Gainbridge Annuity Reviews 2025: Pros, Cons, and Expert Insights
- By keeping money in a Gainbridge annuity for at least three years, clients can expect guaranteed competitive interest rates and tax-deferred growth.
- Other companies with direct-to-consumer annuity offerings include Merrill Lynch, Ally Invest, and TD Ameritrade.
- There are no administrative fees or commissions, but there is a surrender fee if you choose to discontinue the annuity contract early.
- Deferred annuities allow people to grow tax-deferred investments and receive a steady income stream in retirement.
Many competing financial companies today offer several ways to invest along with other financial services for those who want to make the most of their money. How do you choose which one is the best option?
What Is Gainbridge?
Annuities can be a good way to invest with tax-deferred growth and other benefits, but as with any investment, it’s important to understand where your money is going and who will be managing it.
Founded in 2019, Gainbridge offers fixed, tax-deferred annuity products as a reliable investment vehicle for those who want to improve their future financial standing in a way that savings accounts, CDs, and other instruments can’t match.
The self-managed digital platform allows you to handle your money your way. Those who are committed to keeping their money in the annuity for at least three years can expect security, guaranteed rates, and tax-deferred growth.
There is no Gainbridge Life Insurance Company. The issuing insurance company is Guggenheim Life and Annuity Company through Gainbridge.
Who Are Gainbridge Annuity Products For?
People who are interested in long-term investments and want to invest for at least three years before withdrawing funds while preserving their initial investment might find that Gainbridge is the right place.
It’s great for those who want to control their own money but aren’t quite sure how to navigate the world of financial instruments for investing. If you are digital-savvy enough to handle a typical bank account online, you can likely handle the easy Gainbridge interface.
Gainbridge isn’t just for retirement. It’s also a safe place to keep your money while you watch your account value grow. Guaranteed annuities like this are meant for those who believe slow and steady wins the race.
How to Find the Best Online Brokerages
The best brokers allow you to invest in various financial products. Shop and compare online brokerages to find the lowest fees and opening balances.
Compare Gainbridge to Other Brokerages
There are other companies like Gainbridge that offer direct-to-consumer annuities.
One of those is Merrill Edge, Merrill Lynch’s online discount brokerage. Merrill Edge doesn’t require a minimum to get started, as Gainbridge does, but the company charges fees on transactions, something you don’t worry about with Gainbridge.
Another option, Ally Invest, might offer higher rates but requires a rather high standard to get them, starting at $25,000.
TD Ameritrade is a familiar competitor that offers a wide variety of financial services, but they are not as user-friendly as Gainbridge.
What Accounts Does Gainbridge Offer?
Gainbridge offers a multi-year guaranteed annuity product, known in the financial industry as MYGA, and immediate annuities.
A lump-sum contribution of $1,000 or more creates the MYGA account, which offers guaranteed interest rates for a minimum of three contract years and a maximum of ten years.
These are not fixed rates, but they don’t go down past a certain rate. Rates for either option range from 3.75% to 4%, though those numbers are subject to change. Gainbridge promises a minimum of 2.60% annual percentage yield. The amount you invest does not change your rate of interest; it’s the time period that does.
There are two options: Deferred or immediate or annuities.
Immediate Annuities
When you invest in an immediate annuity, you begin receiving money back immediately in monthly payments, which are returned to you with interest.
This allows you to grow your money, protect it, and earn a steady stream of income simultaneously.
A rough example of this would be a $100,000 investment for a term of 10 years, guaranteed—you would receive a monthly payment of approximately $942.
Deferred Annuities
A deferred annuity is an insurance contract designed to provide income at a future date, typically during retirement. It has two phases: the accumulation and the payout phase.
Accumulation Phase
During this phase, the annuity holder makes either a single premium lump-sum payment or a series of payments to the insurance company.
The money grows tax-deferred, meaning you only pay taxes on the earnings once you start receiving payments.
Payout Phase
The annuity enters the payout phase at a predetermined future date, usually at retirement. The insurance company begins making periodic payments to the annuity holder during the investment period, which can be for a specific number of years or the remainder of the annuitant’s life.
Deferred annuities can be fixed (offering a guaranteed interest rate), variable (where the returns depend on the performance of selected investments), or indexed (where returns are linked to a market index, such as the S&P 500).
Deferred annuities are often used as a top retirement savings and planning tool. They allow people with a low risk tolerance who need principal protection to grow their tax-deferred investments and receive a steady income stream in retirement.
