Reasonable Rate of Return
One of Our Three Core Principles
Getting You a Reasonable Rate of Return** In Retirement
We strive to help our clients achieve a reasonable rate of return**.
Investments such as the stock market come with a risk of losing money. As you approach retirement, you may need to alter your strategy. Many retirees hope to find a strategy to gain a reasonable rate of return**, while at the same time protecting their income. You don’t have to choose a retirement product that’s based on the market only. For example, a fixed indexed annuity (FIA) offers both principal protection* and a reasonable rate of return**.
Achieving a Reasonable Rate of Return** in Retirement
When planning for retirement, financial stability is crucial. Risk and reward must be balanced. You should strive for safety as well as potential growth. Many people assume their money will only be safe in an FDIC account. Alternatively, they sometimes choose to keep it in a CD. However, neither of these account types offer ideal interest rates. Additionally, you’ll be taxed on the interest you earn with these types of accounts. As a result, the net return could be even lower.
There is, however, a way to earn a reasonable rate of return** in retirement without the risk of the market. We offer insurance products that provide both a reasonable rate of return** and guaranteed* safety. You can determine which of these strategies is best suited to your needs, with our help.
Fixed Indexed Annuities
Fixed indexed annuities (FIAs) don’t invest directly in the stock market. Instead, the insurance company issuing the FIA follows potential earnings through an index, (Like the S&P 50o’s index). If the FIA index rises above a certain level, you get interest credit on your annuity. Several factors determine the rate of return. These factors include:
- The term of the annuity
- The benefits that are added
- Amount paid for the FIA
- Whether or not you’ve chosen an income rider
- Conditions of insurance company contracts
Risk Versus Reward
A reasonable rate of return** can be obtained, but it must be carefully weighed. You might have a safe financial vehicle, but the return isn’t sufficient to support you. This won’t work as a strategy. Alternatively, if you earn enough money, but your principal is always at risk, that doesn’t work either. Both a reasonable rate of return** and your income being protected are essential in retirement.
A Strategy That Suits Your Needs
No single strategy fits everyone. Everyone’s financial situation is different. As we begin working with you, we learn about your individual goals and needs. It’s important to understand your priorities. We can discuss options to help protect and grow your wealth after reviewing your existing strategy.
At Fraga Financial, we aim to ensure our clients have all the information necessary to make informed decisions.
We offer service in Orlando, Lake Mary, and Celebration, Florida. Reach out to us to explore a reasonable rate of return** in retirement.