Fixed Indexed Annuities (FIAs)
Get principal protection with the opportunity for growth, plus the option for a guaranteed lifetime income.
What is a fixed indexed annuity?
A fixed indexed annuity is an investment that allows assets to grow tax-deferred, offering principal protection along with the potential to earn an attractive rate of return that is tied to the market without being directly invested. For an additional cost, they also offer an optional benefit that provides guaranteed lifetime income.
All guarantees are backed by the claims-paying ability and financial strength of the issuing insurance company, not Schwab.
Benefits of a fixed indexed annuity
- Principal protection for your original investment regardless of market fluctuations.
- Guaranteed lifetime income stream without having to annuitize the contract through an optional rider (available for an additional fee).
- Certainty that interest rates are guaranteed to never be less than zero, even if the market indexes go down.
Considerations
- FIAs are not directly invested in the stock market. Instead, they credit interest based on an indexed interest crediting strategy. (Other interest crediting strategies may be available.)
- FIAs have a cap rate. Indexed interest crediting strategies apply a maximum rate of return, or a "cap rate." This has the potential to limit your earnings if the markets are performing well. You may earn little or no interest during a flat or negative market or in a market downturn.
- FIAs have surrender or withdrawal fees. If you surrender your contract or withdraw funds early, you may be subject to withdrawal charges and/or a market value adjustment.
- Withdrawals will reduce the death benefit and account value.
Questions about annuities?
Contact an Annuity Specialist at 866-663-5241 or find a branch.
Fixed indexed annuities available through Schwab
Which of our fixed indexed annuity offerings best fit your retirement goals? Review the options below.
Nationwide New Heights® Select 9 Fixed Indexed Annuity*
- Provides growth potential with protection by offering index-linked accumulation opportunities while protecting 100% of principal and credited earnings from market downturns.
- Offers flexibility for retirement goals through optional lifetime income riders and enhanced death benefit riders, helping clients create guaranteed income and/or leave a lasting legacy for loved ones.
Financial strength (from S&P Global Ratings):1 A+
Annuity features:
- Optional lifetime income riders and enhanced death benefit riders
- Maximum issue age: Annuitant up to age 80; owner may be any age
- Maximum premium: $2,000,000
- This is a single premium fixed indexed annuity; additional purchases are not allowed.
Current Rates:
- Nationwide New Heights Select 9 fixed indexed annuity in AL, AR, AZ, CO, DC, FL, GA, HI, IL, IN, KS, LA, MA, ME, MI, MT, NC, ND, NE, NM, SC, SD, TN, VA, VT, WI, WV: current rates
- Nationwide New Heights Select 9 fixed indexed annuity in AK, CT, DE, IA, ID, KY, MD, MN, MO, MS, NH, NJ, NV, OH, OK, OR, PA, RI, TX, UT, WA, WY: current rates
- Nationwide New Heights Select 9 fixed indexed annuity in CA: current rates
Product material:
Additional product information:
- Premiums in excess of the maximum require prior insurance company approval. Approval is not guaranteed.
Indextra® Fixed Indexed Annuity**
- A tax-deferred insurance product designed both to protect its accumulated account value from loss due to negative changes in the market indexes associated with the annuity and to guarantee a lifetime income.
- Upside potential with downside protection
Financial strength (from S&P Global Ratings):1 AA
Annuity features:
- Maximum issue age: 85
- Maximum premium:
- $1,000,000: ages 0-75
- $750,000: ages 76-85
Current rates:
Product material:
- Indextra
- Indextra NY
Additional product information:
- Premiums in excess of the maximum require prior insurance company approval. Approval is not guaranteed.
