What will we be covering in this annuity review for the Nationwide Peak 10 with distribution partner AmeriLife?In this review, we will be covering the following features of the Nationwide Peak 10 fixed index annuity:
- Type of Annuity
- Fees to look out for
- Realistic expectations
- How the annuity is used best
- How the annuity shouldn’t be used
Annuities can be complex. That’s where having an Annuity Investigator who loves math comes in. We make the complex, simple.If you’ve been considering the purchase of a fixed indexed annuity because of the index-linked (and tax-deferred) growth that you can obtain without any worry about market-related losses, then the Nationwide Peak 10 fixed index annuity may be a good option for you. In many ways, fixed indexed annuities can provide you with the “best of both worlds.” What exactly does that mean? First, it offers the opportunity for a higher return than that of a regular fixed annuity. With today’s historically low interest rates, it can be hard to generate a return that meets, much less beats, inflation. So, the fact that these annuities have their return linked to underlying market indexes is key. On the other side of the coin, if the tracked index(es) does not perform well in a given contract year, you won’t incur a loss. Rather, the account will be credited with a minimum guaranteed return – which currently (early 2021) is in the range of 0% to 2% on many of these types of annuities. In addition, as with other annuities, a fixed indexed annuity like the Nationwide Peak 10 offers an income stream that lasts for a specific period of time, or even for the remainder of your lifetime if you choose that particular income alternative. With that in mind, it is easy to see why fixed indexed annuities, or FIAs, have become so popular with investors who are tired of stock market losses, and who also want to know that their money will be there when they need it – and for as long as they need it. But, before you run out and purchase the Peak 10 indexed annuity from Nationwide – or for that matter, any annuity – it is important that you have a good understanding of how the product works so that you can anticipate the fees you could incur, as well as knowing the ins and outs of the crediting of returns in the account.
Annuity and Retirement Income Planning Information You Can TrustIf this is your first visit to our website, then please allow us to officially welcome you here to Annuity Gator. Who exactly are we? We are a team of retirement income and annuity specialists who place a key focus on offering in-depth, and unbiased, annuity reviews on the Internet. We have been at this for quite a while now – much longer than our competitors. Although, there are now a number of “copycat” websites that are popping up. Our primary mission is – and always has been – to provide information about annuities to consumers so that they know exactly what they may (or may not!) be getting into before it is too late. Annuities can be highly complex – especially the ones that have a lot of moving parts like FIAs. So, it helps to have someone who is adept in how annuities work who can also pare down the massive amount of “fine print” into something that is more easily understood. That’s where the Annuity Gator comes in! When looking for annuity information online, it is essential that you know who is truly trying to provide education on the products, and who is simply trying to sell you something…regardless of whether or not it is the right financial vehicle for you. It’s easy to be lured into some of the other websites out there in cyberspace – especially when they make bold claims, such as:
- Lowest annuity fees
- High-income payouts
- Top-rated annuity carriers
- Income stream for life
The Nationwide Peak 10 Fixed Indexed Annuity at a Glance
|Type of Product
|Fixed Indexed Annuity
|A.M. Best Rating
Opening Thoughts on the Nationwide Peak 10 Fixed Index AnnuityNationwide 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 around the globe. The company specializes in providing annuities, as well as mutual funds, retirement plans, and life insurance coverage for both individuals and businesses. There are numerous Nationwide affiliate companies, too, that are located 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 ratings agencies, including a(n):
- A+ from A.M. Best Company
- A+ from S&P
- A1 from Moody’s
Before we get into the gritty details, here are some legal disclosures we need to provide…This is an independent product review, not a recommendation to buy or sell an annuity. Nationwide Financial has not endorsed this review in any way, nor do we receive any type of compensation for providing this review. This review is meant to be an independent review at the request of readers so that they may see our perspective when breaking down the positives and negatives of this particular annuity. Prior to purchasing any type of investment or insurance product, it is important that you do your own due diligence and that you consult a properly licensed professional if you should have any specific questions that relate to your individual circumstances. All names, marks, and materials that were used for this review are the property of their respective owners.
How Nationwide Financial Describes the Peak 10 Fixed Indexed AnnuityNationwide describes the Peak 10 fixed indexed annuity as a single-purchase-payment deferred indexed annuity that is designed for helping you prepare for retirement. It offers growth potential for your investment, while also protecting your principal (and your previous gains) from market losses. This fixed indexed annuity offers returns that are based on the changes in an underlying index, such as the S&P 500 Composite Stock Price Index. There are actually four indexes that you can choose from with the Nationwide Peak 10 annuity, including the:
- J.P Morgan Cycle Index – This index is exclusively available within the Nationwide Peak 10
- AllianceBernstein Growth and Value Balanced Index – This index is also only available via the Peak 10 annuity
- S&P 500 Price Index
- S&P 500 Daily Risk Control Index
- Tax-deferred growth. There is no tax due on the gain in the annuity until the time of withdrawal. This can allow your funds to grow and compound exponentially – especially as compared to a comparable investment that is taxable.
