Nationwide Destination® All American Gold 2.0 Variable Annuity Review: Everything You Need to Know

Overview

The Nationwide Destination® All American Gold 2.0 Variable Annuity is a long-term, tax-deferred investment designed to provide retirement income, investment flexibility, and optional protection features. It offers a variety of investment choices, optional living and death benefit riders, and income guarantees, making it a well-rounded option for those planning for or living in retirement.

Key Features

1. Investment Growth Potential

• Invests in professionally managed subaccounts, offering market-based returns.
• Over 100 investment options, including stock and bond funds.
• Optional one-year fixed account available for stable interest earnings.

2. Tax-Deferred Growth

• Earnings grow without immediate taxation, allowing for faster accumulation.
• Taxes apply only upon withdrawal, helping maximize investment growth.

3. Income Flexibility

• Withdrawals can be taken via:
  ✅ Systematic withdrawals (scheduled payments).
  ✅ Annuitization (converting the contract into lifetime income).
  ✅ Optional living benefit riders (for guaranteed lifetime income).

4. Optional Living Benefit Riders (For an Additional Cost)

• Nationwide Lifetime Income Rider+® Core: Guaranteed, stable lifetime income.
• Nationwide Lifetime Income Rider+® Accelerated: Income stream with potential for asset growth.
• Nationwide Lifetime Income Rider+® Max: Higher income in the early retirement years.

5. Death Benefit Protection

• Standard Death Benefit: Pays beneficiaries the greater of contract value or total purchase payments (minus withdrawals).
• Optional Enhanced Death Benefit Riders:
  • One-Year Enhanced (0.20% fee)
  • One-Month Enhanced (0.35% fee)
  • Combination Enhanced (0.65% fee)
  • Beneficiary Protector® II (0.35% fee)

6. Special Features at No Additional Cost

• Spousal Protection Death Benefit Feature: Ensures the surviving spouse receives continued benefits.
• Enhanced Surrender Value for Terminal Illness: Provides access to the death benefit early if diagnosed with a terminal illness.

7. Purchase Payment Credits

• 0.50% bonus for investments over $500,000.
• 1.00% bonus for investments over $1 million.

Fees & Charges

1. Base Fees (Before Optional Features)

• 1.15% total fee, which includes:
  • 0.95% mortality & expense risk charge
  • 0.20% administrative charge
  • $30 annual contract fee (waived if contract value exceeds $50,000).
• Investment subaccount fees vary, based on fund selection.

2. Contingent Deferred Sales Charges (CDSC)

If you withdraw funds before 7 years, the following charges apply:

✅ No withdrawal penalty for:

• Annual withdrawals of up to 10% of the total purchase payment.
• Required Minimum Distributions (RMDs).
• Long-term care and terminal illness waivers (not available in CA).

3. Liquidity Rider (0.50% Extra Fee - Optional)

• Reduces CDSC period to 4 years, allowing earlier access to funds.

Potential Drawbacks

❌ Market Risk

• Unlike fixed annuities, value fluctuates based on investment performance.

❌ Higher Fees

• Variable annuities tend to have higher costs, including fund management fees and optional rider fees.

❌ Limited Liquidity

• Withdrawals beyond the 10% free limit are subject to surrender charges (CDSC) within the first 7 years.

Who Should Consider Nationwide Destination® All American Gold 2.0?

✅ Long-term investors who want market exposure with tax-deferred growth.
✅ Individuals seeking flexible retirement income options.
✅ Those who want optional income protection riders for guaranteed withdrawals.
✅ Investors planning to leave a financial legacy with enhanced death benefits.

Final Verdict

The Nationwide Destination® All American Gold 2.0 Variable Annuity offers a diverse investment lineup, income guarantees, and strong death benefit options. While fees can be high, its flexibility, tax advantages, and optional riders make it a solid option for investors looking for long-term retirement planning with market-based growth potential.