Reasonable Rate of Return

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Looking For A Reasonable Rate of Return** in Retirement?

Three key principles guide us when helping clients with their retirement strategies. Firstly, you should look to keep your money safe. Safety first. Secondly, you should aim to get a reasonable rate of return** in retirement. And lastly, your retirement strategy doesn’t have to be complicated. Try to keep it simple. Most of our clients look to protect their principal. However, it’s possible to simultaneously gain a reasonable rate of return.**

Strategies to Have a Reasonable Rate of Return**

It’s important to find balance in retirement. Specifically, finding a balance between risk and possible reward. However, the good news is, there are options that are both low-risk and get you a reasonable rate of return**.

Just make sure to learn about your options and make an informed decision for yourself. Typical conservative places for your money, such as CDs, savings accounts, and savings bonds, tend to have lower rates than higher-risk options. Thankfully, there are alternative options that are both low-risk and get you a reasonable rate of return.**

Fixed Indexed Annuity Rates of Return

One benefit of an FIA is that its rate of return isn’t based on the stock market. An annuity is a contract with an insurance company. The company calculates a rate of return based on an index, and several other factors. These factors include:

  • Annuity term length
  • Conditions and contract terms set by the insurance company
  • Additional benefits listen in the annuity contract
  • Whether or not an income rider has been purchased
  • Amount of money placed into the annuity

We Offer Products Specific to Your Situation

It is important to note that everyone’s financial situation, needs, and goals are different. Therefore, you should be sure to meet with us to go over the policies and accounts you and your spouse already have. Your current retirement strategy could very well be exactly what you need and want. Based on a risk assessment and a review of your assets, we can find you the strategy that works best for you.

Risk Vs Potential Reward

In retirement, low interest likely won’t give you enough income to live on. True, your money might be protected, but that isn’t the right place for your money if you can’t get enough income from it. In contrast, high-interest rate options will get you high returns, but will put your principal amount of money at risk. If the market crashes, this could impact your retirement savings negatively. For some retirees, their accounts may not be able to recover from loss like this. This isn’t ideal either. Instead, you should look for a way to keep your principal protected, and a reasonable rate of return** as well.

Additionally, your interest rate goal may be slightly higher than what’s offered through CDs or basic bank account interest. You also want to keep your savings safe. Some types of annuities and insurance products could be helpful to you. Want to learn if these options could be right for you?

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