Nationwide was founded in 1925, and has grown to be one of the largest insurance and financial services companies in the world, with more than $225 billion in total assets. The company sells Fixed, Variable and Market Value Adjusted (Indexed) annuities, and many different types of insurance policies (including life, auto, boat, ATV, motorcycle, pet and identity theft, among others), as well as investment products for individuals, and other insurance and employee benefits solutions for businesses. It was ranked #8 in total annuity sales for 2018, with those sales fairly evenly split between fixed (55%) and variable rate annuities (45%). It’s slogan, “Nationwide is on your side” is widely recognized by consumers. Nationwide has strong ratings from the most widely followed rating agencies: A+ (A.M. Best), A1 (Moody’s) and A+ (Standard & Poors).
When it comes to selecting a location to retire, there are many different variables to consider. Though many cities in the United States are specifically set-up with appeals to retirement communities, everyone has different needs their looking to meet. Whether you’re interested in finding a tax haven, or keeping a low cost of living, or enjoying plentiful outdoor activities, the right retirement location is out there for you.
The most common variables when selecting a retirement location are:
Weather
Tax Requirements
Recreational Opportunities
Let us take the hard work out of finding your dream retirement location. Here are some of the best places to retire based on the most commonly selected needs.
Weather
When you come to the age of retirement, the weather is no longer a topic used to fill a void in a conversation, but a crucial part of where you choose to live. With less time spent in the office and more time spent at home or enjoying your surroundings, ensuring that your location is suited to your weather needs is an important decision. Whether you’re a snow bunny interested in skiing the slopes, you enjoy the colors of the leaves changing in the fall, or you enjoy summer weather all year long, the right place is out there for you!
For the warm weather lovers, there are a variety of different options for you. From California beaches, the Gulf Coast, or the even the South, there are plentiful retirement cities around. One of the challenges you’ll find with this location is the cost of living.
Naples, Florida
With a staggering 51% of the current population over the age of 65, this prime coastal location, 40 miles south of Fort Myers, Florida is undoubtedly at the top of our list. Naples, Florida is full of high-end shopping, numerous beach locations, and ideal weather year-round. The city is full of beautiful landscapes and ecosystems with an appeal for animal watching, as it’s home to dozens of species. With over 60 golf courses throughout Naples, along with an entire Art Association, the recreational activities are plentiful.
Quick Facts:
Temperature – Between 53 and 93 degrees
Median Age – 65.6 years
Cost of Living – 21.6% higher than the U.S national average
Median Home Price – $334,900
Median Income – $80,571
New Orleans, Louisiana
Ranked one of the best places to retire, New Orleans was found to have a great balance of affordability, recreational opportunities, and the opportunity for fabulous weather the entire calendar year. The first thought you have of New Orleans might well be the parties and Bourbon Street. However, there are plenty of opportunities for retirement age individuals as well. A rich culture and plentiful food options coupled with active senior organization make New Orleans a wonderful retirement opportunity.
Quick Facts:
Temperature – Between 45 and 90 degrees
Median Age – 35.9 years
Cost of Living – 7.5% higher than the U.S national average
Median Home Price – $186,000
Median Income – $36,964
Portland, Maine
Maine’s largest city, Portland is ranked one of the best places not only to retire, but to live in the US. With beautiful seaside views and a relatively affordable price point, Portland has many opportunities for retirees. Home to two art colleges, two 5-star hospitals, and an international airport, Portland just about has it all. Maine also offers retirees a tax deductible of up to $10,000 as another added benefit.
Quick Facts:
Temperature – Between 31 and 78 degrees
Median Age – 36 years
Cost of Living – 16.2% higher than the U.S national average
Median Home Price – $305,200
Median Income – $45,865
Charleston, South Carolina
Ranked numerous times for its extensive livability, Charleston is a beautiful waterfront location that hosts year-round warm weather. With extensive outdoor opportunities and seasonality, this character-filled city is definitely full of charm. Home to over a dozen golf courses, museums, and biking paths, remaining active during your retirement will be made easy in this lovely southern town.
Quick Facts:
Temperature – Between 38 and 91 degrees
Median Age – 34.4 years
Cost of Living – 21.5% higher than the U.S national average
Median Home Price – $313,700
Median Income – $52,971
Tax Havens
Generally, when you get to the age of retirement, you also have a fixed income. That might be a matter of concern, however it doesn’t have to be. There are many different states that offer tax benefits for retirees, or simply states that don’t have taxes. Don’t be mistaken, there are very desirable places to live among those states, take a look at a dew of the most popular and highly recommended locations.
Savannah, Georgia
A moderately sized town, Savannah is both coastal and modern. With a high level of historical integrity at the core and a booming industrial center, the culture of this town is unique. From outstanding heath care to vast shopping opportunities, this tropical city has much to offer. Whether you’re looking for an urban vibe or a coastal paradise, Savannah is able to suit either need. Recreational opportunities are not scarce in the city, as there are over a dozen recreational centers, several golf courses, and hundreds of miles of water. In relation to the tax status, Georgia does not tax Social Security and also provides deductions of over $60,000 on retirement income.
