Investment Needs
Annuity Exchange
Annuity Exchange
For investors with expensive and complex variable annuities in their portfolios, we offer a simplified, low-cost Investment Only Variable Annuity (IOVA) that trims costs and may potentially improve accumulation.
Built for RIAs and fee-based advisors, it offers no commission and charges a flat fee.
Variable annuities are long-term, tax-deferred investments investors buy from an insurance company to help them save for retirement. They are called “variable” because their value fluctuates based on the performance of the underlying investment options chosen. Some variable annuities offer optional living and death benefits for an additional fee. There are some limitations that may not be right for all investors, including that withdrawals are subject to income tax and those taken before age 59½ may be subject to a 10% early withdrawal federal tax penalty. Keep in mind that all guarantees and protections are subject to the claims paying ability of Nationwide Life Insurance Company. We also need to add that all guarantees and protections are subject to the claims paying ability of Nationwide Life Insurance Company.
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See for yourself
Compare your clients' annuities with ours
Investment expenses can be excellent predictors of investing success. Some investors may improve their investing outcomes with a tax-free 1035 exchange.
Managing expenses in your clients' investments is critical to their success, and yours. Your clients who own VAs may have been sold them for specific insurance features like living benefits. Those features come at a cost, and that cost may be high. The typical VA charges 132 basis points in M&E charges, along with additional charges for any underlying benefits. All told, variable annuity owners may end up paying upwards of 235 basis points for features and benefits they may not be using, or may never need, and those costs can seriously impede accumulation. Fortunately, a simple tax-free 1035 exchange into our IOVA can save your clients up to $3,450 in fees the first year alone. And those savings can compound and grow over time.
Help your clients get a head start on their retirement with a 1035 Exchange. Watch video.
Investment expenses can be excellent predictors of investing success. Some investors may improve their investing outcomes with a tax-free 1035 exchange.
Managing expenses in your clients' investments is critical to their success, and yours. Your clients who own VAs may have been sold them for specific insurance features like living benefits. Those features come at a cost, and that cost may be high. The typical VA charges 132 basis points in M&E charges, along with additional charges for any underlying benefits. All told, variable annuity owners may end up paying upwards of 235 basis points for features and benefits they may not be using, or may never need, and those costs can seriously impede accumulation. Fortunately, a simple tax-free 1035 exchange into our IOVA can save your clients up to $3,450 in fees the first year alone. And those savings can compound and grow over time.
Meet Camy and Byron
OB/GYN & IT Professional
JIM, Small Business Owner
Camy (50) and Byron (51) met as undergrads at the University of Texas, and married while she was in Med school. The early years were lean while Byron worked his way through the ranks as a software developer at a burgeoning technology company.
In her late-forties, Camy inherited a significant amount of money from her grandfather–a well-regarded orthopedic surgeon in Dallas. Their financial advisor directed them to invest a portion of it in a Variable Annuity. The benefits seemed obvious: endure the initial tax hit, then let it grow, tax deferred until they might need it in retirement.
Early last year, their financial advisor retired, and they found an RIA to manage their financial future. When she came across Camy and Byron's $300k VA investment she was distressed by how expensive, poorly performing, and illiquid it was. Plus, they didn't even need the living benefit they were paying 115 bps for annually. She reached out to the Nationwide Advisory Solutions' team who ran a quick analysis comparing their VA with the low-cost IOVA, Monument Advisor, and helped prepare account paperwork.
The results were stunning. Even after paying surrender fees, Monument Advisor would absorb that cost in 1 year, and after 20 years? The difference in potential accumulation could be more than $300,000…Enough ADDITIONAL money to pay for their son Liam's college education.
Assumptions (M&E compared VA: 1.4 | living bene: 1.15 | initial investment: 300k | purchased: 1/11) | Product: Advisor
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