Not all growth is created equal — especially in retirement.
If you’re nearing retirement in communities like St. Charles, Owatonna, Rochester, or Decorah, you may be wondering what kind of return you should expect from your savings moving forward. It’s a great question — and one we hear often.
But the real question is this: What’s reasonable?
For retirees and pre-retirees, a “reasonable rate of return**” isn’t about beating the market or chasing high-risk investments. Instead, it’s about growing your money steadily over time — ideally at a pace that outpaces inflation — while keeping your principal protected.
Let’s take a closer look at what that means.
Why Chasing High Returns Can Backfire in Retirement
When you’re working and contributing to retirement accounts, you have time to ride out market dips. But once you’re drawing income from those savings — whether it’s from an IRA, 401(k), or other account — the rules change.
Sudden losses can hit harder, and there’s often not enough time to recover. That’s why many retirees choose to shift some of their savings into options that offer stable, predictable growth rather than speculative gains.
In areas like La Crescent or Decorah, where retirees are often focused on preserving what they’ve built, we often talk about balancing safety with growth potential.
Where Does a Reasonable Rate of Return** Come From?
Certain tools — like fixed indexed annuities — offer the ability to earn interest based on the performance of a market index. These products aren’t direct investments, and they’re not designed to chase high returns. Instead, they offer the potential to earn interest when the market is up, but avoid losses when the market is down*.
That’s what we mean by “reasonable.” You may not capture every upside, but your savings remain protected — and you may still grow your income over time.
It’s a strategy that fits many retirees here in Southern Minnesota and Northeast Iowa who want to:
- Avoid unnecessary risk
- Keep their income strategy simple
- And stay confident, even in a changing economy
The Value of Outpacing Inflation Without Losing Sleep
As inflation slowly chips away at the value of the dollar, it’s important that your retirement savings are doing more than just sitting still. But you shouldn’t have to sacrifice peace of mind just to keep up.
That’s where a reasonable rate of return** comes in — it’s not about maximizing gains, it’s about maximizing confidence in your long-term plan.
Let’s Talk About What’s Right for You
At Mundt & Associates, we believe that retirement planning should feel clear and achievable. Whether you’re in Rochester, Owatonna, Decorah, or somewhere in between, we’re happy to meet with you one-on-one to review your goals and help you explore what kind of strategy makes the most sense for your situation.
We’re always here to help.
*Backed by the claims-paying ability of the carrier.
**“Reasonable rate of return” refers to the potential for indexed interest over time through certain financial tools, such as fixed indexed annuities or life insurance products. Actual results may vary based on product terms and individual circumstances. Not an investment.
By contacting Justin Mundt MN Insurance License #40154183, WI Insurance License #13566251, IA Insurance License #13566251 / Mundt & Associates MN Insurance License #40385178, WI Insurance License #3001059504, IA Insurance License #1002231384, you may be offered information regarding the purchase of insurance products, including fixed index annuities and life.