Independent Review of the Thrivent Financial Security One Annuity – [October 2018 Update]
What’s Covered In This Review
In this review, we’ll cover the following information on the Thrivent Financial Security One 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.
If you’re considering a financial vehicle that can offer you the protection of your principal, along with a guaranteed lifetime income in retirement, then the Thrivent Financial Security One fixed annuity could be a viable option for you. This product actually has several guarantees that are built directly into it. But, before moving forward with purchasing this annuity, it is important that you have a good idea of how it works, and how it may or may not be aligned with your overall financial needs and goals. Then, once you have a more thorough understanding of its inner workings, you can feel for comfortable with your decision.
Throughout the past several years, annuities have become more popular – primarily as a way to provide guaranteed income in retirement. Because the lifetime income option on a fixed annuity ensures ongoing income – regardless of how long you live – it can help to eliminate the worry of running out of income, at a time when you will likely need it the most. In many ways, annuities have even become “substitutes” for the fast-disappearing defined benefit pension plans. Plus, the insurance companies that offer annuities make it easy for investors to simply roll funds from an IRA or a 401(k) plan and continue to let it grow, while at the same time set it up for eventual ongoing income in the future. Yet, while this can be reassuring, it is also essential to understand that an annuity is a long-term commitment that can often times have a surrender period of many years. With that in mind, you really want to know what it is that you’re getting into, as it can be quite expensive to get out if you change your mind.
Unfortunately, though, really knowing what it is that you’re getting into with an annuity product can be somewhat challenging. This is because these products often times contain a myriad of “fine print” that can be highly confusing.
Also, what can add even more confusion in regards to these products actually has less to do with the annuities themselves, but rather is the way in which these products are sold to consumers. This is where we come in.
Annuity and Retirement Income Planning Advice That You Can Trust
If you’ve never been to our website before, then allow us to personally welcome you to AnnuityGator.com. We encompass a team of experienced financial professionals who are highly focused on providing you with the most comprehensive and nonbiased annuity reviews that can be found on the Internet today. We have been doing this longer than any of our competitors.
There are any number of reasons why you may be seeking out more information online about annuities. Possibly you have heard friends or family discussing them, or maybe you have even attended an annuity seminar recently where the presenter discussed the benefits of the Thrivent Financial Security One fixed annuity. This may even be what has ultimately led you to our website right now.
If you have done any amount of research at all via the Internet regarding annuities, it is likely that you have come across a lot of conflicting details – which is not at all surprising. In fact, even some very reputable websites that are devoted to marketing their annuities for sale will try to grab your attention (for the primary purpose of getting your contact information) by making claims like the following:
- Guaranteed Income For Life
- Highest Payouts
- Lowest Fees
- Top Rated A+ Companies
- Get Your Quote Now!
Yet, while these sound great, it is essential to find out if they’re really true. The good news is that if you want to find out, then you are definitely in the right place – and we dare say that you are most likely in the only place where you will really be able to find out if that is so.
Insurance sales people who are offering annuities will typically do their very best to provide a rosy picture of how safe these products are. But, what they will often neglect to say is that there are also still some drawbacks to owning fixed annuities, too – so this means that you need to know all of the potential angles prior to putting down your hard earned retirement dollars into one.
Not to be misunderstood – these agents are oftentimes just trying to do what is best for their clients – so, what they are selling is not necessarily a bad thing. But, you also need to know just exactly what it is that you’re considering getting into – including the good, the bad, and even the ugly details – as the purchase of an annuity can encompass a large percentage of your overall savings.
This annuity review is here to help you in decoding all of that “fine print” about annuities so that you will have a more thorough knowledge of whether this particular annuity may help you to achieve your financial goals.
So, if you are ready to begin, let’s go ahead and dive on in!
The Thrivent Financial Security One Annuity
|Product Name||Security One|
|Type of Product||Fixed Annuity|
|Standard & Poor's Rating||N/A|
|Phone Number||(800) 847-4836|
Opening Thoughts on the Thrivent Financial Security One Annuity
Thrivent 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
The company has also earned numerous awards and accolades, including:
- “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)
Over the past decade or so, the demand for annuities, which are always backed by insurance companies, has been increasing steadily – particularly since market volatility has become the “norm” rather than the exception.
The biggest fear on the minds of retirees is running out of money and individuals and couples are seeking a safe place to put their savings where they can also earn a nice return. A fixed annuity can provide them with that solution.
