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Thrivent Financial offers baby boomers new solution to help ensure savings last throughout retirement
| MINNEAPOLIS (March 18, 2008) — Baby boomers, the largest generation in history, are also poised to be the longest-lived generation in human history. While this means they will enjoy the longest retirement ever experienced, they are also the first generation faced with stretching their retirement savings to last 30 years or more—in many cases without the supporting guarantees of their former employer’s defined benefit plan.
To help boomers navigate this unchartered territory, Thrivent Financial for Lutherans is launching its Thrivent Retirement Income Optimizer™ (TRIO) – a customized service to help retirees actively manage their invested assets and spending in retirement (www.thrivent.com/trio). “This is the first generation that really has a diverse portfolio of assets to manage and with the responsibility of making them last throughout their retirements,” said Mark Anema, vice president of accumulation and retirement income solutions for Thrivent Financial. “At the surface, saving for retirement may seem to be the challenging part of the retirement equation. But unknown factors like market performance, inflation, life expectancy and healthcare costs will make the task of managing income and spending not only complex but daunting for the average retiree.” TRIO pairs state-of-the-art technology, including an analysis of 1,000 market scenarios, with one-on-one consultation to create a customized framework for each retiree. Instead of setting up a program that transfers assets to an annuity or other investments right at retirement, the service is ongoing throughout retirement, signaling retirees at least annually when it might be time to reallocate assets, hold invested assets instead of spending, move some assets into an inflation-adjusted stream of income, or take no action. Through regular checkups, the technology and service provides peace of mind by actively helping retirees manage their income throughout their retirement years. TRIO’s Three Gs – Growth, Guarantee and Guidelines TRIO takes a customized approach to optimize income potential throughout retirement, with three guiding principles: 1. Diversify Assets for Growth and Income – Most retirees are often too conservative in their investments as they age. To meet both long- and short-term needs, assets are allocated into growth and income buckets, with guidelines of how to replenish the income bucket from the growth bucket each year. 2. Guarantee Inflation-adjusted Income – Sustaining income is improved by allocating a portion of the portfolio to guaranteed lifetime income. As part of its annual review, TRIO will alert the retiree when the market and conditions are right to convert a portion, typically 10 or 15 percent, of their portfolio to a life contingent annuity. Participants may consider Thrivent Financial’s Single Premium Immediate Annuity, with Consumer Price Index (CPI)-adjusted annuity payments, to protect against inflation’s corrosive effects. 3. Manage Withdrawals to Make Money Last – To preserve assets for the long term, withdrawal guidelines are set to optimize asset balances. TRIO is responsive to varying market conditions and will advise the retiree on when to hold investments instead of making withdrawals. Likewise, it will enable additional spending flexibility when conditions are favorable. Participants can choose to apply some or all of the guiding principles at any time when reviewing their situation with a Thrivent Financial representative. TRIO is unique in that it works with all of one’s existing assets and income sources, whether with Thrivent Financial or other firms. Further, after the initial review, specially-trained Thrivent Financial representatives reevaluate the plan on an annual basis to provide personalized guidelines on how it should be adjusted based on changing needs and conditions. Those that have reached retirement, or are within one year or retiring, will benefit most from the complete TRIO service. People further out from retirement may also find the TRIO advice tool helpful in understanding their financial readiness. To learn more, visit www.thrivent.com/trio or call 1-800-THRIVENT (847-4836) to locate a Thrivent Financial representative. These representatives also offer a broad range of other financial products and services, including life insurance, variable and fixed annuities, disability income insurance, mutual funds and more. # # # About Thrivent Financial for Lutherans Thrivent Financial for Lutherans is a Fortune 500 financial services membership organization helping nearly 3 million members achieve their financial goals and give back to their communities. Thrivent Financial and its affiliates offer a broad range of financial products and services including life insurance, annuities, mutual funds, disability income insurance, bank products and more. As a not-for-profit organization, Thrivent Financial sponsors national outreach programs and activities that support congregations, schools, charitable organizations and individuals in need. For more information, visit www.thrivent.com. Thrivent Retirement Income Optimizer (TRIO) is a fee-based investment advisory service. Thrivent Investment Management Inc. is the investment adviser. Securities are offered through Thrivent Investment Management Inc., 625 Fourth Ave. South, Minneapolis, MN 55415-1665, 800-THRIVENT (800-847-4836) a wholly owned subsidiary of Thrivent Financial for Lutherans. Member FINRA. Member SIPC. |
Related Links
Thrivent Retirement Income Optimizer
Thrivent Financial for Lutherans
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