A Reasonable Rate of Return**

What is a Reasonable Rate of Return** on Retirement Investments?

Aiming for a reasonable return rate** on your money is one of our core ideals. Of course, stock market investments are not guaranteed. In fact, there is a risk of losing your principal with any stock market investment. But, when looking at retirement products, you are not limited to just market investments. For example, insurance products such as fixed index annuities (FIAs) offer protection of principal as well as the potential for reasonable rates of return**. In other words, you can keep your principal safe, yet accumulate money when there is an index upside.

Rates That Are Reasonable;
Retirement That Is Protected

Without information, it may be difficult to make the right retirement decisions. Of course, where you put your money may have an impact on your future. One future aspect sometimes ignored is inflation. When trying to determine “what is a reasonable rate of return** on retirement investments?” you’ll need to consider inflation rates. For example, if inflation is 2%, you’ll need to have your assets performing higher than that. Some FIAs may be a good solution here. There are other options that may also offer a reasonable rate of return**, such as money in an indexed universal life (IUL) policy.

Be sure to learn as much as you can about the options available to you. One way to do this: attend a dinner seminar or an online webinar.

How to Find
a Reasonable Rate

Are you in or near retirement? If so, then your strategy for your money may be changing. One area of change is the balance between how much is at risk and how much of your money is safe. Also, how much risk are you willing to have? Thankfully, there are options available to both protect your money and grow it reasonably as well. Determine your risk now and find out if your money may be placed somewhere with more security. Part of finding a reasonable rate of return** is making sure you can’t lose your principal.

Of course, savings accounts, savings bonds, and certificates of deposit (CDs) are fairly conservative choices for savings. However, the rates issued on those accounts sometimes do not seem reasonable. Also, the interest you get from these accounts is subject to taxes each year. This reduces your actual income further. To counter these challenges, we work with insurance companies that have products with reasonable rates of return** as well as principal protection.

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Rates of Return & Fixed Indexed Annuities(FIAs)

An FIA does not directly link with the stock market to earn interest on your money. Instead, it applies a credit to your annuity contract if its related index(es) reaches a certain level. An insurance company figures out what your rate of return will be using the index as well as specific factors outlined in your FIA contract. Some of these other factors include:

  1. Annuity’s term length
  2. Potential additional benefits of the policy
  3. Dollar amount of the annuity
  4. Income riders
  5.  Contract’s conditions and terms


Before moving forward with a new retirement strategy, take a look at your current accounts. What is the return you’re getting now? What are the fees you are paying? Does the strategy still work for you? Typically, we find that reviewing your current retirement income strategy can help you get a better handle on your situation. From there, we can discuss any adjustments you may want to make. Also, knowing where you are now helps you understand what’s possible for your retirement in the future. You have reasonable rates of return** options. Let’s find out which specific choices are right for you.

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Weighing Risk & Reward

Without a high enough rate of return, your money might not keep up with inflation. Sure, there are “safe” places to put your retirement. However, if the rate of return isn’t enough, you may need to look elsewhere. We believe it is possible to have both needs met. You can protect your assets. But, you can also have a reasonable rate of return**.

Product such as FIAs may offer the protection as well as potential indexed interest you are looking for. Consider your overall retirement picture. Look at your current risk. Then, review your options to save and protect your wealth in retirement, while earning a lifetime income.

Let’s Discover Your Answer to…

“What is a reasonable rate of return on retirement investments?”

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