Many investors are seeking ways to safeguard their retirement portfolio against market volatility and its negative effects, with registered indexed-linked annuities (RILAs) providing greater growth potential while mitigating risks. Nationwide has responded by creating its DPA Indexed Annuity with additional flexibility and customization features so clients and advisors can maximize the returns from this product.
Nationwide Defined Protection 2.0 annuity offers index strategies with three defined protection levels that limit negative performance, along with flexible crediting rates to meet investment goals. At contract issue, up to 10 strategies may be assigned and reallocated at each Strategy Term End Date to provide diversification and meet client needs and objectives.
Each strategy offers the option to engage a Performance Lock, which limits Index performance to no less than the level selected at the start of its term. While the performance lock may decrease earnings during periods of strong-to-average index performance, or increase losses during any poor periods. It should also be noted that index performance for any contract year will never fall below its total worth in credits plus any free withdrawal amounts taken during that year.
Access and withdrawal of funds from an annuity are free, and any payments received are exempt from federal income tax. Withdrawals prior to age 59 1/2 may incur an early withdrawal tax penalty of 10% of federal tax liability.
An annuity does not directly invest in stocks or equity investments and there are no guarantees on its principal. Instead, the Nationwide Defined Protection 2.0 annuity provides a death benefit equal to its contract value and can only be issued by Nationwide Life Insurance Company of Columbus Ohio; thereafter it is distributed by Nationwide Investment Services Corporation who are members of FINRA.
Contract Prospectus provides detailed information regarding an annuity’s features, benefits, risks, charges and expenses. A copy may be requested upon request. Before investing, a prospective purchaser should consult their financial professional in order to ascertain whether or not the contract fits within their financial situation and objectives. An annuity should not be used as emergency or short-term savings, or used to cover day-to-day expenses or save for long-term goals such as retirement. Furthermore, any distribution from an annuity to such plans could violate applicable regulations and could even be prohibited by law. An annuity is not FDIC insured and should not be treated as a deposit or obligation of its insurer, with no guaranteed crediting rate and potential for missed payments from them. Before making their purchase decision, investors should carefully evaluate each annuity’s features, benefits and risks to make an informed decision.