One of Our Three Principles

Reasonable Rate of Return**

What is a

Reasonable Rate of Return** After Retirement?

Making sure you earn a reasonable rate of return** on your money is one of our core principles. Of course, stock market investments are not guaranteed. There’s a risk of losing your principal if you invest it in the market. But, when looking at retirement products, you aren’t just limited to market investments. Insurance products such as fixed indexed annuities (or FIAs), for example, offer protection of principal as well as the potential for a reasonable rate of return.** In other words, you can keep your principal safe while still seeing interest when the index is up.

portrait of senior couple on the beach reasonable rate of return

Safety in Retirement

It might be difficult to make the right retirement decisions without enough information. Where you put your money may have an impact on your future. A future factor that’s often ignored is inflation. When trying to answer “What is a reasonable rate of return** after retirement?” you’ll need to consider inflation rates. You want your assets performing higher than what the inflation rate is. And an FIA might be a good solution here. There are other options that may also offer a reasonable rate of return,** such as an indexed universal life (or IUL) policy.

Make sure to learn as much as you can about the options available to you. One way to do this is to attend a dinner workshop or an online webinar.

How to Find a Reasonable Rate of Return**

Are you in, or nearing, retirement? If so, your strategy for your money might be changing.

One area of change is the balance between how much of your money is safe, and how much is at risk. How much risk within your accounts are you willing to have? Thankfully, there are options available to both protect your money and grow it reasonably. Determine your risk now, to find out if your money should 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 CDs are fairly conservative choices for savings. But the rates issues on those accounts sometimes don’t seem very reasonable. And the interest you get from them is subject to taxes each year, which reduces that interest further. To counter these challenges, we work with insurance companies that have products with reasonable rates of return** as well as principal protection.

An FIA doesn’t link directly with the stock market to earn interest on your money. Rather, it applies a credit to your account whenever its related index or indexes reaches a certain level. An insurance company figures out what your rate of return will be, using the index as well as a few specific factors outlined in your FIA contract. Some of these factors include:

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

Before moving forward with your retirement strategy, take a look at your current accounts. What return are you getting now? What are the fees you’re paying? Does this strategy still work for you? We usually find that reviewing your current retirement savings strategy can help you get a better handle on your situation. From there, we can then discuss any adjustments you might want to make. Knowing where you are now also helps you understand what’s possible for your retirement in the future. You have options when it comes to reasonable rate of return.** Let’s find out which choices are right for you.

Without a high enough rate of return, your money might not keep up with inflation. There are “safe” places to put your retirement money, but if the rate isn’t enough you may need to look for a different strategy. We believe it’s possible to have both needs met; you can protect your money while still earning a reasonable rate of return.** Products such as FIAs could offer you protection as well as potential indexed interest. 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.

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

We can answer that!

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