Prepare for Every Market Condition. Shifts in the economic cycle are inevitable, and the ways those shifts may affect your investments can cause uncertainty, especially when markets are down.
Historically, stocks have done well when the economy grows, and bonds have done well when interest rates fall. But what about when the economy declines or interest rates rise? It's important to strategically diversify* your investments to help prepare for how these economic phases can affect your portfolio.
Elite Access® is a variable annuity investment platform designed to help you seek opportunities and manage risk throughout the economic cycle by providing diverse investment options, alternative assets and strategies, expertly constructed portfolios, and important tax advantages.
*Diversification does not assure a profit or protect against loss in a declining market. Portfolios that have a greater percentage of alternative investments may have greater risks, especially those including arbitrage, currency, leveraging, and commodities. This additional risk can offset the benefit of diversification.
What is a Variable Annuity? Variable annuities are long-term, tax-deferred investments designed for retirement, involve investment risks and may lose value. Earnings are taxable as ordinary income when distributed and may be subject to a 10% additional tax if withdrawn before age 59½.
Markets in Motion
The investment options available in Elite Access provide potential benefits throughout each phase of the economic cycle.
Explore each option below (+) to learn more about the investments, philosophies, expertise, and tax advantages offered by Elite Access.
When the economy is growing, businesses tend to do well and equities, or stock investments, typically appreciate in value. Elite Access offers a wide variety of the most commonly known equity asset classes as well as unique options such as micro cap, frontier, and emerging markets. You'll also have access to international opportunities as well as low-cost index, sector, and passively managed options.
Fixed income investments, such as bonds, provide another source of diversification from market risk because they are not typically correlated to the performance of the stock market — you're essentially loaning money to a corporation or government entity and receiving a set interest payment for a specified period. As such, many fixed income investments can benefit from declining interest rates while others, such as floating rate and Treasury Inflation-Protected Securities (TIPS), may benefit from rising interest rates.
Alternative assets offer exposure beyond the traditional equity portion of your portfolio. This gives you the opportunity to further diversify, because alternative assets typically perform well in inflationary environments. When preparing for any market cycle, it's important to consider evolving portfolios by adding alternative assets.
During periods when the economy is facing a decline, or interest rates are low, it may be effective to consider alternative strategies that seek opportunities to generate results similar to bonds. Various management styles and strategies such as long/short, arbitrage, and managed futures can help prepare for market downturns.
Tactical management is designed to provide asset allocation flexibility that adjusts to all market cycles — positive and negative. Expert analyses, provided by some of the most reputable names in the business, help identify perceived market trends, cyclical opportunities, and/or risks in the markets.
Risk management has always been an integral part of investing, but the methods of doing so have evolved. Using proprietary analysis, choose from a range of investment options that reactively or proactively seek capital preservation or volatility reduction while pursuing upside return potential.
The world of global finance may be complicated, but that doesn't mean investing needs to be. Under the direction of Jackson National Asset Management (JNAM†), Guidance Portfolios contain the individual benefits of Elite Access in preconfigured, expertly constructed investments that are subject to a systematic due diligence process and continuous portfolio monitoring. You can choose between Focused Guidance Portfolios, centered on a single asset class; or Diversified Guidance Portfolios, which employ multiple asset classes and management styles.
†Jackson National Asset Management, LLC® ("JNAM") is an investment adviser registered with the U.S. Securities and Exchange Commission. JNAM is also a commodity pool operator registered with the U.S. Commodity Futures Trading Commission and is a member firm of the National Futures Association. JNAM is the investment adviser to the "Funds," which are investment companies (sub-accounts) that underlie the Jackson variable products. Nothing contained herein is investment advice, and nothing contained herein is a solicitation for investment advisory services or the sale of commodity pool interests. JNAM is an affiliate of Jackson National Life Distributors LLC and Jackson National Life Insurance Company.
Even if you're not in the highest income tax bracket, today's tax environment can make it difficult to build wealth. Fortunately, variable annuities can minimize the impact of tax-inefficient assets by allowing your investments the opportunity to grow tax-deferred† until you're ready to take a withdrawal. This way your investment returns can compound throughout all phases of the economic cycle.
†Tax deferral offers no additional value if an annuity is used to fund a qualified plan, such as a 401(k) or IRA, and may be found at a lower cost in other investment products. It also may not be available if the annuity is owned by a "non-natural person" such as a corporation or certain types of trusts.