1Monument 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.
2Source: Morningstar® 12/16.
3Annual savings are based on an industry average M&E charge of 1.35% (According to MorningstarÂ® 12/16). Monument Advisor's flat annual insurance fee of $240, and a Monument Advisor average contract value of $226,500 (as of 12/16). Before switching from one variable annuity to another, one should consider any surrender charges or expenses that may be incurred.
4Source: "Increasing Income through the Power of Tax Deferral," Ira Weiss, Ph.D., University of Chicago & Matthew Grove, Jefferson National, 2008.
5Past performance is no guarantee of future results.
BasisPoints Difference = (Total Return - Post Tax Return)*100
Percent of Change = (Total Return - Post Tax Return)/Total Return.
Pre-Liquidation After-Tax Return (ATRpre) - The pre-liquidation return reflects the tax effects of fund distributions, such as short-term capital gains, long-term capital gains, and dividends. Shareholders must pay tax on any distributions they receive from the fund in the year in which those payments are distributed. The pre-liquidation after-tax return does not reflect the capital gains/losses that investors might incur from sellingthe fund at the end of the time period. Morningstar also refers to this measure as "Return after Tax on Distributions."
Morningstar makes the following general assumptions for the after-tax return methodology. Many of these assumptions were outlined in the SECâ€™s guidance to mutual fund companies about this calculation.
1) Distributions are taxed at the highest federal tax-rate prevailing for each type of distribution. After-tax proceeds from those distributions are reinvested. 2) The appropriate current or historical federal tax rate is applied to each distribution based on the distribution date. 3) State and local taxes are ignored. 4) The calculation does not reflect the tax effects of the alternative minimum tax, exemptions, phase-out credits, or any individual-specific issues. 5) The returns reflect all recurring built-in fees and non-recurring charges like sales loads. 6) Sales loads are not applied to reinvested distributions. 7) Front-loads are the only fees charged at the start of an investment period. 8) As per industry practice, the deferred load is applied to the lower of either the beginning NAV or the ending NAV of the original shares purchased. 9) If the deferred load is structured on a sliding, time-based scale, Morningstar uses the lower of the two amounts that straddle a specific time period. For example, if a fund has a deferred load of 6% for year 0-1 and 5% for year 1-2, Morningstar will apply the 5% load to the one-year after-tax return calculation.
The Morningstar Tax Cost Ratio measures how much a fundâ€™s annualized return is reduced by the taxes investors pay on distributions. Mutual funds regularly distribute stock dividents, bond dividends and capital gains to their shareholders. For example, if a fund had a 2% tax cost ratio for the three-year time period, it means that on average each year, investors in that fund lost 2% of their assets to taxes. If the fund had a three-year annualized pre-tax return of 10% an investor in the fund took home about 8% on an after-tax basis. (Because the returns are compounded, the after-tax return is actually 7.8%)
6Deposits in excess of $10 million are subject to company approval.
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 1â„2 may incur a 10% IRS tax penalty.
Variable Annuities are issued by Jefferson National Life Insurance Company, (Dallas, TX) and distributed by Jefferson National Securities Corporation, FINRA member. All companies are affiliates of Nationwide Life Insurance Company. Policy series JNL-2300-1, JNL-2300-2, JNL-2300-3.
Form #JNLXXXXX-XXXX. FOR FINANCIAL PROFESSIONAL USE ONLY. NOT FOR PUBLIC USE.
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