Nationwide Clear Horizon is a single payment, deferred fixed interest and indexed annuity that gives you a level of upside potential without giving up the safety that you need.
You can put money into either a fixed or an index account:
- The fixed account earns a guaranteed interest rate
- The index account earns an annual credit equal to the performance of the S&P 500® Composite Stock Index1 (less any dividends and capital gains) − up to a maximum. So, if the S&P 500 Index goes down, your account value remains the same; if the index goes up, your contract can earn up to the maximum amount (known as a cap), which is declared annually. It is important to note that the maximum cap can change annually. The cap can increase or decrease, but for the first seven years it can't fall below the minimum cap stated in the contract.
Please note, the contract does not directly participate in any stock or equity investments; that withdrawals or surrenders prior to the expiration of an index period will result in no index participation for such amounts; and that failure to maintain the contract to maturity may result in no participation in the equity index.
It's also important to understand that actual returns may be less than the return of the linked index. And, possibly even negative if part, or all, of the contract is surrendered prior to the expiration of any applicable surrender period. Early withdrawals may be subject to surrender charges and, if taken prior to age 59½, a 10% IRS penalty may apply in addition to ordinary income taxes. Early withdrawals will reduce the death benefit and cash surrender value.