Yet, due in large part to the low-interest rate environment of late, the return that is earned on fixed annuities may not be enough for retirees to even come close to meeting or beating future inflation. And, if you plan to use the income from a fixed annuity as a bulk of your incoming cash flow in the future, it may be difficult to maintain ongoing purchasing power for the goods and services that you need to buy.
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, click here to get access to our free annuity report.
How Thrivent Financial Describes the Security One Annuity
According to the Thrivent Financial product literature, the company describes the Security One as a fixed annuity that offers tax-deferred accumulation, as well as guaranteed interest options.
There is also a death benefit option on this product, where a named beneficiary (or more than one beneficiary) can receive the full accumulated value of the annuity’s account if the annuitant passes away. This particular annuity requires at least $5,000 as an initial deposit.
You can check out a product summary and comparison guide for the Thrivent Financial Security One Annuity – as well as the other annuities that are offered through Thrivent – by going HERE.
How a Financial Advisor Might “Pitch” this Annuity
If you have been approached by an insurance or financial advisor regarding the Thrivent Financial Security One fixed annuity, it is likely that he or she placed a focus on the fixed rate guarantee, as well as the ability to attain an ongoing lifetime income with this annuity.
In this vein, you may have noticed that insurance and financial companies do a good job of making their products sound very enticing. For instance, you may feel that this particular annuity is right for you based on these factors.
However, when you take a closer look at it and delve a bit deeper into the “fine print,” you may find that the principal protection and set amount of guaranteed lifetime income come at a price. For example, while there may be an interest rate guarantee, you will find that the rate is not all that competitive. In fact, lately, fixed annuities have been offering rates that are typically lower than that current rate of inflation – so, even though you will technically be “earning”, your future purchasing power is actually losing ground.
And, once you have locked up your money in this annuity, it can be extremely costly if you opt to take most or all of your funds out of it if another product comes along that may fit your needs better.
We understand that deciding on which annuity is the right one can be difficult. But knowing what to look for is essential, as the purchase of an annuity is a long-term endeavor. To download our free report on what to look for in an annuity, click here.
What About the Thrivent Financial Security One Annuity Fees?
In addition to having a good understanding of how your money might perform in an annuity, it is also recommended that you know about any of the charges or fees that you may be assessed over the time that you own the annuity.
Although the Thrivent Financial Security One annuity literature states that this product has no administrative/custodial fees, as well as no fees for account servicing, you will incur a hefty surrender charge if you take out more than 10% of your contract value in any given year, through the end of Year 7.
The surrender charges for the first seven years of this particular annuity are laid out as follows:
*Also note that the No Account Servicing fee does not apply to contracts that are issued in the states of Texas, Minnesota, New York, and New Jersey.
The Annuity Gator’s End Take on the Thrivent Financial Security One Annuity
Where it works best:
The Thrivent Financial Security One fixed annuity will generally work best for those who are looking for:
- Protection of principal
- Slow but steady growth over time
- Guaranteed lifetime income stream
Where it works the worst:
This particular annuity will generally not work well for those who:
- Want to have access to their funds during the early years of the contract
- Want to get a high return on their money
- Will not be using the lifetime income feature
Comparing the benefits on annuities can seem difficult. But we make it much more simple to understand, once you know how. In order to download our free report on what to look for in an annuity, just click here.
There are many factors that need to be considered when you are deciding which annuity is best. In any case, a fixed annuity should always be considered as a long-term financial vehicle, and because of that, these products are generally more appealing to those who are looking for ongoing income in retirement as versus a high return. Yet, while this annuity can offer some nice guarantees, it could still fall somewhat short – particularly in comparison to some of the other alternatives that could be available to you.
So, if you are wondering, then, whether or not this annuity is the right one for you, or if you still have any questions and you need some additional assistance with getting pointed in the right direction, then just simply reach out to us through our secure contact form right here.
Any Additional Questions on the Thrivent Financial Security One Annuity? Did You Happen to Notice Any Mistakes in this Review?
We realize that this annuity review was rather lengthy, so thank you for bearing with us. If you did find the review to be beneficial, please feel free to spread the word and share it with others as they, too, may also find the information in it to be useful.
On the last note, as humans will sometimes do, we all tend to make some mistakes. So, if you happened to notice any while you were going through this annuity review, then please let us know. We are always more than happy to make any corrections and to give credit where credit is due. If you are an investor and this review causes you any confusion and/or if it creates any additional questions, then please reach out to us as well. While we are not always able to get back with you right away, we can usually clear up any questions within a day or two.
Are There Any Other Annuities that You Would Like to See Reviewed?
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