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Gainbridge Annuity Review

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Gainbridge is an online annuity and life insurance agency that sells a deferred annuity and an immediate annuity. The company was founded in 2019. Gainbridge’s services are currently available in Washington, D.C. and 22 states: Arizona, Connecticut, Florida, Georgia, Illinois, Indiana, Massachusetts, Maryland, Michigan, Minnesota, Missouri, North Carolina, New Jersey, Nevada, Ohio, Oregon, Pennsylvania, Tennessee, Texas, Virginia, Washington and Wisconsin. Gainbridge annuities are sold online.

Want some help figuring out what kind of annuity is best for you? A good financial advisor can help you understand how annuities can play a role in your retirement income plan. SmartAsset’s advisor matching tool can pair you with up to three financial advisors in your area.

Annuity Fees Annuity Type Minimum Initial Premium More Information
Gainbridge Multi-Year Guaranteed Annuity Find an Advisor

Read Review

  • No annual fees
Single-premium deferred annuity $10,000

Annuity Type

Single-premium deferred annuity

Minimum Initial Premium

$10,000
Gainbridge Single Premium Immediate Annuity Find an Advisor

Read Review

  • No annual fees
Single-premium immediate annuity $10,000

Annuity Type

Single-premium immediate annuity

Minimum Initial Premium

$10,000

Gainbridge is part of a larger group of insurance companies that are owned by insurance holding company Group1001. Group1001 has $38 billion in client assets under management (AUM). The annuities Gainbridge offers are issued by Guggenheim Life and Annuity Company, which is based in Indianapolis, Indiana.

As of 2017, Guggenheim Life and Annuity Company's financial strength was rated at a "B++" (8th highest out of 21) by A.M. Best, a premier financial ratings entity. A.M. Best also gave Guggenheim Life and Annuity a stable financial outlook.

Gainbridge Multi-Year Guaranteed Annuity

The Gainbridge Multi-Year Guaranteed Annuity (MYGA) earns tax-deferred interest for a predetermined period of time. Gainbridge refers to this as the “guaranteed interest rate period,” and you can choose the term length, so long as it’s within the 3- to-10-year time frame. Throughout your ownership of this annuity, your principal investment will also be guaranteed.

Once this period ends, account holders can choose from one of four next steps:

  • Start a new guaranteed interest rate period with an up-to-date rate
  • Make a full, lump sum withdrawal from the account
  • Annuitize the account’s balance by agreeing to receive monthly payments for anywhere from 5 to 10 years
  • Do nothing, leaving your contract to automatically renew at “competitive, current interest rates,” according to the company's website

The Gainbridge MYGA automatically comes with a death benefit. In the event of the account holder’s death, Gainbridge will disburse the annuity’s balance to the designated beneficiaries. This can be done either as a single payment or as guaranteed annuity payments for the remainder of the current guaranteed interest rate period. However, if the sole primary beneficiary is the account holder’s surviving spouse, they may elect by written request to take over as the contract’s new owner.

Fees

Gainbridge will allow you to cancel your contract within 30 days of opening it for free. Once you surpass this policy, taking money out could mean you’ll have to pay withdrawal charges. But beginning during your second year as an account holder, you may make fee-free annual withdrawals of at least $250 and up to 10% of the account’s value.

Should you withdraw beyond the allotted 10% during a guaranteed interest rate period, you’ll incur extra charges. These withdrawal fees can range anywhere from 1% to 3% of your account’s value, in addition to market value adjustments (MVAs). Rates vary depending on your term length and how long you’ve owned the account. Here’s a breakdown:

Withdrawal Fee Schedule
Your Term Length Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
3-Year 3% 2% 1%              
4-Year 3% 3% 2% 1%            
5-Year 3% 3% 3% 2% 1%          
6-Year 3% 3% 3% 3% 2% 1%        
7-Year 3% 3% 3% 3% 3% 2% 1%      
8-Year 3% 3% 3% 3% 3% 3% 2% 1%    
9-Year 3% 3% 3% 3% 3% 3% 3% 2% 1%  
10-Year 3% 3% 3% 3% 3% 3% 3% 3% 2% 1%

Annuitants younger than 59.5 years old that choose to take withdrawals may find themselves paying an additional 10% income surtax, in addition to standard income taxes. Consult with a financial advisor if you have questions.

Realistic Return Expectations

Annuities rely on a number of different considerations when determining their returns. This could include the annuitant’s age, state of residence, investment amount and chosen investment period. For example, according to Gainbridge’s annuity calculator, a five-year, $25,000 investment that belongs to a 60-year-old Massachusetts resident would evolve into $29,835.88 based on a 3.60% guaranteed interest rate.

Gainbridge Single Premium Immediate Annuity

The Gainbridge Single Premium Immediate Annuity (SPIA) lets you turn an initial investment into fixed monthly payments that last anywhere from 3 to 10 years. This duration of time is known as the “guaranteed period.”

The minimum initial investment for this annuity is $10,000. If you’re so inclined, you can invest as much as $1 million in the Gainbridge SPIA. Gainbridge annuities are sold online.

Similar to the Gainbridge MYGA, SPIA annuitants will receive an automatic death benefit if the contract is still active when the annuitant dies. The designated beneficiaries will get to choose between either a single, lump sum payment or guaranteed monthly payments for the remainder of the contract’s life. The former will include a 4% commutation fee, though.

If the surviving spouse of the annuitant is the sole primary beneficiary, they’ll receive special treatment. In this case, the spouse can either request in writing to become the contract’s owner or take a death benefit without the 4% commutation fee.

Fees

If you decide to withdraw all the money from your Gainbridge SPIA before the end of your guaranteed period, you’ll be charged 4% of your balance as a commutation fee. Gainbridge does allow customers to cancel their contract for free within 30 days of its issuance, though.

This annuity is funded with after-tax dollars. That means that you won’t pay taxes on the receipt of your principal. However, any money that you earn via interest will be taxed.

Realistic Return Expectations

The potential returns you could receive from the Gainbridge SPIA are dependent on factors like your age, state of residence, initial investment and chosen investment period. Gainbridge’s annuity calculator shows that a 60-year-old Massachusetts resident that invests $25,000 for five years can expect to receive $441.22 a month. That works out to a total projected payout of $26,473.20.

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Best Places for Small Business Owners

SmartAsset analyzed data to find the best places for small business owners in the country. This interactive map allows you to see the best counties for small business owners in the country and in each state. Zoom between states and the national map to see the top spots in each region. Also, scroll over any county to learn about that region's small business statistics.

Least
Most
Rank County Small Business Returns Small Business Income Income Taxes

Methodology Which places are best for owners of small businesses? To answer this question, we considered three factors: the proportion of people in a county with small business income, how much business income those people reported and the amount of tax a potential resident must pay on their income.

To determine how attractive a region is for small business owners, we compared the number of people reporting small business income compared to the total tax-filing population of the region. Next we compared the total amount of small business income to the total amount of income reported in each region.

Small businesses are typically incorporated as pass-through entities, meaning that the businesses' owners pay income taxes on the company profits rather than the company itself paying income tax. Because of this, income taxes can have a large effect on a small business's success. To determine income tax burdens across counties, we used the national median household income. We then applied relevant deductions and exemptions before calculating federal, state and local income taxes for each location.

These three factors were then indexed and equally weighted to yield our small business index. Places with a higher small business index are better for small business owners.

Sources: Internal Revenue Service (IRS), US Census Bureau 2017 American Community Survey, Government Sources, SmartAsset