MISSOURI DISTRICT EDITION

October 2011 Dear Friends, Welcome to the October issue of LCEF on the Move. I continue to be amazed at how it appears that the happiness of so many Americans is tied to the performance of the economy. Every snippet of financial information is dissected and then categorized as positive or negative (sometimes both) and then we wait to see how the markets will further digest this data. As Christians, we know that the only true source of happiness is our loving God who reached out in love to a world that rejected Him and provided a solution to the real problem in our lives – sin. Once one considers that our Savior, Jesus Christ, dealt with the ultimate problem in our lives and restored us to be what God wants us to be – His adopted sons and daughters, everything else pales in comparison. Furthermore, our loving God has promised to provide us with everything we need for this life – so our worries about a roller-coaster economy really bear no fruit. Lutheran Church Extension Fund continues to do all it can to support the ministries of congregations and other entities within the LCMS. We have loan dollars available for those who need to build or expand. We have a range of services designed to help congregations better serve their community and be more effective in ministry. We have a record of financial strength that is the envy of financial institutions while maintaining as a priority the support of mission and ministry. There is no way that LCEF can do what it does without the support of our faithful investors. So, once again, I thank you for your support of LCEF. Your investments do really make a difference and, with God’s blessing, will continue to do so in the future. Thanks again for your past, present, and future support of LCEF. In HIS Service, Dennis Klussman LCEF Vice President

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Transforming Lives, Carrying on Tradition

As many times as we can, we take the opportunity to thank our faithful investors. It is with your support that Lutheran Church Extension Fund is able to carry out its mission of supporting the Church in fulfilling its mission. Your investment enables LCEF to make loans to churches, schools, and Rostered Church Workers that provide place and space in support of ministry. Your investment with Lutheran Church Extension Fund (LCEF) carries on the tradition of sharing one’s blessings with others to support the Great Commission. By investing in LCEF, you are an example to your friends and family of how committed Christians can work together and effect great change. Unfortunately, not everyone is aware of what LCEF is and how it serves our church. It for that reason that we are asking for your assistance in telling others more about LCEF and how it serves so many within our Lutheran Church – Missouri Synod. Help those you may be leaving some of your assets invested in LCEF to learn why it is important to you. Share why it represents more than a monetary “net worth,” but rather a legacy of caring and sharing and your desire to expand the reach of the church. If you’d like some starting points, visit a new website: www.lcef.org/transforming. Now is the time to communicate why you support LCEF and, should you choose, encourage your beneficiaries to continue that legacy after you’re gone. Let them celebrate your life through what you valued and cherished.

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KIDS Stamp Corner

The Blurb (for use in church bulletins, newsletters, etc.)

Our Lutheran heritage is rich with the knowledge that we have been saved by grace through faith in Jesus Christ. Yet, there are so many in this world who do not know Christ and who believe that their works alone will gain them favor with their god. Our Lutheran churches are sharing hope in Christ Jesus in their communities. Your investment in Lutheran Church Extension Fund will assist congregations in carrying out that mission. Call 1-800-THE-LCEF (843-5233) or visit www.lcef.org for more information.

At Your Service (LCEF Services Update)

For many years, LCEF has been the primary source of demographics information for churches and schools of the LCMS.

Demographics begins with readily-available information about changes in population, age, income, ethnic diversity, and other factors. Much of this information comes from sources like the 2010 Census, along with other public sources. In addition, less readily-available information that deals with lifestyles – how people spend their time and money, as well as cultural priorities and values is brought into the equation. All of this data then becomes a snapshot of the local community, along with tips for bettering serving and even reaching out the people of that community.

LCEF is proud to partner with MissionInsite, a national demographics firm that has a great reputation as it works with churches, public and private schools, and businesses. MissionInsite data is available through the local LCMS District office and arrangements can also be made to allow churches and schools to access the data themselves via a web-based connection.

For more information about LCEF Demographics and MissionInsite, contact Dennis Klussman at the contact information found on Page 4 of this newsletter or visit the LCEF website www.lcef.org.

Did you know that LCEF has demographic information available for every community at no charge to a congregation or school?

Through its partnership with MissionInsite, LCEF can provide relevant information about a community to churches and schools. For more information, call Dennis Klussman or visit the LCEF website www.lcef.org.

The up and down state of the economy seems to be a constant point for discussion in the media and among people. The conversation inevitably moves from the general state of the economy to its impact on personal finances. Lacking in the discussion is anything talk about stewardship. If stewardship is not a topic for discussion among adults, it certainly is not being shared with our children and young adults as well. That’s why LCEF offers the KIDS Count and KIDS Stamp Program.

KIDS stands for Kids Into Discipleship and Stewardship. KIDS Count is a curriculum designed for elementary school student that focuses on the principles of Biblically-based stewardship. The KIDS Stamp Program can be offered in day schools and Sunday schools, and allows children to purchase stamps that can be exchanged for investments in an LCEF account upon completion of a stamp booklet.

