Morningstar Advisor - February/March 2013 - (Page I4)

Give us your bonds, your alternatives, your “tax-ugly” assets yearning to be freed. Category #1: Bonds Bond funds are a go-to component of most allocation models. Problem is the interest they generate gets taxed at ordinary income rates. This can create a drag on overall return on bond investments. Solution? Low cost tax-deferral through Jeff erson National’s Monument Advisor. With a fl at-insurance fee of just $20/month1 on average in Conventional VAs2 – versus 135 basis points – our ingenious tax-effi cient solution is a wise choice for locating the bond assets in your clients’ portfolios without sacrifi cing liquidity. More good news: No surrender fees, no commissions, 380+ underlying investment options for the life of the investment3 . And unlike low contribution limits in IRAs and 401(k)s, Monument Advisor off ers virtually unlimited contributions, which may allow that dependable bond income to compound and grow, tax-free. Category #2: Other asset classes With all asset classes considered fair game in the new tax environment – Monument Advisor retains its appeal as an ingenious wrapper for a broad range of investment categories. Conventional VAs are expensive. They tack on a hefty 135 basis points on average. This can eff ectively nullify the positive eff ects of tax-deferral. Monument Advisor charges an aff ordable, fl at $240-a-year taxdeferred for the life of the investment. It also off ers 380+ underlying funds – including other asset classes like REITs and alternatives – that help manage risk. Learn more about Monument Advisor: Call 1.877.893.1827. Or visit jeffnat.com/ingenious 1 Jefferson National’s Monument Advisor has a $20 monthly fl at-insurance fee. 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. 2 MORNINGSTAR® data as of 12/31/11. 3 The IRS may charge a 10% tax penalty on any withdrawal made before age 59½. Variable Annuities involve risk, including possible loss of principal. Please see current product and underlying investment portfolio prospectuses for more complete information. Monument Advisor is issued by Jefferson National Life Insurance Company (Dallas, TX) and distributed by Jeff erson National Securities Corporation, FINRA member. Policy series JNL-2300-1, JNL-2300-2. JNL201206-A088 FOR FINANCIAL PROFESSIONAL USE ONLY. NOT FOR PUBLIC USE. http://www.jeffnat.com/ingenious http://www.jeffnat.com/ingenious

Table of Contents for the Digital Edition of Morningstar Advisor - February/March 2013

Morningstar Advisor - February/March 2013
Contents
Contributors
Letter From the Editor
Social Media, the Old- Fashioned Way
Do You Use Active Strategies?
Youth Appeal
How to Buy the Unloved 2013
Morningstar Managers of the Year
Investments á la Carte
Investment Briefs
Approaches to Absolute-Return Investing
In Agriculture, It’s Good to Be Strong
Yes, There Are Good Active Funds
The Decoupling
Where It Could Pay to Be Active
The Active Fund That Defies Obsolescence
The Epitome of an Active Manager
Lines of Communication
The Existence of Market Timing ‘Intelligence’
A Route to Commodities that Bypasses the Futures Market
Best Positioned for Health-Care Reform
Diversified Stock Funds That Earn Their Stars
Our Favorite Mutual Funds
50 Most-Popular Equity ETFs
Undervalued Stocks With Wide Moats
A Twisted Debate

Morningstar Advisor - February/March 2013