Services
Lincoln Investment is honored to be one of the service providers selected for P3.
OMNI & TSACG's Preferred Provider Program (P3SM) was designed to distinguish 403(b) Service Providers which met certain criteria deemed to be highly desirable by an independent committee of School Business Officials, including the ability to assume costs of plan administration on the district’s behalf.
We are a full-service broker-dealer and registered investment adviser committed to the principle that financial well-being is accessible to all Americans through the knowledgeable guidance of independent financial professionals and quality, diversified investment choices.
With over 57 years of industry leadership, Lincoln Investment and its national network of over 1,000 financial professionals serve the diverse financial needs of more than 315,000 individual investors.
We are a leading provider of retirement plans for the employees of school districts, universities, hospitals, and other nonprofit and community-based organizations.
Lincoln Investment's financial professionals understand the importance of personal contact and creating a solid financial plan for their clients, which is the reason we offer a wide array of investment options. Not only do we provide advice on a variety of choices, but we've also created the Solutions platform, which enables our clients to consolidate their assets into one convenient account. No matter what your financial goals are, our financial professionals are equipped to craft a plan to help meet them.
How We Were Chosen for P3
Lincoln Investment was selected as one of the service providers for the 403(b) Preferred Provider Program (P3) by the OMNI & TSACG 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 & TSACG 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.
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 $5,000 annually, your annual taxable income is reduced by $5,000, saving you $1,100 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.
Tax services are not offered through, or supervised by Lincoln Investment or Capital Analysts.
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. All withdrawals are subject to federal income tax in the year they are withdrawn. A penalty tax may be imposed for early withdrawals.
First, most 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. As the chart above illustrates, 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
The Benefits of Workplace Retirement Solutions
To make your retirement dreams a reality, you will need an investment program that provides a comprehensive foundation to help grow your portfolio.
Workplace Retirement Solutions is Lincoln Investment’s proprietary, brokerage program for consolidating retirement accounts, offering diversified1 mutual fund investment options.
Workplace Retirement Solutions provides an effective way to consolidate your assets for easier recordkeeping. Each month 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 through our secure website, at any time.
When you are ready to begin receiving income, you can set up a lifetime income strategy that makes sense — accessing all your distributions from a single source.
Workplace Retirement Solutions offers the flexibility you need and ensures that all regulatory requirements are being met.
Features and Benefits of Workplace Retirement Solutions
- A menu of over 3,000 investment options from over 175 well–known fund families, including including Exchange Traded Funds (ETFs)2
- Ongoing, personalized counseling and objective advice from a Lincoln Investment financial professional
- Consolidated monthly statements
- Asset management programs that are carefully monitored to help manage risk
- Coordinated tax reporting
- A single application to simplify enrollment
- Universal loan provisions for 403(b) accounts if your plan permits
1Diversification does not guarantee a profit or protect against a loss. There is no assurance that the techniques and strategies discussed are suitable for all investors or will yield positive outcomes.
2For accounts interested in establishing positions in an ETF, there are over 600 index and actively managed ETFs available. ETFs
may not be appropriate for all accounts. ETFs can only be purchased as part of a larger portfolio reallocation or one time purchase.
Salary reduction contributions cannot be directed to ETFs at this time.
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.