One of Our

Three Core Principles:

Reasonable Rate of Return**

You might be asking yourself,

What is a Reasonable Rate of Return** in Retirement?

We have three core principles. Firstly, keep your money safe, secondly, expect a reasonable rate of return,** and third, keep it simple and straightforward. Not surprisingly, some clients have asked us “What is a reasonable rate of return?**” It’s a valid question. What should you be looking for?

When thinking about what kind of returns you should expect, use inflation as a reference point. The goal is to have your money earning more than the rate of inflation without it being at risk. Rest assured, this is possible. You don’t have to risk it all in order to have enough money.

senior fisherman communicating with his son while walking by the lake what is a reasonable rate of return

Finding the Right Balance

You want a reasonable rate of return.** However, you also want a degree of safety. Most of the options out there seem disappointing for this. Simple savings accounts, for example, typically offer low rates. The same is true for CDs and savings bonds. Their interest rates are often very low. However, many accounts with higher returns come with the unfortunate side effect of high risk. For example, accounts that put money into stocks. When you’re in your working years this might be a viable option. However, as you approach retirement, you don’t have time on your side anymore. Soon, you’ll need that money. If it’s lost, you won’t be able to let it recoup while living off of income generated from working. And you don’t want to have to go back to work after retiring. Call our office.

Fixed Indexed Annuities

Although interest rates fluctuate, a typical fixed indexed annuity (FIA) provides anywhere from 3% to 6% over time. This range depends upon many different factors. The terms of the annuity, additional benefits you’ve selected, and of course, the amount contributed will all impact this.

An FIA might be a viable option for you if you’re concerned about reasonable rates of return** while still having some amount of safety. Reach out to us to learn more about this. Your individual situation will, obviously, also dictate whether or not an FIA is right for you.