What will this review of the Nationwide Platinum Edge annuity discuss?In this review, we will be going over the in-depth details regarding the Nationwide Platinum Edge fixed index annuity:
- Type of Annuity
- How the annuity works
- Charges and fees
- Realistic performance expectations
- Where the annuity could work well
- Where the annuity might not be a very good fit
Annuities can be complex. That’s where having an Annuity Investigator who loves math comes in. We make the complex, simple.If you’re approaching retirement and you are unsure of how to give your savings a boost, while at the same time keeping your principal safe from a stock market downturn, don’t worry – you’re not alone. As more Baby Boomers find themselves inching closer to that time in life, making important financial decisions can be a bit overwhelming – particularly in light of the multitude of marketing materials aimed at gaining your attention. For instance, you’ve likely run across anything from “I hate annuities” to “Generate a guaranteed income with an annuity” – and these conflicting messages can make you feel like a deer in the headlights. The reality is, though, a successful retirement has a lot more to do with income generation than it does with how much net worth you’ve accumulated. While there are countless financial advisors out there who would love to sell you on the next “hot stock” or mutual fund, there are far fewer advisors who know how to successfully convert what you’ve already saved into a lifetime stream of income that you can count on for the rest of your lifetime. That’s where the Annuity Gator comes in!
Annuity and Retirement Income Planning Information that You Can TrustIf you have never been to our website before, please allow us to officially welcome you here. We are a team of experienced financial and retirement income generation experts who are dedicated to helping you decode the complicated world of annuities. Here, we strive to create unbiased, yet highly comprehensive, annuity reviews – and we have been at this for far longer than most of those “copycat” websites out there. Annuities are a unique type of insurance product in that they are the only financial vehicle that can make the promise of providing you with a lasting, lifetime income stream. Unfortunately, though, some advisors – albeit unintentionally – will tend to make them sound better than they actually are. One reason for this is because, in order to obtain the nice benefits, there are oftentimes also various “tradeoffs” you need to make. So, the reality is that you really do need to know just exactly what you might have to give up in order to get the guarantees and other benefits an annuity can provide. Many annuity sales reps, and even many of the annuity websites that you’ll see online, will make some pretty bold claims about the performance of the annuities that they offer, such as:
- 7 to 8% return
- Lowest annuity fees
- Guaranteed income for life
- No market risk in any economic environment
The Nationwide Platinum Edge Annuity at a Glance
|Product Name||Platinum Edge|
|Type of Product||Fixed Indexed Annuity with Market Value Adjustment (MVA)|
|A.M. Best Rating||A+ (Superior)|
|Phone Number||(877) 669-6877|
Opening Thoughts on the Nationwide Platinum Edge Fixed Index Annuity with MVANationwide Financial has a history of strength that has lasted for more than 90 years. Today, this financial powerhouse is one of the largest insurance and financial services companies around the globe. The company specializes in providing annuities, as well as mutual funds, retirement plans, and life insurance coverage for both individuals and businesses. There are numerous Nationwide Financial affiliate companies, too, that are located throughout the United States, including those that specialize in property and casualty insurance, life insurance, financial services, and strategic investments. Nationwide Life and Annuity Insurance Company has high ratings from the insurer rating agencies, including a(n):
- A+ from A.M. Best Company
- A+ from S&P
- A1 from Moody’s
Before we get into the gritty details, here are some legal disclosures we need to provide…This is an independent product review, not a recommendation to buy or sell an annuity. Nationwide Financial has not endorsed this review in any way, nor do we receive any type of compensation for providing this review. This review is meant to be an independent review at the request of readers so that they may see our perspective when breaking down the positives and negatives of this particular annuity. Prior to purchasing any type of investment or insurance product, it is important that you do your own due diligence and that you consult a properly licensed professional if you should have any specific questions that relate to your individual circumstances. All names, marks, and materials that were used for this review are the property of their respective owners.
How the Platinum Edge Annuity is Described by Nationwide FinancialOn the company’s website, Nationwide describes the Platinum Edge annuity as a “customizable” fixed indexed annuity with a market value adjustment (MVA) feature that allows you the flexibility to split your funds among several different guarantee periods that offer different interest rates. (And, the longer the guarantee period, the higher the interest rate). In the case of the Platinum Edge annuity from Nationwide Financial, there are several different guarantee periods to choose from. These include 3 years, 4 years, 5 years, 6 years, 7 years, 8 years, 9 years, and 10 years. If you withdraw money before the end of a guarantee period, a market value adjustment may apply. And, depending on how interest rates have changed since you chose the guarantee period, a market value adjustment could either add or subtract value to the annuity. For example, if rates in the overall economy have gone up since you chose the guarantee period, the market value adjustment would be negative and money would be subtracted by the insurance company from your withdrawal. However, if interest rates have gone down since you chose the guarantee period, then the market value adjustment would be positive, and in turn, money would then be added to your withdrawal. The Platinum Edge annuity also offers a “transitional” account that temporarily holds your investments while you decide how you want to allocate your funds. Even though this particular account is not designed for long-term investing, your money will still earn a minimal interest rate. (This transition account also holds your funds when various guarantee periods end, which gives you the opportunity to determine where to place your money next). As with other fixed indexed annuities, your money will not lose value – even if the underlying market index(es) performs poorly. (Note that if you take withdrawals during a guarantee period, though, the amount you receive could be less than the actual withdrawal amount. This is the case, even if you are withdrawing less than 10% of the contract’s value during the surrender charge period). When the time comes to retire, it is important that you have one or more reliable income streams to count on, because your bills won’t disappear. So, having a way to generate incoming cash flow that will continue in any type of market can make for a much less worrisome time. This is particularly the case if you end up living a long life. To read over the full product brochure for the Nationwide Platinum Edge annuity, go here.
