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Investing Principles


Regaining Your Focus. Investing can sometimes feel like a balancing act. You want your assets to grow, but you don't want to expose yourself to too much risk. Allocating assets strategically between equities (also known as stocks) and fixed income (such as bonds) can help balance potential risks and rewards. But as time goes by, the investments in your portfolio may grow at different rates, causing your portfolio to become unbalanced. To get your investments back to their original allocation, consider setting up your portfolio to automatically rebalance.

The Benefits of Rebalancing

Electing to automatically rebalance your portfolio at regular intervals — quarterly, semiannually or annually — allows you to realign your investments to reflect your desired asset allocation.

As seen in the accompanying example, the initial $100,000 investment allocated 60% to equities and 40% to fixed income. But after 20 years, the portfolio's allocation had become unbalanced due to market performance. Equities, which inherently carry more risk, accounted for a larger percentage of the portfolio's assets, which may not be in line with the investor's tolerance for risk and long-term objectives. You can see that, had the portfolio been rebalanced quarterly over a 20-year period, risk levels would have remained in line with the original goals — and, perhaps most importantly, the value of the portfolio would've been nearly $12,000 higher.

A Strategy For Staying The Course
Hypothetical infographic for staying the course when investing for retirement.

Source: Lipper, a Thomson Reuters Company. Time periods, reflecting a strong stock market and a strong bond market, respectively, are based on performance of the following indices from 12/31/1998-12/31/2018. Equity performance is represented by the S&P 500®. Fixed Income is represented by the Barclays US Aggregate Bond Index. Indices are unmanaged and not available for direct investment.

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.

Systematic investment programs do not assure a profit or protect against loss in a declining market. They involve continuous investing regardless of fluctuating price levels. Investors should consider their ability to continue investing through periods of fluctuating market conditions.

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

Education for Everyone
Financial Freedom Studio®

Gain valuable insight into financial and life planning.

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

CMN16263 10/19

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1 Corporate Way
Lansing, MI 48951