What will we be covering in this Nationwide New Heights fixed index annuity review?
In this Nationwide New Heights 10 fixed indexed annuity review, we will be going over the following important details:
- Type of annuity
- Realistic performance expectations
- Where the annuity is best used
- How the annuity is most poorly used
Annuities can be complex. That’s where having an Annuity Investigator who loves math comes in.
We make the complex, simple.
If you are currently in the process of looking for a financial vehicle that can provide you with the opportunity to earn market index-linked returns, while also keeping your principal safe and providing you with an ongoing income in retirement, then the Nationwide New Heights 10 fixed indexed annuity could be a good option for you.
One reason for that is because this annuity allows you the ability to earn a higher, index-linked, return than that of a regular fixed annuity. But if the market heads south, your hard earned principal will still be safe. Plus, when the time comes to convert the annuity over into an income stream, choosing the lifetime income option will give you an ongoing, lifetime income – regardless of how long you live.
Yet, even though this might sound very appealing, don’t run to the nearest financial or insurance advisor quite yet and sign on the dotted line to purchase this annuity – at least not until you have a full understand of how the product works, and how it may or may not work for you.
Over the past decade or so, annuities have become much more popular with investors as a way of getting a guaranteed, ongoing income stream in retirement – particularly because stock market performance can be so unreliable.
Yet, this may not necessarily be a good thing because, even though most financial advisors work hard to do what is right for their clients, some of these sales agents may not be providing the best or most knowledgeable advice regarding these products.
On top of all that, because annuity products have risen so much in popularity lately, many insurance companies have been expanding their product lines with annuities that include lots of moving parts. That way, they can “outdo” their competitors, and woo you in with the most up-to-date features and benefits.
However, even though some of today’s annuities may allow you to “customize” what you do with your money, they can also be extremely confusing – even for well-informed investors. Also, you need to be careful in regard to the fees that are charged on some annuities, as these can really add up…as well as reduce the overall return that you ultimately receive.
With all of this in mind, it is highly recommended that you understand exactly what it is that you are committing to, because locking yourself into an annuity could very well end up costing you in surrender penalties if you choose to get out of it.
This is where the Annuity Gator comes in!
Annuity and Retirement Income Planning Information that You Can Trust!
If you have never been to our website before, please allow us to personally welcome you here. We at Annuity Gator are a team of experienced financial experts who are dedicated to helping you “decode” the complicated world of annuities. Here, we strive to create unbiased, yet highly comprehensive, annuity reviews – and we have been at this for far longer than most of those “copycat” websites out there.
Annuities are a unique type of insurance product in that they are the only financial vehicle that can make the promise of providing you with a lasting, lifetime income stream for life. Stocks can’t do this, and quite frankly, neither can bonds. Unfortunately, though, some advisors – albeit unintentionally – will tend to make annuities sound better than they actually are.
One reason for this is because in order to obtain the nice benefits, there are oftentimes also some “tradeoffs” that you need to make. So, the reality is that you really do need to know just exactly what you might have to give up in order to get the guarantees and other benefits an annuity can provide.
Many annuity sales reps, and even many of the annuity websites that you’ll see online, will make some pretty bold claims about the performance of the annuities that they offer, such as:
- 7 to 8% return
- Low fees
- Guaranteed income for life
- No market risk
The goal of the annuity and other product reviews that you’ll find here on AnnuityGator.com is to provide you with information on the features and benefits inside the annuity – along with the advantages and drawbacks – as well as to help you better understand what the benefits could mean to you and your financial situation – both now and in the future.
So, if you’re ready to get started, let’s dive in!
The Nationwide New Heights 10 Fixed Indexed Annuity at a Glance
|Product Name||New Heights 10|
|Issuer||Nationwide Insurance Company|
|Type of Product||Fixed Indexed Annuity|
|A.M. Best Rating||A+|
|Phone Number||(877) 669-6877|
Opening Thoughts on the Nationwide New Heights 10 Annuity
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
Given that fixed indexed annuities have become a financial solution of choice for many retirees and those who are approaching retirement, Nationwide has added to its product lineup with the New Heights 10 FIA.
