Increase Growth Potential
Historically, the greater the percentage of your retirement savings invested in equities rather than bonds, the faster your portfolio will grow. Can your portfolio benefit from increase equity exposure? Do you need greater equity exposure to increase your chances of meeting your retirement goals and keep up with inflation?
RetireOne™ products are designed to enable you to maximize the upside potential of your portfolio. Maximizing the percentage of your savings invested in equities maximizes the potential for your retirement savings to grow. Equities are more volatile than bonds. Greater percentage investments in equities increase your sequence of returns risk.
The right guaranteed retirement income products can allow you have the best of both worlds – to invest more heavily in equities while guaranteeing income and protecting against sequence of returns risks. Many guaranteed income products unnecessarily limit the percentage of your retirement savings that can be invested in equities. At RetireOne™ we work to provide products that provide greater equity exposure.
The following table shows the historical improvements in average annual returns for increased percentages of invested in equities.
For U.S. stock market returns, the above uses the Standard & Poor’s 90 from 1926 through March 3, 1957, the Standard & Poor’s 500 Index from March 4, 1957 through 1974, the Wilshire 5000 Index from 1975 through April 22, 2005, the MSCI US Broad Market Index from April 23, 2005 through June 2, 2013, and the CRSP US Total Market Index thereafter.
For U.S. bond market returns, the above uses the Standard & Poor’s High Grade Corporate Index from 1926 through 1968, the Citigroup High Grade Index from 1969 through 1972, the Lehman Brothers U.S. Long Credit AA Index from 1973 through 1975, the Barclays U.S. Aggregate Bond Index from 1976 through 2009, and the Spliced Barclays U.S. Aggregate Float Adjusted Bond Index thereafter.