Lincoln Defined Outcome Funds available with Lincoln Investor Advantage Pro® variable annuity offers investors agility, through a flexible solution that helps address the tax impact on retirement accounts
Lincoln Financial Group is expanding its broad portfolio of annuities with the launch of Lincoln Investor Advantage Pro® variable annuity featuring Lincoln Defined Outcome Funds. This unique annuity solution provides clients with a platform of more than 125 funds, enabling financial professionals to build portfolios and increase or decrease the level of protection on their terms, at a time when many are now taking more proactive measures to address market volatility. Research from Lincoln Financial shows a 50% year-over-year drop in consumers’ desire to “wait out” volatility, with many now returning to the market after the dramatic recovery1.
“The number of investors purchasing financial products to help protect their assets from market loss has grown considerably over the past year,” says Tim Seifert, SVP and Head of Retirement Solutions Distribution, Lincoln Financial Distributors. “With this new solution, we are helping investors customize their protection levels to better prepare for their investment outcomes. With the ability to make changes at any time in funds that are priced daily, they’ll be able to set or reset their protection against loss or capture market upside – all without creating a taxable event.”
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With Lincoln Investor Advantage Pro® with Defined Outcome Funds, portfolio performance is obtained through clearly defined upside potential and downside protection over a one-year period. Each Defined Outcome Fund provides exposure to the performance of a market index for successive one-year periods, including protection from loss in a down market (a buffer) and a maximum growth opportunity in an up market (a cap). Investor also have the flexibility to move in or out of funds to capture gains and reset their caps and buffers to higher levels, all on a tax-free basis.
“Our research shows that investors are concerned about rising taxes, and that those with higher assets are actively seeking to help reduce taxes,2” added Seifert. “This new strategy allows investors to stay nimble, offering them the ability to reset their caps and buffers easily without the tax impact that could occur with other financial products.”
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The Lincoln Defined Outcome Funds are sub-advised by the defined outcome solutions expertise of Milliman Financial Risk Management LLC, one of the world’s largest providers of actuarial and related products and services
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