One of Our Three Core Principles:

Reasonable Rate of Return**

Finding a Reasonable
Rate of Return** in Retirement

One important aspect of planning for your retirement:
Determining what a "reasonable rate of return" is.

The ideal rate of return is one that keeps up with inflation and other cost-of-living increases, and ensures you don’t run out of money. However, it’s important that in addition to a reasonable rate of return, you also have protection of principal. You should be able to keep your money safe when the stock market is down, yet still, participate in some growth whenever the market is up. And the products we offer can do just that! Reach out to us to learn more.

You Don't Have to Choose Between Safety and Reasonable Rates of Return** in Retirement

As we mentioned previously, you don’t have to pick between these two benefits. There are strategies that can provide you with both, and those are the types of strategies you should look for.

As you near retirement, your priorities may shift. You may be more focused on safety, knowing that the older you get, the less time you have to retire from loss. In other words, you may not have the same risk tolerance that you did during your working years. But, you also don’t want your savings to run out during retirement. This is why a reasonable rate of return** in retirement is also important. An important balance of risk versus reward is crucial to your retirement strategy.

happy couple enjoying coffee outside rate of return in retirement freedom dream team california

Your Situation

To make the best decisions for you and your specific situation, you need information. What you do with your money now will drastically impact your future, so be sure you know all the ramifications of your choices.

One factor that many pre-retirees don’t consider: Inflation. Inflation rates are a detail you must factor into your retirement strategy. It will, in fact, take more money in the future to live the same way you do presently. Thankfully, there are some products you can use that take inflation into account when determining your rate of return.

risk reward scale rate of return in retirement freedom dream team california

Risk Vs Potential Reward: Finding and Keeping a Balance

Typically, high risk and reasonable rates of return** go hand-in-hand. This is highly concerning. Investments that entail potentially high gains are far from ideal, obviously, when they also come with high risk. What good is this rate of return in retirement, if all your money could potentially be lost? But, safer methods of saving money also aren’t great. Traditional savings accounts, bonds, CDs, etc., all offer protection for your money. However, these accounts often don’t yield very good rates of return. Additionally, you may have to pay taxes on the interest from these types of accounts, making the actual rate of return even less. None of these options come with the risk/reward balance we’ve discussed.

FIAs and Rates of Return in Retirement

Fixed indexed annuities (FIAs) can provide you with reasonable rates of return** in retirement. Additionally, they offer a degree of safety that many accounts do not offer. So, why is this, and how does an FIA work?

A fixed indexed annuity is an insurance product that keeps your money safe, backed by the claims-paying ability of the insurance company, while gaining interest over time based on the performance of an external index. The interest rate is determined based on a number of factors, including the specific crediting method of your FIA contract.

grandfather smiling with family rate of return in retirement freedom dream team california

We can discuss FIAs with you in more detail, if you meet with us or attend one of our seminar events. At seminars, we give a presentation on a number of relevant topics, and provide you with a gourmet dinner, all at no cost to you. At our one-on-one meetings, meanwhile, we can review your current strategy and answer your questions, as well as talk about adjustments you may want to make.

Meet with us, or attend one of our educational seminar events.

At our one-on-one meetings, we can answer your questions, review your current strategy, and talk about adjustments you may want to make.

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