What will we be covering in this Gainbridge annuity review?
In this review, we will be going over the following information about the Gainbridge Single premium Immediate Annuity (SPIA):
- Type of products
- Fees / Charges
- Realistic long-term return expectations
- How the annuities are best used
- How the annuities are most poorly used
Annuities can be complex. That’s where having an Annuity Investigator who loves math comes in.
We make the complex, simple.
It’s no secret that people are living longer today. But a longer life span can come with some problems – primarily the risk of outliving your savings. Unfortunately, there are some additional factors that can make that concern even stronger. For instance, unlike just a few decades ago, very few retirees today can count on a pension income when they say farewell to the working world.
Likewise, Social Security – a staple of retirement income for nearly a century – is now on unstable ground…particularly due to the 78 million Baby Boomers that are retiring at a rapid pace. Even if you do receive retirement income from Social Security, it only replaces on average about 40% of your pre-retirement wages.
Can you afford a “pay cut” like that in retirement?
One way to help with filling in this income “gap” is with an annuity. These financial vehicles are designed to pay out an ongoing stream of income for a set period of time, or even for the remainder of your lifetime.
Problem solved! Right?
Well, sort of. Annuities have many moving parts, so they can be somewhat difficult to understand – particularly given the pages upon pages of “fine print” that is associated with them.
With that in mind, before you make a long-term commitment for the purchase of an annuity, it is important that you first get a good understanding of how they work, as well as how they may – or may not – fit with your specific financial objectives.
That’s where the Annuity Gator can help!
Annuity and Retirement Income Planning Information You Can Trust
If this is the first time you’ve visited our website, please allow us to welcome you here to AnnuityGator.com. We are a team of annuity experts who are focused on offering the most comprehensive, and unbiased, reviews of annuities on the Internet. We’ve been at this for many years – much longer than our competitors – and so we have become a well-known source of annuity information online.
Given that, if you’ve been looking for more information about annuities – and especially if you have been Googling various annuity words and phrases – it is possible that you have noticed there’s a lot of conflicting information out there about these products. This, however, isn’t really a surprise to us, because there is a great deal of confusion about how annuities work, as well as about which type of annuity may be best for certain circumstances.
With more companies moving their business online, the ability to make purchases quickly and easily via the Internet has become commonplace. That’s the niche that Gainbridge has chosen – offering annuities online so that consumers don’t have to spend hours in a financial advisor’s office sorting out the information about annuity rates and income payout options.
But, while it may be easy to purchase books, clothing, and cat toys online, the purchase of an annuity should really take into consideration a long list of factors regarding your short- and long-term financial goals. Otherwise, you could be making an expensive mistake.
You may also have attended an annuity seminar or workshop recently where, in return for a free dinner or lunch, you were provided with details about the Gainbridge Single Premium Immediate Annuity, or some other similar annuity. In fact, your attendance at this seminar might even be the ultimate catalyst that has led you here to our site.
Even though there are a plethora of websites that market their annuities to consumers, there are a fair number of these sites that will attempt to “lure” you in by making very enticing claims like:
- High-income payments
- Lowest annuity fees
- Guaranteed lifetime income
- 7 – 8% Rate of Return
While these claims can be really inviting (particularly in our recent low-interest-rate environment), the truth is that it is absolutely essential for you to first make sure that these claims are actually true. (Mostly, they’re not!) This is especially true if you are seriously thinking about moving a large sum of your retirement savings into one of them.
In any case, whatever the reason is that you landed here on AnnuityGator.com, you are definitely in the right place if you want to find out more about the Single Premium Immediate Annuity (SPIA) from Gainbridge.
This annuity review is provided here for you in order to help you ensure that you’re moving in the right direction with this (and/or other) annuity, and to guide you in what to look for in terms of the pros and the cons.
So, if you are ready to get started, let’s go!
The Gainbridge Single Premium Immediate Annuity (SPIA) at a Glance
|Product Name||Single Premium Immediate Annuity (SPIA)|
|Issuer||Gainbridge (underwritten by Guggenheim Life and Annuity)|
|Type of Product||Single Premium Immediate Annuity (SPIA)|
|A.M. Best Rating (Guggenheim Partners)||B++|
|Phone Number||(866) 252-9439|
Opening Thoughts on the Gainbridge Single Premium Immediate Annuity (SPIA)
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.
New to the annuity arena, the company was founded in 2019, and it currently offers both deferred and immediate annuity options. Gainbridge annuities can be purchased in 22 states, including:
- North Carolina
- New Jersey
Products from Gainbridge can also be purchased in Washington, DC.
