What Is A Reasonable Rate Of Return** For Retirement?

Here at Tower Bridge Financial, we believe that with the right retirement strategy, you can be prepared for the future. With this purpose in mind, we’ve helped hundreds of people in California to learn the keys to a successful retirement. 

We make sure our clients know three things:

  • Retirement doesn’t need to be complicated. Your strategy should be simple. Reduce as much confusion as possible in developing a financial future.
  • Safety comes first. Concentrate on protecting your principal.
  • Achieve a reasonable rate of return over time (while protecting your principal).

It’s not surprising that most clients ask “What is a reasonable rate of return over time for retirement?”. They want to know how to keep their money secure and see accumulation at the same time.

You Have Questions We Have Answers

Here at Tower Bridge Financial, our goal is to educate our clients on all their potential alternatives. That way, you can determine the option that is most suitable for you. How you invest or spend your money is essential because it impacts your long-term retirement income and lifestyle. If you want to make your money performs, you need to know your options. For example, a fixed index annuity (FIA) can offer potential indexed interest interest when the market is up. But, when the market is down, your principal is unaffected.

smiling couple looking at phone reasonable rate of return folsom ca

Understanding Reasonable Rates Of Return**

So, what exactly is a reasonable rate of return?** While interest rates are constantly changing, a standard fixed index annuity (FIA) can provide you with 3%-6% interest over a period of time. But, the range is dependant on various factors including:

  • The amount placed into the annuity
  • Terms of the annuity
  • Policies and conditions set by the insurance company providing the annuity
  • Whether or not you have an income rider
  • Any additional benefits of the annuity

Too Much Risk or Too Little Interest?

Numerous retirees will learn quickly that a low interest won’t equip them with enough retirement income to live off of. Your money may be protected but your generated income may not cover all your costs of living. Many clients feel that playing it safe with these types of investments isn’t most suitable for their needs. Which brings us back to the question, “What is a reasonable rate of return?”**

An alternative to low-interest savings, bonds, or CDs, many retirees invest in higher interest rate choices. The most often overlooked consideration about this alternative is this: your funds are more at risk now. What happens to your funds if the stock market crashes? Will your investment returns be enough? Or will you need to return to work to recoup your losses? That is a situation no retiree wants to be in!

In a favorable scenario, you want your interest rate to be higher than the most conservative options, but you also need to keep your money safe. This where specific types of annuities and life insurance products may play a part. Certain insurance products, such as a fixed index annuity (FIA) can keep your money safe yet still have a potential indexed interest. Many retirees look to first protect their earnings, then potentially earn interest. 

Interested in learning more about these options? Call us today to set up your no-cost educational one-on-one meeting.

We Offer Strategies As
Unique As You Are

It’s important to know that every retirement strategy is different, because every client is different. This is why first and foremost we take the time to understand your current financial and personal situations. We want to know what is important to you. Then, we will go over your retirement income performance and discuss options that can help protect and grow your wealth.

You've built up a lifetime of earnings.

Today is the time to protect it and make a plan for the future. For decades, we’ve assisted hundreds of people to do just that. We’d love the opportunity to work with you, too.

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