Strategies for unique income situations

While the ever-changing financial landscape may challenge your clients and their retirement plans, it can create opportunities for you and your practice.

Position yourself to help clients secure retirement income, prepare for the unexpected and protect their wealth using flexible income strategies available through Lincoln variable annuities.

Annuities are long-term investment products designed for retirement purposes. Variable annuities are subject to market fluctuation, investment risk, and possible loss of principal. They 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.

Income before age 59½

The challenge:

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Multigenerational income

The challenge:

  • While taking income, many retirees still want to leave a multigenerational legacy.
  • It can be tricky to structure a multigenerational plan while minimizing estate transfer taxes.
     

The Opportunity: A multigenerational income strategy (PDF)

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Income for someone who isn’t a spouse

The challenge:

  • Your client may have a sibling, friend, domestic partner or business partner who they want to list as the beneficiary of their annuity.
  • Under most annuity guarantee riders that protect more than one life, the second protected life must be their spouse, as defined under federal law. Traditional annuities only provide a death benefit.
  • Assets passed on to non-spouses through a death benefit can have tax implications.
     

The Opportunity: A lifetime income opportunity for your non-spousal beneficiary (PDF)

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Trusts

The challenge:

  • Investors want to minimize the tax burden for beneficiaries.

  • At the same time, it might be important to take a tax-efficient income stream, while ensuring assets are structured correctly to transfer to beneficiaries.

  • Trust-owned annuities may be subject to capital gains taxes and a 10% additional tax on withdrawals.
     

The Opportunity: Trust-owned annuities (PDF)

Other situations where i4LIFE® Advantage might offer tax advantages and income distribution benefits:

  • Lifetime gifting situations
  • Special needs trusts
  • Tax-efficient wealth transfers
  • Fixed income investment alternatives

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.

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.