT page 1

1 What is Monument Advisor?

Monument Advisor is an authentic Investment-Only Variable Annuity (IOVA.) This flat-fee annuity provides greater potential accumulation, is totally transparent and offers the most underlying funds in the industry across all asset classes1. Traditional VAs are sold for their guarantees. Monument Advisor is different — it’s recommended for clients who have expensive legacy VAs with costly fees, need additional tax deferral, are looking to accumulate more assets for retirement, or employ tax-sensitive strategies that could benefit from a tax-deferred wrapper.

WHAT IS MONUMENT ADVISOR? | ANNUITY RESCUE | THE POWER OF TAX DEFERRAL | ASSET LOCATION A POWERFUL PLATFORM | WHO BENEFITS FROM MONUMENT ADVISOR? | IMPLEMENTATION | CONTACT page 2

What differentiates Monument Advisor from conventional VAs? •

$20-per-month2 regardless of the size of the account. This fee is locked in for the life of the contract

• No commissions • No surrender charges3 • No M&E expenses4

•

Average client fee savings: $3,100 per year over conventional VAs5

• Reducing fees helps unlock greater

• No load • Best-in-class account management

accumulation potential by compounding the power of tax deferral • Totally transparent. Easy to use.

Easy to understand Learn more about our innovative IOVA.

380

UNLIMITED TRADING OF NEARLY 380 FUND OPTIONS

WHAT IS MONUMENT ADVISOR? | ANNUITY RESCUE | THE POWER OF TAX DEFERRAL | ASSET LOCATION A POWERFUL PLATFORM | WHO BENEFITS FROM MONUMENT ADVISOR? | IMPLEMENTATION | CONTACT page 3

2 Annuity Rescue: A tax-free 1035 exchange rescues clients from restrictive and expensive legacy VAs.

Additional Client Accumulation with Monument Advisor vs. Traditional VA Accumulated Value Over 20-Year Investment Horizon Monument Advisor generates

$180,488 more than Average VA. Projection based on an assumed annual growth rate (6%).

Monument Advisor

Monument Adviso Average VA 900k

Average VA

800k Annual savings are based on an industry average M&E charge of 1.35%. Monument 700k Advisor’s flat annual insurance fee of $240, and a Monument Advisor average contract value of $248,000 (as of 12/14).

600k 500k

or

WHAT IS MONUMENT ADVISOR? | ANNUITY RESCUE | THE POWER OF TAX DEFERRAL | ASSET LOCATION A POWERFUL PLATFORM | WHO BENEFITS FROM MONUMENT ADVISOR? | IMPLEMENTATION | CONTACT page 4

• Monument Advisor can rescue your

clients from legacy VAs, their lockedin rates, lack of fund options and other restrictions • By exchanging VAs to Monument

Advisor, clients save an average

of $3,100 in fees annually

• Our Annuity Comparison Calculator

• A 1035 exchange does not create a

will show you and your clients exactly how much they’ll save, how much more they could accumulate over time, and even when they’ll break even if they’re in a surrender period with their existing VA. (Please review your client’s current policy and prospectus for surrender charges and/or loss of benefits.)

taxable event • Our Concierge Staff will complete

the paperwork for you Visit our Concierge Service to get started saving clients thousands in fees.

$900k

$786,541

800k 700k

$606,053

600k 500k 400k 300k YEARS 0

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

WHAT IS MONUMENT ADVISOR? | ANNUITY RESCUE | THE POWER OF TAX DEFERRAL | ASSET LOCATION A POWERFUL PLATFORM | WHO BENEFITS FROM MONUMENT ADVISOR? | IMPLEMENTATION | CONTACT page 5

3 The Power of Tax Deferral: The Monument Advisor IOVA offers virtually unlimited tax deferral for clients who have maxed out 401(k)s and IRAs. Also for clients who’ve received a sizable inheritance, or significant payouts (such as a bonus), or had larger events such as profits from a recent business sale.

WHAT IS MONUMENT ADVISOR? | ANNUITY RESCUE | THE POWER OF TAX DEFERRAL | ASSET LOCATION A POWERFUL PLATFORM | WHO BENEFITS FROM MONUMENT ADVISOR? | IMPLEMENTATION | CONTACT page 6

Large cash flow events like these can create significant tax obligations.

This diminishes the amount of money your clients will net.

But investing with Monument Advisor can cushion the annual tax burden — and may improve portfolio performance by 100 bps without increasing risk.

