What will we be covering in this review of the Nationwide Best of America Future Venue annuity?
In this review of the Nationwide Best of America Future Venue annuity, we will be going over the following important details:
- Type of annuity
- Realistic performance expectations
- Where the annuity is best used
- How the annuity is most poorly used
Annuities can be complex. That’s where having an Annuity Investigator who loves math comes in.
We make the complex, simple.
If you are considering the purchase of an annuity because you would like to build up your savings on a tax-deferred basis – and you are also seeking a lifetime income in retirement – then the Nationwide Best of America Future Venue annuity could be a viable option for you.
But, prior to moving forward with a long-term commitment to this (or any other) annuity product, it is important that you know how exactly the annuity works and what benefits it may be able to offer you as versus other annuity alternatives that are available to you. This is particularly true as annuities could require a large chunk of your overall retirement savings.
In the case of variable annuities, you will typically find that these financial vehicles will do some things well, and other things not so well. For instance, variable annuities have a focus on growing assets, based on underlying market performance.
However, these products aren’t generally known for being the best at providing a reliable stream of income in retirement. One of the key reasons for this is the fact that variable annuities present much more risk to the insurance companies that offer them, as well as the consumers who purchase them.
So, knowing what you can (and can’t) anticipate before you get into one of these products is essential, as they can be quite expensive to get out of if you change your mind down the road. This is where we come in.
Annuity and Retirement Income Planning Information That You Can Trust
If you have never been to our website before, please allow us to personally welcome you here. We at Annuity Gator are a team of experienced financial 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 some tradeoffs that 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
- Low fees
- Guaranteed income for life
- No market risk
The goal of the annuity and other product reviews that you’ll find here on AnnuityGator.com is to provide you with information on the features and benefits inside the annuity, and to help you better understand what the benefits could mean to you and your financial situation – both now and in the future.
So, if you’re ready to get started, let’s dive in!
The Nationwide Best of America Future Venue Annuity at a Glance
|Product Name||Best of America Future Venue|
|Type of Product||Variable Annuity|
|Phone Number||(877) 669-6877|
Opening Thoughts on the Nationwide Best of America Future Venue Annuity
Nationwide has a history of strength that has lasted for more than 90 years, and today it is one of the largest insurance and financial services companies in the world. The company specializes in annuities, as well as mutual funds, retirement plans, and life insurance coverage for both individuals and companies.
There are numerous Nationwide affiliate companies, too, 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
Nationwide does a fair amount of television advertising, so the company is familiar to many people. You may have even found yourself humming its now-famous jingle, “Nationwide is on Your Side.”
Financial and insurance companies definitely recognize that many of the key events in peoples’ lives involve money. This certainly goes for retirement – which is perhaps the biggie when it comes to your finances. The main reason for this is because the decisions you make today about the allocation of your funds will likely affect tomorrow’s financial security.
The demand for annuities, which grow on a tax-deferred basis, and are backed by the financial strength and stability of the insurance carriers that offer them, has been increasing as more and more Baby Boomers reach retirement age. This is especially true as most companies have done away with the traditional pension plan, and an annuity allows you to turn your money into an income stream.
Yet, while the demand for annuities has definitely picked up, it is also important to keep in mind that variable annuities can present market-related risks to their owners, so these products need to be reviewed very carefully before purchasing in order to determine whether or not they will really be the right fit for an investor.
Before we get into the gritty details, there are some required legal disclosures here…..
This is an independent annuity product review. It is not a recommendation to purchase or to sell an annuity. Nationwide Life has not endorsed this review in any way, nor do we receive any type of compensation for providing this review. This Nationwide Best of America Future annuity review is meant solely to be an independent review at the request of our readers so that they may see our perspective when breaking down the positives and the negatives of this particular annuity. Prior to committing to the purchase of any type of insurance and / or investment vehicle, it is critical that you do your own due diligence, and that you also talk with a properly licensed professional if you have any questions that relate to your specific situation. All of the names, materials, and marks that have been used in compiling this annuity review are the property of their respective owners.
For additional information on how to compare annuities so that you can decide which may be the best one for you, click here in order to obtain our free annuity report.
How Nationwide Life Describes the Best of America Future Venue Annuity
According to Nationwide’s product information for the Best of America Future Venue annuity, this financial vehicle is described as a variable annuity that can help you to create a fixed or variable stream of retirement income through a process called annuitization. This flexible premium deferred variable annuity contract is issued through Nationwide Life Insurance Company via its Nationwide Variable Account ll.
Variable annuities typically offer a wide range of professionally managed investment options. With choices such as equity, bond, and money market funds, you can essentially create a portfolio that is custom-designed for meeting your specific short- and long-term financial goals and objectives.
Yet, even though your money is not invested directly in the stock market with a variable annuity, your funds can still be a risk due to poor market performance. So, unlike fixed annuities, or even fixed indexed annuities, there is no guarantee of principal protection with a variable annuity product like the Nationwide Best of America Future Venue.
This annuity offers more than 100 different investment options to choose from, so investments can be well diversified, depending on what your ultimate goals are. It also offers some additional “bells and whistles”, such as a standard death benefit (and the option to add an enhanced death benefit), as well as lifetime income rider options.
For a more comprehensive and updated list of the investments offered with this annuity, you can take a peek at the prospectus HERE.
How a Financial Advisor Might “Pitch” this Annuity to Potential Purchasers
Because the Nationwide Best of America Future Venue is a variable annuity, it is likely that a financial advisor would key in on the opportunity for tax-deferred growth, as well as investment diversification due to the long list of sub account options this product offers. Because of that, this product could be appealing to a variety of investors’ goals, including conservative, balanced, and even aggressive.
