Thrivent Financial is a leading financial services organization that offers a wide range of investment products and services to its customers. As a Fortune 500 company with over $140 billion in assets under management, Thrivent Financial has established itself as a trusted and reliable name in the investment industry. But is Thrivent Financial a good company to invest with? In this article, we’ll take an in-depth look at the company’s history, products, fees, and performance to help you make an informed decision.
A Brief History of Thrivent Financial
Thrivent Financial was founded in 1902 as Aid Association for Lutherans (AAL), a fraternal benefit society that provided life insurance and other benefits to its members. Over the years, the company grew and expanded its product offerings to include a range of insurance and investment products. In 2014, AAL merged with another fraternal benefit society, Lutheran Brotherhood, to form Thrivent Financial. Today, Thrivent Financial serves over 2.4 million members across the United States and has over 3,000 employees.
Investment Products and Services
Thrivent Financial offers a diverse range of investment products and services to its customers, including:
Individual Investments
- Mutual Funds: Thrivent Financial offers a range of mutual funds that cover various asset classes, sectors, and investment styles.
- Exchange-Traded Funds (ETFs): Thrivent Financial offers a selection of ETFs that track various market indices and sectors.
- Variable Universal Life Insurance: Thrivent Financial’s variable universal life insurance products offer a range of investment options and flexible premium payments.
- Fixed Annuities: Thrivent Financial’s fixed annuities provide a guaranteed rate of return and tax-deferred growth.
Retail Advisory Services
- Investment Management Services: Thrivent Financial’s investment management services provide customers with customized investment portfolios and ongoing investment advice.
- Financial Planning: Thrivent Financial’s financial planning services help customers create personalized financial plans and achieve their long-term goals.
Institutional Services
- Institutional Investment Management: Thrivent Financial provides investment management services to institutions, such as retirement plans and endowments.
- Retirement Plan Services: Thrivent Financial offers a range of retirement plan services, including plan design, administration, and investment management.
Fees and Commissions
Thrivent Financial’s fees and commissions vary depending on the product or service. Here are some general fee ranges for Thrivent Financial’s investment products:
- Mutual Funds: 0.45% to 1.35% expense ratio
- ETFs: 0.09% to 0.65% expense ratio
- Variable Universal Life Insurance: 3.5% to 5.5% surrender charge
- Fixed Annuities: 1.5% to 3.5% surrender charge
- Investment Management Services: 0.25% to 1.25% annual management fee
- Financial Planning: $500 to $5,000 one-time planning fee, or 0.25% to 1.25% annual fee
Performance and Ratings
Thrivent Financial’s investment products have received strong ratings from leading rating agencies, including:
- Morningstar: 4- and 5-star ratings for many of Thrivent Financial’s mutual funds
- Kiplinger: 4- and 5-star ratings for Thrivent Financial’s fixed annuities
- Comdex: 95 or higher Comdex rating for many of Thrivent Financial’s variable universal life insurance products
Thrivent Financial has also received accolades for its customer service, including:
- J.D. Power: Highest in Overall Satisfaction among Financial Advisors (2020)
- DALBAR: Excellence in Communications and Financial Literacy (2020)
Pros and Cons of Investing with Thrivent Financial
Like any investment company, Thrivent Financial has its pros and cons. Here are some key advantages and disadvantages to consider:
Pros:
- Diverse Product Offerings: Thrivent Financial offers a wide range of investment products and services, making it a one-stop shop for customers with different investment goals and strategies.
- Strong Ratings and Performance: Thrivent Financial’s investment products have received strong ratings from leading rating agencies, and the company has a track record of delivering strong performance.
- Commitment to Social Responsibility: Thrivent Financial is a values-driven company that prioritizes social responsibility and community involvement.
Cons:
- Fees and Commissions: Thrivent Financial’s fees and commissions may be higher than those of some other investment companies, particularly for smaller accounts.
- Surrender Charges: Some of Thrivent Financial’s products, such as variable universal life insurance and fixed annuities, come with surrender charges that can be steep.
- Complexity: Thrivent Financial’s product lineup can be complex, which may make it difficult for new customers to navigate.
Conclusion
Is Thrivent Financial a good company to invest with? The answer depends on your individual investment goals, risk tolerance, and preferences. If you’re looking for a values-driven company with a diverse range of investment products and services, strong ratings and performance, and a commitment to social responsibility, Thrivent Financial may be a good fit for you. However, if you’re sensitive to fees and commissions or prefer a simpler product lineup, you may want to explore other options.
Ultimately, it’s essential to do your own research, evaluate your investment goals and risk tolerance, and consult with a financial advisor before making a decision. By doing so, you can make an informed decision that aligns with your financial goals and values.