How an Insurance or Financial Advisor May Present the Platinum Edge AnnuityPeople, on average, are living longer lives today. So, it is becoming much more common for retirement to last for 20 years or longer. Because of that, your retirement income needs to be stretched farther – and in some cases, much farther. With that in mind, the guaranteed income concept of the Nationwide Platinum Edge fixed indexed annuity is most likely where an insurance or financial advisor would focus when presenting this product to clients or prospects. In addition, the tax-deferred growth of your money inside of the contract can also be a bonus – and it could even allow for an additional option for tax-advantaged accumulation, even if you have “maxed out” other alternatives like an IRA and/or employer-sponsored retirement plan like a 401(k). But even with all of these awesome features, you really need to be careful, as there are some “tradeoffs” you may need to make with this product. For instance, in order to get a higher rate of return, you need to commit to a longer guarantee period.
Are there Fees on the Nationwide Platinum Edge Annuity?While you won’t have to pay an up-front agent or broker commission when you purchase this annuity, it doesn’t mean you won’t have to pay any charges or fees at all. For instance, if you withdraw money from the annuity before a guarantee period has elapsed, it could end up costing you by way of a negative market value adjustment. In addition, you may also incur a surrender charge. (This is also referred to as a Contingent Deferred Sales Charge or CDSC). The longer your rate guarantee period is, the longer your surrender charge will be. As an example, a 10-year rate guarantee period will have a 10-year surrender charge period. Therefore, any of the funds that you contribute to this annuity should not be earmarked for other short-term needs and/or emergencies.
Nationwide Platinum Edge Annuity Surrender Charge ScheduleIn addition, if the distribution(s) from the annuity occurs before you turn age 59 ½, you could also incur an “early withdrawal” charge of 10% from the IRS. You may also be subject to a market value adjustment (MVA), as well as any taxes due. For more details, you can view the full brochure for the Nationwide Platinum Edge annuity here. There is also a prospectus for the Nationwide Platinum Edge annuity found here.
The Annuity Gator’s End Take on Nationwide’s Platinum Edge Fixed Index Annuity with MVAWhere this annuity may work best: Although this annuity offers many enticing benefits for a wide range of objectives, it will typically work the best for those who are seeking:
- Safety of principal
- The opportunity for additional, index-linked growth, which can provide a higher return than a regular fixed annuity
- A guaranteed interest rate period – for as long as 10 full years
- Guaranteed retirement income for life
- Will need access to more than just 10% of their funds within the annuity’s surrender charge period (or for any period of time during the interest rate guarantee period)
- Do not intend to use the lifetime income feature
In SummaryWhile there are many factors that need to be taken into consideration when you are buying an indexed annuity, one of the biggest concerns is making sure that the annuity is truly right for what you want – and need – it to do. With regard to the Platinum Edge fixed index annuity with MVA from Nationwide Financial, you can rest assured that you will have an income for life. But at the same time, depending on your other goals and needs, this product may still fall a bit short – and there quite frankly could very well be something else out there that is a better fit for you. If you have any additional questions on this, or any other income-related products, we are here to help. We can also run side by side annuity comparisons for you in order to determine how various annuities might perform. So please feel free to contact us directly via our secure online contact form here.
Do You Have Any Additional Questions About this Annuity? Did You Happen to Notice Any Mistakes in this Annuity Review?We realize that this annuity review was a tad bit long. But quite frankly, we would much rather that you have “too much” information on the annuity than to not have enough. That way, you can make a much more informed decision regarding whether or not it is the right solution for you. So, if you found this information on the Platinum Edge annuity from Nationwide Financial to be beneficial, feel free to pass it on and to share it with other people who could also find value in it. (And, if you found it to be confusing, please also let us know that, too). In addition, we are aware that information regarding annuities can, and often does, change. So, if you happened to notice anything in this review that should be updated or revised, let us know and we will be happy to make the necessary edits. Are there any other annuities that you would like to learn more about? If so, just give us a shout and let us know, and our team will get to working on them right away. Best, The Annuity Gator P.S. If you would like to read more of our Nationwide annuity reviews, here are some links to check out:
- Nationwide Destination C Variable Annuity
- Nationwide New Heights 12 Annuity
- Nationwide Summit Fixed Indexed Annuity
- Nationwide New Heights 9 Fixed Indexed Annuity
- Nationwide Life Destination Architect 2.0 Variable Annuity
- Nationwide Life MarketFlex Advisor Variable Annuity
- Nationwide Best of America Future Venue Variable Annuity
- Nationwide Advisory Solutions Single Premium Immediate Annuity
- Nationwide INCOME Promise Select Single Premium Immediate Annuity