What will we cover in this annuity review?
In this review of the Nationwide Secure Growth 5 One-Year Annuity, we will be discussing:
- Type of annuity
- Pros and cons
- How it might be presented to you
- Where it might work well
- Where it might not work very well
Annuities can be complex. That’s where having an Annuity Investigator who loves math comes in.
We make the complex, simple.
If you’re considering the purchase of an annuity to help you with increasing your nest egg, while at the same time keeping your money safe from market volatility, then the Secure Growth 5 annuity from Nationwide Life could be a good fit for you. One of the biggest reasons for this is because this annuity comes with some nice guarantees that are built directly into the contract.
However, before you move forward with purchasing this – or any other annuity, for that matter – it can be extremely beneficial for you to first get a much more in-depth understanding of exactly how the annuity works, and how it may or may not necessarily work for you and your specific financial goals.
Over the past several years, fixed annuities have become quite popular. This is particularly the case with those who lost some (or all) of their retirement savings in the market downturn of 2008 – and the more recent 2020 COVID-19 outbreak (and corresponding market drop) – and who are now seeking safety for their principal.
These products can also provide you with a guaranteed lifetime income stream, which is nice because people are living longer these days, and it can be difficult to make your savings stretch for a multitude of years.
But, because annuities have grown so much in popularity, there has also been an increase in the number of insurance and financial advisors who are offering them. Unfortunately, these agents may not always be giving you the very best answers to the questions that you may have, but that you need to know in order to make a well-informed decision.
Also, due in large part to the increased desire for annuities, the selection of annuity products has grown significantly. Yet, while this variety of options can certainly help you to “customize” the products to better fit your specific needs, it can also make annuities even more confusing, even for well-informed consumers.
Given that, there are some recommended steps that you should consider that can help you in truly understanding what it is that you might be purchasing – especially as an annuity could realistically make up a large portion of your overall retirement income down the road.
Also, since annuities can be pretty hard to get out of once you have gotten into one, it is important that you know why you are going with one an annuity over another, as well as why you are even going with an annuity at all.
Annuity and Retirement Income Planning Information that You Can Trust
If you have never visited our website, then please allow us to officially welcome you here to AnnuityGator.com. We make up a team of experienced annuity specialists who focus on offering very comprehensive – and unbiased – annuity reviews.
We have been doing this for quite a few years now – longer than our competitors. And, because of the in-depth reviews that we provide, we have become a highly trusted source of annuity information online.
There are hundreds of annuities – fixed, indexed, and variable – that can be found in our comprehensive Annuity Review database, which is accessible from our website.
Over the past decade or so, however, there have been a number of “copycat” websites that have popped up on the Internet. While some of these can give you information about annuities, what you are likely to find is that they are oftentimes just simply reiterating what our information already shows.
If you have been researching annuities on the Internet lately, it is likely that you also have run across some conflicting information regarding these financial vehicles. That really is not surprising, though, as there are many, many annuities out there in the marketplace, and just about everyone seems to have a differing opinion about them.
It could also be that you’ve recently attended an annuity seminar. Here, the presenter may have given you more in-depth details about the Nationwide Secure Growth 5 fixed annuity, or some other similar product. In fact, it may even have been your attendance at that seminar that led you here to our site in search of additional information.
When you’ve been looking at annuities online, it is also possible that you landed on some other annuity marketing websites that focus on luring visitors in for the purpose of obtaining their contact details. These sites will oftentimes do so by making some fairly bold claims about the annuities they offer, such as:
- High Annuity Income Payouts
- Guaranteed Income for Life
- Top-Rated Annuity Carriers
- Low Fees
Does this look familiar?
But, as nice as these claims might sound, it is really important that you verify their validity first before you decide to move forward with a long-term financial commitment. Otherwise, it could end up costing you.
That being said, if you are looking for more in-depth information about the Secure Growth 5 annuity from Nationwide Life, then you are definitely in the right place. In fact, dare we say that our website is the only place online where you can get all of the key details about this annuity so that you can make a well-informed buying (or non-buying) decision.
It is important to note here, however, that in addition to providing you with all of the nice keen benefits of this product, we are also going to lay out the product’s drawbacks. This is so that you will be in a better position to make a truly well-informed decision as to whether or not this is really the annuity for you.
We do want to be very clear in that we believe annuities are beneficial products – and they can be a great addition to a portfolio for some people – but only as long as they fit in with your overall financial objectives. This annuity review is here to provide you with what you need to know.
