NexCompounder Fixed Index Annuity
The NexCompounder Fixed Index Annuity is a retirement-focused accumulation product designed to grow assets through tax-deferred compounding while offering principal protection. It leverages index-linked interest crediting strategies to enhance growth potential without direct market exposure, making it suitable for clients seeking long-term accumulation, downside protection, and predictable retirement outcomes.
Due Diligence Resources
Offering Overview
The NexCompounder Fixed Index Annuity is designed for accumulation in retirement while compounding earnings on a tax-deferred basis and protecting principal.
Offering Overview
| Feature | Details |
|---|---|
| Owner/Annuitant | Single owner or joint annuitant/owner |
| Type | Single premium deferred indexed annuity with additional premium allowed in first year |
| Minimum Premium Payment | Initial: $25,000 Additional: $25,000+ (unlimited deposits within year 1) |
| Issue Ages | Minimum: 0 Maximum: 85 Policies may not be issued on or after the 86th birthday of the oldest of all owners and annuitants |
| Latest Annuity Maturity Date | No later than the first policy anniversary on or after the oldest owner’s or annuitant’s 95th birthday |
| Surrender Charge | 10 years: 9%, 8%, 8%, 7%, 6%, 5%, 4%, 3%, 2%, 1% 7 years: 9%, 8%, 8%, 7%, 6%, 5%, 4% |
| Plan Options | Traditional IRA, Roth IRA, SEP IRA, Simple IRA, and Non-Qualified; Pension/Profit Sharing and Defined Benefit Plan per carrier approval |
| Market Value Adjustment (MVA) | • Withdrawals in excess of the Free Withdrawal Amount, except for Required Minimum Distributions, are subject to an MVA during the surrender charge period • This adjustment may increase or decrease the amount withdrawn and is determined by a formula tied to an external index |
| Free Withdrawals | After the first policy year, clients may withdraw up to 10% of the account value (based on the previous policy anniversary, after all index/interest credits are applied) without surrender charges or MVA |
*There can be no assurance that these objectives will be realized or that a loss of capital will be avoided. | 1. 2-year hold period required before holders can redeem; Liquidity of full initial investment provided after a two-year hold period on a quarterly basis, limited to 5% of outstanding shares per quarter and a maximum of $30 million until December 31, 2028; subject to extension by up to two years if the Company exercises its right to extend the mandatory redemption date of Series D Preferred Stock; moreover, all holder requested redemptions will be suspended if the Company defaults on terms of Series D Preferred Stock. | 2. 5% annual compounding increase in the liquidation preference per Share. The Participating Liquidation Preference of a Share shall be computed at each yearly anniversary by multiplying the last share price by 1.05 and will be payable upon a holder requested redemption after December 31, 2028 or earlier redemption at the option of NexPoint Storage Partners. | 3. The Company has authorized up to $15,000,00 additional shares of preferred stock for issuance under the Dividend Reinvestment Plan at $97 per share. Distributions are cumulative, are not guaranteed and may be suspended, modified or terminated at the discretion of the Board of Directors. Distributions may be paid from offering proceeds and may include a return of capital or borrowed funds, which may lower overall returns to the investor and may not be sustainable.
Offering Highlights
The NexCompounder Fixed Index Annuity is designed for accumulation in retirement while compounding earnings on a tax-deferred basis and protecting principal.
Growth Potential
Principal Protection
Tax Deferral
NexCompounder offers multiple account options based on three indexes (Index Accounts)
Franklin US CorePlus (7.5% Vol) Index
The Franklin US Core Plus Index takes a diversified, well-balanced approach to investing. With a primary focus on growth, the index combines the stock selection expertise of Franklin Templeton portfolio managers with the statistical precision of a factor-driven scoring system. The 7.5% volatility control provides balance through employing a fixed income strategy to help mitigate risk and navigate market volatility.
Fixed Index Annuity benefits.
Growth Potential
- Fixed-indexed annuities have the potential to earn more (or less) than traditional fixed annuities, as their interest crediting is based on the positive performance of an index. Unlike traditional fixed annuities, which pay a fixed rate of interest.
