CONFIDENCE IN RETIREMENT
Whether you’re approaching retirement or already retired, today’s combination of confusing signals from the economy, the potential for additional market downturns and rising retirement costs may have you looking for ways to help maintain your lifestyle in retirement. It’s important to look for solutions designed to help grow and protect your retirement savings, while also providing a source of guaranteed income you can’t outlive. Fortunately, there is a potential solution.
A fixed indexed annuity designed to provide growth opportunities and protect your retirement savings from negative markets. As a solution to today’s unique retirement challenges, an annuity can help provide:
Growth Opportunities: Your contract may increase in value based on the positive performance of one or more indices
100% Principal Protection: Your principal and any credited earnings are 100% protected from negative index performance
Lifetime Income: Many annuities offer optional guaranteed lifetime income riders.
FIXED INDEX ANNUITY
A fixed indexed annuity is a contract you buy from an insurance company to help you potentially accumulate assets for retirement. It offers returns based on the changes in an index, such as the S&P 500® composite price index. Regardless of index performance, indexed annuity contract values will not be impacted by negative index returns. Please keep in mind:
A fixed indexed annuity is not a stock market investment and does not directly participate in any stock or equity investment.
A fixed indexed annuity may be appropriate for those individuals who want the opportunity to capture upside potential while having a level of protection from market downturns.
Lifetime income may be provided through the purchase of an optional rider for an additional cost or through annuitization at no additional cost.
Withdrawals taken before age 59½ may incur a 10% early withdrawal federal tax penalty in addition to ordinary income taxes; withdrawals may trigger Surrender Charges, reduce your death benefit and contract value, and may also reduce any guaranteed lifetime withdrawal benefits
TERMS AND DEFINITIONS
Contract basics; Contract Value: The contract value is the sum of your purchase payment and credited strategy earnings minus rider charges and withdrawals; calculated by adding the Strategy Values for each Strategy Option.
Return of Purchase Payment Guarantee: Clients receive 100% of their purchase payment, less the sum of gross withdrawals, if the contract is surrendered after the conclusion of the Surrender Charge period or, the death benefit is payable or, a full surrender is executed on or after a long-term care or terminal illness or injury event. If the EDB Rider with Bonus is elected, clients receive 100% of their purchase payment plus their purchase payment bonus.
Daily Accumulation Value (DAV): Monitors the combined daily fluctuations of the elected strategy options and is the greater of the contract value plus any unrealized strategy earnings (earnings not yet credited to the contract) or the Return of Purchase Payment Guarantee amount.
Death Benefit: The greater of the DAV or the surrender value. A joint option is also available, which ensures a death benefit (or lifetime income) will be paid out no matter who passes away first. The surviving spouse may choose to continue the contract or take a lump-sum payout of the death benefit.
Index Allocation: A percentage that represents the proportion of the strategy option that is associated with the performance of the index
Declared Rate: An interest rate established by Nationwide
Declared Rate Allocation: A percentage that represents the proportion of the strategy option that is multiplied by the declared rate
Strategy Spread: An annual percentage rate that is deducted when calculating strategy earnings but will never cause earnings to be less than zero for any strategy term
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Strategy Term: A specific number of years used to measure strategy earnings