Quick Facts:
Temperature – Between 39 and 92 degrees
Median Age – 32.3 years
Cost of Living – 12.1% lower than the U.S national average
Median Home Price – $134,000
Median Income – $36,628
Pittsburgh, Pennsylvania
Though the weather might be an initial fear of moving to a city like Pittsburgh, it still maintains its number one spot on places to retire. With a low cost of living and a low rate of crime, this heath care hub is an ideal place to retire. One of the most important things to consider when looking at a place to retire is healthcare, something that Pittsburgh is well-known for. Pennsylvania does not tax Social security income, one of two states on the East Coast that allows for all pension income to be completely ta exempt.
Quick Facts:
Temperature – Between 21 and 83 degrees
Median Age – 32.9 years
Cost of Living – 5.8% lower than the U.S national average
Median Home Price – $146,800
Median Income – $40,009
Recreational Opportunities
The importance of recreational opportunities during retirement stretch further than overall satisfaction. An increase in social activities lead to better cognitive function, maintenance of emotional and physical health, and a longer and happier life. Whether you’re joining a club, volunteering, or engaging in outdoor sporting events, finding an activity that you enjoy is crucial to your quality of life in retirement
Denver, Colorado
Colorado is one of the best places to retire, with Denver coming in as one of the top spots in the state. With a beautiful landscape of mountains and trees, outdoor activities are plentiful in this city. Rated one of the healthiest communities due to its outdoor activities, Denver is home to hiking, biking, skiing, and other leisurely activities. With a walk score above 60, new retirees will have no challenge in finding activities to occupy their time.
Quick Facts:
Temperature – Between 18 and 90 degrees
Median Age – 34.4 years
Cost of Living – 44.2% higher than the U.S national average
Median Home Price – $421,900
Median Income – $51,800
Scottsdale, Arizona
Over 23% of the community in Scottsdale are over the age of 65, this city is already a retirement safe haven. With over 3 million acres of landscape, there are options for hiking, fishing, biking, and all other kinds of outdoor activities. Scottsdale also is home to over 30 parks and the McDowell Sonoran Preserve that allows hundreds of miles of hiking and horse trails. Dozens of golf courses line the city of Scottsdale, which people from all over the world travel to play.
Quick Facts:
Temperature – Between 40 and 100 degrees
Median Age – 46.9 years
Cost of Living – 48.7% higher than the U.S national average
Out of all the categories of annuities, a variable annuity is often the most misunderstood. That is because variable annuities have many moving parts, including…
The Indexed Annuity
An indexed annuity, sometimes referred to as an equity-index annuity, is a contract between you and an insurance company in which the issuing company promises…
PART I: FIXED ANNUITIES You already know that annuities can be an important cornerstone of your retirement investment strategy, but with all the options available,…
Annuities offer a variety of benefits to individuals gearing up for or in retirement, not the least of which is a guaranteed income stream that one cannot outlive. That income stream, and in some cases, the account value of an annuity are based on the underlying rate provided by the issuing insurance company. To understand how annuity rates are calculated starts with recognizing the three major components that come into play: the investment performance of the annuity company, the broad interest rate environment at the time of purchase, and the term of the annuity.
Let’s take a closer look at each aspect of an annuity rate calculation.
Annuity Rates Explained
Company Investment Performance – the companies issuing annuity contracts are able to pay fixed interest rates on deposit, and therefore guarantee income in the future, because they have the ability to generate a return on funds used to purchase annuities. Deposits from annuity purchases are often invested in a diversified portfolio. The investment mix of annuity company portfolios may include high-yield bonds, preferred stock, and other institutional-level investments that provide a relatively stable return over time. The stronger this performance, the more competitive the rate offered to new annuity contracts.
Broad Interest Rates – while annuity companies take some risk with their investment portfolios, they also take a close look at the current interest rate environment when issuing annuity rates. The movement of long and short-term interest rates has an impact on the performance of the company’s portfolio, especially if a significant amount of annuity deposits are invested in the bond market. If annuity issuers aren’t correct in their assumptions about interest rate movements, up or down, this could create a lower return on their portfolio. This results in a lower interest rate offered on annuity contracts moving forward. The opposite is also true; when performance is strong, interest rates offered on annuity deposits are higher.
Annuity Terms – the amount of time a deposit is held in an annuity influences the annuity rate as well. The longer the term, the higher the interest rate offered, and vice versa. This is because annuity companies have a longer period to invest the annuity deposit in their own portfolio. For annuities that pay a guaranteed stream of income, time also plays a role. An immediate annuity offers a lower rate because income is starting shortly after the funds are deposited. A deferred annuity often pays a higher rate, as income begins a year or more in the future.
There is a fourth component of annuity rate calculation – the deposit amount. Some annuity companies offer a higher annuity rate for more substantial deposits, while others provide the same annuity rate regardless of the amount used to fund an annuity. It is important to know that while this isn’t always a factor, it can play a role in calculating your annuity rate.
Having a basic understanding of the factors that influence how annuity rates are calculated is an essential step in selecting the best-fit annuity for you and your financial needs.
In today’s economic climate with money market funds yielding next to nothing, constant fear of inflation and concern over government spending is making retirement planning even more complicated. This fear over dwindling returns with safe secure money should be a primary concern for any retiree or person with limited resources. This rings even truer if maintaining a current lifestyle is an important goal. In times like these, many planners are turning to the bond market but are there better alternatives?
