Nationwide New Heights
- Thread starter jmarkk1
- Start date
Its a balanced allocation design with a 2 year lock in, very similar to the BCA Annexus
- 17,041
I know it has the older Anexxus feature where the fees don't really act like fees but they really act as spreads. I like that.
It also requires you to select single or joint for the lifetime payout at the time of purchase rather than when you turn it on. That's a deal killer for any married couples.
It also requires you to select single or joint for the lifetime payout at the time of purchase rather than when you turn it on. That's a deal killer for any married couples.
NOLAagent84
New Member
- 7
Our firm does a lot of business with Shurwest Financial (an Annexus IMO), probably 15 million last year with the Aviva BalancedChoice Annuity 12, with the 65/35 allocation (65%- S&P, 35%-Fixed Rate-1%). I have already been contracted and just wrote my first piece of business with the Nationwide New Heights product. The annuity works on same chassis as BCA 12, the income and death benefit riders are a little different, higher payout factor, less of a growth rate on income balance. Overall, it looks pretty good. It's got a spread (1.85%) instead of a straight fee which is what the BCA 12 went to. My clients in the Aviva (now Athene) BCA 12 have made 21-39% over the last 2 years, locked in that interest and can never lose it. I don't know of another annuity that provides the level of growth potential while protecting clients against market losses. For clients where a Indexed annuity is suitable, I don't know of a better product.
- 148
I would love to see those statements. I am trying to wrap my head around how those numbers are possible when 35% is allocated to a fixed account at 1%. Maybe I am just not getting how it works. It just appears to almost be a participation rate of sorts.
- 10,704
I would agree to an extent. But remember that a few years ago BCA/BAA products had 60% participation in the S&P. So a 2 year return would not be based on current rates which are much lower than a few years ago.
But even so, a 39% 2 year return for 2012/13 would mean an 85% (about) participation, and having a contract anniversary at the end of the year.
- 148
It just seemed a little out there to me. Even at todays rates I hear people saying it's the bee's knees and I just truely don't see it. Again, I suppose I could be seeing it wrong but the forced allocation (that is biennial) along with the fees. I donno
I can't see having a 2 year lock in being beneficial, especially with today's volatility
- 10,704
It all depends on the timing. Sometimes it can be beneficial, think 2011/2012 (0%/13%).
If you had a 12% Bi-Yearly Cap, vs. a 6% Yearly; the 24mo method would be at 12% total over 2 years, the 12mo method would be at 6% over 2 years....
I like products that offer a 2 year option along with a 1 year option. Its a good way to hedge sequencing risk.
GAs American Legend III offers a 12 month & an 18 month Yp2p. If you could combine the 12 the 18 and a 24 month Yp2p that would be the ultimate hedge to reduce timing risk.
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I agree, it is hard for me to get behind the product at its current rates when you compare it to other options.
The old product had a nice feature that allowed you to "lock-in" gains at a point in time if you wish. Im not sure if the new product(s) have that or not.
It is a nice feature in theory, but I doubt that many people remember/use it.
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