Destination All American Gold 2.0 review

It depends on what you want from it. As a tax-deferred accumulation vehicle with optional lifetime income, it is a solid, mainstream product from a strongly rated carrier. But it is a true variable annuity — your account value rises and falls with the subaccounts you choose, with no principal protection on the growth side. If you want downside protection, a fixed indexed annuity or RILA is a better structural match.

The main reason to buy this is tax-deferred growth across a deep menu of investment options, with the flexibility to add guaranteed lifetime income through the Lifetime Income Rider+ when you are ready. The secondary reason is the income rider's 8% simple roll-up, which grows the benefit base used to calculate future income for up to 10 years before you turn income on. For someone who has already maxed out other tax-advantaged accounts and wants market exposure plus a future income guarantee, the combination makes sense.

I think this is best for a pre-retiree, roughly in their 50s or early 60s, who is comfortable with market risk, has a multi-year horizon, and wants the option to lock in guaranteed income later. It works in both qualified and non-qualified money, though the tax deferral is most valuable for non-qualified dollars. It is a poor fit for someone who wants principal protection or who needs liquidity in the next few years. And the premium credit should not factor into the decision — most buyers will never reach the $500,000 household floor that triggers it.

You are buying a mutual-fund-like investment account wrapped in an insurance contract for tax deferral, plus a set of optional guarantees you can attach. The accumulation side is real market exposure — gains and losses pass through from the 118 subaccounts you select. The insurance value comes from two places: tax-deferred compounding, and the optional riders that can guarantee lifetime income or enhance the death benefit. Strip away the brochure language and this is a brokerage account with an insurance jacket, where the jacket costs you 1.15% a year before fund expenses and any riders.

The core of the contract is the subaccount lineup. You allocate premium across up to 118 variable investment options spanning equity, bond, and balanced strategies, plus a fixed account currently crediting 1.60% (a rate snapshot, not a guarantee). Net subaccount expenses range from 0.40% to 2.37% depending on the funds you pick, and those fund costs are separate from the contract's own charges. The contract also offers dollar-cost-averaging options — a 6-month DCA at 6.00% and a 12-month DCA at 3.00% on the dollars waiting to be moved in — which let you ease money into the market over time rather than all at once. Your account value is whatever those investments are worth, less charges.

The optional Nationwide Lifetime Income Rider+ is what turns this from a pure investment account into a retirement-income tool. You choose one of three versions — Core, Accelerated, or Max — and the rider applies an 8% simple-interest roll-up annually to the benefit base for up to 10 years or until you start income. That benefit base is a calculation figure used to determine your guaranteed withdrawal, not cash you can take out. The single-life fee runs 1.45% (up to a 1.50% maximum), with a joint option at 1.60% (up to 1.90%), charged annually on the benefit base. Whether that fee is worth it depends entirely on whether you actually activate income — if you do, the roll-up can meaningfully raise the guaranteed payout; if you cash out instead, you paid for a guarantee you never used.

This is a 7-year commitment. You can withdraw up to 10% of total purchase payments each year without a contingent deferred sales charge (CDSC), but amounts above that during the surrender period trigger the schedule below. There is no market value adjustment, which simplifies the math on early withdrawals. Required minimum distributions are accommodated, and the contract waives the CDSC for long-term care/nursing home and terminal illness situations (though those waivers are not available in California). There is also an optional Liquidity Rider that shortens the CDSC period to 4 years for an extra 0.50% — useful if you want shorter lockup but another fee to weigh. Treat this as long-term money, not a reserve you might tap.

The fees here come in layers, and you need to add them up. The base contract charges 1.15% annually (0.95% mortality and expense plus a 0.20% administrative charge). On top of that, subaccount fund expenses run 0.40% to 2.37% depending on what you own. Add the optional income rider at 1.45%-1.60% on the benefit base, and a buyer who wants the full package could be paying well over 3% a year all-in. There is also a $30 annual contract fee, waived once contract value reaches $50,000. Optional enhanced death benefit riders add another 0.20% to 0.65%. The premium credit (0.50% to 1.00%) only applies to cumulative household premiums of $500,000 or more, so the typical buyer should not count on it. The trade is clear: you get breadth and optional guarantees, but the cost stack is heavier than a fixed indexed alternative.

Legal Entity: Nationwide Life Insurance Company

Parent: Nationwide Mutual Insurance Company

AM Best Rating: A+