Expand Your Choice of Investments With an IRA
Few retirement plans can give you the level of choice that an IRA does. You can put just about any investment option into an IRA, including:
Variable annuities
- Feature a variety of underlying investment options managed by professional money managers
- Have insurance features (some of which are optional and involve extra costs) that can protect the value of your assets
- Can provide income for life or for a fixed period of time
- Can increase in value from positive market performance and decrease from market downturns
- Include investment options that vary in amount of risk with the expected returns varying accordingly
- Have management fees and insurance costs
Potential purchasers seeking to use an annuity to fund a qualified or other tax-advantaged retirement plan should understand that the use of an annuity for such purpose is not necessary in order to defer taxation of investment earnings. Underlying investment options discussed here are only available as investment options in variable insurance contracts issued by life insurance companies. They are not offered directly to the general public.
Before purchasing a variable annuity, you should carefully consider the investment objectives, risks, charges and expenses of the annuity and its underlying investment options. This and other important information is contained in the product prospectus. Underlying fund prospectuses can be obtained from your investment professional or by contacting Nationwide®. Read the prospectus carefully before you make a purchase.
Please remember, variable annuities are long-term investment vehicles and are not intended to replace emergency funds or to fund short-term savings goal. Investing involves market risk, including possible loss of principal, and there is no guarantee that investment objectives will be achieved. They have fees and charges that include mortality and expense, administrative fees, contract fees and the expense of the underlying investment options.
Taxable amounts withdrawn prior to age 59½ may be subject to a 10% federal tax penalty. Withdrawals will reduce the value of the death benefit and any optional benefits.
Fixed annuities
- Guarantee a minimum rate of return
- Have no fees, but may have early withdrawal penalties (in general)
- Can provide income for life, if you choose, or for a fixed period of time
Immediate annuities (for retirees)
- Provide payments that begin within a year of purchase and continue for life, or a certain period of time (your choice)
- Can be fixed or variable investments
Mutual funds
- Contain a mix of investments that may include stocks, bonds and cash equivalents
- Are managed by a professional money manager
- Can increase in value from positive market performance and decrease in value from market downturns
- Have a stated objective or investment style (for example, a capital appreciation fund or moderately aggressive)
- Have management fees of some sort
- Vary in amount of risk, with expected returns varying accordingly
Certificates of deposit (CDs)
- Have a fixed term, varying from six months to five years or longer
- Offer a fixed rate of return when held to maturity
- Invest with a bank or savings and loan
- Are insured under the Federal Deposit Insurance Corporation (FDIC), other types of products discussed are not insured by the FDIC
- Feature very low risk
- Don’t benefit from positive market performance during an investment period
- Don’t have fees (in general), but may have an early withdrawal penalty
Guarantees are subject to the claims-paying ability of the issuing company. Annuities are issued by Nationwide Life Insurance Company or Nationwide Life and Annuity Insurance Company, Columbus, Ohio.
Not a deposit • Not FDIC or NCUSIF insured • Not guaranteed by the institution • Not insured by any federal government agency • May lose value
