Our Three Guiding Principles

Reasonable Rate of Return

Strategies For

a Reasonable Rate of Return

Helping clients have a long-term reasonable rate of return is one of our guiding principles. We believe that you should be able to attain a reasonable rate of return over time but still keep your principal safe. When you invest in the stock market, there are of course inherent risks. But certain insurance products, such as fixed indexed annuities (or FIAs) can keep your money safe but still have a potential indexed interest. Many retirees like to first protect their savings, then potentially earn a return.

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At Turney Financial Group, LLC, we believe it’s very important for our clients to have all the information they need in order to make a decision. How you spend or invest your money matters because it impacts your long-term retirement income and lifestyle. Factors such as inflation can also have an impact. You’ll need to know all the available options if you want to make sure your money outperforms inflation. FIAs, for example, could offer potential indexed interest when the market is up. But when the market is down, your principal is not affected. We encourage you to learn as much as you can so that you can feel confident about your retirement outcomes.

Reasonable Rate of Return in Retirement

Having balance in your finances is an important part of planning during the “golden years.”

You’ll need to find the right combination of risk versus reward, as well as safety versus potential growth. It is possible, thankfully, to have both a reasonable rate of return and safety of principal. All you have to do is learn about these strategies, and decide which one is the right fit for you.

You may have believed that the only secure place for your money is in an FDIC bank account or a CD. But both of these account types tend to have lower than market interest rates, and any interest you do earn in them is taxable. That makes the reasonable rate of return even less. There’s also a maximum amount of money that you can deposit into them. For example, an FDIC account can hold up to 250,000. In contrast, we offer retirement products that have a reasonable rate of return. These products also provide protection of principal via insurance companies.

Fixed Indexed Annuities

FIAs don’t invest your money directly into the stock market, instead, they use an index to track potential earnings. If the FIA index rises above a certain level, your account gets interest credit. The calculation of your rate of return is based upon several different factors. These factors include, but are not limited to:

  1. The term length of the annuity
  2. Additional selected benefits
  3. Whether or not you’ve selected an income rider
  4. Amount of money used to purchase the FIA
  5. Insurance company terms and conditions of the agreement

Retirement, Your Way

Every client we meet has their own story. They all have their own unique situation, goals, and needs. But they all have one thing in common. They all want to protect their money and still have a reasonable rate of return. We use risk analysis and an open, honest discussion to help you learn the choices available to you. Reach out to us if you want to have a lifetime income you can count on, and to make sure you don’t lose your money to market loss. We can help walk you through retirement strategies.

Rate of return is a delicate thing. It’s a fine line to walk. If it’s too low, you may not have enough income in retirement. But what if it’s too high? The risk associated with that rate could be too much. Or say your money is safe, but the rate doesn’t give you enough income. That’s no good. But if you earn enough, yet your principal is always at risk of loss, that doesn’t work out for you, either. Most retirees need a reasonable rate of return as well as protection of their money.

Could you potentially see a higher rate in retirement? Well, there are no guarantees, of course. Be sure to consider the risks that come with any financial decision. Can your account recover if it has market loss? You can use certain insurance products to have safety of principal while still having a reasonable rate of return. This could be the best of both worlds.

Want to learn more?

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