- Depending on the indexed strategy selected, there may be a cap (the maximum interest you can earn in an interest term), or a participation percentage rate (a percentage of the index’s performance).
- Any interest earned is determined at the end of each interest term and will grow through compounding.
- Your money grows tax-deferred, meaning it is not taxed until you withdraw it.
Access
- During the initial contract period (known as the “surrender charge” period), after the first Contract Year you can withdraw up to 10% of your contract value each year without incurring charges.
- You can surrender your contract at any time and receive your money back, subject to market value adjustments (MVAs) and surrender charges, and minus any previous charges or withdrawals.
- Withdrawals from the indexed account before the end of an interest term will not earn interest.
- After the surrender charge period, MVAs and surrender charges no longer apply.
Consistency
- Your contract value will not decrease due to market performance.
- We guarantee that you will receive at least the amount you initially invested at the end of the surrender charge period.
- In the event of your death, your beneficiaries will receive any remaining contract value.
The NexCompounder Fixed Index Annuity is focused on accumulation while allowing for flexible premium in the first year
EXPERTS IN ANNUITIES
NexAnnuity Management Team
Brad Heiss
Executive Vice President & Chief Investment Officer
Brian Graime
Director of Annuity and IMO Distribution
Alex Gifford
Director, Corporate Strategy
Disclosures & Risks
S&P: The S&P 500®, S&P 500® Dynamic Intraday TCA Index, and S&P 500 Market Agility 10 TCA 0.5% Decrement Index (together, the “Index”) is a product of S&P Dow Jones Indices LLC or its affiliates (“SPDJI”) and has been licensed for use by NexAnnuity Holdings, Inc., and its affiliates (collectively, “NexAnnuity”). S&P®, S&P 500®, US 500, The 500, iBoxx®, iTraxx® and CDX® are trademarks of S&P Global, Inc. or its affiliates (“S&P”); Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”); and these trademarks have been licensed for use by SPDJI and sublicensed for certain purposes by NexAnnuity. The Individual Single Premium Deferred Indexed Annuity [(marketed as the “Nex Compounder FIA”) (the “Product”) is not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P, or any of their respective affiliates (collectively, “S&P Dow Jones Indices”), and none of such parties make any representation regarding the advisability of investing in such Product nor do they have any liability for any errors, omissions, or interruptions of the Index. Nasdaq®, Nasdaq-100®, Nasdaq-100 Index®, Nasdaq Stock Market®, Nasdaq-100 Volatility Control 12% NC™ Index, and XNDX12NC™ are registered trademarks of Nasdaq, Inc. (which with its affiliates is referred to as the “Corporations”) and are licensed for use by NexAnnuity. The Product has not been passed on by the Corporations as to its legality or suitability. The Product is not issued, endorsed, sold, or promoted by the Corporations. THE CORPORATIONS MAKE NO WARRANTIES AND BEAR NO LIABILITY WITH RESPECT TO THE PRODUCT. Franklin Templeton: “Franklin,” “Franklin Templeton” and the “Franklin US Core Plus IndexSM” (the “Index”) are trademarks of and owned by Franklin Templeton. References below to “Index” apply to “Franklin US Core Plus IndexSM,” and references below to “Licensor” apply to Franklin Templeton. Licensor has licensed the Index to NexAnnuity for use by NexAnnuity as a component of certain Nex Compounder FIA products (each, a “Product,” and collectively, the “Products”). The Index may be calculated by a third party or contain third-party data (each such third-party provider and Licensor are collectively, “Licensor Parties”). The Products are not sponsored, operated, endorsed, sold or promoted by Licensor Parties. The Index, the proprietary data therein, and related trademarks, are intellectual property licensed from Licensor, and may not be copied, used, or distributed without Licensor’s prior written approval. The Products have not been passed on as to their legality or suitability and are not regulated, issued, endorsed, sold, guaranteed, or promoted by Licensor Parties. Licensor Parties make no express or implied warranties and hereby expressly disclaims all warranties of merchantability or fitness for a particular purpose with respect to the Index or any data included therein. Without limiting any of the foregoing, in no event shall Licensor Parties have any liability for any special, punitive, indirect, or consequential damages (including lost profits), even if notified of the possibility of such damages.