So, with that being said, let’s go ahead and get started!
The Nationwide Secure Growth 5 One-Year Annuity at a Glance
|Product Name||Secure Growth 5, 1 Year Annuity|
|Type of Product||Fixed Annuity|
|A.M. Best Rating||A+|
|Phone Number||(877) 669-6877|
Opening Thoughts on the Secure Growth Annuity from Nationwide Life
Nationwide 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 in the world. The company specializes in annuities, as well as mutual funds, retirement plans, and life insurance coverage for both individuals and companies.
There are numerous Nationwide affiliate companies, too, 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
Nationwide does a fair amount of television advertising, so the company is familiar to many people. You may have even found yourself humming its now-famous jingle, “Nationwide is on Your Side.”
Financial and insurance companies definitely recognize that many of the key events in peoples’ lives involve money. This certainly goes for retirement – which is perhaps the biggie when it comes to your finances. The main reason for this is because the decisions you make today about the allocation of your funds will likely affect tomorrow’s financial security.
The demand for annuities, which grow on a tax-deferred basis, and are backed by the financial strength and stability of the insurance carriers that offer them, has been increasing as more and more Baby Boomers reach retirement age. This is especially true as most companies have done away with the traditional pension plan, and an annuity allows you to turn your money into an income stream.
Yet, while the demand for annuities has definitely picked up, it is also important to keep in mind that variable annuities can present market-related risks to their owners, so these products need to be reviewed very carefully before purchasing in order to determine whether or not they will really be the right fit for an investor.
For help with reviewing variable annuities, click here to download our free Truth About Variable Annuities – 2017 Guide for free
Before we get into the gritty details, there are some required legal disclosures here…..
This is an independent annuity product review. It is not a recommendation to purchase or to sell an annuity. Nationwide Life has not endorsed this review in any way, nor do we receive any type of compensation for providing this review. This annuity review is meant solely to be an independent review at the request of our readers so that they may see our perspective when breaking down the positives and the negatives of this particular annuity. Prior to committing to the purchase of any type of insurance and/or investment vehicle, it is critical that you do your own due diligence, and that you also talk with a properly licensed professional if you have any questions that relate to your specific situation. All of the names, materials, and marks that have been used in compiling this annuity review are the property of their respective owners.
For additional information on how to compare annuities so that you can decide which may be the best one for you, contact us in order to obtain our free annuity report.
How Nationwide Describes the Secure Growth 5 Annuity Product
Nationwide’s website describes the Secure Growth Annuity as a product that can offer you the safety of traditional fixed-rate products, but also the added growth to meet your future planning needs.
This annuity, which is primarily designed for long-term savings, offers the following key features:
- A guaranteed rate of return
- Tax-deferred growth
- Income protection
- An efficient way to pass on your legacy
There is also a way to access up to 10% of the contract’s value penalty-free, even during the annuity’s surrender period.
Both the principal and interest rates are guaranteed with this annuity, provided that you do not make withdrawals before the end of the selected surrender period.
The way in which your return is determined can get a bit tricky here. There are several components that are considered, including the rate guarantee period that you choose.
The Secure Growth annuity also offers a return of purchase payment guarantee option that provides a return of your principal contributions – less any fees, taxes, or prior withdrawals – is the contract is surrendered.
You can view the full Secure Growth annuity product guide HERE.
How an Insurance or Financial Advisor Might “Pitch” this Annuity to a Client or Prospect
Because so many people today are concerned about keeping their money safe, it is likely that a financial or insurance advisor would pitch the Nationwide Secure Growth 5 fixed annuity based on its safety features, along with its guaranteed growth. Tax-deferral is also oftentimes an added bonus that is highlighted by advisors.
But, even though these may sound appealing, there is always going to be some kind of “trade-off” for the upside on a financial product. In this case, it is that the return can be painfully low – so low, in fact, that it may not even come close to meeting – much less beating – inflation.
Added to that is the fact that the guaranteed rate on this annuity will only last for a set amount of time, after which you take the chance that it could go down. So much for guaranteed interest rates!
Given that, it is highly likely that there are some better alternatives out there for you – especially if you are seeking safety of your principal, as well as the opportunity to earn a higher rate of return.
So, unless you are 100 percent convinced that the Nationwide Secure Growth 5 fixed annuity is for you, it could be quite beneficial to take a look around at some alternative options. It can also be helpful if you first run the numbers based on your particular situation via our annuity calculator. That way, instead of getting a “hypothetical” scenario based on how this annuity may perform in general for an anonymous investor, you can plug in some actual numbers that relate to you.
