Winter 2010 | Volume 108 | Number 654
Staying on Track
Member families share strategies
for sustaining financial security
when faced with life changes.
By Randy Myers
It can feel like trying to hit a moving target. You develop a financial strategy, tailor it to your needs, and just as you're enjoying a degree of comfort… circumstances change. Your once-sound strategy suddenly is not quite right. As frustrating as that is, there are simple solutions, which your Thrivent Financial for Lutherans representative can help you find. Here, we look at how four member families adapted their financial strategy to accommodate life changes.
Scott Drye and Melissa Drye
The challenge
Providing security for a growing family
The story
Scott Drye of Faith, North Carolina, contacted Thrivent Financial last year to buy a pair of $100,000 life insurance contracts for his and Melissa's daughters, now ages 1 and 4. "Everyone said I had to get them insurance," he recalls. To his surprise, he was met not with an insurance quote, but a request for more information. Without knowing what the couple earned, saved and invested, and about their retirement plans and insurance coverage, it wouldn't be clear if the purchase made sense. Nor could the Dryes receive the personalized financial perspective that is a Thrivent Financial cornerstone.
The strategy
Scott, a high school teacher, gathered the information, and soon he and Melissa, a municipal finance department employee, were implementing a new strategy. They bought insurance contracts for the kids, but in half the amount anticipated. They also increased what they were saving for retirement and directed it into Roth IRAs rather than their 401(k) plans at work, as their employers were no longer matching contributions. Upon meeting IRS-imposed requirements, they can withdraw money from a Roth IRA income tax-free after they retire, which they can't do with their 401(k). Now, between Social Security, pensions and savings, it's possible that the Dryes will generate as much or more income in retirement than they do today. The couple also converted their term life insurance contracts to larger variable universal life contracts1, more suited to their needs; unlike term contracts, they can build cash value over time. Scott bought disability income insurance, so if illness or injury makes him unable to work he'll still have money coming in. Finally, the Dryes created an emergency fund to provide cash during a wait for disability insurance payments to kick in, or to cover other unexpected expenses.
The result
"Reviewing our entire situation made me realize we weren't as well-positioned as we thought," Scott says. "But now we're on the way, and that feels good."
Michael Lesner and Sharon Lesner
The challenge
Managing an inheritance
The story
The Lesners were living a comfortable life, breeding and training dogs and horses on their Cornersville, Tennessee, farm. Michael had retired from his graphics communications company and Sharon from a career as a registered nurse. But their lives were shaken when Sharon's father passed away in 2008. He left them with a loss in their hearts, a sizable inheritance and only vague ideas about managing it. "We already had enough money to live comfortably," Sharon says, "and we'd done some estate planning, but we wanted help with the new sum." Planners with long, superior track records bid on the job. "They said they could meet our performance goals, yet couldn't show how they'd do it. The Thrivent Financial folks had the track record and were also amenable to closely working with us."
The strategy
The Lesners divided their money into three parts, one for short-term income to be invested conservatively, and two for mid- and long-term needs to be invested more aggressively. They also purchased long-term care insurance to cover cost of living assistance should they ever need it2.
The result
Despite the turbulent economy, the Lesners remain on solid footing. "We're grateful," Sharon says, "that we did this when we did."
Richard Young and JoAnn Young
The challenge
Making early retirement a reality
The story
Amateur astronomer Richard Young has spent a lifetime peering into space, but last year when he tried to look into the future to see how soon he could follow JoAnn into early retirement, his vision fell short. "With the economy doing so badly, I was afraid it would be a long way off," he says.
Richard and JoAnn met at avionics manufacturer Rockwell Collins in Melbourne, Florida, in 1991, where he was a systems engineer and she was an industrial engineering technician. In 2003, after 36 years with the company, JoAnn retired, and Richard soon became eager to join her. The Youngs had saved over the years but weren't sure how to convert their nest egg into an income stream that would last the rest of their lives. And they worried about what would happen if either of them ever needed long-term living assistance.
The couple turned to Thrivent Financial. "I expected to be told I'd have to work another five to seven years," Richard says. But the prognosis was much brighter. Thanks to years of diligently contributing to their 401(k) plans, working for an employer that still offered a traditional pension and maintaining a thrifty lifestyle, the Youngs found that if they made a few critical adjustments, Richard could retire almost immediately.
The strategy
To guard against potentially devastating extended care costs, the Youngs purchased insurance contracts for long-term care2. To provide guaranteed income during their first decade of retirement, they withdrew a portion of their savings and bought a fixed annuity contract3. For future income needs, they purchased a variable annuity offering opportunities for growth while guaranteeing their principal4. They also bought life insurance contracts to provide additional funds should one of them die before the other and to allow them to leave a more generous legacy. Lastly, they set up an emergency fund to guard against any unexpected financial needs.
The result
Richard retired in January 2010, and the Youngs have begun looking for a new home in an area where light pollution doesn't brighten the night sky. With their financial future in clearer focus, Richard is more relaxed about turning his gaze to the stars.
Helen Hillger and Marion Hillger
The challenge
Leaving a legacy
The story
The Hillger sisters have lived virtually all their lives in a house their parents built in 1920 in Matteson, Illinois. They spent their careers in the local office of American Steel Foundries. And another thing they share: a desire for their financial blessings to benefit those in need.
"I always had a good income and wanted to share what I had when I retired with a good charity," Helen says. "The charities supported by Zion Lutheran, my church here in Matteson, are the best, so I want to give whatever I can."
Like many people with charitable inclinations, the Hillgers were eager to give but unsure how to do so without jeopardizing their own security. They needed input from someone who understood not just their financial situation, but also the importance they attach to their charitable aspirations. Fortunately, they had a resource, in the form of Thrivent Financial, where they are long-standing members.
The strategy
The Hillgers' first order of business was to protect their assets from the expense of long-term care, so each sister purchased a long-term care contract.2 Next, working with an attorney, each drafted living trust documents and 
transferred assets into the trust. With this arrangement, their assets will be administered by their appointed trustees for their benefit during their lifetimes. When one sister passes away, the income will go to the other; when the second passes, the remaining assets will go to charities they've chosen. Each sister also purchased a life insurance contract. Helen gave hers to her church and named it as beneficiary, and Marion gave hers to her alma mater, Valparaiso University in Indiana, naming it as beneficiary. The Hillgers' annual insurance premiums are tax deductible, and they expect to pay less in premiums than the contracts will be worth, which means they'll have more left over for charity than they otherwise might have.
The result
The Hillger sisters are happy to be fulfilling a mission they felt called to all their lives. "I'm just so glad we've done the planning," Helen says, "and that we were able to do it through Thrivent Financial."
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1 Investing in a variable universal life insurance contract involves risk, including the possible loss of principal. More complete information on the investment objectives, risks, charges and expenses of the variable universal life insurance contract and underlying investment options is included in the prospectuses, which investors should read and consider carefully before investing. Prospectuses are available from a Thrivent Financial representative.
2 Long-term care insurance is marketed through Thrivent Financial for Lutherans' wholly owned subsidiary insurance brokerage agency.
3 Guarantees are based on the claims-paying ability of Thrivent Financial for Lutherans.
4 Investing in a securities product (such as a mutual fund or a variable product) involves risk, including the possible loss of principal. More complete information on the investment objectives, risks, charges and expenses of the variable annuity contract and underlying investment options is included in the prospectuses, which investors should read and consider carefully before investing. Prospectuses are available from a Thrivent Financial representative or at Thrivent.com.