A fixed indexed annuity is oftentimes touted as the “best of all worlds,” because they allow their owners a way to secure a positive return in good times, and to hang on to their principal value during market downturns.
But it is essential to know all of the in-depth details about a fixed indexed annuity you are considering before you move ahead with depositing a large chunk of your money into one – as it can be difficult, and costly, for you to get out if you later realize that it really isn’t the best option for you.
You can access our annuity buyers guide for more information on how fixed index annuities work, and to help you determine whether or not this type of annuity would be right for you and your specific objectives.
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 has not endorsed this review in any way, nor do we receive any type of compensation for providing this review. This nationwide new heights fixed index annuity 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 Nationwide New Heights 10 annuity review are the property of their respective owners.
How Nationwide Insurance Company Describes the New Heights 10 Annuity
Nationwide describes the New Heights 10 fixed indexed annuity as a deferred fixed indexed annuity that requires a single purchase payment, and that lets you grow retirement savings, while at the same time protecting your money from market volatility.
Some of the primary features of the Nationwide New Heights 10 annuity include the following:
- Enhanced growth potential. New Heights 10 tracks your potential strategy earnings – which are also known as earnings daily – and does not limit the amount of index performance that is used for calculating these earnings. So, there is the potential for higher long-term accumulation, based on the performance of the underlying index and declared rate component. However, it is important to keep in mind that the growth can be subject to limitations of other crediting factors, such as the spread, and even the indexed allocation itself. And because of that, these limits could reduce future earnings in the annuity contract. With that in mind, is the Nationwide New Heights 10 annuity really a way to attain the “best of all worlds” (i.e., growth and protection of principal)?
- Protection from market risk. Nationwide does guarantee that you won’t lose any of your initial investment, nor any of your credited earnings – at least due to performance of the underlying index. In this case, funds could be accessed penalty-free from the contract if you qualify for a certain situation, such as the need for long-term care or the diagnosis of a terminal illness. Otherwise, in most cases, you will have to pay a surrender charge if you withdraw more than 10% of the contract value during the first 10 years of owning this annuity.
There are some other “bells and whistles” on this annuity, too, such as a death benefit that is payable to a named beneficiary (or beneficiaries) if you should pass away before receiving all of the contract value back – keeping in mind that you could end up with less if you are paying for an optional rider and/or if you have made any prior withdrawals).
And speaking of optional riders, the Nationwide New Heights 10 annuity allows some added features, if you so choose, such as a(n):
- Guaranteed lifetime income rider for you, or for your and your spouse, or
- Legacy planning for you and your heirs.
The Nationwide High Point Enhanced Death Benefit Rider, or High Point EDB, can be added to the annuity (at an added rider cost). This death benefit can grow over time, leaving your loved ones with more than just the amount of your contract value.
For more details regarding the High Point Enhanced Death Benefit rider – including the cost to include it on the New Heights 10 annuity from Nationwide, go HERE.
Adding an income rider to an annuity can allow you to ensure that you won’t run out of income – even if the actual contract value of the annuity falls to zero. In the case of the Nationwide New Heights 10 annuity, there are a couple of income rider options. These include the:
- Nationwide High Point 365 Lifetime Income Rider with Purchase Payment Bonus
- Nationwide High Point 365 Lifetime Income Rider
The latter of these riders allows you to capture the highest daily balanced allocation value, which can provide you with a competitive payment at the time you start taking income from the annuity. The payout percentage can also increase, the longer you wait to start taking lifetime income payments.
In order to receive a purchase payment bonus of 1% and of rider income benefit base through a minimum income benefit value bonus of 10%, you can instead choose to go with the Nationwide High Point 365 Lifetime Income Rider with Purchase Payment Bonus.
It is important to note that if you add either of these lifetime income riders to the Nationwide New Heights 10 annuity, you will incur an additional premium charge.
More details on these income rider options can be found by going to:
- Nationwide High Point 365 Lifetime Income Rider.