More Facts on Gainbridge Annuities
There is no up-front sales commission charge. However, there are fees.
If you withdraw more than 10% of your contract value from the account before the end of the guarantee period, you may face a 3% surrender charge.
As with many other investments, if you withdraw the money before the age of 59 1/2, the IRS can impose a 10% early withdrawal penalty.
The market value adjustment is another potential fee, though it doesn’t apply to a death benefit or if you choose to surrender the annuity at the end of the contract year or the agreed-upon period.
Top Features of Gainbridge
Gainbridge has several features that might appeal to you. Here are some of the more robust features you can expect from this brokerage.
Customer Service
Customer service is available on weekdays until 5 p.m. EST and during chats around the clock, though they might not get back to you until the next day.
No Penalties for Death Benefit Payout
If Gainbridge pays out of your account as part of a death benefit, the penalties for early withdrawals are waived.
Robust Referral Program
Those who refer others to the company can benefit from a referral program. When you refer someone to the company who successfully opens an account and funds their Gainsbridge annuity product, you will receive an Amazon gift card from Gainbridge.
Helpful Calculator
Annuity calculators are valuable tools to help you plan for the future. Gainbridge’s online growth calculator helps you see exactly what you will get for a certain amount of investment.
How to Get Started
The process of signing up for a Gainbridge annuity account is simple.
- Click the “See Your Guaranteed Rate” button.
- Fill out the brief form and select your state.
- View the information about your rate.
- Click “Continue” to start your account and move into the next phase.
You can then fund your account with your initial investment in one of three ways:
- Instantly, through ACH payment from your bank or credit union.
- Through micro-deposits to confirm your banking account information
- Writing a check.
Gainbridge users are subject to ID verification, but the company never runs a credit check. You must be over 18 and have a valid Social Security number.
Pros and Cons of Gainbridge
Pros
- Breaking the contract early requires payment of a surrender charge of 3%, compared to the 7% or even 9% of other companies
- No management or administrative fees, either upfront or ongoing
- Gainbridge’s website is intuitive and straightforward
- Strong financial backing
Cons
- Gainbridge doesn’t offer annuity contracts in all states
- Agents are not available after 5 p.m. EST, which can make it tough for some people to speak with a representative directly
Gainbridge Annuities: Rating the Features
Choosing the right financial product involves more than just looking at the numbers—it’s about understanding the features that can enhance or detract from your overall experience.
Our Gainbridge Annuity review ratings provide a clear, concise overview of how Gainbridge stacks up in the areas that matter most to investors, helping you determine whether this platform aligns with your financial goals and needs.
User Experience
The Gainbridge online platform lets you navigate easily. Payouts from the account, whether at the end of the term or if you choose to withdraw early, are prompt and have no hidden fees or withdrawal charges.
Fees and Rates
There are no administrative fees or commissions.
Since this initial investment is a commitment of time for money, there is a surrender fee if you choose to break the contract before the end of the specified investment period, and there might be a market account value adjustment as well (positive or negative, depending upon your situation).
If you withdraw above the 10% per year penalty-free limit, you will also be charged fees calculated as a percentage of your account value.
Transparency
The competitive rates, various annuity options, and all fees are very clearly stated on the website, leading to a transparent experience. When you choose your investment and lock in your rate, you have a 30-day “free look.” During that time, you can explore details of the plan and expectations for higher returns and choose to pull out of the annuity contract for any reason.
Flexibility
If you need to retrieve your money as soon as possible, you can, but keep in mind that you will pay fees for early withdrawal. If you choose to extend your annuity or change the terms to move it to a longer period, all those are possible with some help from customer service.
Customer Support
You can speak to someone via phone or chat during the day until 5 p.m. EST. After that, you can send chat messages that will be answered the following business day.
Bottom Line
Gainbridge is strongly focused on one product: the fixed annuity. This provides principal while allowing it to gain a guaranteed percentage of interest.
The online interface is designed to be user-friendly and thus cut out the “middle man” of a financial advisor.
The account can be opened in days, and customer support is prepared to help. Good transparency on fees and expected returns can help with peace of mind.
Gainbridge has an A- (excellent) financial strength rating of insurance company by AM Best.
A.M. Best Company assigns ratings from A++ to S based on a company’s financial strength, claims-paying ability, and ability to meet obligations to contract holders. A- (Excellent) for credit ratings is the 4th highest of 16 ratings. For more information about the rating, visit www.ambest.com.