- Death benefit. A death benefit can be paid to you or your surviving spouse, regardless of which one of you owns the contract or who passes away first.
- Guaranteed Income Solution
- Bonus Income + Rider
- Free withdrawal of up to 10% of the contract value each year – even during the surrender charge period
- Long-term care/confinement waiver
- Terminal illness waiver
- Injury waiver
How an Insurance or Financial Advisor Might “Pitch” the Nationwide Peak 10 AnnuityAccording to a recent Advisor Authority study, protecting against stock market losses due to the COVID-19 pandemic is the number one financial concern on the minds of investors and retirees today. Based on that, it is possible that an insurance or financial advisor might present the Nationwide Peak 10 annuity as a way to generate higher returns than many other fixed alternatives, as well as to keep income safe, regardless of what happens in the stock market. Therefore, the Peak 10 can also work well in a low interest rate environment. In addition, the tax-deferred growth of your money inside of the contract can also be a bonus – and it could even allow for an additional option for tax-advantaged accumulation, even if you have “maxed out” other alternatives like an IRA and/or employer-sponsored retirement plan like a 401(k). But even with all of these awesome features, you really need to be careful, as there are some “tradeoffs” you may need to make with this product. For instance, even though you have the ability to obtain a positive return based on the performance of an underlying index (or indexes), the upward potential is capped.
What About Any Fees on the Nationwide Peak 10 Annuity?There are no annual contract or administration fees on the Nationwide Peak annuity. However, that doesn’t mean that you still won’t incur charges in various situations. For instance, to add the bonus income rider, you (and your spouse, if applicable) will be required to pay an additional premium. This added cost could, in turn, lower the overall return that you generate from the annuity. Also, if you need to withdraw more than 10% of the money in the account from the annuity during the first five years (aka, during the annuity’s surrender period), you will incur a fee.
Nationwide Peak 10 Annuity Withdrawal/Surrender Charge Schedule
The Annuity Gator’s End Take on Nationwide’s Peak 10 Fixed Index AnnuityWhere this annuity may work best: Although this fixed indexed annuity offers many nice benefits, it will typically work the best for those who are seeking the following attributes:
- Safety of principal
- The opportunity for additional, index-linked growth, which can provide a higher return than a regular fixed annuity
- Guaranteed income for life – for an individual or for two spouses
- Will need access to more than just 10% of their funds within the annuity’s 10-year surrender charge period
- Do not intend to use the lifetime income feature
In SummaryWhile there are many factors that need to be taken into consideration when you are buying an annuity, one of the biggest concerns is making sure that the annuity is truly right for what you want – and need – it to do. With regard to the Peak 10 fixed index annuity from Nationwide, you can rest assured that you (and your spouse, if applicable) will have an income for life. But at the same time, depending on your other goals and needs, this product may still fall short – and there could be something else out there that is a better fit for you. If you have any additional questions on the Nationwide Peak 10 annuity, and/or other income-related products, Annuity Gator is here to help. We can also run side by side annuity comparisons in order to determine how various annuities might perform. So please feel free to contact us directly via our secure online contact form here.
Do You Have Any Additional Questions About the Nationwide Peak 10 Annuity? Did You Happen to Notice Any Mistakes on this Review?We realize that this annuity review has run long. But quite frankly, we would much rather that you have “too much” information on this product than to not have enough. So, if you found this annuity review of the Peak 10 fixed indexed annuity to be beneficial, please feel free to pass it on and to share it with other people who could also find value in it. (And, if you found it to be confusing, please also let us know that, too). In addition, we are aware that information regarding annuities can, and often does, change. So, if you happened to notice anything in this review that should be updated or revised, let us know and we will be happy to make the necessary edits. Are there any other annuities that you would like to learn more about? If so, just give us a shout and let us know, and our team will get to working on them right away. Be sure to check back often for any of the new reviews that are added to our massive annuity review database. Best, The Annuity Gator P.S If you would like to read more of our Nationwide annuity reviews here are some links to check out:
- Nationwide Destination C Variable Annuity
- Nationwide New Heights 12 Annuity
- Nationwide Summit Fixed Indexed Annuity
- Nationwide New Heights 9 Fixed Indexed Annuity
- Nationwide Life Destination Architect 2.0 Variable Annuity
- Nationwide Life MarketFlex Advisor Variable Annuity
- Nationwide Best of America Future Venue Variable Annuity
- Nationwide Advisory Solutions Single Premium Immediate Annuity
- Nationwide INCOME Promise Select Single Premium Immediate Annuity