With nearly 380 investment options, advisors can build client portfolios tailored to specific retirement needs — and risk tolerances. Morningstar reports that investment portfolios not managed for tax efficiency over the last 70+ years may have given up 1-2% (100 - 200 bps) in additional performance. That’s $10,000-$20,000 of lost opportunity for every $1,000,000 invested. Our research shows that low-cost tax deferral from our tax-advantaged account can help clients claim that back — without increasing risk.

(Source: Increasing Income through the Power of Tax Deferral, Ira Weiss, Ph.D., University of Chicago & Matthew Grove, Jefferson National, 2008).

Conventional VAs come with expensive guarantees, high cost, complexity and lengthy lock-up periods that mitigate the benefit of tax deferral. But Monument Advisor’s transparent $20/month flat fee allows clients’ assets to accumulate and compound — preserving net worth.

Run a comparison with our Tax Deferral Comparison Calculator to see how The Power of Tax Deferral can increase your clients long-term wealth.

Take action through these easy steps: 1

2

3

IDENTIFY CLIENTS

Use the

Use the

TAX DEFERRAL COMPARISON CALCULATOR to find

ONLINE APPLICATION

who’ve maxed out traditional qualified accounts or who’ve had large cash flow events.

potential increases in accumulation and retirement income with Monument Advisor.

to harness the Power of Tax Deferral for your clients today.

WHAT IS MONUMENT ADVISOR? | ANNUITY RESCUE | THE POWER OF TAX DEFERRAL | ASSET LOCATION A POWERFUL PLATFORM | WHO BENEFITS FROM MONUMENT ADVISOR? | IMPLEMENTATION | CONTACT page 7

4 Asset Location: How locating assets in the right investment vehicle can potentially increase performance without increasing risk and add to an investor’s long-term wealth.

Tax-efficiency is a key component in an advisor’s investment strategy.

Our IOVA can be used as a wrap product, allowing clients to invest in tax-inefficient asset classes such as Fixed Income, REITS, Commodities, and Alternatives without the immediate tax consequences that hinder accumulation.

Analysis suggests that by using Monument Advisor, tax-inefficient assets can enjoy 100 bps better performance annually without increasing risk.

And Morningstar puts the number as high as 200 bps.

WHAT IS MONUMENT ADVISOR? | ANNUITY RESCUE | THE POWER OF TAX DEFERRAL | ASSET LOCATION A POWERFUL PLATFORM | WHO BENEFITS FROM MONUMENT ADVISOR? | IMPLEMENTATION | CONTACT page 8

Most choices.

•

Nearly 380 funds from more than 40 fund families — including more than 70 alternatives

•

100% liquid, easy-to-access assets (The IRS may charge a 10% tax penalty on any withdrawal made before age 59½.)

• All assets held in separate accounts

Use our Tax Deferral Comparison Calculator to put Asset Location to work for your clients.

Tax-Smart Investing with Monument Advisor By investing more of your clients’ tax-inefficient assets in our tax-deferred IOVA they can potentially accumulate substantially more assets for retirement. Use our Tax Deferral Comparison Calculator to see just how much.

(Click here to learn more)Advisor generates Monument Age

65 Monument Advisor

Monument Advisor has

Age

$444,020

$1,194,272

86

more than a taxable account.

left when the taxable account runs out.

1,500k

Taxable Account

1,200k 900k Monument Advisor Taxable Account

1,500k 600k

1,200k 300k 0 900k 45

Assumptions

50

Distribution Age 600k

55

60

Initial Contribution After-Tax Dollars Withdrawn Per Year Distribution Income Tax Rate

300k

65

70

65 $248,000 $50,000 28%

75

80

Horizon Portfolio Type Income Tax Rate Inflation Rate

85

90

95 Moderate 39.6% 2.0%

95

WHAT IS MONUMENT ADVISOR? | ANNUITY RESCUE | THE POWER OF TAX DEFERRAL | ASSET LOCATION A POWERFUL PLATFORM | WHO BENEFITS FROM MONUMENT ADVISOR? | IMPLEMENTATION | CONTACT page 9

5 A Powerful Platform: JeffNat delivers a powerful management platform to RIAs and independent advisors. Making it seamless to manage client assets, make trades, and view client statements and other important account information.

Our account management platform is best-in-class in the VA industry.

JeffNat offers convenient account visibility on statements and custodial platforms by partnering with technology providers like iRebal, Pershing, TradePMR, ByAllAccounts, NFS, Envestnet, Tamarac, Advent, Black Diamond and others to offer seamless integration.

