20 Minute

Planner Series®

Presented by

Lincoln Investment

Basics of Investing

Asset Management Services and Securities offered through Lincoln Investment Planning, Inc.

Registered Investment Advisor, Broker/Dealer, Member FINRA/SIPC

218 Glenside Avenue

Wyncote, PA 19095

800-242-1421 02/12

20 Minute

Planner Series®

20 Minute Planner Series®

• Basics of Investing• College Funding Strategies• Eldercare Planning• Identity Theft • Managing Credit• Pre-Retirement Planning• Retirement Savings Made Easy• Traditional and Roth 403(b) Plans• Wealth Management• Women and Investing

20 Minute

Planner Series®

Attendance Card

20 Minute

Planner Series®

About Lincoln Investment

• Established in 1968• Dedicated to the education marketplace• Over 200,000 clients• Investment choice• Risk management• Assistance of financial advisor

20 Minute

Planner Series®

Presented by

Lincoln Investment

Basics of Investing

Asset Management Services and Securities offered through Lincoln Investment Planning, Inc.

Registered Investment Advisor, Broker/Dealer, Member FINRA/SIPC

218 Glenside Avenue

Wyncote, PA 19095

800-242-1421 02/12

20 Minute

Planner Series®

Topics

• Why start early?• Finding the money to invest• Tax-advantaged investing• Dollar-cost averaging• Risk and return• Inflation• A “simple” plan

20 Minute

Planner Series®

Why Start Early?

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 All withdrawals are subject to federal income tax in the year they are withdrawn.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.

20 Minute

Planner Series®

Finding the Money

• Prepare a budget• Spend efficiently• Invest your income tax refund• Payroll deduction programs

– Save your raise

• Get help: Professional trainer

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Planner Series®

Tax-Advantaged Investing

• Deferring federal income tax• Deferring state income tax• Deferring tax on growth of the portfolio• No-interest loan from the government• Taxes paid at withdrawal

– Usually at a lower tax bracket

20 Minute

Planner Series®

Tax-Deferred Growth

Investment earnings (interest, dividends and capital gains) are not taxed until withdrawn. The bar graph above assumes monthly savings of $200, a 25% tax rate and 8% annual growth. For illustration purposes only.

Not a projection of potential returns on any particular investment. 403(b)/457(b) projections are not reduced by future taxes.

20 Minute

Planner Series®

Tax-Advantaged Investing

• Types of tax-advantaged investing

– TSA: Tax-Sheltered Account — 403(b), 457(b)

– IRA: Individual Retirement Account

– 401(k): Employer-sponsored retirement plan

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Planner Series®

Investing regular amounts steadily over time (dollar-cost averaging) may lower your average per-share cost. Periodic investment programs cannot guarantee a profit or protect against a loss in a declining

market. Dollar-cost averaging is a long-term strategy that involves continuous investing, regardless of fluctuating price levels, and, as a result, you should consider your financial ability to continue to invest

during periods of fluctuating price levels.

Dollar-Cost Averaging

20 Minute

Planner Series®

Growth of a Dollar 1970 – 2011

Hypothetical value of $1 invested at year-end 1970. Past performance is no guarantee of future results. Assumes reinvestment of income and no transaction costs or taxes. Rates represent average annual return for period given.

Investors cannot invest directly in these indexes.

$127.18

$52.25$49.55

$23.65

$9.18

$5.81

$0.10

$1.00

$10.00

$100.00

$1,000.00

Dec-6

9Dec

-70

Dec-7

1Dec

-72

Dec-7

3Dec

-74

Dec-7

5Dec

-76

Dec-7

7Dec

-78

Dec-7

9Dec

-80

Dec-8

1Dec

-82

Dec-8

3Dec

-84

Dec-8

5Dec

-86

Dec-8

7Dec

-88

Dec-8

9Dec

-90

Dec-9

1Dec

-92

Dec-9

3Dec

-94

Dec-9

5Dec

-96

Dec-9

7Dec

-98

Dec-9

9Dec

-00

Dec-0

1Dec

-02

Dec-0

3Dec

-04

Dec-0

5Dec

-06

Dec-0

7Dec

-08

Dec-0

9Dec

-10

U.S. Small-Cap (12.55%)International Stocks (10.13%)S&P 500 Index(9.99%)U.S. Government Bonds (8.02%)Money Market (5.56%)Inflation (4.39%)

