What we will be covering in this annuity review:
In this annuity review, we will be going over the following details regarding the Gainbridge Multi-Year Guarantee (MYGA) Annuity:
- Product type
- Current rates
- Realistic long-term return expectations
- How this annuity is best used
- How it is most poorly used
Annuities can be complex. That’s where having an Annuity Investigator who loves math comes in.
We make the complex, simple.
Purchasing an annuity is a big financial decision. Provided that annuities are purchased property, they can allow you a reliable income stream in retirement. Plus, depending on the particular annuity, you could also receive some nice tax advantages over time, such as tax-deferred gains that can compound exponentially.
However, even though annuities can offer many benefits, there can also be some drawbacks to consider with regard to the products themselves, as well as the way in which they are sold by insurance and financial professionals.
On top of that, annuities are pretty confusing products, so unless you read the “fine print” very carefully, an annuity may not necessarily perform the way that you anticipated it to. With that in mind, even though purchasing products online can be fast and easy, it could also lead to some serious financial issues if you buy annuities “sight unseen” via the Internet.
This is where the Annuity Gator can help!
Annuity and Retirement Income Planning Information You Can Trust
If this the first time you have visited our website, then please allow us to officially welcome you here. We are a team of experienced annuity experts who focus on providing comprehensive yet unbiased annuity reviews online.
We have been doing this for quite some time – much longer than our competitors have. Because of this, we have come to be known as a highly trusted source of annuity information online. Over the past several years or so, though, a lengthy list of “copycat” websites have started to pop up all over the Internet, claiming that they can provide you with a worry-free retirement income stream.
If you’ve taken your annuity research online, it’s likely that you have run across some highly conflicting details about these financial vehicles. This isn’t too surprising, though, as there are many different opinions about annuities out there – some good, and some not so good.
This is yet another reason why it is so important to get a good handle on how annuities work so that you can decide for yourself whether or not an annuity will truly fit in with your financial goals and needs.
Plus, even though billions of people search for information online each and every day, there are times when it can be much more beneficial to ask questions and hash out all of the details with a real live person!
If you would like to know more about the Gainbridge Multi-Year Guarantee Annuity (MYGA), then you are definitely in the right place. In fact, we dare state that the Annuity Gator’s website is the only place online where you’ll see all of the important details that you need for making a well-informed decision.
One reason for this is because we aren’t going to paint a rosy picture for you and focus on only the good stuff. Rather, we provide the whole picture – good, bad, and yes even the ugly. But this can help you in determining whether or not this annuity is right for you.
In addition, we have annuity specialists available who can answer any of the questions or concerns that you may have – so you can get your information quickly and easily, without having to rely on outdated blog posts and product literature.
Before we get started, though, and in order to be clear here, we want to state for the record that we believe that annuities can be a great addition to your portfolio. But that is only provided that you’re purchasing the annuity for the right reason(s).
So, if you’re ready to get started, let’s jump in!
The Gainbridge Multi-Year Guarantee Annuity at a Glance
|Product Name||Multi-Year Guarantee Annuity (MYGA)|
|Issuer||Gainbridge (underwritten by Guggenheim Life and Annuity)|
|Type of Product||Multi-Year Guarantee Annuity (MYGA)|
|A.M. Best Rating||B++|
|Phone Number||(866) 252-9439|
Opening Thoughts on the Gainbridge Multi-Year Guarantee Annuity (MYGA)
Referred to as an “insur-tech” company, Gainbridge is an online annuity agency. Unlike “traditional” financial companies, Gainbridge offers annuities and life insurance directly online. This can make it easy, fast, and convenient for investors to find and research the annuity that works best, and to then move forward with making a purchase.
As a relative newcomer to the annuity arena, Gainbridge was founded in 2019, and it currently offers both deferred and immediate annuity options in 22 states, including:
- North Carolina
- New Jersey
The MYGA and SPIA annuity products from Gainbridge can also be purchased in Washington, DC.
As a member of Group 1001 (formerly Delaware Life Holdings), Gainbridge is positioned under the “umbrella” of a holding company that has amassed roughly $38 billion in combined managed assets. The annuities that are sold through the Gainbridge website are actually issued and underwritten by Guggenheim Life and Annuity Company – a company that has a longer track record in the insurance and annuity industry.
Guggenheim Life and Annuity is owned by Guggenheim Partners. The life and annuity division of Guggenheim has a B++ rating from A.M. Best. Because Gainbridge doesn’t have high overhead costs (due to its virtual product offerings), the company claims that it can offer consumers higher annuity rates. (Ultimately, though, the rate you get on an annuity will depend on how much money you contribute to the annuity, as well as the length of the guarantee period).
Before we get into the in-depth details, we have some legal disclosures to present…
This is an independent annuity product review. It is not a recommendation to purchase or to sell an annuity. Gainbridge has not endorsed this review in any way, nor do we receive any type of compensation for providing this review. This annuity review is meant solely to be an independent review at the request of our readers so that they may see our perspective when breaking down the positives and the negatives of this particular annuity. Prior to committing to the purchase of any type of insurance and/or investment vehicle, it is critical that you do your own due diligence, and that you also talk with a properly licensed professional if you have any questions that relate to your specific situation. All of the names, materials, and marks that have been used in compiling this annuity review are the property of their respective owners.
Want to know more about how annuities really work? click here to receive our updated annuity report.
How Gainbridge Describes Its Multi-Year Guarantee Annuity (MYGA)
The Gainbridge Multi-Year Guaranteed Annuity is a single premium deferred product that allows for tax-deferred gains over time. This deferral can allow your money to grow and compound exponentially.