As experts in the annuity arena, we can also offer you help with any additional questions or concerns that you may have – so please feel free to reach out to us at any time via our secure contact form here.
Knowing everything that you need to know about the Nationwide Secure Growth 5 One-Year annuity – or any other annuity, for that matter – could end up saving you a great deal of money and frustration, as knowing more of the details can help you to avoid products that do not truly fit your needs. Otherwise, getting into the wrong annuity could cost a great deal in surrender charges if you change your mind soon after purchasing one and want to get out of it.
In addition to that, if you would like some additional tips on what you need to know before you buy an annuity, you can also click here to immediately access our free report on shopping for annuities.
Fees Associated with the Nationwide Secure Growth Annuity
For many years, annuities have gotten a bad rap due in large part to their fees. The Secure Growth annuity from Nationwide Life is no exception. In this case, even though you technically have access to your funds, if you take out more than 10% of the contract’s value in a given year during the surrender period (which is also referred to as the CDSC, or Contingent Deferred Sales Charge period), then you could incur a penalty.
For instance, with the one-year rate guarantee period on this annuity, your money could be locked up for five or even seven years. Similar to determining how your interest is calculated, the sales charge options are also somewhat confusing. But basically, just know that at minimum, your money could be locked in for 5 years, or even for 7 years, at the following fee percentages:
The Annuity Gator’s End Take on the Nationwide Secure Growth 5 One-Year Annuity
Where it works best:
- Principal protection
- Guaranteed lifetime income stream
- Guaranteed interest rate protection (for a set period of time)
Where it works worst:
- For those seeking the opportunity to get a higher rate of return
- If you need your money out before the 5 or 7 year surrender period has elapsed.
- For those seeking a longer-term interest rate guarantee.
- For those who do not intend to use the guaranteed lifetime income feature.
If you truly want to get a more in-depth idea of the best annuity options in the market, then please feel free to download our free report on annuities here.
If you’ve been thinking seriously about purchasing a fixed annuity like the Secure Growth annuity from Nationwide, but you’ve been a bit leery about moving forward, then you may need to get a more in-depth understanding about how these products work, how they can work for you, and why they may or may not actually be the ideal financial option for you.
In any case, though, you should always consider an annuity to be a longer-term financial endeavor – especially because these products will typically have multiple years of surrender charges if you want to take out more than just 10% of your contract value.
The good news is that, if you are considering going with a fixed annuity, you can be assured that you will have principal protection and safety, as well as a set, ongoing income stream for life that you can count on.
With that in mind, when it comes to the Nationwide Secure Growth fixed annuity, there are some nice features that are offered. Yet, this particular annuity could also fall somewhat short – especially if you’re hoping for a higher return.
If you have any questions about whether or not this annuity would fit into your financial plan – or, even if you just have a general question about annuities and how they work – please feel free to contact us. Our annuity geek team will be happy to help.
Need Additional Info? Did You See Any Mistakes?
While we know that this review of the Secure Growth annuity from Nationwide Life was a bit on the lengthy side, our feeling is that we would rather give you too much information about annuity options as versus not enough. So, if you do feel that you gained some good insight about the Secure Growth annuity here, please feel free to forward this review to anyone else who you think may benefit from it.
Also, we know that because information about annuities can, and often does, change, that there may be some details here that require updating. With that in mind, if you did happen to notice anything at all in this review that needs revision, please let us know here via our secure online contact form.
Likewise, if you would like to see any other annuities reviewed, please let us know that, too as we are always looking for suggestions on products to review.
In addition, if you are interested in seeing personalized figures plugged into the Nationwide Secure Growth fixed annuity, we would be happy to run a spreadsheet and share the information with you, at no charge.
We look forward to helping you with any questions that you may have.
The Annuity Gator
P.S. If you would like to read more of our Nationwide New Heights annuity reviews here are some links to check out:
- Independent Review of the Nationwide New Heights 9 Fixed Indexed Annuity – [Jan 2020 Update].
- Independent Review of the Nationwide INCOME Promise Select Single Premium Immediate Annuity.
- Independent Review of the Nationwide New Heights 12 Annuity – [October 2018 Update].
- Independent Review of the Nationwide Peak Fixed Indexed Annuity.
- Independent Review of the Nationwide Advisory Solutions Single Premium Immediate Annuity.