The Legend Group is honored to be one of the service providers selected for P3.
This program selects investment providers that are able to offer 403(b) investment options to school districts across the country. Through Lincoln Investment, The Legend Group Financial Professionals offer over 3,000 non-proprietary mutual funds.
Through Lincoln Investment, our Financial Professionals offer a wide variety of products to our clients with personalized service and attention. Our Financial Professionals help make investing easier to understand. They provide investment solutions for retirement, education savings plans, insurance needs, income generation and professional portfolio management.
For over 50 years, The Legend Group has had a presence and anticipates continued growth in the K-12 and college market. We currently provide services throughout the United States by offering retirement plan programs, in particular 403(b) and 457(b) plans to school districts and educational institutions.
In addition to 403(b) knowledge, our Financial Professionals can offer information on other investment topics, such as college savings, insurance products, IRAs, and professional money management provided through Lincoln Investment.
How We Were Chosen for P3
The Legend Group was selected as one of the service providers for the 403(b) Preferred Provider Program (P3) by the OMNI Group.
A variety of information was evaluated as part of the selection process, including the applicant's number of K-12 clients, total assets, error and omission insurance coverage, recent or unresolved litigation, licenses, client references, investment programs and their costs/features/benefits, willingness to assume costs associated with plan administration, and transaction turnaround times.
For a complete listing of criteria evaluated and for more information on the OMNI P3 Program, visit www.omni403b.com.
Why Invest in a 403(b)
You work hard to achieve your goals: a new car, a new home, college education for your child, a special vacation, etc. But are you doing enough to help achieve long-term financial well-being?
As an employee of a public school or non-profit 501(c)(3) organization, you have a unique opportunity to add a 403(b) tax-sheltered account to your retirement savings strategy. A 403(b) plan, funded through payroll reduction, offers many advantages.
You pay no federal income taxes on your contributions or earnings until you withdraw from your account, typically at retirement — a time when most people are in a lower tax bracket. Tax penalties and penalties for early withdrawal may apply if funds are withdrawn prior to age 59½. The chart below shows the difference a $200 contribution per paycheck can make over time. Over 30 years, you could nearly double your earnings!
Investment earnings (interest, dividends and capital gains) are not taxed until withdrawn. The chart above assumes mothly savings of $200, a 22% tax rate and 6% annual growth. The above chart is for illustrative purposes only and does not attempt to predict actual results of any particular investment. and is no guarantee of future results. A plan of regular investing does not assure a profit or protect against loss in a declining market. You should consider your financial ability to continue your purchases over an extended period of time.
Thanks to pre-tax savings, if you invest $100 per month in a 403(b) account, it will cost you only $78, assuming a 22% tax bracket.
Every dollar contributed to your 403(b) reduces your taxable income by a dollar. For example, if you contribute $250 per month for 12 months, your taxable income is reduced by $3,000, saving you $660 or 22% if you are in a 22% tax bracket. Most states also permit this reduction for state income tax purposes.
Financial well-being means...
- Building a solid financial future.
- Discovering how to save reasonably and plan adequately.
- Achieving the rewarding life that you define.
- Having your savings and investments serve you throughout your life.
- Incorporating financial resources into your broader vision of security and personal fulfillment.
- Having the financial means to enjoy a satisfying lifestyle.
None of the information in this document should be considered as tax advice. You should consult your tax professional for information concerning your individual situation.
The Importance of Investing Early
- Contributions to your 403(b) account are made through payroll reductions — a disciplined and automatic way to save for your financial future.
- The difference between starting early and starting later can have a significant impact on the quality of your retirement life. Here is an example that illustrates the importance of starting early:
- The cost of waiting
By way of illustration, Susan begins saving at age 25, putting away $100 each month in a tax-deferred account for 15 years. Sam, on the other hand, waits until age 35 to begin saving, putting the same amount ($100) in a tax-deferred account every month for 30 years. Both investors earn a hypothetical annualized return of 6%, but Susan invests a total of $18,000, while Sam invests $36,000.
