2017 Resolution Solutions: Balance and Diversify Existing Financial Plans
As Part of Lincoln Financial Group’s Resolutions Campaign, the Company Helps Consumers Understand How Annuities and Life Insurance Can Complement Financial Plans and Protect Assets Against Retirement Risks
“At Lincoln we encourage all consumers to make it a priority to meet with a financial advisor in the New Year to review investments and retirement plans,” said
As part of Lincoln’s campaign to encourage consumers to set achievable financial planning goals over the course of the year, the company is helping consumers understand the role annuities and life insurance can play in helping to protect wealth, create a steady and dependable income stream throughout retirement and support efforts around legacy planning.
According to Lincoln’s M.O.O.D. (Measuring Optimism, Outlook and Direction) survey, older generations are more concerned about outliving their money than younger generations, with 35 percent of Baby Boomers being most concerned, compared to 29 percent of Gen Xers and 19 percent of Millennials.
An Option for Supplementing Income During Retirement
“Retirement savers now face living longer, the uncertainty of
Annuities can provide savers with guaranteed lifetime income they cannot outlive, and can be an essential strategy for those who want to know they will have a predictable stream of income in retirement. Designed to be part of an overall retirement strategy, annuities come in different forms such as fixed and variable, providing contract holders with periodic income payments, through annuitization, in exchange for an initial premium. Savers may also have access to optional riders through the annuity that provide lifetime income benefits for an additional cost. These solutions help close the gap between retirement savings and income needs, and ensure savers know that they can maintain their lifestyle through a long and happy retirement.
With the start of a new year, Americans should plan to speak with a knowledgeable financial advisor about their plan and ways to incorporate guaranteed lifetime income strategies – like annuities – that can help provide enough income to last for their lifetime, especially if they are about to retire.
Factoring in Loved Ones as Part of the Financial Planning Equation
Taking care of family and ensuring they are part of the equation can be an important part of any financial plan. In addition to the obvious death benefits often associated with life insurance some types of policies also provide potential for tax-efficient cash accumulation, and the flexibility to take loans and withdrawals that draw down the policy’s cash value and death benefit to provide a source of supplemental income for needs such as retirement or a child’s college tuition. The loans are not considered income and are tax free, and withdrawals and surrenders are tax-free up to the cost basis.
Further, some forms of life insurance offer options that are designed to help provide protection against costs incurred due to long-term care expenses – helping to secure desired retirement outcomes and protect assets put aside for beneficiaries. Long-term care coverage comes in many different forms including a traditional insurance policy covering long-term care or a hybrid solution that combines long-term care coverage with a universal life insurance policy or fixed annuity.
“What makes life insurance a valuable complement to other investments is its ability to provide wealth protection while offering financial security,” said
With so many types of life insurance to choose from, consumers need education around the nuances of each. Lincoln encourages consumers to work with an advisor to evaluate their insurance needs and determine the right options.
About 2017 Resolution Solutions
About the M.O.O.D. of America
Results for the 2016 M.O.O.D. (Measuring Optimism, Outlook and Direction) of America poll are based on three national surveys conducted by Whitman Insight Strategies on behalf of
The M.O.O.D. of America survey was conducted among 2,267 adults 18 years of age and older across
About
Disclosures:
Lincoln Financial Group® affiliates, their distributors, and their respective employees, representatives, and/or insurance agents do not provide tax, accounting, or legal advice. Please consult an independent advisor as to any tax, accounting, or legal statements made herein.
Variable annuities are long-term investment products designed for retirement purposes and are subject to market fluctuation, investment risk, and possible loss of principal. Variable annuities contain both investment and insurance components and have fees and charges, including mortality and expense, administrative, and advisory fees. Optional features are available for an additional charge. The annuity’s value fluctuates with the market value of the underlying investment options, and all assets accumulate tax-deferred. Withdrawals of earnings are taxable as ordinary income and, if taken prior to age 59½, may be subject to an additional 10% federal tax. Withdrawals will reduce the death benefit and cash surrender value.
Investors are advised to consider the investment objectives, risks, and charges and expenses of the variable annuity and its underlying investment options carefully before investing. The applicable prospectuses for the variable annuity and its underlying investment options contain this and other important information. Please call 888-868-2583 for free prospectuses. Read them carefully before investing or sending money. Products and features are subject to state availability.
Lincoln variable annuities are issued by
Contracts sold in
All contract and rider guarantees, including those for optional benefits, fixed subaccount crediting rates, or annuity payout rates, are subject to the claims-paying ability of the issuing insurance company. They are not backed by the broker-dealer or insurance agency from which this annuity is purchased, or any affiliates of those entities other than the issuing company affiliates, and none makes any representations or guarantees regarding the claims-paying ability of the issuer.
There is no additional tax-deferral benefit for an annuity contract purchased in an IRA or other tax-qualified plan.
All guarantees and benefits of the insurance policy are subject to the claims-paying ability of the issuing insurance company. They are not backed by the broker-dealer and/or insurance agency selling the policy, or any affiliates of those entities other than the issuing company affiliates, and none makes any representations or guarantees regarding the claims-paying ability of the issuer.
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