Whether you’re a buy-and-hold or active manager, Monument Advisor offers efficiencies, flexibility, low-cost, choice and all the other factors that make managing client dollars easier.

WHAT IS MONUMENT ADVISOR? | ANNUITY RESCUE | THE POWER OF TAX DEFERRAL | ASSET LOCATION A POWERFUL PLATFORM | WHO BENEFITS FROM MONUMENT ADVISOR? | IMPLEMENTATION | CONTACT page 10

• Designed specifically for RIAs and

fee-based advisors • Open, flexible technology platform

• Integrates well with aggregation

platforms and data services like DST Fanmail

simplifies account management with models, mass transactions, fee management and more

EFFICIENCY

FLEXIBILITY

BEST-IN-CLASS LOW-COST

2014 MarCom Gold Award Website: Financial Services MarCom gives its Website awards for form, function and ease of use.

They voted ours good as gold.

CHOICE

WHAT IS MONUMENT ADVISOR? | ANNUITY RESCUE | THE POWER OF TAX DEFERRAL | ASSET LOCATION A POWERFUL PLATFORM | WHO BENEFITS FROM MONUMENT ADVISOR? | IMPLEMENTATION | CONTACT page 11

6

WHAT IS MONUMENT ADVISOR? | ANNUITY RESCUE | THE POWER OF TAX DEFERRAL | ASSET LOCATION A POWERFUL PLATFORM | WHO BENEFITS FROM MONUMENT ADVISOR? | IMPLEMENTATION | CONTACT page 12

Who benefits from Monument Advisor?

WHAT IS MONUMENT ADVISOR? | ANNUITY RESCUE | THE POWER OF TAX DEFERRAL | ASSET LOCATION A POWERFUL PLATFORM | WHO BENEFITS FROM MONUMENT ADVISOR? | IMPLEMENTATION | CONTACT page 13

Clients looking to create a Retirement Income stream.

With Monument Advisor you may be able to create more reliable retirement income streams for clients who: 1

Are approaching retirement or are currently retired

2

Need more accumulation through their retirement years

3

Seek protection of retirement assets and income generation to meet goals

4

And/or require flexibility to change investments or make unscheduled withdrawals when life throws a curve

WHAT IS MONUMENT ADVISOR? | ANNUITY RESCUE | THE POWER OF TAX DEFERRAL | ASSET LOCATION A POWERFUL PLATFORM | WHO BENEFITS FROM MONUMENT ADVISOR? | IMPLEMENTATION | CONTACT page 14

In today’s tough market, the retirement income challenge continues to increase.

More than two-thirds (71%) of advisors say the biggest challenge to generate sufficient income is a combination of three key factors: a low yield environment, maintaining adequate equity exposure and managing volatility.

Faced with a failing safety net and longer life-spans, experts agree most Americans still need to save more — and their number-one concern is outliving their savings.

JeffNat offers investment options specifically designed for downside protection, principal protection and income generation. This is a clear advantage to RIAs and fee-based advisors — because it may create superior

retirement income for their clients. Direct access to these volatility-managed strategies at a fixed cost of $20-per-month may reduce fees paid to expensive traditional VAs for similar strategies by half.

(IRI Factbook, 11th Edition).

Even if your client’s retirement income needs to change, JeffNat provides the flexibility to meet these demands. Your client is never locked up in any investments or committed to any pre-defined income stream through forced annuitization (prior to age 100).

You and your clients remain in control with more choice of funds to manage the Retirement Income challenge.

Test drive our Retirement Income Comparison Calculator.

In the past variable annuities with income guarantees have been a popular retirement income tool. The downside to this solution is the high M&E charges as well as guarantee rider charges — frequently the cost of all these fees is greater than 2%-3% per year. Our recent whitepaper “A New Approach to Retirement Income: Next-Gen vs. Traditional VAs” examines when the cost of a VA with a guaranteed income rider is worth the cost of the additional protection it provides, and when a low-cost IOVA can replicate a rider’s guaranteed income payments. Download the Key Findings to see which is right to manage your clients retirement income needs.

WHAT IS MONUMENT ADVISOR? | ANNUITY RESCUE | THE POWER OF TAX DEFERRAL | ASSET LOCATION A POWERFUL PLATFORM | WHO BENEFITS FROM MONUMENT ADVISOR? | IMPLEMENTATION | CONTACT page 15

Clients needing to diversify their portfolios with Alternative Investments.

