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Investing Principles

Asset Allocation

Balancing Risk and Reward. Ups and downs in the market will likely translate to exhilarating highs and fretful lows when it comes to your investment portfolio. Learning to tolerate these market fluctuations — also called volatility — isn't easy for any investor. But without a big-picture outlook and steady persistence, you may risk upending your investment plan at exactly the wrong time.

Fortunately, an asset allocation strategy may help weather market volatility and keep your long-term investing goals on track.

Benefits of Diversification

With investing, you'll encounter bumps in the road. But you can potentially overcome those obstacles and help manage risk by allocating your assets across different asset types and sticking to a long-term plan.

Asset allocation can involve diversifying* investments with some that are traditionally more stable and others that are more risky but offer greater potential returns. By building a portfolio with a variety of investment types — such as fixed income investments, equities (or stocks) and cash — you have the potential to take advantage of up markets and help minimize the short-term volatility of your portfolio's returns.

Consider the long-term performance of the portfolios in the accompanying graphic. While the 100% equities portfolio had the greater average return, you can see that it also experienced the largest loss. But the portfolio that includes an allocation of equities and fixed income still provided a valuable return with less loss along the way. Depending on your investing objectives — as well as your age, tolerance for risk and current assets — a portfolio with a more diverse asset allocation may be a better fit for you.

*Diversification does not assure a profit or protect against loss in a declining market.

Losses, Gains, And Average Return (January 1926 - December 2018)
Hypothetical infographic on average the average return of equities, bonds and cash.

Source: Ibbotson Associates SBBI Data. ©2019 Morningstar, Inc. All Rights Reserved. Used with Permission. Ibbotson Associates as of January 2019. This information contained herein is: 1) proprietary to Morningstar and/or its content providers; 2) may not be copied or distributed; and 3) is not warranted to be accurate, complete, or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information.

Performance of cash equivalents was measured using the historical IA SBBI 30-day U.S. Treasury Bill yields. Fixed-income performance measured using the IA SBBI U.S. Long-Term Government Bond and IA SBBI U.S. Long-Term Corporate Bond. Equity performance is measured using the Ibbotson SBBI Large Stock Index. These indices are unmanaged. Investors cannot invest directly in an index. Performance reflects the reinvestment of income payments.

Past performance is no guarantee of future results. Chart is for illustrative purposes only and is not representative of the future performance of any particular portfolio or security.

Retirement Calculators
Calculator sitting on top of papers

These calculators will help you determine whether you’re on track for your personal financial goals.

Variable Annuities
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Learn more about the investment and benefit options available in Jackson’s variable annuities (VAs).

Before investing, investors should carefully consider the investment objectives, risks, charges and expenses of the variable annuity and its underlying investment options. The current contract prospectus and underlying fund prospectuses, which are contained in the same document, provide this and other important information. Please contact your representative or the Company to obtain the prospectuses. Please read the prospectuses carefully before investing or sending money.

Annuities are long-term, tax-deferred vehicles designed for retirement. Variable annuities 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.

Jackson® and its affiliates do not provide legal, tax or estate-planning advice. For questions about a specific situation, please consult a qualified advisor.

Annuities are issued by Jackson National Life Insurance Company® (Home Office: Lansing, Michigan) and in New York by Jackson National Life Insurance Company of New York® (Home Office: Purchase, New York). Variable annuities are distributed by Jackson National Life Distributors LLC, member FINRA. May not be available in all states and state variations may apply. These products have limitations and restrictions. Contact Jackson for more information.

Jackson® is the marketing name for Jackson National Life Insurance Company® and Jackson National Life Insurance Company of New York®.

• Not FDIC/NCUA insured • Not bank/CU guaranteed • May lose value •
Not a deposit • Not insured by any federal agency

CMN16262 10/19

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Jackson National Life Insurance Company
1 Corporate Way
Lansing, MI 48951