Is Nationwide a good company?

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dodgersummer
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Is Nationwide a good company?

Post by dodgersummer »

I currently have a gov't job and use ICMA for a 457 plan. My work also offers the 457 plan through Nationwide. I'm thinking of switching to Nationwide. Does anybody have any experience or opinions if Nationwide is good for a 457 plan? Thanks,

Robert
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retiredjg
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Re: Is Nationwide a good company?

Post by retiredjg »

The test of a 457b plan is pretty much the cost of the funds (expense ratios). To decide which is better, compare the expense ratios of similar basic funds.

Before you have 2 separate 457b plans going, be sure there is not some added administrative fee for each one.
bob60014
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Re: Is Nationwide a good company?

Post by bob60014 »

I am in a ICMA 457 plan that has a broad range of funds and I am happy with it. What is the benefit of changing to NW? Any costs involved? Look at the funds available at Nationwide and be sure you are comparing "apples to apples" before you make any changes.
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midareff
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Re: Is Nationwide a good company?

Post by midareff »

Another thing to look at is the financial tiers at which you may do other things with money in the account. As I recall, I had both ICMA and Nationwide available from my (former) employer. Both had what Bogleheads consider high fee funds available but (again, as I recall) Nationwide would let you move any funds over $10K to Schwab and ICMA had a minimum to be held of $50K. The Schwab plan was not what they advertise for regular consumers although you could buy our more popular ETF's for $7.95 a trade and some VG funds for an outrageous Schwab purchase charge.

I don't think the right question in this case is if they are a good company, but rather which company is the better for you company after consideration of their annual fees, fund choices, expense rations and tier requirement to allow the money to be moved to a potentially better and lower cost fund provider. When I retired I had two retirement accounts which I rolled to Vanguard. One was a State Deferred Compensation Plan which took a standard roll-over letter from Vanguard and the money was at Vanguard in about 2 weeks or so and the other was Nationwide who required the Schwab funds be liquidated and transferred back to them, which they did not acknowledge as incoming very promptly IMHO, and then they required a custom worded letter which Vanguard promptly accommodated and then Nationwide dragged their feet for too long IMHO to let go of my money.

YMMV....
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Nate79
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Re: Is Nationwide a good company?

Post by Nate79 »

Nationwide is on your side.
obgraham
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Re: Is Nationwide a good company?

Post by obgraham »

Nate79 wrote: Wed Dec 13, 2017 10:29 am Nationwide is on your side.
Was there ever a better sign that a company is not, if fact "on your side"?
Johnny Thinwallet
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Re: Is Nationwide a good company?

Post by Johnny Thinwallet »

This is going to be employer-specific and plan-specific, but my employer used to have Nationwide as our 403(b) admin. I say used to, because I'm thankful that is now in the past. Nationwide charged a "net asset" fee of 0.50% on top of the expense ratios for every fund in our plan.

My employer put me on the small team in charge of reducing our plan's fees so when we tried to negotiate that net asset ratio fee down, Nationwide refused. And once they refused, we walked and moved the entire company's 403(b) to a new provider. We do have a small asset fee with our new provider, but it's nowhere near the 0.50% that Nationwide was charging.

If you want to consider Nationwide, my caution would be to investigate all the potential fees very, very thoroughly.
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SpringMan
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Re: Is Nationwide a good company?

Post by SpringMan »

obgraham wrote: Wed Dec 13, 2017 5:30 pm
Nate79 wrote: Wed Dec 13, 2017 10:29 am Nationwide is on your side.
Was there ever a better sign that a company is not, if fact "on your side"?
https://www.aol.com/article/news/2017/1 ... /23284583/

Nationwide was not on their side.
Best Wishes, SpringMan
n00b
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Re: Is Nationwide a good company?

Post by n00b »

FWIW, my Nationwide 457b allows access to a Schwab Self Directed Brokerage Option aka Schwab Personal Choice Retirement Account for $50/year.

Complexity is added by having to pass through the Nationwide account to Schwab but saves me about .4% due to better fund access and a Nationwide wrap fee.

Also, I can hook up to the Schwab account in Quicken but not the Nationwide account.
saltz1979
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Re: Is Nationwide a good company?

Post by saltz1979 »

I worked for a company that their 410k through them. One issue I did not like is they would take a Fund and convert the NAV to "their" NAV. All their fees were incorporated in this number. A lot of fees can be hidden this way.
gostars
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Re: Is Nationwide a good company?

Post by gostars »

obgraham wrote: Wed Dec 13, 2017 5:30 pm
Nate79 wrote: Wed Dec 13, 2017 10:29 am Nationwide is on your side.
Was there ever a better sign that a company is not, if fact "on your side"?
"It's how Edward Jones makes sense of investing."?

To the topic at hand, at least some plans Nationwide offers have low-ER Vanguard index funds, as well as their own stable-value fund offering 3.5%, which would replace the bonds in a typical portfolio and offer a better return than what you'll get from a standard TBM fund. You'll have to post more details on the available options under each provider and what the ERs and fees are to get advice more specific to your situation.
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