As a member of Group 1001 (formerly Delaware Life Holdings), Gainbridge is 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 issued by Guggenheim Life and Annuity Company.
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 online nature), the company claims it can offer consumers higher annuity rates. (Ultimately, though, the rate you get 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.
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How Gainbridge Describes the Single Premium Immediate Annuity (SPIA)
The Gainbridge Single Premium Immediate Annuity, or SPIA, allows you to turn your lump sum contribution into an income stream that runs for three to ten years, depending on which time frame you select. You can choose to contribute between $10,000 and $1 million.
Your immediate annuity income payments are divided into a portion of earned interest/gain (which is taxable at ordinary income tax rates), and another portion that is considered to be a return of your initial contribution (which is tax-free).
As with the MYGA annuity from Gainbridge, a death benefit will be paid out to your beneficiary (or multiple beneficiaries) if you pass away during the income period and you have not yet received back all of your initial contribution.
For additional details about the Single Premium Immediate Annuity from Gainbridge, go HERE.
How an Insurance or Financial Advisor Might “Pitch” this Annuity
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. Given the time period you select for income receipt, the SPIA annuity from Gainbridge could help you with filling in an income “gap” before you begin taking Social Security benefits or various other income options.
But 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 and Taxes Associated with the SPIA Annuity from Gainbridge?
Just as with other annuities, there may be some fees and/or tax consequences that are associated with the Single Premium Immediate Annuity from Gainbridge. For instance, while there is a 30-day “free look” period where you can cancel the annuity and receive your premium back, if you opt to cancel the annuity after that period has elapsed, you incur a surrender charge.
There are also taxes to consider. As an example, if you purchase an immediate annuity with after-tax dollars, then each of your annuity income payments that are made will consist of both a taxable income portion, and a return of premium portion (which is non-taxable).
However, if you rolled money over into the annuity from a traditional IRA and /or an employer-sponsored retirement plan (such as a 401k plan) where the money that you contributed to the annuity has not yet been taxed, then you will owe taxes on 100% of the income distributions that you receive. This, in turn, can make a big difference in the amount of income you are actually able to “net” and spend.
Given that, it is important to keep in mind that annuities are basically designed for retirement purposes. In other words, these financial vehicles are not intended to replace emergency funds and/or to fund your shorter-term savings goals.
In addition, based 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 Single Premium Immediate Annuity
Even though an immediate annuity isn’t the right option for everyone, there are some scenarios where it could fit in quite nicely. For instance, this annuity can provide you with a personal pension-like income. And, if you choose the lifetime income option, this income can continue to flow in for the remainder of your lifetime – no matter how long that might be.
Immediate annuities like the SPIA from Gainbridge can also offer you a place to move funds that you’ve got stored in an IRA, 401k, or other retirement plans so that these savings can be converted over to income.
But even so, if you feel that you may need these funds for other needs such as emergencies, then it might not be a good idea to lock away what could amount to a sizeable portion of your overall portfolio. This is particularly the case if you do not plan on using the annuity for income.
Overall, the Single Premium Immediate Annuity from Gainbridge does what it says it will do – pay out a stream of income for a certain period of time, based on your contribution, age, and pay out period selected.
If you still aren’t quite sure whether or not this is the right annuity for you, though, we would be happy to answer any questions or even compare the SPIA from Gainbridge with other annuity products. This can help you to determine which may work the best for you.
At Annuity Gator, our primary focus is on educating consumers about how annuities work. We also have an extensive annuity review database on our website where you can check out specific annuity options to learn more about.
Do You Have Any Additional Questions About the Single Premium Immediate Annuity from Gainbridge? Did You Happen to Notice Any Mistakes in this Annuity Review?
We know that this annuity review may have been somewhat lengthy. So, given that, we truly thank you for sticking with us through this far to the end. However, we would much prefer to give you “too much” information in our annuity reviews than not to give you enough. Therefore, if you felt that this annuity review was beneficial for you, feel free to share it and forward it on to anyone else who you think may also be helped by it.
We also understand just how fast financial and insurance market and product information can – and typically does – change. So, if you happened to notice any details in this annuity review that were out of date or need that updating, please let us know that, too, so that we can get it revised as soon as possible.
Are there any other annuities that you would like to see reviewed on our website?
If you’ve come across any other annuities that are not included in our current annuity review database, please let us know via our secure online contact form here so that we can do our research and analysis and add the new review(s) to our website.
The Annuity Gator