Nationwide provides a very detailed list of the investment alternatives that are offered through the Best of America Future Venue Variable annuity (as of February 29, 2020) – including “walled off” and closed underlying investment options – in its investment choices performance report.
Certainly, the added feature here, as versus investing into mutual funds directly, is the tax-deferral that investors get on their gains – which aren’t going to be taxed until the time of withdrawal in the future. This, in turn, can allow the funds inside the annuity to compound pretty nicely over time – provided that the underlying investments perform in the positive…which brings us to one of the key drawbacks with variable annuities.
Because the return on the underlying investments is performance-dependent, there is the real possibility that some (or all) of these could actually lose value. This isn’t necessarily something that you want to happen, though, especially as you inch closer to retirement time.
And then there are the fees…
What About Fees with the Nationwide Best of America Future Annuity?
Similar to many other areas of life, you typically have to give in order to get – and when it comes to variable annuities, in order to get the opportunity to grow funds based on market-related performance, you will also have to deal with a long list of various charges and fees.
Here is a rundown of the recurring contract expenses:
- Annual Contract Maintenance Charge – Up to $30
- Annual Loan Interest Charge – 2.25% (if applicable)
- Mortality and Expense Risk Charge – 0.90%
- Administrative Charge – 0.20%
- Death Benefit Option – 0.10% to 1.55% (depending on which option is chosen)
- Spousal Protection Annuity Option – 0.20%
- Beneficiary Protector ll Option – 0.35%
- Extra Value Option – 0.45%
- Capital Preservation Plus Lifetime Income Option – 1.00%
There are also charges for the additional optional riders that you add to the annuity (there are also charged annually, as a percentage of the annual income benefit base):
- Nationwide Lifetime Income Riders – 1.00% to 1.20% (depending on which is chosen)
- Joint Options for the Nationwide Lifetime Income Riders – 0.15% to 0.30% (depending on which is chosen)
So, based on which additional options you have, and whether or not you add your spouse to the annuity, your annual contract expenses could exceed 4%. This could make it difficult to achieve a nice return – and if your investments perform negatively, these fees can bring the value of the account down even more!
Also, even though you are allowed to withdraw up to 10% of the contract’s value each year penalty-free, if you take out more than that during the first six full contract years, you will be hit with a Contingent Deferred Sales Charge, otherwise known as a surrender fee. These fees start at 7%, and they gradually grade down from there for the next several years as follows:
|Completed Contract Year||0||1||2||3||4||5||6||7+|
|Withdrawal Charge %||7||7||6||5||4||3||2||0|
For a more detailed run-down of the Nationwide Best of America Future Venue variable annuity fees, you can review the prospectus HERE.
The Annuity Gator’s End Take on the Nationwide Best of America Future Venue Annuity
Where this annuity works best:
As a variable annuity, the Nationwide Best of America Future Venue product could be a viable option for those who:
- Want the opportunity for high, market-related returns
- Are seeking a lifetime income
- Want to keep depositing money into a tax-advantaged financial vehicle after they have maxed out their IRA and/or their employer-sponsored retirement plan(s)
Where it works the worst:
Conversely, this may not be a good option for those who:
- Have a lower tolerance for risk
- Do not plan on using the lifetime income feature
When you are weighing the pros and cons of purchasing any financial product, it is important to consider your overall goals – both the short and long term. With some investors, the primary draw of a particular product may be the opportunity for growth – even if it means risking the protection of principal.
In the case of the Nationwide Best of America Future Venue annuity, there are numerous benefits, such as the many investment options, the ability to diversify, and of course, the income stream you can obtain in retirement.
But, there can also be some big tradeoffs that you’ll need to consider. These include being exposed to market-related risk, as well as the numerous charges and fees that are involved with variable annuity products such as this one.
So, if you are a bit hesitant to move forward – especially with depositing a sizable chunk of your retirement savings – it is possible that it is because there are other financial product alternatives that could fit your needs a bit better.
The only way to truly know if this, or any, annuity is a good fit for you is to have it tested. We can provide this service for you, so if you would like to input your specific information and see the resulting details, just simply contact us.
Do You Have Any Additional Questions on the Nationwide Best of America Future Venue annuity? Did You Notice Any Mistakes in this Review?
We realize that this annuity review went a tad bit on the lengthy side, so for that, we thank you for sticking with us thus far. However, we believe that it is important to provide “too much” information, as versus not enough.
If, after reading through this annuity review, you still have any questions or concerns about the Nationwide Best of America Future Venue annuity, we encourage you to reach out to us directly via this secure online contact form. Our annuity experts will be happy to walk you through any of the information that you need.
If you found this review to be helpful, then feel free to share it by forwarding it on to anyone whom you know that may also benefit from it. We are always happy to help others in determining whether or not a particular annuity may be right for them.
In addition, we know just how quickly information about annuities can and does change. Therefore, if you happened to notice anything in this review that may be outdated or in need of revision, please let us know that too and we will make the necessary updates as soon as possible.
Are there any other annuities that you would like to have us review?
If so, no problem! just let us know the name of the annuity (or annuities, if there is more than just one), and our team of annuity geeks will get on it!
The Annuity Gator.
P.S. If you would like to read more of our Nationwide Best of America annuity reviews here are some links to check out:
- Independent Review of the Nationwide Best of America Future Venue Variable Annuity.
- Independent Review of the Nationwide Advisory Solutions Single Premium Immediate Annuity.
- Independent Review of the Nationwide Peak Fixed Indexed Annuity.
- Independent Review of the Nationwide INCOME Promise Select Single Premium Immediate Annuity.