In return for a single lump-sum contribution of $10,000 or more, this Gainbridge annuity allows you to choose a guarantee period of between three and ten years. After the guaranteed period has ended, there are several options available to you, including taking your full contract value (penalty-free) or receiving guaranteed monthly payments over a period of between five and ten years.
To purchase a deferred/MYGA annuity online with Gainbridge, you can simply choose the period of time for the guaranteed fixed-rate (which, as of fall 2019 range between 3.75% and 4%).
Then, once the guarantee period has elapsed, you can choose to either renew the annuity (at the then-current guaranteed rate) or instead to withdraw your fund either as a stream of payments or as a single lump sum.
There are a couple of other “bells and whistles” on this particular annuity. For instance, if you pass away during the income phase of the Gainbridge MYGA annuity, a death benefit will be paid out to a named beneficiary. Depending on the situation, a lump sum death benefit may be paid out, or alternatively, funds could be received as a series of payments.
But, while the features on the Gainbridge annuities may be enticing, these products may not necessarily be right for you. The best annuity can depend on multiple factors, including your goals, time frame, risk tolerance, and future income needs.
Certainly, one of the other key factors to consider before you purchase an annuity online – or anywhere – is the track record of the offering company. With Gainbridge being so new to the annuity world, it could make sense to look at some alternate options – particularly because some insurance carriers have much longer track records of paying claims to their policyholders for more than a century.
To check out the full product summary for the Gainbridge Multi-Year Guaranteed Annuity (MYGA), go HERE.
How an Insurance or Financial Advisor Might Pitch this Annuity to Clients
Gainbridge annuities are typically sold online. This is one of the factors that sets Gainbridge apart, as the company stresses the ease and convenience of making a quick purchase. But if you have been approached by an insurance or financial advisor about this annuity, it is likely that he or she keyed in on a few items in particular.
For instance, this type of annuity can guarantee you an income in retirement – regardless of what is happening in the market. The MYGA annuity can also lock in a set rate of return for a time period of anywhere between three and ten years. So, that too can be somewhat comforting – especially if interest rates fall after you have purchased it.
But it is also important to be careful, as there can be some added costs and/or tradeoffs that you’ll need to make in order to attain these great benefits – and in some cases, these can significantly reduce the amount of money you actually receive from the annuity.
What About the Fees on the MYGA Annuity from Gainbridge?
As with most other financial and insurance products, you can run across various charges and fees on annuities. In the case of the MYGA annuity from Gainbridge, there is no upfront sales commission charge.
However, if you withdraw more than just 10% of your contract value prior to the end of the guarantee period, you could incur a surrender charge. In addition, if you are under the age of 59 ½ when you make a withdrawal, you could also incur an additional 10% “early withdrawal” penalty from the IRS.
Gainbridge Multi-Year Guarantee Annuity Surrender Charges
(Charges represented as a percentage of the amount being withdrawn or surrendered)
In addition to a surrender charge, depending on when you take any income or withdrawals, you could incur added penalties from the IRS. For instance, withdrawals that occur before you have turned age 59 ½ will be subject to an additional 10% IRS “early withdrawal” penalty. (This is in addition to any income tax).
The Annuity Gator’s End Take on the Gainbridge Multi-Year Guarantee Annuity (MYGA)
Where this annuity works best:
While the Gainbridge Multi-Year Guarantee annuity may not be right for everyone, it could be a good option for those who are seeking the following:
- Guaranteed growth (for between three and ten years, and then again for another guarantee period once the initial period has elapsed)
- Protection of principal
- A set stream of income in retirement
Where it works the worst:
This annuity may not be right for you if:
- You want the opportunity to earn an even higher rate of return in order to keep better pace with future inflation
- You want to access more than just 10% of the contract’s value each year during the surrender period
- You do not plan to use the income feature
If you’ve been thinking about how to best position your savings for the future, there are a number of criteria that you should be considered. As an example, with annuities, you need to make sure that the product allows you the opportunity to earn a nice return (at least enough to meet or beat inflation), while also keeping your money safe in any type of market environment. Similarly, if you are seeking a future retirement income stream, you also need to know how the annuity will pay out when you need to convert the funds to regular incoming cash flow.
With all of that in mind, if you are still considering a purchase of the MYGA annuity from Gainbridge, you can rest assured that your money will be safe, no matter what goes on with the stock market, or even in the economy overall. You can also count on an ongoing income stream in the future, alleviating the concern about running out of money before you essentially “run out of time.”
On the other hand, however, even though this annuity can provide you with a nice array of features, the truth is that it might still fall somewhat short, and quite honestly, there could be a better alternative out there for you. This is particularly the case if you have been looking for a way to keep your principal safe, yet still, have the opportunity to earn a higher amount of return.
In any case, the only way to really know how this (or any other) annuity may perform – based on your specific situation – is to have it tested. We can do this for you by running the numbers through our annuity calculator, and we can then provide you with a spreadsheet of the results. In order to receive this information, just simply contact us through our secure online form here and let us know.
Do You Have Any Additional Questions Regarding the Multi-Year Guarantee Annuity from Gainbridge? Are There Any Other Annuities You Would Like Us to Review?
While we know that this annuity review was a tad bit on the lengthy side, we feel that providing “too much” information about annuities is much better than not enough. That being said, we appreciate you sticking with us through to the end.
We also realize that, because all investors’ situations can be quite different, there may have been some questions that went unanswered in this review. If this is the case and you still have any additional questions or concerns regarding the Gainbridge MYGA annuity (or for that matter, any annuity), please feel free to reach out to us here.
In addition, if you found this annuity review to be helpful, please forward it to anyone else that you feel might also benefit from it, as there is a lot of misconception out there about annuities and how they work.
Is there any other annuity you would like to see us review?
If so, we will get our team of annuity “geeks” right on it!
The Annuity Gator