Our second guiding principle:
Reasonable rate of return**
Retirees need both a reasonable rate of return** as well as protection of their assets. Relayer Benefits Group can show you how.
How to achieve a
Reasonable Rate of Return** During Retirement
One of our guiding principles is to help clients have a long-term reasonable rate of return.** We believe that you should be able to attain return rates that are reasonable** but keep your principal safe. When you invest in the stock market, there are of course inherent risks of losing money. Alternatively, certain insurance products like fixed indexed annuities (or FIAs) can keep your money safe, but still potentially have indexed interest. Many retirees look to first protect their earnings, then potentially earn a return.
At Relayer Benefits Group, we put honesty and truth first. We believe it’s important for our clients to have all the information they need to make an informed decision. We can help you learn about your options for protecting your retirement earnings. What financial vehicles you put your money into matters because it impacts your long-term retirement income and lifestyle. Factors such as inflation may also have an impact. If you want to make sure your money outperforms inflation, you’ll need to know all the available options. FIAs, for example, may offer potential indexed interest gains when the market is up, but make sure your principal is unaffected when the market goes down. We encourage you to learn as much as you can. You should feel confident about your retirement outcomes.
Where to Find Reasonable Rate of Return** During Retirement
During the “golden years,” having balance in your finances is an important part of planning for retirement. For example, you’ll need to find the right combination of risk versus potential reward, as well as safety versus the potential for indexed interest. It’s possible, though, to have a reasonable return** and still keep your principal safe from market risk! All you have to do is learn about these strategies, and then decide which one is right for you.
You may have thought that the only secure place for your money is in an FDIC bank account, which can hold up to 250,000. Or perhaps you like the security of a certificate of deposit (or CD) better. Both of these account types, however, tend to have lower than market interest rates. It’s also true that any interest you earn in these types of accounts is taxable. This makes the net return even less. We offer retirement products, however, that have a reasonable rate of return** over the long term, while also offering protection of principal via insurance companies.
how to utilize
Fixed Indexed Annuities
FIAs don’t invest your money into the stock market directly. Instead, the insurance company issuing the FIA uses an index (for instance, an S&P 500 index) to track potential earnings. If the FIA index rises above a certain level, your annuity contract gets interest credit. The calculation of your rate of return is based on multiple factors. These include (but are not limited to) the following:
- Term length of the annuity
- Additional selected benefits
- Amount of money used in purchasing the FIA
- Whether or not you’ve selected an income rider
- Insurance company terms and conditions of agreement
we'll explain the
Potential Ups and Downs
Receiving a reasonable rate of return** in retirement is possible, but it’s a delicate balance. If it’s too low, you might not have enough income in retirement. If it’s too high, the risk associated with the rate may be too much. Say your money is safe, but the rate of return doesn’t give you enough income. That doesn’t really work. Or say you do earn enough, yet your principal is always at risk, then that doesn’t really work, either. Most retirees need both: A reasonable rate of return** as well as protection of their hard-earned money.
Could you potentially see a higher rate in retirement?
Well, there are no guarantees, of course. Rates can potentially go up with increased risk, so it’s a tricky proposition. Be sure to consider the risks in any financial decisions in retirement. Are you able to financially recover from market loss, for instance? Our clients look to protect a portion of their money from loss. This way, using certain products, you can obtain a reasonable rate** of interest over the long term. In addition, you can have the safety of principal. For some people, this can have the most favorable outcome
Want more information? You can register for an upcoming educational seminar or webinar.