What Is a

Reasonable Rate of Return for Retirement?

When you’re ready to take the next step, we are here to help. We provide no-cost education, one-on-one meetings, and financial consultations to help you make the right choices for your retirement.

Here at Green Line NW, we work hard to help retirees protect what they’ve worked so hard to have. With this mission in mind, we’ve assisted thousands of people in Oregon to discover the keys to a successful retirement.

We make sure our clients understand three things:

  • Retirement doesn’t need to be complicated. Your plan should be simple. Reduce as much uncertainty as possible in shaping a financial future.
  • Safety comes first. Focus on preserving your principal.
  • Achieve a reasonable rate of return (while protecting your principal).

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

You Deserve a Reasonable Rate of Return for Retirement

So do you have to choose between earning money or protecting it? Thankfully, the answer is no. A reasonable rate of return (RRR) is achievable with the right retirement plan. Certain annuities or life insurance products allow you to protect your principle and still achieve a  reasonable rate of return (RRR). A different way to look at reasonable rates of return (RRR) is to examine your risk tolerance. How much money do you want to protect? How much money are you willing to risk? To get the reasonable rate of return you are looking for you need to find the right combination of “safety vs. possible growth” and “risk vs. potential reward”. The goal is to have your money earning more than the rate of inflation without taking on the risk of the stock market. At Green Line NW we believe that not only do you deserve to feel confident about the security of your investment but you also deserve a reasonable rate of return. Our services help our clients achieve the best of both worlds.
happy couple walking dog in park understanding reasonable rates of return vancouver wa

You Have Questions, We Have Answers

Here at Green Line NW, our goal is to educate our clients on all their prospective choices. That way, you can choose the option that is best for you. How you invest or spend your money is important 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 gains when the market is up. But, when the market is down, your principle is unaffected.
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 generate income may not cover all your costs of living. Many clients feel that playing it safe with these types of investments isn’t the best fit 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 best-case 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 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 savings, then potentially earn a return.

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

Understanding
Reasonable Rates of Return

So, what exactly is a reasonable rate of return? While interest rates are constantly changing, a typical fixed index annuity (FIA) can provide you with 3%-6% interest over a period of time. However, 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
No Retirement Plan Is The Same

It’s crucial to understand that no retirement plan is the same. Every client is different. They have their own goals and needs. That is why the first thing we do is take the time to learn about your current financial and personal situations. We want to know what is important to you. Next, we will review your retirement account’s performance, and then we will go over options that can help protect and grow your wealth.

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