Ubp june ppt_v06

Presenter Name (Edit on Title Master)Title (Edit on Title Master)June XX, 2006 (Edit in View: Header and Footer)

©2006 Lincoln National CorporationLFD0606-0995 (UBP-0012-06) 06/06For educational and informational purposes only.

Success is an attitude

Small steps to accomplish great things!

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For educational and informational purposes only.

Please read

This seminar is for Educational and Informational purposes only. It is intended to be accurate and authoritative in regard to the subject matter covered. Lincoln Financial Distributors, Inc. presents this seminar for informational purposes only. It is presented with the understanding that we are not engaged in rendering legal or tax advice.

While this seminar discusses general tax aspects and investment concepts, we make no representation as to suitability for individual clients. Interested parties should seek their own tax and legal advice before implementing a plan of the type described in this presentation.


“It is our attitude at the beginning of a difficult task which, more than anything else, will affect it’s successful outcome.”

William James

American philosopher

©2006 Lincoln National CorporationLFD0606-0995 UBP-0012-06 06/06


What would you like to get out of today?

©2006 Lincoln National CorporationLFD0606-0995 UBP-0012-06 06/06

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Agenda items

Types of common investments

Risks of investing

Simple ways to minimize risk

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Agenda items

Types of common investments

Cash

Cash equivalents (CDs, Treasury bills)

Bonds

Stocks

Mutual funds

Retirement accounts

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Types of investments

Cash• Checking account• Savings account


“The most powerful force in the universe is compound interest.”

—Albert Einstein

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Cash• Simple interest vs. compound interest

Which would you rather choose?

For illustrative purposes only and is not indicative of any particular investment or performance.

Investment $1,000

Time 20 years

Interest rate 7%

Simple interest account $2,330.00 after 20 years

Compound interest account $3,616.53 after 20 years

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Cash equivalents• Certificates of deposit• Treasury bills• Money market accounts

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Bonds• Corporate bonds• Municipal bonds• Government bonds

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Stocks

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Mutual funds

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Retirement accounts• Individual Retirement Account (IRA)• 401(k)• 403(b)


Agenda items

Risks of investingInvestment riskMarket riskLiquidity riskInterest rate riskCredit riskInflation risk

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Risks of investing

Investment risk

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Risks of investing

Market risk

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Risks of investing

Liquidity risk

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Interest Rates

Bond Prices

Risks of investing

Interest rate risk

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Risks of investing

Credit risk

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Risks of investing

Inflation risk• If over 30 years, the value of $1 decreases by 3% per

year*

*The average rate of inflation is 3% over the past 20 years. Inflation is represented by the Consumer Price Index.

$1.50

$3.00

$3.00

$7.28

$8.00

$19.42

Current average cost

Projected cost

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Agenda items


Diversification

Asset allocation

Rebalancing

*These concepts do not assure a profit or protect against an investment loss.

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Diversification*Diversification does not assure a profit or protect against an investment loss.

CashStocksBonds

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Asset allocation*Asset Allocation does not assure a profit or protect against an investment loss.

Younger investor Older investor

These examples are for illustrative, educational, and informational purposes only.

80% 50% 40%

40%20%

40%

10%10% 10%

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Rebalancing*Rebalancing does not assure a profit or protect against an investment loss

Stocks -$1,000

Bonds -$1,000

Stocks -$1,100

Bonds -$1,000

after one year

Stocks -$1,050

Bonds -$1,050

rebalanced

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Putting your knowledge to use

Jonah’s concerns:• losing the money he had saved• not having money for a “rainy day”

Jonah’s investments:• savings account

- he used the savings account to accumulate his money• Treasury bill

- he invested his money in a T-bill because they are low risk• low risk mutual fund

- he used the mutual fund to help grow his money

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Only the beginning

It starts with you!

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Thank you

Questions?

Neither Lincoln nor its representatives provide legal or tax advice. You should contact your tax advisor or attorney regarding your particular situation.

Securities and investment advisory services distributed by Lincoln Financial Distributors, Inc., a broker/dealer and registered investment advisor. Insurance products are issued by Lincoln affiliates. Lincoln Financial Group is the marketing name for Lincoln National Corporation and its affiliates.

Ubp june ppt_v06

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