Lincoln Financial Group Adds Two Annuities For RIAs

Lincoln Financial Group announced it has introduced two new products for registered investment advisors (RIAs): a commission-free, single premium immediate annuity (SPIA), Lincoln Insured Income^SM Advisory and a commission-free deferred income annuity, Lincoln Deferred Income Solutions^SM Advisory.

These new solutions will help fee-only advisors provide options for clients seeking protected lifetime income in retirement to help cover their expenses, and add to the breadth of Lincoln’s portfolio of solutions available for RIAs.

“Lincoln Insured Income^SM Advisory and Lincoln Deferred Income Solutions^SM Advisory are strong additions to our robust offering of commission-free, RIA-tailored annuity solutions, allowing fee-based advisors the ability to help clients protect their income as they head into retirement,” said Tad Fifer, vice president and head of RIA Annuity Distribution, Lincoln Financial Distributors. “We are focused on offering a broad portfolio of solutions for RIAs who choose to include annuities as part of their clients’ retirement plans, and income annuities can be a good way to help secure life-long or period-certain cash flow with the potential to provide a higher income payout than other available options.”

By providing protected lifetime income, SPIAs and DIAs defend against both longevity and market risk in retirement. Consistent income continues irrespective of market performance. Income annuities can generally provide a higher income payout than other available options, and can be a great way to help solve for given retirement expenses, leaving more portfolio assets for discretionary spending and legacy goals.

Dr. Wade Pfau, PhD, CFA^®, professor of retirement income and founder of RetirementResearcher.com, believes in the value of these products. “An income annuity offers a unique source of returns not available from an investment portfolio,” explained Dr. Pfau. “It may provide a cheaper way to help meet a spending goal, leaving more assets to cover contingencies and support legacy.”

Lincoln remains focused on providing solutions that help meet the needs of advisors and how they choose to do business – investing in its capabilities among registered investment advisors (RIAs) and in the fee-only space. Over the past year, Lincoln has made a series of technology integrations with companies, including Orion, eMoney, Envestnet/Tamarac and Redtail. These direct data integrations better support the needs of these advisors and improve their overall business experience, making it easy and straightforward for them to incorporate annuities into their clients’ financial planning strategies.

As part of Lincoln’s focus on ease of doing business with fee-only advisors, the company also recently implemented a more seamless tax treatment of advisory fees taken from certain nonqualified fee-based annuities. This new treatment impacts Lincoln’s fee-based and RIA variable, fixed and indexed variable annuity products (non-SPIA/DIA), and follows a Private Letter Ruling Lincoln received from the Internal Revenue Service, allowing fee-based advisors to deduct fees related to investment advisory services provided for Lincoln annuity contracts without triggering a taxable event for their clients, assuming certain conditions are met. Lincoln continues to grow its distribution among RIAs, offering a broad portfolio of solutions, including variable, fixed indexed, income, and indexed variable annuities. Lincoln sales in the fee-based space have increased more than 150% year-over-year as of June 2019.

For more information about Lincoln’s fee-only annuity business, please visit www.LincolnRIA.com.

About Lincoln Financial Group

Lincoln Financial Group provides advice and solutions that help empower people to take charge of their financial lives with confidence and optimism. Today, more than 17 million customers trust our retirement, insurance and wealth protection expertise to help address their lifestyle, savings and income goals, as well as to guard against long-term care expenses. Headquartered in Radnor, Pennsylvania, Lincoln Financial Group is the marketing name for Lincoln National Corporation (NYSE:LNC) and its affiliates. The company had $260 billion in assets under management as of June 30, 2019. Lincoln Financial Group is a committed corporate citizen included on major sustainability indices, including the Dow Jones Sustainability Index North America and FTSE4Good. Dedicated to diversity and inclusion, Lincoln was recognized by Forbes as one of the Best Large Employers, Best Employers for Diversity, and Best Employers for Women. Lincoln also earned perfect 100 percent scores on the Corporate Equality Index and the Disability Equality Index. Learn more at: www.LincolnFinancial.com. Follow us on Facebook, Twitter, LinkedIn, and Instagram. Sign up for email alerts at http://newsroom.LFG.com.

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.

Lincoln fixed indexed annuities are issued by The Lincoln National Life Insurance Company, Fort Wayne, IN, and distributed by Lincoln Financial Distributors, Inc., a broker-dealer. The Lincoln National Life Insurance Company does not solicit business in the state of New York, nor is it authorized to do so. Contractual obligations are subject to the claims-paying ability of The Lincoln National Life Insurance Company.

Income taxes are due upon withdrawal and if withdrawn before age 59½, an additional 10% federal tax may apply. Withdrawals and surrenders may be subject to surrender charges and a Market Value Adjustment.

There is no additional tax-deferral benefit for contracts purchased in an IRA or other tax-qualified plan, since they are already afforded tax-deferred status.

Product and features are subject to state availability. Limitations and exclusions may apply. Not available in New York.