What Will Be Covered in this Annuity Review?In this annuity review, we will be going over the following information on the Thrivent Financial Security Plus MYGA Annuity:
- Product type
- Current rates
- Realistic long-term return expectations
- How it is used
- How it is most poorly used
Annuities can be complex. That’s where having an Annuity Investigator who loves math comes in. We make the complex, simple.
The decision to purchase an annuity – or for that matter, any type of insurance or financial product – that can provide you with security, as well as an ongoing income stream in the future, is a big step in your retirement planning process. Making a commitment to any long-term financial vehicle like the Thrivent Financial Security Plus MYGA annuity can be a step in the right direction. However, before you dive in head first, it can be beneficial if you know all of the key facts, especially those that relate to how this product works, and how it may (or may not) help you in attaining your future financial goals. Throughout the past decade or so, annuities have become much more popular. One reason for this is due to the guaranteed stream of lifetime income they can provide. And, because of the appeal of annuities, there are many more financial advisors who are offering these vehicles to their clients. Yet, this is not necessarily a good thing. While insurance and financial advisors will typically try to do what is best for their clients, they may not always be providing you with the entire story when it comes to annuities. This may be because annuities are complex – and oftentimes, confusing products….even for well-informed consumers. Plus, over the past several years, with the new array of annuity offerings that are being introduced into the marketplace, these products can also make your head spin with all of their “fine print”. In any case, even though reading over this information can be about as fun as getting a root canal, it is always recommended that you fully understand what it is that you are buying. This is particularly the case, as an annuity may comprise a substantial portion of your overall retirement savings. In addition, once you have made the commitment to purchase an annuity, it can be extremely difficult – and costly – if you want to get out. That’s where we come in!
Annuity and Retirement Income Planning Information that You Can TrustIf you’ve never visited our website before, then we would like to personally welcome you here to AnnuityGator.com. We are a team of experienced financial professionals, and we are highly dedicated to offering you in-depth, and unbiased, annuity reviews. We have been providing these annuity reviews for a number of years now, and because of that, we have become a well-known and trusted source of all types of annuity information. If you’ve been in search of more details about annuities, and you have been looking for this information on the Internet, it is likely that you have run across a wide range of details about these products – some of which can be quite conflicting. This is not surprising, as there are not only a large number of annuities out there in the marketplace to choose from, but also, each one of these can offer you differing features and benefits. Plus, these products tend to include a great deal of “small print” in the contract. It is possible that you may also have recently attended a seminar where a financial advisor will offer you dinner or lunch while presenting you information about the benefits of owning an annuity. That seminar may even be what has led you here seeking more information about the Thrivent Financial Security Plus MYGA (Multi-Year Guarantee) annuity. Although there are some very good websites out there that focus on marketing their annuities, the reality is that some of these sites are much more concerned about luring you in so that you give them your contact information. They will oftentimes do so by making some pretty darn bold claims regarding the annuities that they offer, such as:
- Lowest Fees
- Top-Rated Annuity Carriers
- Highest Income Payouts
- Guaranteed Income for Life!
Thrivent Financial Security Plus MYGA Annuity at a Glance
|Product Name||Security Plus|
|Type of Product||MYGA (Multi-Year Guarantee) / Fixed|
|Phone Number||(800) 847-4836|
Opening Thoughts on the Thrivent Financial Security Plus MYGA AnnuityThrivent Financial is a Fortune 500 Company that has been in business for more than a century. Starting as a membership for Lutherans, this non-for-profit membership organization of all Christians today has a focus on helping its members be wise with money, build solid financial futures, strengthen their communities, and to be good stewards of the gifts that God has given them. As of 2018, Thrivent has more than 2 million members nationwide. It is considered a strong and stable company, with $136 billion dollars in assets under management (as of December 31, 2017). Represented by total surplus, Thrivent has one of the strongest capital positions in the insurance and financial services industry. Thrivent has earned very high ratings from the insurer rating agencies. These include a(n):
- A++ from A.M. best – the highest of 16 possible ratings
- AA+ from Fitch – the second highest of a possible 19 ratings
- “World’s Most Ethical Companies” by Ethisphere Institute 2012 – 2018
- Ward’s 2016 50 Top Performing Life and Health Insurers
- America’s Top Workplaces (Workplace Dynamics 2015)
Before getting into the gritty details, here are some legal disclosures…This is an independent product review, and it is not to be considered as a recommendation to purchase or to sell an annuity. Thrivent Financial has not endorsed this review in any way, nor do we receive any compensation for offering this review. This review is meant to be an independent review at the request of readers so that they may see our perspective when breaking down the positives and the negatives of this particular annuity product. Prior to purchasing any insurance or investment product, you should be sure to do your own due diligence and consult a properly licensed professional if you have any specific questions that relate to your individual circumstances. All names, marks, and materials that were used for this review are the property of their respective owners. For additional information on how to compare annuities so that you can decide which may be the best one for you, to get access to our free annuity report.
