Gainbridge, a comparatively new participant within the annuity market, provides totally different annuity merchandise designed to cater to totally different wants. Gainbridge goals to make these complicated monetary merchandise extra accessible to on a regular basis traders whereas taking a digital-first strategy on a small slate of choices.
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This assessment dives into Gainbridge, its professionals and cons, the annuities it provides and whether or not Gainbridge is the precise selection for you.
Gainbridge professionals and cons
Execs
- Digital-first strategy: Gainbridge provides a handy and environment friendly buying course of.
- Selection inside merchandise: Gainbridge caters to totally different investor wants and danger tolerances.
- Robust monetary backing: Being a part of Group1001 supplies a stage of monetary stability.
- Aggressive charges: Gainbridge usually provides aggressive rates of interest on its annuities.
Cons
- Restricted product vary: In comparison with some established annuity suppliers, Gainbridge’s product lineup is comparatively small.
- Lack of conventional agent assist: Whereas the digital strategy is environment friendly for a lot of, some want face-to-face interplay with an agent.
- New firm: Gainbridge has a shorter monitor report in comparison with some opponents, which may be a priority for some traders.
What annuities does Gainbridge provide?
Gainbridge provides two main forms of annuities: multi-year assured annuities (MYGAs) and single premium rapid annuities (SPIAs). MYGAs present a assured rate of interest over a selected time period, with taxes deferred till withdrawals start. Single premium annuities contain a lump sum funding in alternate for fastened month-to-month funds, providing assured revenue in retirement.
Gainbridge additionally provides two different annuity merchandise tailor-made to particular person monetary objectives and desires, combining parts of those core annuity varieties.
SteadyPace
SteadyPace is a single premium deferred annuity designed for individuals in search of assured revenue and principal safety. You make a one-time funding, and your cash grows tax-deferred till you start withdrawing revenue at a future date. This product provides a aggressive rate of interest.
As a set multi-year assured annuity (MYGA), it provides a set rate of interest for a specified interval, defending your preliminary funding. Whereas SteadyPace supplies stability, it doesn’t provide further optionally available advantages or riders.
FastBreak
FastBreak is one other single premium deferred annuity, that means you make investments a lump sum upfront and obtain funds at a future date. It ensures your preliminary funding and earns curiosity at a set price for a selected time period.
In contrast to most annuities, FastBreak doesn’t provide tax deferral on the curiosity earned: You’ll owe taxes on the curiosity yearly, even earlier than receiving funds.
Whereas each FastBreak and SteadyPace are multi-year assured annuities designed for long-term financial savings, they cater to totally different investor wants. FastBreak is appropriate for individuals who may want entry to their cash earlier than age 59½ because it avoids the ten % IRS early withdrawal penalty. SteadyPace is healthier for these saving for retirement who plan to go away the cash invested till no less than age 59½.
Each merchandise permit a ten % annual withdrawal with out penalty. If that you must withdraw extra or give up the contract early, you’ll face withdrawal expenses and a market worth adjustment.
ParityFlex
ParityFlex is a single premium deferred annuity that provides a novel mixture of security and potential progress. As a MYGA, it supplies a assured price of return for a selected time period, comparable to 5 or 10 years.
In contrast to conventional MYGAs, ParityFlex provides a level of flexibility by means of its capacity to take part in potential market positive factors. Whereas it doesn’t present the identical stage of market publicity as a variable annuity, ParityFlex means that you can choose from numerous index participation charges and cap ranges.
ParityFlex additionally features a built-in assured lifetime withdrawal profit (GLWB) at no further value.
OneUp
In contrast to conventional fastened annuities that present a assured rate of interest, OneUp provides a set curiosity technique with a minimal assured price. It additionally permits your cash to take part in potential market positive factors by means of its listed methods. This implies your earnings can doubtlessly exceed what a standard fastened annuity may provide, however with out the direct funding dangers related to the inventory market.
It’s necessary to know that whereas OneUp supplies safety towards principal loss, it doesn’t assure particular funding returns. Market efficiency will impression earnings from the listed methods. This product is appropriate for traders in search of a stability of security and progress potential, however it’s not designed for individuals who need complete safety of their principal.
What’s Gainbridge?
Based in 2018, Gainbridge is a digital-first annuity firm centered on simplifying the buying course of for purchasers. By streamlining operations on-line, Gainbridge goals to supply decrease prices and sooner transaction instances.
A subsidiary of Group 1001, a monetary companies group with about $62.6 billion in property below administration as of December 31, 2023, Gainbridge has a robust monetary standing, providing a level of safety to traders.
Headquartered in Indianapolis, Gainbridge annuity merchandise are issued by Gainbridge Life Insurance coverage Firm.
Is Gainbridge secure?
A significant factor when contemplating an annuity is the monetary stability of the issuing firm. Gainbridge is a part of Group1001, which incorporates the manufacturers of Delaware Life, Clear Spring Life and RVI Group, amongst others.
Gainbridge has a robust A- score from AM Finest as of Could 2023. This can be a constructive signal of the corporate’s capacity to satisfy its obligations to policyholders.
Nonetheless, it’s advisable to conduct your individual due diligence or seek the advice of with a monetary advisor to totally perceive the dangers concerned with buying an annuity.
The protection of your funding additionally is dependent upon the precise annuity product you select. Some annuities, like fastened annuities, provide extra safety of your principal than others, comparable to variable annuities. Be sure you perceive the options and ensures of every product earlier than signing a contract.
Backside line
Gainbridge provides a compelling proposition for individuals in search of an easy technique to buy annuities. Its digital platform and aggressive charges are enticing options. Nonetheless, the restricted product vary and lack of conventional agent assist may be drawbacks for some.
