Options for a

Reasonable Rate of Return in Retirement

Seek a Reasonable Rate of Return In Retirement

One of the key principles that guide our work is to help clients seek a reasonable rate of return* in retirement. Of course, no investments are guaranteed, and when investing in the stock market, there is an inherent risk. However, with insurance products such as a fixed indexed annuity(FIA), a reasonable rate of return* may be achieved without risking principal. Many clients seek first to protect their money and then look for ways to potentially gain.

Learning About Retirement

At Marathon Group Financial, we know how important it is for you to have the information in order to make decisions. Remember, how you choose to spend or invest your money now may impact your future. Inflation is an aspect of retirement planning that is sometimes ignored. However, if you are looking to have your money outperform the rate of inflation, you’ll need to know your options. For example, certain fixed index annuity (FIA) products could be interesting in this situation. Also, you may wish to seek options that potentially offer a reasonable rate of return.* Educating yourself about the choices available may reap benefits in terms of your retirement outcomes.

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Where to Find a Reasonable Rate of Return* In Retirement

Places For Retirement Savings
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Once you are in or nearing retirement, balance becomes an important component of planning. Specifically, you’ll need to strike a balance between the return you wish to receive on your money versus the risk you are willing to take. Fortunately, you do have financial options that all for both – a reasonable rate of return* as well as protection of your money in a down market. All you have to do is get information and make a decision right for you.

Historically, certificates of deposit (CDs), savings accounts, or savings bonds were the only conservative places to put money. However, these options usually have much lower rates than choices with higher risk. In addition, taxes are paid on the interest. Thankfully, the industry now has other options if you are looking to generate a reasonable rate of return* while protecting your initial investment.

FIA Rates
of Return

Are they possible?
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An FIA has the benefit of not earning interest based on the stock market. In fact, it does not earn interest unless its associated index rises past a certain point. The insurance company issuing the FIA calculates what the rate of return will be based on its index(es) and other factors. These include:

(1) How long is the term of the annuity?

(2) Have you selected additional benefits?

(3) How much money was put in the anuity?

(4) Was an income rider part of the agreement?

(5) What were the terms and conditions set forth by the insurance company?


Retirement Solutions, Specific to You

Of course, no two clients are alike. Therefore, before initiating any new retirement transactions, be sure to review everything you have now. Perhaps your current plan is perfect for what you need. Or, perhaps it simply needs a few adjustments to be right for you. Using a risk assessment and analysis of your situation, we can work with you to develop a plan for your retirement goals.

Do you Know Your Risk

Recognizing a reasonable rate of return in retirement

If your interest earnings are too low, you may not have enough income. Yes, your money could be “safe”, but if it doesn’t work hard enough for you, it isn’t in the right place. Your principal needs protecting, but your potential gains need to be reasonable as well.

So, are higher interest rate options a possibility in retirement? There are no guarantees. When rates go up, typically the risk goes up as well. More potential gain, more potential loss. Consider how these investments may impact your retirement. Be sure that your account can recover from loss or that your risk tolerance can withstand the potential drop in income and savings.


They may be closer than you think

In summary, your goal for a rate of return may be higher than what you can get in a CD or saving accounts. Additionally, many retirees seek to protect their money. Certain annuities, such as FIAs may be useful for you to take a look at.

reasonable rate of return in retirement

*Reasonable rate of return over time. 

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