Looks like a decent option for those with no tax deferred space and in high tax bracket. Is there a way to get a prospectus without having to give out your personal info?
Thanks for the info.
Chuck wrote:I saw this before, when I was looking for VA info and I was wondering if it was legit. This would be a no-brainer for rolling over my current VA. But I know nothing of the company and their prospects...
Chuck wrote:They charge a $50 transaction fee to buy or sell Vanguard funds, among others. (The transaction fee goes down to $20 for 31+ transactions.)
Probably still not a bad deal still compared to other VA's.
LFT_PFT wrote:What is GMDB?
Dale_G wrote:Well, I am glad to see another company offer a VA with somewhat reasonable fees - and it is refreshing to see a prospectus that is only 76 pages.
The Monument Advisor offers a truck load of funds, and if you need room for TIPS it may be worthwhile, but look carefully before you jump.
The Monument VA looks cheap for a 200K contract if you do not require a guaranteed minimum death benefit (GMDB = to the sum of all of your contributions). Excluding the underlying fund fees the cost for a 200K contract is $240. If you add the GMDB the cost becomes $940 for a total cost (less fund expense ratios) of 0.47%.
If you don't need the TIPS fund, and are willing to settle for Vanguard's offerings, go to Vanguard for a better deal.
Again, neglecting the underlying fund fees, Vanguard charges .295% for the basic VA ($590 for 200k). Adding the GMDB cost 0.05% for a total of $600. It looks like Vanguard is $340 cheaper with the GMDB. In addition, for an additional 0.12%, Vanguard offers an annual step up. In other words the GMDB is adjusted to the highest value obtained on any contract anniversary date.
Young pups may not be interested in guaranteed return of contributions, because over the long term a VA should be held, it is likely that the value of the contract will far exceed the contributions. As a "mature guy" however, I find the stepped up GMDB to be attractive.
I didn't read the entire prospectus or the Statement of Additional Information, but I remain uncertain about the underlying expense ratios of the funds. It appears that most (or all) of the funds are Variable Annuity sub-accounts. I have to wonder if the expense ratios are really the expense ratios of the real underlying funds or whether they include the mortality and expense fees of the sub accounts.
I have a couple of Vanguard VAs in this asset range, I see no need to move.
ddb wrote:Chuck wrote:I saw this before, when I was looking for VA info and I was wondering if it was legit. This would be a no-brainer for rolling over my current VA. But I know nothing of the company and their prospects...
Company-quality shouldn't matter too much. There's no surrender charges, and the assets are held in the subaccounts (not a general asset of the insurance company). There are no guarantees on the contract. Worst-case scenario, if company ever folds you could just move it elsewhere. I don't know what sort of language is in the prospectus providing for the potential for future fee increases, if any. Again, though, could always just move the money.
pascalwager wrote:Jefferson has the entire lineup of DFA VA funds: LV, SV, ILV, IS, STFI, and Global Bond. If you have a few hundred thousand dollars in a VA, then a rollover could bring you down to single-digit basis points for fees. You'd certainly want to minimize rebalancing at $50 per trade. This merits further study.
Socrativestor wrote:Transitioning to JefNat would cut my fees by a few hundred dollars -- which is attractive but not compelling to me, especially given the (perhaps only "apparent") risk of switching to a lesser-known company.
windfall900 wrote:Socrativestor wrote:Transitioning to JefNat would cut my fees by a few hundred dollars -- which is attractive but not compelling to me, especially given the (perhaps only "apparent") risk of switching to a lesser-known company.
Why is this a risk given DDB's point above about company quality not mattering for variable annuities?
Monument Advisor is different from many other variable annuities in a number of fundamental ways. Here’s one that’s particularly appealing: It’s a pure separate account product. This means investors who choose Monument Advisor aren’t exposed to Jefferson National’s credit risk during the period when the annuity is accumulating funds. To understand how this works, read through the simple explanation below. It explains more about separate accounts, insurance guarantees and how this benefit separates you and Monument Advisor from the pack.