Alternatives in the Monument Advisor IOVA enable you to create and manage client portfolios like the endowments.

This allows you to manage risk and diversify client portfolios by allocating assets to investments with low correlations to the broader market — the same types of liquid alternative investments typically made available only to institutional investors.

Some large endowments like Harvard and Yale leverage alternative investments like these to protect their principal from market corrections and volatility. What’s more, non-traditional asset classes have historically generated higher yield and turnover than traditional asset classes, which make them particularly well suited for a tax-deferred IOVA. Among the broad choice of nearly 380 underlying funds, the low-cost Monument Advisor IOVA offers over 70 alternative underlying funds.

70

You can utilize these typically tax-inefficient assets (REITs, currencies, long/short, and hedging strategies) in this tax-advantaged account to protect against high turnover, short-term cap gains, dividends, and other taxable events that may erode performance — all for just $20-per-month.

Learn why Barron’s voted Monument Advisor the Top VA.

AMONG THE BROAD CHOICE OF NEARLY 380 UNDERLYING FUNDS, THE LOW-COST MONUMENT ADVISOR TAX-ADVANTAGED ACCOUNT OFFERS OVER 70 ALTERNATIVE UNDERLYING FUNDS.

WHAT IS MONUMENT ADVISOR? | ANNUITY RESCUE | THE POWER OF TAX DEFERRAL | ASSET LOCATION A POWERFUL PLATFORM | WHO BENEFITS FROM MONUMENT ADVISOR? | IMPLEMENTATION | CONTACT page 16

TOP VA WITH ALTERNATIVES 2013 AND 2014

“Sales of the top variable-annuity contract on our list, Jefferson National’s Monument Advisor, were up 77%, to $727 million last year.”

– Barron’s

Average Yield and Turnover of Asset Classes Alternative asset classes have historically generated higher yield and turnover than traditional asset classes, which make them particularly well suited for low-cost tax-deferred variable annuities.

Asset-Weighted Average Yield and Turnover 2011 – 2013, US Mutual Funds 8 7

US High Yield Commodities

Average Yield (%)

6 Emerging Market Debt

5

Leveraged Loans

4

International Small Cap

3 2

EAFE Equity US Mid Cap

1 0k

0

US Real Estate International Real Estate US Large Cap Value Emerging Market Equity US Small Cap US Large Cap Growth

50

Alternatives

100 Average Turnover (%)

150

200

WHAT IS MONUMENT ADVISOR? | ANNUITY RESCUE | THE POWER OF TAX DEFERRAL | ASSET LOCATION A POWERFUL PLATFORM | WHO BENEFITS FROM MONUMENT ADVISOR? | IMPLEMENTATION | CONTACT page 17

Pragmatic investors looking to protect their principal.

For clients seeking principal protection, Monument Advisor offers investment options designed to manage tail risk and potentially protect the downside.

Advisors have typically used tactical management, hedging strategies, liquid alternatives, and managed volatility investment options to protect assets from down markets and instability. These strategies can eat away at return through frequent trades and unfavorable tax treatment, or generate other taxable events.

Monument Advisor offers no principal protection guarantees, but advisors have direct access to the investment options and managers that insurance companies use to create these guarantees — but for half to a third of the cost, with the added bonus of tax deferral.

Learn more about protecting principal.

Principal Protection Solutions available though Monument Advisor include: 1

Sophisticated INSTITUTIONAL MANAGEMENT 2

ETF portfolios using TACTICAL ASSET ALLOCATION, combining both quantitative and fundamental methodologies, to optimize return 3 TAIL RISK PROTECTION and RISK MANAGEMENT

WHAT IS MONUMENT ADVISOR? | ANNUITY RESCUE | THE POWER OF TAX DEFERRAL | ASSET LOCATION A POWERFUL PLATFORM | WHO BENEFITS FROM MONUMENT ADVISOR? | IMPLEMENTATION | CONTACT page 18

Clients in need of Legacy Planning solutions.

Poor planning, gift taxes and state taxes can compromise a family legacy for highnet-worth clients. Fortunately, Monument Advisor offers tremendous flexibility for trust structures, and on-board product features like the Non-Qualified Stretch provision to help ease the burden of legacy planning6. compound. But that isn’t where the benefit ends — variable annuities also provide control over any distributions the trust makes, and since Monument Advisor doesn’t lock up client assets in draconian surrender periods, you have the flexibility to transfer wealth with unprecedented liquidity, control, and transparency.