- Guess who would have more money at age 65?
Based on an 6% annualized return, it's Susan! Even though she saved just half of the amount that Sam did, she has about 25% more money saved for retirement — all because she started early and took advantage of the power of compounding earnings over time!
- The cost of waiting
The chart is for illustration purposes only and should not be considered a projection of potential returns on any particular investment and is no guarantee of future results. All withdrawals are subject to federal income tax in the year they are withdrawn. A penalty tax may be imposed for early withdrawals.
First, many experts estimate that you will need approximately 80% of your pre-retirement income for each year in retirement. If you are expecting to receive enough from a teacher's pension and Social Security, think again. Today's retirees are forced to derive a much higher percentage of their income from other sources such as 403(b) accounts, IRAs and personal savings.
Second, life expectancy has increased dramatically. In fact, the average life expectancy of a person born in the year 2000 is 30 years longer than one born in 1900.1 That means you will need to have enough money set aside for a retirement that may last 25 years or longer!
Finally, do not forget that inflation can be costly. Today's dollars will not buy you the same amount of goods and services in the future. Your income would have to almost double every 20 years, assuming a 4% inflation rate, just to maintain the purchasing power you have today. Avoid the chance of your retirement income not keeping pace with inflation with the help of Lincoln Investment. We believe financial well-being is within the grasp of all Americans. We provide the plan and the tools to help you achieve your dreams.
1 National Center for Health Statistics.
A Risk-Appropriate, Well-Diversified Portfolio
To make your retirement dreams a reality, you will also need an investment program that will provide a comprehensive foundation for helping you grow your investment portfolio.
The Benefits of Retirement Solutions Premier
Offers an effective way to consolidate your assets for ease of recordkeeping. Each quarter, you will receive a single, easy-to-understand statement that shows you exactly what you own, how you have progressed, and what changes have occurred. You can view your account activity at any time through our secure website.
And when you are ready to begin receiving retirement income, you will be able to set up a lifetime income strategy that makes sense for you and your lifestyle — accessing all your distributions from a single, convenient source.
Retirement Solutions Premier is designed for investors who prefer a fee-based approach to retirement planning. With this program, you will receive all the features of Solutions, with the additional flexibility, control and choice in creating and managing your investment portfolio.
Features and Benefits of Retirement Solutions Premier
- Investment choice from a menu of over 3,000 investment options from more than 100 well-known fund families.
- Ongoing, personalized counseling and objective advice from a Lincoln Investment financial professional.
- Consolidated quarterly statements.
- Asset Management programs that are carefully monitored to help manage risk.
- Easy Web access to account information at lincolninvestment.com.
- Coordinated tax reporting.
- A single application to simplify enrollment.
- Universal loan provisions for 403(b)(7) accounts.1
Neither asset allocation nor diversification guarantee a profit or protect against a loss.
1If your plan permits.
The Retirement Solutions Premier professionally managed portfolios are offered as part of a discretionary advisory service. Lincoln Investment Planning, LLC will assess an annual investment advisory fee based on the value of assets in your advisory account(s). Additional information regarding Lincoln Investment Planning, LLC’s investment advisory fees can be found in the firm’s Form ADV 2A & Appendix I, which is available upon request.
The Importance of Planning
Attaining financial well-being does not mean you have to go it alone. A professional partner who has the comprehensive training, up-to-date product knowledge, and years of practical investment experience can help you pursue a more secure financial future. This professional will work with you to develop and implement a financial plan tailored to your life and your needs.
Lincoln Investment's national network of over 1,000 financial professionals stands ready to explain the complexities of investing without confusing jargon. Each one of our professionals can help you clearly define your financial goals and then formulate a comprehensive, long-term plan for achieving them.
Since our financial professionals are knowledgeable in personal financial planning, they will monitor your progress, recommend changes when appropriate and make sure the plan stays consistent with your goals and life situation.
Because our financial professionals are not affiliated with any particular mutual fund family or investment firm, you can be assured of objective, professional advice.