What is Thrivent Financial and what do they do?
Thivent Financial is a financial services organization that provides a range of investment products and services to its members. The company was founded in 1902 and is headquartered in Minneapolis, Minnesota. Thrivent Financial offers a variety of investment options, including mutual funds, exchange-traded funds (ETFs), annuities, and life insurance products. In addition to investment products, the company also provides financial planning and advisory services to its members.
Thivent Financial is a unique company in that it is a fraternal benefit society, which means that it is owned by its members rather than shareholders. This structure allows the company to focus on serving the needs of its members rather than maximizing profits for shareholders. Thrivent Financial has a strong commitment to giving back to its members and their communities, and the company has a long history of philanthropy and community involvement.
What are the investment options offered by Thrivent Financial?
Thivent Financial offers a range of investment options to its members, including mutual funds, exchange-traded funds (ETFs), annuities, and life insurance products. The company’s mutual fund offerings include a variety of asset classes, such as domestic and international equity funds, fixed income funds, and money market funds. Thrivent Financial’s ETF offerings provide members with the flexibility to invest in a range of asset classes and sectors. The company’s annuity products provide members with a way to generate income in retirement, while its life insurance products offer protection and security for members and their loved ones.
In addition to its investment products, Thrivent Financial also provides financial planning and advisory services to its members. The company’s financial advisors work with members to develop personalized financial plans that are tailored to their individual needs and goals. Whether a member is just starting out or is nearing retirement, Thrivent Financial has the investment options and expertise to help them achieve their financial objectives.
What are the fees associated with investing with Thrivent Financial?
The fees associated with investing with Thrivent Financial vary depending on the specific investment product or service. For example, the company’s mutual funds and ETFs have management fees that range from 0.20% to 1.25% of the fund’s net assets. The fees for Thrivent Financial’s annuity products vary depending on the type of annuity and the features selected. The company’s life insurance products also have various fees, including premium payments and surrender charges.
It’s worth noting that Thrivent Financial is a fraternal benefit society, which means that the company is owned by its members rather than shareholders. As a result, the company is able to offer competitive fees and pricing to its members. Additionally, Thrivent Financial has a strong commitment to giving back to its members and their communities, and the company offers a range of benefits and discounts to its members.
Is Thrivent Financial a good company to invest with for beginners?
Thivent Financial can be a good company to invest with for beginners, especially those who value personalized service and guidance. The company’s financial advisors work closely with members to develop personalized financial plans that are tailored to their individual needs and goals. Thrivent Financial also offers a range of investment options that are suitable for beginners, including mutual funds and ETFs that provide broad diversification and exposure to various asset classes.
However, it’s worth noting that Thrivent Financial may not be the best fit for all beginners. The company’s investment products may have minimum investment requirements, and some products may have higher fees than those offered by other investment companies. Additionally, Thrivent Financial has a Christian affiliation, which may not appeal to all investors.
How does Thrivent Financial give back to its members and their communities?
Thivent Financial has a strong commitment to giving back to its members and their communities. The company has a variety of programs and initiatives in place to support its members and the communities in which they live. For example, Thrivent Financial offers a range of community programs, including disaster response and relief efforts, food drives, and volunteer opportunities. The company also provides financial support to Christian organizations and charities.
In addition to its community programs, Thrivent Financial also gives back to its members through various benefits and discounts. For example, the company offers discounts on its insurance products to members who are involved in their communities through volunteer work. Thrivent Financial also provides financial education and resources to its members, including online tools and resources, financial planning guides, and workshops.
Is Thrivent Financial a stable and secure company?
Thivent Financial is a stable and secure company with a long history of financial strength and stability. The company has been in operation for over 100 years and has a strong track record of financial performance. Thrivent Financial has a solid financial foundation, with a strong capital position and a high credit rating.
Thivent Financial is also a highly rated company by industry rating agencies, including A.M. Best, which has assigned the company an “A” (Excellent) rating. The company’s financial strength and stability provide investors with confidence and peace of mind, knowing that their investments are secure and protected.
How do I get started with investing with Thrivent Financial?
Getting started with investing with Thrivent Financial is relatively easy. To become a member, you can visit the company’s website and complete an online membership application. Once you’ve become a member, you can work with a Thrivent Financial advisor to develop a personalized financial plan that is tailored to your individual needs and goals. The advisor can help you choose the investment products that are right for you and provide guidance on how to get started.
If you prefer to invest online, Thrivent Financial also offers an online platform that allows you to open an account and start investing with ease. The platform provides access to a range of investment products, as well as online tools and resources to help you manage your investments. Whether you prefer to work with an advisor or invest online, Thrivent Financial has the resources and expertise to help you achieve your financial objectives.