One of Our Three Core Principles:
Reasonable Rate of Return**
Let's Answer This:
What is A Reasonable Rate of Return?
Getting you a reasonable rate of return** is one of our three core principles. While of course, we put safety first, we also believe you should be able to get reasonable returns. Typically, clients will ask us “What is a reasonable rate of return?” They want to know how they can see some accumulation while still protecting their principal.
Let's answer, once and for all:
"What is a reasonable rate of return?"
In order to answer this, we need to explain a few additional main ideas. First and foremost, you should know that you don’t have to settle for either safety or reasonable rates of return.**
Maybe you know you want to be a bit more conservative with your money. Most of the options for you seem pretty disappointing. For example, simple savings accounts and CDs typically offer historically low rates, even if they are very secure. Additionally, savings bonds aren’t much better. Most of the time, their rates are very low.
In contrast, fixed indexed annuities (FIAs), a product that we offer, can provide you with better interest rates over time. FIAs can provide anywhere from 3% to 6% interest over time. This range depends upon a few different factors.
Here's a list of some of them:
Strategies Tailored to You
It should be noted that everyone’s financial situation is different. Therefore, we recommend that you meet with us to review your current strategy. Sometimes, we discover that our clients’ current setup is working for them. But, much of the time, we find options that can improve their outcomes.
Not Enough Interest Vs. Too Much Risk
Many retirees will quickly find that it’s hard to find financial vehicles that offer interest rates high enough for them to live off of the income. While your money may be secure, your income generated may not cover everything you need. Many people feel these “play it safe” options aren’t optimal. So, now we’re back at the question: “What is a reasonable rate of return?”
As an alternative to lower-interest savings accounts, CDs, or bonds, some retirees consider instead investing in higher interest rate options. This strategy isn’t ideal, either, considering your money is now at risk. What happens in the event of a stock market crash? Will the earnings you’ve made be enough? Or, would you need to end up going back to work in order to recover your money? This is a situation that, obviously, no one in retirement wants to be in.
Ideally, you want your interest rate to be higher than the most conservative options. However, you also need to keep your money safe. This is where certain types of annuities, and other life insurance products, can help.
Want to know if one of these products may be the right option for you?
Reach out to us, and set up a no-cost, no-obligation meeting today.