*“It’s not how much money you make, **but how much money you keep, **how hard it works for you, **and how many generations you keep it for.*”

— Robert Kiyosaki

Will your savings and investment plan make more money in 5 years with a fixed (guaranteed) rate of return or a variable rate of return when the fixed rate equals the 5-year average rate of return?

Shouldn’t the results be the same in 5 years? Let’s take a look at a comparison.

**Example Assumptions**

Beginning Balance: $0

Monthly Deposit: $500

Accumulation Period: 5 Years

Average 5-Year Rate of Return: 5.2%

Withdrawals: None

Taxes: Not Included

Inflation: Not Included

**Fixed (Guaranteed) Rate of Return** **Result **(5.2%)

Account Balance at the end of 5 Years: **$34,257**

**Variable Rate of Return** (Average = 5.2%)

End of Year 1 at **5%** Rate of Return: $6,300

End of Year 2 at **3.5%** Rate of Return: $12,731

End of Year 3 at **7%** Rate of Return: $20,042

End of Year 4 at **4.5%** Rate of Return: $27,214

End of Year 5 at **6%** Rate of Return: **$35,207**

Your money will earn **$950 more** with a Variable Rate plan.

This example clearly shows that while a guarantee provides safety, accepting some risk will typically earn a higher Rate of Return over a period time.

**The quickest way to double your money is to fold it in half ****and put it in your back pocket.”** **– Will Rogers**

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