How Thrivent Financial Describes the Security Plus MYGA AnnuityThrivent Financial describes their deferred annuities such as the Security Plus as a way to earn a competitive fixed interest rate and a method of turning your assets into an income stream later. With a flexible premium deferred annuity, you can save at your own pace by making your premium payments as frequently or infrequently as you want (within certain guidelines). As with other types of annuities, your funds inside of the account are allowed to grow and compound on a tax-deferred basis – which can allow your money to increase exponentially over time. Given that we are living longer lifespans today, one of the top worries on the minds of many retirees is that of running out of money. But, by choosing the lifetime income option on a fixed annuity, you can alleviate that concern and receive a guaranteed income stream for the remainder of your lifetime – regardless of how long that may be. (You may also choose another individual, such as a spouse or partner, to also receive lifetime income for his or her life, too).
How an Insurance or Financial Advisor May “Pitch” this Annuity to ClientsGiven that the Security Plus MYGA annuity from Thrivent Financial is a fixed rate product, it is likely that an insurance or financial advisor would key in on the guarantees that this financial vehicle offers. Here, you can secure a set rate of interest – which is guaranteed for the first two full years – no matter what happens with the stock market or interest rates in the economy. Advisors will also likely focus on the guaranteed stream of income that this product can offer you (as well as another person, if applicable), in that you will not have to worry about running out of income when you need it most. But even with these nice guarantees, there are some things that you still need to look out for if you are considering the purchase of this annuity. For example, interestingly, while many fixed-rate financial vehicles such as MYGA annuities will offer higher interest rates for depositing a larger amount of money, the Thrivent Financial Security Plus annuity doesn’t. In fact across the board (as of November 1, 2017), the two-year interest rate you will get, regardless of whether you contribute less than $50,000 or more than $250,000, is 2.35%. This rate is locked in for two years and is applied to the initial premium deposit. It will remain in effect for 24 months, and then you will be subject to possible subsequent interest rate changes every 12 months going forward. Given the historically low-interest rate environment that we have been in for the past decade or so, though, this rate isn’t likely to be anything stellar. (However, Thrivent Financial does offer that the minimum guaranteed rate will not fall below 1.00%).
What About the Fees on the Security Plus MYGA Annuity from ThriventAlthough annuities can offer some peace of mind, given their guarantees, these can oftentimes come with tradeoffs. In this case, annuity products are known for their fees. With the Thrivent Financial Security Plus MYGA annuity, these can come in the form of a surrender charge if you opt to take out more than 10% of the contract value within the initial years. (Typically, an MYGA annuity will have a surrender charge that is lined up with the length of the interest rate guarantee). In addition, should you take withdrawals from this (or any) annuity prior to turning age 59 1/2, you can also face an additional 10% “early withdrawal” penalty from the IRS. Given the fees that could be incurred, you will not likely net out what you are hoping for. (This is another reason why annuities should always be considered as long-term financial vehicles).
The Annuity Gator’s End Take on the Thrivent Financial Security Plus MYGA AnnuityWhere it works best: This particular annuity will typically work the best if you are looking for:
- A short-term interest rate guarantee (in this case, the first two years)
- Safety of principal
- Guaranteed lifetime income
- Want access to most or all of your funds over the first few years without paying a penalty
- Do not intend to use the lifetime income feature