I am very interested in purchasing a VA offered by Jefferson NationalLife called "Monument Advisor". This product is very appealing to mefor these reasons: 1) You pay a flat fee for M&E expenses of $20.00 per month. Thisis guaranteed to remain constant during the life of the contract.2) They offer about 165+ (and growing) funds as investmentoptions. Most of these funds are with well-known, well-establishedfund families.Obviously, this product is designed for someone like me who is justinterested in growing assets tax deferred and not interested in anyinsurance features. After researching this product, the only possiblefly in the ointment that I can find is that the insurance companyitself (Jefferson National Life) has a B+ rating.Should this concern me at all? My understanding is if the insurancecompany should go belly-up, my funds will be safe because in VAproducts they are held at the actual mutual fund institutions insteadof the insurance company. Am I correct on this or is there somethingelse that can bite me should something go amiss with the company? Youropinions shall be greatly valued and appreciated.

I have to ask one question of you - by deferring the taxes, you turn dividend and long term cap gain treatment into ordinary income. And run the risk of this income putting you into the bizarre social security tax bubble where an individual can pay a phantom 46.25% on net taxable income of just $32K or so. I know that with such a low annual fee, Jefferson National has no salesman about to put his kids through college at your expense, that's a good thing, but I wonder what you feel the benefit is. I've written some negative things about VAs, but still would like to know if there is a specific scenario, i.e. pre-retirement age, income, etc, and then post retirement details, which combine to form the ideal candidate for whom the low cost VA is a clear benefit over post tax accounts.JOE

How important is a Variable Annuitys Insurance Company Rating

Aug 09, 2007 21 Replies

Rate this thread:

Tad Borek 18 years ago

I believe this is called "irony."

-Tad

Disclosure: I am not a professional editor, but I did score a 60+ on my Test of Standard Written English in 1983.

Vote

Will Trice 18 years ago

I'm not sure that what you say is true, Elle. Particularly in this case. All kastnna said was "FWIW I am pro-VA, not anti." But the tone of his posts were anti-VA for this situation. Why should that require disclosure? Particularly since he did not attempt to sell an alternative, nor attempt to "generate buzz" about some other product. When *you* suggest mutual funds, you do not disclose your ownership (or lack therof) of those funds, yet that may have ethical ramifications. In the example you gave, the engineer's remarks could have been construed as "generating buzz", hence the disclosure. Kastnna did neither of these things.

-Will

Disclosure: I have ethics.

Vote

Join the Discussion

Have something to add? Share your thoughts — no account required.

Didn't find your answer?

Ask the community — no account required