Prospecting guide to FIXED INDEXED ANNUITIES · PDF fileWe designed this prospecting guide to give you ... keeping up with in ation. ... Prospecting postcard market-wary investors

Prospecting guide to

FIXED INDEXED ANNUITIES

What you’ll find insideWe designed this prospecting guide to give you quick-hit information that helps you connect with the needs of new and existing clients.

We’ve included:• Insights on target clients

• Fresh prospecting strategies

• Tips on using technology to create and strengthen client relationships

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While this conservative approach might feel more comfortable in the short term, clients risk paying for it in the long term when their retirement savings aren’t keeping up with inflation.

In early 2017, the cashsurplus reached

$12.3 trillion2

52% of investors feel that stock marketvolatility is a threat to their money1

1 “U.S. Investor Optimism Index Climbs to Nine-Year High,” Gallup (Oct. 10, 2016).2 “Guide to the Markets,” J.P. Morgan Asset Management (2017).

Your opportunityThe economic ups and downs of the last few years have taken a toll on clients. Even though people know investing can be a good way to prepare for retirement, market volatility is causing anxiety and resistance.

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One solution:Nationwide Summit® fixed indexed annuityNationwide Summit® offers protection and growth potential, which means it could be a good way for your risk-averse clients to accumulate retirement savings. It features:

Protection from market risk

Growth potential with guarantees

Tax deferral to help the contract value grow

Protection for a spouse

Your target clients

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Market-wary investorsWhat you need to know

• Clients are more afraid of an economic collapse than they are of public speaking or even death3

• 91% of consumers are concerned that a financial crisis could happen in the future4

What to look for

• Clients with money in more traditional fixed instruments (CDs, savings accounts, bonds)

• Clients approaching retirement who are concerned about not having enough time to make up losses if the market takes a downturn

How Nationwide Summit can help

• Offers growth potential without the risk of losing principal

Resources

• FAM-0573AO: Prospecting postcard — market-wary investors

• FAM-0596AO: Case study on the risks of investing too conservatively

3 ”Forget Dying and Public Speaking: Here’s the 47 Thing Americans Fear More in 2017,” Erick Mack, www.inc.com/eric-mack/forget-dying-public-speaking-heres-47-things-americans-fear-more-in-2017.html (Oct. 27, 2017).

4 “Guide to the Markets,” J.P. Morgan Asset Management (2017).

Case study

Nationwide SummitSM fixed indexed annuity

Help protect your standard of living in retirementConsider an alternative to traditional savings options

A confident perspective on retirement

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Clients with parked assetsWhat you need to know

• Vast amounts of wealth are being transferred from generation to generation5

– $12 trillion is being passed from the Greatest Generation to baby boomers5

– $30 trillion will pass from baby boomers to their heirs over the next 30 to 40 years5

• 54% of baby boomers planning a move will downsize, either by moving to a smaller house or by spending less on a home of the same size6

What to look for

• Clients who have received an inheritance

• Clients who downsized their home recently


• Parked assets are protected from a loss in value while taking advantage of growth potential

Resources

• FAM-0627AO: Prospecting postcard — parked assets

• FAM-0596AO: Case study on the risks of investing too conservatively

5 “The ‘Greater ’ Wealth Transfer Capitalizing on the Intergenerational Shift in Wealth,” Accenture, www.accenture.com/us-en/~/media Accenture/Conversion-Assets/DotCom/Documents/Global/PDF/Industries_5/Accenture-CM-AWAMS-Wealth-Transfer-Final-June2012-Web- Version.pdf (2016).6 “Uncommon Sense: Most Baby Boomers Are Not Downsizing (Quite the Contrary),” Nielsen, www.nielsen.com/us/en/insights/news/2015/

most-baby-boomers-are-not-downsizing-quite-the-contrary.html (Jan. 9, 2015).

Case study


Help protect your standard of living in retirementConsider an alternative to traditional savings options


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Clients rolling over a 401(k)What you need to know

• By 2020, IRA rollover contributions from retirement plans are projected to be $503 billion, increasing about 5% a year through 20227

What to look for

• Clients who have rolled 401(k) assets into an IRA

• Clients approaching retirement who need to decide what to do with their 401(k) after retirement

• Clients whose company allows in-service withdrawals from 401(k)s


• Rolling a portion of a 401(k) into an IRA within Nationwide Summit protects savings from market volatility without sacrificing growth potential

Resources

• Your wholesaler can help identify companies in your area that allow in-service withdrawals from 401(k)s

• NFM-6728AO: Client guide to in-service 401(k) withdrawals

• FAM-0480M1: Nationwide Summit client brochure

• FAM-0628AO: Prospecting postcard — 401(k) rollovers

In-service 401(k) rollover guide

Income Planning

Lead the charge in your retirement savingsTo make the most of your retirement portfolio, see how moving a portion of your 401(k) into a rollover IRA may give you increased control over your assets.

