How to Safely Lock in 5.50% for the Next Three Years

Just a couple of years ago, savings rates were near zero. But that changed in 2022, as the Federal Reserve began raising rates to fight inflation.

Higher interest rates are bad for borrowers, but they’re great for savers. We now have some of the highest saving interest rates in a generation.

As with many of the best things in life, however, these high rates likely won’t last. In December 2023, the Fed signaled they’re likely to cut rates three times in 2024.

That’s why now’s the time to lock in today’s high rates. There are several ways to do this, including bond funds, Treasury bonds, certificates of deposit and fixed annuities.

Not familiar with fixed annuities? They’re similar to a CD from a bank: you commit to leave your money in the annuity for a period of time, and the issuing insurance company commits to paying you a fixed rate of return in the future.

Why an annuity?

One major reason to consider fixed annuities is rates.

• Three-year CD rates are currently hovering around 4.5%. ¹
• Three-year Treasury bonds are currently paying about 4.1%. ²
• Three-year SteadyPace™ annuity offered through Gainbridge® current rate is 5.50%. ³

That’s a 35% improvement over Treasurys, and more than 20% better than CDs.

Unlike Treasurys and CDs, annuities aren’t government-backed, so the quality of the company standing behind them is critical. Gainbridge® is a subsidiary of Group 1001 Insurance Holdings, LLC, which has $60.9 billion of combined assets under management as of September 30, 2023.

Their platform offers products from insurers rated A- (Excellent) or better from insurance rating company AM Best.

Other annuity advantages

Tax deferral: If you have a traditional IRA or 401(k), you already know that you don’t pay income taxes on the earnings until you take them out. Same thing with annuities. As long as you leave the earnings alone, you don’t pay taxes on them.

At maturity of your fixed annuity, you can continue your annuity with a new interest rate and term while still deferring the taxes.

As with a retirement account, however, if you withdraw the money before age 59½, you’ll generally face a 10% federal income tax penalty.*

Bypassing probate: When you set up an IRA or 401(k), you name a beneficiary. If you die, the beneficiary gets the money immediately, without the hassle and expense of probate. This is also true with an annuity.

Converting it into income: When your annuity matures, rather than renewing it for another term, you can convert it into a lifetime income stream, so you’ll have regular monthly income. It’s like a personal pension.

No fees: When you choose Gainbridge®, you’ll have zero surprises. There are no hidden fees, no paperwork, and no phone tag. Beginning in the first contract year, you can even take free withdrawals of up to 10%.

Who should use annuities?

While anyone can invest in annuities, they may be the best fit for someone approaching retirement age who wants to grow their savings, defer taxes and is looking for an interest rate that beats most banks — but wants a safe, dependable product.

How to invest

Investing in annuities used to require sitting down with an insurance salesperson. These days, it’s as simple as going online and clicking a few links.

To check out a Gainbridge® SteadyPace™ multi-year guaranteed annuity, go to the Gainbridge® website at gainbridge.io/steadypace.

That’s all there is to it.

Bottom line? Now’s the time to lock in the best rates we’re likely to see for a long time. Take a minute right now, go to Gainbridge® and check out the SteadyPace™ multi-year guaranteed annuity. You’ll be glad you did.