- Nationwide High Point 365 Lifetime Income Rider with Purchase Payment Bonus.
To check out more of the in-depth details regarding the Nationwide New Heights 10 annuity, you can view the product brochure HERE.
If you’d like to see updated strategy allocations for the Nationwide New Heights 10 annuity, you can go HERE.
How a Financial Advisor Might “Pitch” the Nationwide New Heights 10 Annuity
Because people are living so much longer today than ever before, having enough income in retirement has become a top concern for many retirees. With that in mind, the guaranteed income concept of the Nationwide New Heights 10 fixed indexed annuity is most likely where an insurance or financial advisor would focus when presenting this product to clients or prospects.
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.
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 can be limited by crediting factors like caps, participation rates, and/or spreads.
In the case of the Nationwide New Heights 10 annuity, within each of the strategy options, the earnings are determined by adding the growth in the indexed component to the declared rate component, and then subtracting the strategy spread component.
Clear as mud, right?
Let’s explain this further:
As an example, the indexed component is the indexed allocation multiplied by the performance of the underlying index.
The declared rate component reflects interest that is earned on the declared rate allocation, based on an interest rate (in this instance, the declared rate) that is established by Nationwide Life and Annuity Insurance Company.
These two figures are then combined, and the total amount minus the strategy spread component is used to determine the strategy earnings – if any – at the end of the strategy term, on free withdrawals and upon death. Partial strategy earnings may be credited on withdrawals that are in excess of the available “free” withdrawal amount.
If the appreciation of the indexed and the declared rate components, in any strategy term – are insufficient to cover the strategy spread component – then no strategy earnings will be credited to your contract. (However, strategy earnings will never be less than zero due to a strategy spread).
In order to fully understand how this works, it can be helpful to discuss with an annuity specialist who can provide you with more details, as well as information about how a particular annuity like the Nationwide New Heights 10 may or may not fit in with your specific financial goals. Feel free to contact an Annuity Gator annuity specialist here.
You can also access the Nationwide New Heights 10 annuity product brochure HERE.
Fees on the Nationwide New Heights 10 Annuity
You could also run into some fees and charges on the Nationwide New Heights 10 fixed indexed annuity. For instance, in addition to charges to add various optional riders, you could also incur a surrender, or withdrawal, charge if you access more than a certain percentage of the contract value during the first ten years of purchasing the annuity.
|Completed Contract Year||0||1||2||3||4||5||6||7||8||9||10+|
|Free Withdrawal Percentage||0||7||7||7||7||7||7||7||7||7||10|
In addition, if the distribution(s) from the annuity occur before you turn age 59 ½, you could also incur an “early withdrawal” charge of 10% from the IRS. You may also be subject to a market value adjustment (MVA) on your remaining funds in the annuity.
With that in mind, this (and for that matter, any) annuity should be considered a long-term financial commitment. So, the money that you contribute to this annuity should not consist of funds that you might need to access for an emergency in the future.
The Annuity Gator’s End Take on Nationwide’s New Heights 10 Fixed Index Annuity
Where the New Heights 10 annuity works the 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
Where it works the worst:
Conversely, there are some areas where this annuity may not be the best option. That may be for people who:
- Will need access to their funds within the annuity’s surrender charge period
- Do not intend to use the lifetime income feature
If you are still considering the purchase of the Nationwide New Heights 10 annuity, but you’re currently on the proverbial fence regarding whether or not it will be right for you, we can help you to “test” it, based on your specific scenario, at no cost or obligation.
Just let us know if this is something that you are interested in doing, and we’ll get on the case right away!
While 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 Nationwide New Heights 10 fixed index annuity, you can rest assured that you will have an income for life. But at the same time, depending on your other goals and needs, this product may still fall a bit short – and there quite frankly could very well be something else out there that is a better fit for you.
If you have any additional questions on this, or other income related products, we are 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 this Annuity? Did You Happen to Notice Any Mistakes on this Nationwide New Heights Fixed Index Annuity Review?
We realize that this Nationwide New Heights fixed index annuity review may have run a bit 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 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?
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.