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Nationwide Advisory IncomeSM
Nationwide Advisory Solutions
The quality of your retirement depends on your ability to pay for it.Nationwide Advisory IncomeSM may help you create a higher income stream for your retirement years.
Nationwide Advisory Solutions
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Helping create consistent income for the essential expenses of retirement.
In retirement, market volatility can have a significant impact on the amount of income a portfolio
generates; but at the same time, expenses may not change. That’s why it’s so important to shape a
retirement income plan that can provide a predictable stream of income to cover your retirement needs.
The following hypothetical case studies demonstrate how including a fixed immediate annuity in a
portfolio mix may help create a higher stream of income. Each study compares two income approaches:
one using systematic withdrawal and one that combines systematic withdrawal with the advantages of a
fixed immediate annuity.
These are just two of the many possible options available for retirement income. Work with your financial
advisor to determine what approach might best satisfy your personal situation.
Affect portfolio value
Reduce yield on bond portfolios
Market declines
Low interest rates
CONCERNS ABOUT HAVING ENOUGH MONEY
to last through retirement.
CONCERNS ABOUT HAVING ENOUGH INCOME
to support a lifestyle.
This material is not a recommendation to buy, sell, hold or roll over any asset, adopt an investment strategy, retain a specific investment manager or use a particular account type. It does not take into account the specific investment objectives, tax and financial condition or particular needs of any specific person. Investors should work with their financial professional to discuss their specific situation.1 All guarantees and protections are subject to the claims-paying ability of the issuing insurance company.
Approach 2: Systematic Withdrawal + Fixed Immediate Annuity
By combining a systematic withdrawal approach with a fixed immediate annuity like Nationwide Advisory Income, you may potentially:
• Increase the income you receive in retirement
• Create a stream of guaranteed retirement income that is independent of market fluctuations
In this scenario, part of the portfolio supplies income through systematic withdrawal, so there is still a risk that those assets could be completely depleted and stop providing income.
A fixed immediate annuity is a contract you purchase from an insurance company designed to serve long-term retirement goals. It offers guaranteed fixed income payments for a specific period of time or for life.1 Keep in mind that withdrawals from a fixed annuity are subject to income tax, and if you make a withdrawal before age 59 1/2, you may have to pay a 10% early withdrawal federal tax penalty.
Systematic withdrawal is a common method that involves receiving income in regular installments from your retirement investments. Generally, you choose how much you would like to receive and how often; payments then continue on that schedule until stopped or until the account is completely depleted. It’s possible that withdrawals may be made at a higher rate than the rate at which the account is growing. Because there is no lifetime income guarantee, that could mean running out of money before planned.
Approach 1:Systematic Withdrawal
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This hypothetical example is for illustrative purposes only and is not an indication of actual or future results. The illustration is based on a 75-year-old female. Market performance and fees associated with these products were not included in this illustration. Based on rates as of 5/1/2017.2 The annual and monthly income in this approach are subject to change. They will only remain consistent as long as the account value stays the same year over
year.
Hypothetical client profile: AnneAnne is 75 and recently widowed. She has $300,000 to use for retirement income
and needs a plan to help her:
- Protect her portfolio value from further losses due to market declines
- Supplement her Social Security income, which decreased with the death
of her husband
- Pass remaining assets to beneficiaries upon her death
Systematic Withdrawal
Systematic Withdrawal
Nationwide Advisory Income Single Life with Cash Refund
Initial Premium $300,000 $200,000 + $100,000 = $300,000
Annual Income (single payment) $12,0002 $8,0002 + $6,875 = $14,875
Monthly Income $1,0002 $6672 + $580 = $1,247
$2,875 more per year
This hypothetical example is for illustrative purposes only and is not an indication of actual or future results. The illustration is based on a 65-year-old male and female. Market performance and fees associated with these products were not included in this illustration. Based on rates as of 5/1/2017.
Hypothetical client profile: Mark and Regina
Mark and Regina are a 65-year-old married couple. They have $500,000 to use for
retirement income and need a plan to help them:
- Use their money efficiently to create the income they want for retirement
- Create a consistent stream of retirement income
- Access their money if needed
Systematic Withdrawal
Systematic Withdrawal
Joint and 100% Last Survivor with 10-year Term Certain
Assets $500,000 $300,000 + $200,000 = $500,000
Annual Income (single payment) $20,0002 $12,0002 + $10,740 = $22,740
Monthly Income $1,6672 $1,0002 + $907 = $1,907
$240 more per month
Mark and Regina’s Proposed Income PlanSupplement systematic withdrawals with an Nationwide Advisory Income contract to generate income that is guaranteed and will not fluctuate.4%
Anne’s Proposed Income PlanSupplement systematic withdrawals with an Nationwide Advisory Income contract to generate more income that is guaranteed and will not fluctuate.4%
$2,740 more per year
$247 more per month
Mark and Regina’s Current
Income Plan
Anne’s Current Income Plan
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• Not a deposit • Not FDIC or NCUSIF insured • Not guaranteed by the institution • Not insured by any federal government agency • May lose value
Fixed immediate annuities are contracts purchased from a life insurance company. They are designed for long-term retirement goals.
All guarantees and protections are subject to the claims-paying ability of the issuing insurance company. Nationwide Advisory Income, a single-premium immediate fixed annuity, is issued by Nationwide Life Insurance Company, Columbus, Ohio.
Nationwide Advisory Income is issued in all states, except NY, by Jefferson National Life Insurance Company (Louisville, KY). In New York, Nationwide Advisory Income is issued by Jefferson National Life Insurance Company of New York (New York, NY). The general distributor is Jefferson National Securities Corporation, FINRA member. Policy Series JNL-2300-1, JNL2300-2, JNL-2300-3, JNL-2300-1-NY, JNL-2300-2-NY. All companies are affiliates of Nationwide Life Insurance Company.
Nationwide Advisory Income, Nationwide, Nationwide is on your side and the Nationwide N and Eagle are service marks of Nationwide Mutual Insurance Company. © 2018 Nationwide
Nationwide Advisory Income may create a stream of income that is guaranteed for life, subject to the claims-paying ability of Nationwide. In addition, because the assets in the Nationwide Advisory Income contract are not affected by market losses, the annual income amount received from this contract will never decrease unless withdrawals are taken through the Liquidity feature.
The Liquidity feature on Nationwide Advisory Income offers the ability to take lump-sum withdrawals in the event you need extra cash for an emergency. This feature is available with any term-certain or cash-refund payment options as long as the purchase payment is no more than $1 million. Lump-sum withdrawals can be made during the Liquidity period only, and you can withdraw up to 100% of the Liquidity value. A $50 fee will be deducted from the remaining Liquidity value or lump-sum withdrawal for each withdrawal taken. (The fee is $100 in New York.)
Find out more about Nationwide Advisory Income:
Nationwide Advisory Income may help increase income
Ask your financial advisor for a copy of our client brochure to learn more about the Liquidity feature and other options available with Nationwide Advisory Income.
To learn more, turn to the insights and resources of your financial advisor.
Guaranteed retirement income
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Advisor Support Desk: 866-667-0564
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Nationwide Advisory Solutions: new possibilities for the holistic advisor
As an RIA or fee-based advisor, you’re always on the lookout for ways to position your clients for success, and we at Nationwide Advisory Solutions share your commitment. Drawing on our legacy as Jefferson National, we seek to help you solve for tomorrow by re-imagining retirement investing.
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