Reasonable Rate of Return

Earning A Reasonable Rate Of Return* In Retirement

We strive to help clients attain long-term reasonable rates of return. However, investing in the stock market carries the risk of losing money. You may want to change your strategy as you approach retirement. So many retirees look for ways to safeguard their income while still earning a steady rate of return in retirement. When considering retirement products you are not confined to markets only. For example, some insurance products such as a fixed index annuity (FIA) offer both principal protection and the potential for a reasonable rate of return*. One of our core values is to seek a reasonable return on your money.

reasonable rate of return in retirement

Finding a Reasonable Return In Retirement

When you’re planning for retirement, financial stability is key to your golden years. A balance needs to be struck between risk and potential reward, as well as safety and potential growth. Many people think that the only safe place for their money is an FDIC account. Or, you may prefer the security of a certificate of deposit (or CD). Both of these account types, however, have less attractive interest rates than the market. In addition, any interest you earn in these types of accounts is taxable. As a result, the net return can be even lower. Again, there is a way to earn a reasonable rate of return* in retirement without exposing your principal to market risk. The products we offer, however, have a good long-term return, while also providing insurance protection to the principal. We’ll help you learn about these strategies so you can determine the product suitable for you.

safe money

Fixed Index Annuities

Your money is not invested directly in the stock market by FIAs. Instead, the insurance company issuing the FIA tracks potential earnings by using an index (for instance, an S&P 500 index). Your annuity will get interest credit if the FIA index exceeds a certain level. Rates of return are calculated based on multiple factors including: Duration of the annuity Added benefits Purchase price of the FIA Whether you have chosen an income rider Insurance company contract terms and conditions Again, there is a way to earn a reasonable rate of return* in retirement without exposing your principal to market risk. The products we offer, however, have a good long-term return, while also providing insurance protection to the principal. We’ll help you learn about these strategies so you can determine the product suitable for you.

Balancing Risk & Reward

While retirement can provide a reasonable rate of return, it must be balanced delicately. An income that’s too low will leave you with insufficient money in retirement. Too high a rate would mean too much risk. Consider this: you have a safe investment, but its return is not sufficient to provide a living. That’s not going to work. However, if you earn enough money, but your principal is always at risk, that doesn’t really work, either. A retiree will need both a reasonable rate of return and protection of their income.

grandparents on the couch with their grandkids

The Right Strategy For Your Situation

There is no one-size-fits-all retirement plan. Financial and personal situations vary from person to person. Our first step is to learn about your goals and needs. Your priorities matter to us. After reviewing your existing strategy’s performance, we will discuss options that can help protect and grow your wealth.

Find Out More

Hybrid Financial believes our clients should have all the information they need to make well-informed decisions. Let us help you protect your retirement earnings by showing you your options. Income is an important decision since it affects how you will live and earn in retirement. Inflation may also be a factor. In order to ensure that your money does better than inflation, you need to know the options you have. The indexed interest of FIAs may increase when the market is up, but make sure that you’ll keep your principal intact when the market drops.

Our goal is to help you learn as much as possible.

Having a confident outlook for your retirement is essential.

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