For more information about the KIDS Count and KIDS Stamp Program call LCEF at (800) 843-5233 or visit the LCEF website www.lcef.org

Current LCEF Loan Rates

Congregations (Loans Amortized Up To Twenty Years): Annually-Adjusted Loan: 4.875% (Loans > $2 Million Adjusted Monthly) Five - Year Balloon Note 5.250%

Ten - Year Balloon Note 5.625% Construction Rate is 1% Higher During Construction Period

1% Loan Origination Fee Rostered Church Worker Mortgage Loans (Loans Amortized Up To Thirty Years): Five Year Adjustable Rate Loan (10% down payment): 3.750% - 4.250% Ten- and 15-year Fixed Rate Loan (10% down payment): 4.000% - 4.500% Final Interest Rate Based Upon Down Payment and Credit History

LCEF On The Move A Monthly Newsletter of the Missouri District LCEF

Contacts: Dennis Klussman, District Vice President E-Mail: Dennis.Klussman@lcef.org Mailing Address: 660 Mason Ridge Center Drive #100 St. Louis, Missouri 63141 Telephone: (314) 590-6207 For additional information, visit the LCEF website www.lcef.org or call (800)-843-5233.

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LCEF is a nonprofit religious organization; therefore, LCEF investments are not FDIC-insured bank deposit accounts. This is not an offer to sell investments, nor a solicitation to buy. The offer is made solely by LCEF’s Offering Circular. Investors should carefully read the

Offering Circular, which more fully describes associated risks.

Next Generation Note* (Minimum Investment $5000)

Fixed Term - Rate APY

Next Generation -- 3.375% 3.418%

Congregation Endowment Note (5-Year Fixed)

Minimum Investment Rate APY

$1,000 -- 1.975% 1.990%

$10,000 -- 2.100% 2.117%

$100,000 -- 2.225% 2.244%

Dedicated Certificate

Minimum Investment Rate APY

$100 -- 0.250% 0.250% Custodial accounts for minors: $25

$1,000 -- 0.375% 0.376%

$5,000 -- 0.500% 0.501%

IRA Dedicated Certificate

Minimum Investment Rate APY

$100 -- 0.375% 0.376%

$1,000 -- 0.500% 0.501%

$5,000 -- 0.625% 0.626%

$10,000 -- 1.250% 1.256%

HSA FlexPlus Certificate

Minimum Investment Rate APY

$1 -- 1.125% 1.131%

$2,500 -- 1.625% 1.637%

$5,000 -- 2.125% 2.146%

$15,000 -- 2.625% 2.657%

StewardAccount® Certificate

Minimum Investment Rate APY

$100 -- 0.375% 0.376%

$1,000 -- 0.500% 0.501%

$5,000 -- 0.625% 0.627%

$10,000 -- 1.250% 1.257%

Family Emergency

StewardAccount Certificate

Minimum Investment Rate APY

$25 -- 1.375% 1.384%

Balances of <$10,000 require monthly electronic investments

Lutheran Church Extension Fund Investment Interest Rates

October 2011

Congregation Certificates (Minimum Investment $100)

Rate APY Demand -- 0.375% 0.376% StewardAccount® Certificates

$100 -- 1.125% 1.131% $250,000 -- 1.250% 1.257% $500,000 -- 1.375% 1.384%

$1,000,000 + -- 1.500% 1.510%

Congregation Endowment Note (60-Month Floating)

Minimum Investment Rate APY

$1,000 -- 1.975% 1.990%

$10,000 -- 2.100% 2.117%

$100,000 -- 2.225% 2.244%

IRA Jumbo Notes (Minimum Investment $100,000)

Rate APY

5 Year Fixed -- 2.250% 2.269%

60 Month Floating -- 1.975% 1.990%

Cemetery Perpetual Care StewardAccount® Certificate

Rate APY

$1,000 -- 1.125% 1.131%

$25,000 -- 1.250% 1.257%

$50,000 -- 1.375% 1.384%

$100,000 + -- 1.625% 1.637%

Floating Term Notes (Minimum Investment $100)

Rate APY 2½ Year

(30 Month) -- 0.730% 0.732%

5 Year (60 Month)

-- 1.600% 1.610%

*In conjunction with the purchase of the Next Generation Note, you have made a contribution to the LCEF. A portion of this contribution is non-deductible and considered a premium on the purchase of the note since you are receiving a benefit in return for the contribution (i.e., a 1.5% higher interest rate on the balance of the note). The APY on the principal amount of the Next Generation Note is 3.418%. If the non-deductible portion of the contribution (premium) is deducted from the interest you receive on the note, the yield-to-maturity is reduced to 1.68%.

Fixed Term Notes (Minimum Investment $500)

Rate APY 6 Month -- 0.375% 0.376% 9 Month -- 0.500% 0.501% 1 Year -- 0.625% 0.626% 18 Month -- 0.875% 0.878% 2 Year -- 1.000% 1.004% 3 Year -- 1.250% 1.256% 5 Year -- 1.875% 1.888% 6-10 Year -- 2.125% 2.142% 11-15 Year -- 2.375% 2.396% 16-20 Year -- 3.000% 3.034%

1-800-843-5233 www.lcef.org

10733 Sunset Office Drive

Suite 300 St. Louis, MO 63127