The Nationwide Income Promise Select Annuity is a fixed immediate annuity offered by Nationwide. It provides a guaranteed and stable income stream that can start immediately in exchange for a single lump-sum payment. The payment amount is set and cannot be affected by market fluctuations, ensuring that your retirement income is shielded from market risk. Additionally, if you invest money you’ve already paid taxes on, part of each guaranteed payment will be tax-free. This annuity is designed to provide retirement income for as long as you need it, making it a suitable option for retirement planning.
Key Takeaways:
- The Nationwide Income Promise Select Annuity is a fixed immediate annuity offered by Nationwide.
- It provides a guaranteed and stable income stream
- The payment amount is not affected by market fluctuations
- Part of each guaranteed payment may be tax-free if you’ve already paid taxes on the invested money
- Designed to provide retirement income for as long as you need it
Features And Benefits Of The Nationwide Income Promise Select Annuity
The Nationwide Income Promise Select Annuity offers several key features and benefits that make it a valuable option for retirement planning. As a fixed immediate annuity, it provides guaranteed income for as long as needed, ensuring financial security during retirement.
Liquidity Feature
One notable feature of the Nationwide Income Promise Select Annuity is its liquidity feature. This allows you to withdraw up to 100% of the liquidity value of your guaranteed payments at any time during the liquidity period. This flexibility provides access to your money when needed, offering peace of mind and financial stability.
Cost-of-Living Adjustment (COLA)
Another significant benefit of this annuity is electing a cost-of-living adjustment (COLA) at contract issuance. With COLA, you can increase your annual payment by a chosen percentage compounded annually (1%, 2%, 3%, 4%, or 5%). This adjustment helps protect your income against inflation, ensuring that your purchasing power remains intact.
It’s important to note that the availability of COLA percentages may vary based on the contract’s tax status and the contract owner’s age. Consulting with a financial advisor can help you determine the most suitable COLA option for your needs and circumstances.
Guaranteed Income and Stability
The Nationwide Income Promise Select Annuity gives you the peace of mind of a guaranteed income stream. By converting a lump-sum payment into regular payments, you can ensure a consistent and reliable source of income throughout your retirement.
| Key Features | Benefits |
|---|---|
| Liquidity Feature | – Provides the flexibility to withdraw up to 100% of the liquidity value of your guaranteed payments |
| Cost-of-Living Adjustment (COLA) | – Protects your income against inflation by increasing your annual payment based on a chosen percentage |
| Guaranteed Income and Stability | – Ensures a consistent and reliable income stream throughout retirement |
By considering the key features and benefits of the Nationwide Income Promise Select Annuity, you can decide whether it aligns with your retirement goals and financial needs.
Potential Drawbacks Of The Nationwide Income Promise Select Annuity
While the Nationwide Income Promise Select Annuity provides guaranteed income and a range of features, it’s crucial to consider certain potential drawbacks before making a purchase decision.
One important aspect to be aware of is that, like other annuities, this annuity may have associated fees and taxes. When you make withdrawals from an annuity, they are typically taxed as ordinary income. It’s essential to remember that if you are younger than 59½, you may also face a 10% federal tax penalty in addition to the ordinary income taxes.
Another consideration is the tax implications of the annuity’s death benefit. While the death benefit can provide financial support to a named beneficiary, it’s important to note that it may be subject to taxation when paid out.
Before committing to the Nationwide Income Promise Select Annuity, it is highly recommended to thoroughly review the specific fees, charges, and conditions associated with the product. By understanding the potential expenses and tax obligations, you can make an informed decision that aligns with your long-term financial goals.
Types Of Retirement Accounts Accepted
- Non-Qualified
- IRA
- 401(K)
- IRA Transfer
- IRA Rollover
- SEP IRA
- IRA-Roth
- TSP
- Stretch IRA
- 403(B)
- 1035 Exchange
What We Like
Nationwide, established in 1981, stands out for its strong financial stability and commendable ratings from various reputable agencies. With an A.M. Best rating of A+, Moody’s rating of A1, and Standard & Poor’s rating of A+, Nationwide demonstrates a high level of financial strength and creditworthiness. These ratings reflect the company’s ability to meet its ongoing insurance obligations, which is a crucial aspect for clients looking for reliability and security in their financial dealings.
What We Don’t Like
However, there are aspects of Nationwide’s annuities that are less appealing. Specifically, the annuities that require retirees to relinquish control over their assets are a significant drawback. These annuities often do not earn interest, offer minimal liquidity, and lack a lump sum death benefit. These limitations can be major deterrents for retirees seeking both financial security and flexibility.
How We Can Help
At The Annuity Expert, we understand the challenges and concerns you face when planning for retirement. With 18 years of experience as an insurance agency, annuity broker, and retirement planner, we have the expertise to guide you through this critical process. We believe in finding the best solution at the lowest cost, ensuring you get the most value from your investment.
The core problem many face is the uncertainty of securing a stable income in retirement. Symptoms of this problem include anxiety about outliving savings, concerns over fluctuating interest rates, and confusion about the best investment options. We empathize with these concerns and offer tailored solutions to alleviate them.
What We Recommend
Step 1: Personalized Consultation
The first step is to contact us for a personalized consultation. During this session, we’ll assess your financial situation, retirement goals, and risk tolerance. The main benefit of this step is a customized retirement plan that addresses your unique needs and sets the foundation for financial security.
Step 2: Detailed Plan Development
Next, we will develop a detailed retirement plan based on the information gathered during the consultation. This plan will outline the best annuity options, including the Nationwide Income Promise Select Annuity, tailored to your needs. The main benefit of this step is a clear and actionable strategy to secure your financial future.
Step 3: Implementation and Ongoing Support
Finally, we will help you implement the plan and provide ongoing support. We will assist with the paperwork, monitor your investment, and adjust as needed to ensure it remains aligned with your goals. The main benefit of this step is peace of mind, knowing your retirement plan is in expert hands.
Features and Benefits
- Guaranteed Income: Provides financial security and predictability.
- Flexible Payout Options: Tailors the income stream to your needs.
- Interest Rate Guarantee: Ensures stable growth and planning ease.
- Tax-Deferred Growth: Maximizes the potential for compounded growth.
Addressing Common Objections
Some may worry about limited liquidity and associated fees. While these are valid concerns, the benefits of guaranteed income and predictable growth often outweigh the drawbacks. Additionally, our expert guidance can help you navigate these issues effectively.
The negative consequences of not working with us include potential financial insecurity and missed opportunities for optimal growth. In contrast, working with us will provide peace of mind, financial stability, and a well-planned retirement.
Ultimately, the internal feelings you will experience from successful outcomes include confidence, security, and satisfaction in knowing you have a reliable income stream for your retirement.
Contact The Annuity Expert’s financial advisors and insurance agents today for free advice or a personalized quote. Let us help you secure your financial future with the Nationwide Income Promise Select Annuity.
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