1

43

2

5

6

20 Minute

Planner Series®

Asset Class Range of Returns

Returns listed represent 95% of the total range of returns for the period Jan. 1970 to January 2010. Assumes reinvestment of income and no transaction costs or taxes. Mean return is average annual return for the period listed. Past

returns are no guarantee of future results. Investors cannot invest directly in these indexes.

63.24%

48.64%44.82%

20.14%

7.40% 7.05%

-38.15%

-28.38%-24.85%

-4.09%

1.72%3.72%

12.55% 10.13% 9.99% 8.02% 5.56% 4.39%

-45%

-25%

-5%

15%

35%

55%

75%

U.S. Small-Cap

InternationalStocks

S&P500 Index

U.S.Government

Bonds

MoneyMarket

Inflation

High RangeLow RangeMean Return(%)

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Planner Series®

Value of Diversification

15

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Planner Series®

For illustration purposes only

Inflation

Below is a hypothetical example of how much you may need over the next 5, 10, 15, 20 and 25 years to equal the

purchasing power of $10,000 today, assuming a 4 percent annual inflation rate:

20 Minute

Planner Series®

A Simple Plan!

Higher Risk

Higher Return Potential

Lower Risk

Lower Return Potential

Aggressive Growth Funds

Growth Funds

Bond & Value Funds

Money Funds

Greater

than 10 Yrs.

(Growth)

4 to 10 Years

(Moderate)

2 to 4 Years

(Cautious)

6 Months to 2 Years(Current)

20 Minute

Planner Series®

The Time Value of Money

Number of Years

Interest Rate

Present Value

Annual Payments

Future Value

20 6 0 $600 $23,395

Number of Years

Interest Rate

Present Value

AnnualPayments

Future Value

30 6 0 $600 $50,281

Number of Years

Interest Rate

Present Value

AnnualPayments

Future Value

30 6 0 $1,200 $100,562

Based on beginning of period payments.

20 Minute

Planner Series®

Summary

• Start early or get started now!• Find the money• Get help

– Uncle Sam– Professional trainer

• Understand the risk/return relationship• Start a simple plan

20 Minute

Planner Series®

Diversification does not assure a profit or protect against market loss. There is no assurance that a diversified portfolio performs better than an undiversified portfolio.

An investment in a money market fund is not insured or guaranteed by the FDIC or any other government agency. Although a money market fund seeks to preserve the value of your

investment at $1.00 per share, it is possible to lose money by investing in the fund.

Investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than original cost. Past performance does not guarantee future returns. A

prospectus will be available for each fund whose shares are offered.

Small cap stocks may be subject to a higher degree of risk than more established companies’ securities. The illiquidity of the small cap markets may adversely affect the value of these

investments so those shares, when redeemed, may be worth more or less than their original cost.

MSCI EAFE Index is a capitalization-weighted index of the leading stocks in Europe. Membership of the index is selected by MSCI and designed for leading stocks roughly to match market sector

weights.

S&P 500 Index is an index of 500 of the largest exchange-traded stocks in the US from a broad range of industries whose collective performance mirrors the overall stock market. Past

performance is no guarantee of future results. Investors cannot invest directly in market indexes.

International investing involves special risks, including the possibility of substantial volatility due to currency fluctuation and political uncertainties.

Treasury bonds (T-bonds are long-term debt instruments with maturities of ten years or longer issued in minimum denominations of $1,000.

20 Minute

Planner Series®

Attendance Card

20 Minute

Planner Series®

Presented by

Lincoln Investment

Basics of Investing

Asset Management Services and Securities offered through Lincoln Investment Planning, Inc.

Registered Investment Advisor, Broker/Dealer, Member FINRA/SIPC

218 Glenside Avenue

Wyncote, PA 19095

800-242-1421 02/12