The compounding power of low-cost tax deferral can improve accumulation and secure a brighter future for the loved ones and favored charities in your clients’ legacy plans. Taxdeferred asset accumulation is the foundational advantage of the VA structure. And there’s no mystery why. The longer tax obligations are deferred, the longer assets can build and

Discover how to better control your clients’ Legacy Planning assets.

A few of the benefits of using Monument Advisor for Legacy Planning: 1 INCREASE ACCUMULATION for later distribution to the

remainder beneficiaries — charity, kids, grandkids 2

MINIMIZE, DELAY OR ELIMINATE INCOME that must be paid to the income beneficiary

3 CONTROL TIMING of and possibly reduce beneficiary’s tax burden

WHAT IS MONUMENT ADVISOR? | ANNUITY RESCUE | THE POWER OF TAX DEFERRAL | ASSET LOCATION A POWERFUL PLATFORM | WHO BENEFITS FROM MONUMENT ADVISOR? | IMPLEMENTATION | CONTACT page 19

7 Implementing Monument Advisor Into Your Practice After opening a JeffNat account, you may begin using our award winning account management platform right away. Integrating Monument Advisor into your practice is simple and efficient.

Sign up for access now.

WHAT IS MONUMENT ADVISOR? | ANNUITY RESCUE | THE POWER OF TAX DEFERRAL | ASSET LOCATION A POWERFUL PLATFORM | WHO BENEFITS FROM MONUMENT ADVISOR? | IMPLEMENTATION | CONTACT page 20

1 RELEVANT FUND OR PLATFORM-RELATED ALERTS are clearly displayed as soon as you log-in.

2 ACCOUNT-LEVEL ALERTS offer quick, actionable information about the state of your client accounts so you can act effectively.

3 Make changes to contracts individually, or use the MASS AND MODEL TRADING FUNCTIONALITY to manage client groups with minimal clicks.

4 The CLIENT ACCOUNT SUMMARY screen allows you to review account-specific details such as investment allocations, trade history and performance.

5 Our convenient FEE MANAGEMENT TOOL allows you to bill clients individually, or together in a batch.

6 CHARGE FEES PRO-RATA across all funds or specify funds — and you can charge a fee or bill as a percentage of assets.

7 See ALL client statements in a single AGGREGATED REPORT.

WHAT IS MONUMENT ADVISOR? | ANNUITY RESCUE | THE POWER OF TAX DEFERRAL | ASSET LOCATION A POWERFUL PLATFORM | WHO BENEFITS FROM MONUMENT ADVISOR? | IMPLEMENTATION | CONTACT page 21

8

JEFFNAT Monument Advisor ebook page 22

Contact Us: www.jeffnat.com Jefferson National Life 10350 Ormsby Park Place Louisville, Kentucky 40223 866.667.0564

According to Morningstar, the average VA has 45 underlying funds. 12/31/2014

1

Jefferson National’s Monument Advisor has a $20 monthly flat insurance fee. Additional low-cost fund platform fees ranging from .10% - .35% will be assessed for investors wishing to purchase shares of low-cost funds. See the prospectus for details. Certain low-cost funds may only be available to you if you retain certain investment advisors.

2

The IRS may charge a 10% tax penalty on any withdrawal made before age 59 ½.

3

Jefferson National’s Monument Advisor has a $20 monthly flat insurance fee. Additional low-cost fund platform fees ranging from .10% - .35% will be assessed for investors wishing to purchase shares of low-cost funds. See the prospectus for details. Certain low-cost funds may only be available to you if you retain certain investment advisors.

4

Annual savings are based on an industry average M&E charge of 1.35%. Monument Advisor’s flat annual insurance fee of $240, and a Monument Advisor average contract value of $249,000 (as of 12/14).

5

Stretching is suitable for individuals who will not need the money in the account for their own retirement. There are risk associated with stretching, such as changes to tax laws and the impact of inflation.

6

Variable annuities are subject to market fluctuation and risk. Principal value and investment returns will fluctuate and you may have a gain or loss when money is withdrawn. Variable annuities are long-term investments to help you meet retirement and other long-range goals. Withdrawals 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. Variable Annuities are issued

by Jefferson National Life Insurance Company, (Dallas, TX), or Jefferson National Life Insurance Company of New York (New York, NY) and distributed

by Jefferson National Securities Corporation, FINRA member. Policy series JNL-2300-1, JNL-2300-2, JNL-2300-3, JNL-2300-1-NY. JNL201502-A013

Flat is beautiful.®