By transferring a portion of your retirement plan or 401(k) into a rollover IRA via an in-service withdrawal, you can take advantage of:

Access to professional guidance as you approach retirement, helping you create a strategy for your savings

Additional investment flexibility and future income sources

Increased control over your assets

• Not a deposit • Not FDIC or NCUSIF insured • Not guaranteed by the institution • Not insured by any federal government agency • May lose value• Not a deposit • Not FDIC or NCUSIF insured • Not guaranteed by the institution • Not insured by any federal government agency • May lose value

Preparing for a bright tomorrow

Product guide


7 “Retirement plans — deferred compensation plans provided by corporate, not-for-profit and government plans,” The Cerulli Report, U.S. Retirement Markets (2017).


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Clients looking for tax deferral opportunitiesWhat you need to know

• Boomers deeply value tax deferral opportunities

– 75% say it’s an important part of a retirement investment8

– 30% would be likely to save less if the tax deferral of retirement savings was reduced or eliminated8

What to look for

• Clients in higher tax brackets

• Clients who are concerned about the amount of taxes they’re paying


• Allows clients to delay paying taxes on assets in their annuity until they’ve retired and may be in a lower tax bracket

Resources

• NFM-14125AO: Client guide to tax deferral

• FAM-0629AO: Prospecting postcard — tax deferral

• FAM-0480M1: Nationwide Summit client brochure

Keep more of what you earnHarness the power of tax deferralWith tax rates reaching their highest level in more than 30 years, you may be looking for ways to help protect your wealth and your retirement income assets by minimizing tax exposure.

That’s where a tax-efficient investment strategy may help.

Why tax deferral mattersBy deferring taxes until you take a withdrawal, you may be able to take advantage of compounded growth on your investments. The potential benefit of this strategy increases with every year the assets have the opportunity to continue to grow in a tax-deferred account. Let’s look at an example to see the potential impact of tax deferral.

This hypothetical example is for illustrative purposes only and is designed to show the power of tax deferral. The example does not reflect any specific product on either the taxable investment portion or the tax-deferred portion. The example assumes an initial investment of $500,000 non-qualified money, a constant net growth rate of 8% for 25 years, and a tax rate of 43.4% (39.6% federal income tax rate + 3.8% Medicare surtax). The same tax rate is applied to both the yearly taxable investment earnings and the earnings in the lump-sum withdrawal from the tax-deferred investment at the end of 25 years. Your clients should keep in mind that all investments involve inherent risks and the assumed rate of return is not guaranteed. Investment losses affect the comparison of a tax-deferred versus a taxable investment and any applicable capital gains or dividends would affect the tax rate of the taxable investment.

Conversation guide

Initial investment: $500,000

Constant net growth rate: 8%

Tax bracket: 43.4%

Tax deferral

$3,500,000

$3,000,000

$2,500,000

$2,000,000

$1,500,000

$1,000,000

$500,0001 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25

$3,424,238

$2,155,118

$1,512,816

Years

Acc

oun

t V

alue

Tax deferredTax deferred after taxesTaxable

8 IRI Fact Book 2017, Insured Retirement Institute.

• Not a deposit • Not FDIC or NCUSIF insured • Not guaranteed by the institution • Not insured by any federal government agency • May lose value

Preparing for a bright tomorrow

Product guide



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ReferralsWhat you need to know

• Over half of high-net-worth investors chose a financial professional based on a recommendation from a friend or family member9

What to look for

• People who have been referred by clients who themselves are risk-averse are potentially well-suited for Nationwide Summit

• Potential clients using traditional savings vehicles identified by support resources at your branch


• Offers a simple, practical product to help start retirement conversations without overwhelming new prospects

Resources

• K-AD-REFERRALS: The branch referral kit includes resources that can be shared with support personnel, such as tellers, who are key referral resources

• NFM-3364AO: Referral training guide

9 ”Advisor vs. Firm Loyalty,” Spectrem Group (2017).

Your top tips for using technology

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Learn about technology platforms available through your bank or firm that help manage your online presence; examples include:

• Customer relationship management (CRM) systems keep a record of interactions and help automate and track different tasks

• Hearsay Social manages your social, mobile and web presence and integrates enterprise and compliance oversight

– Allows you to organize and schedule posts ahead of time

– Suggests relevant content based on posts from your contacts

Follow your current clients and prospects on LinkedIn and Facebook

When you post, discuss a wide range of financial information, not just retirement-focused topics

• For example, offer insights about things to consider during a variety of life events such as marriage, buying a house or sending a child to college

Click “connect”; increase your network by using the “people you may know” lists on social media sites

Make sure your social media profiles and pages are updated

Don’t inundate followers with too much information or nonrelevant information

Always make sure content is shareable

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NOTES

For more resources, give us a call or visit nationwidefinancial.com/Summit.

National Sales Desk: 1-800-321-6064

Nationwide Financial Network®: 1-877-223-0795

Guarantees and protections are subject to the claims-paying ability of Nationwide Life and Annuity Insurance Company.

Products are issued by Nationwide Life and Annuity Insurance Company, Columbus, Ohio.

Nationwide, Nationwide Financial Network, Nationwide is on your side, the Nationwide N and Eagle and Nationwide Summit are service marks of Nationwide Mutual Insurance Company. © 2016, 2018 Nationwide

FOR BROKER/DEALER USE ONLY — NOT FOR USE WITH THE PUBLIC

FAM-0561AO.1 (03/18)

• Not a deposit • Not FDIC or NCUSIF insured • Not guaranteed by the institution• Not insured by any federal government agency • May lose value