What is covered in this annuity review?In this annuity review, we will be going over the following details regarding the Lincoln National Life Core Income Variable Annuity Built with iShares:
- Product Type
- Current rates
- Realistic long-term return expectations
- How this annuity is best used
- How it is most poorly used
Annuities can be complex. That’s where having an Annuity Investigator who loves math comes in. We make the complex, simple.For anyone who is in the process of considering an annuity, the inner workings of the product may seem a bit overwhelming. One reason for this is because annuities have a number of complex “moving parts.” And, depending on the type of annuity you purchase – along with any of the other optional riders that may be added – you could find yourself having to wade through a confusing maze of small print in order to determine just exactly how the product works. Unfortunately, many investors forgo working though all of the details and instead relying on their current insurance or financial advisor to lead them to the proper financial vehicle. Unfortunately, though, this may not necessarily work to your advantage when considering a variable annuity. This is because, unless your advisor has a key focus on annuities, he or she may not be able to provide you with all of the insight that you may need – and in turn, many investors end up finding out too late that the annuity they chose is not going to perform the way they expected it to. If you have been thinking about moving forward with the Lincoln Life Core Income annuity Built with iShares, then you may have noticed that, just like any other annuity, it can perform well in certain areas. However, there are other areas where it may not perform up to par – especially depending on your specific financial situation and goals. We can help you to sort out what you need to know about the Core Income annuity from Lincoln National, and in turn, allow you to reach a better conclusion as to whether or not this is the right annuity product for you.
Annuity and Retirement Income Planning Information You Can TrustIf you have not been to our website in the past, then allow us to personally welcome you here to AnnuityGator.com. We are a team of annuity experts who are highly focused on offering in-depth, yet non-biased, annuity reviews. We have been doing this for quite some time now – much longer than our competitors – and because of that, we have come to be a trusted source of annuity information. If you have been looking for details about annuities via the Internet, then it is probable that you have run across a lot of very conflicting opinions about them. This, however, is not really all that surprising. That is because there are many different annuity products available, and many people – both consumers and financial advisors alike – will often have differing thoughts. You might recently have attended an annuity seminar where the presenter went over various details about the Lincoln National Life Core Income annuity (or some other similar annuity product). If so, and if you set a time to follow up with the presenter about this product, you may even be on our website right now in search of more information about it before you commit to moving forward. In your quest for these details, you have more than likely run across other websites that tout various annuity products. But, while there are some very good websites out there that provide this type of information, a lot of them are really only after your contact information – and they tend to lure people in by making some pretty bold claims about the annuities they offer, such as:
- Lowest fees
- Highest income payouts
- Guaranteed lifetime income
- Top-rated companies
Lincoln National Life Core Income Built with iShares Variable Annuity at a Glance
|Core Income Built with iShares
|Lincoln Financial Group
|Type of Product
- Lincoln National Life Insurance Company (Fort Wayne, Indiana)
- Lincoln Life and Annuity Company of New York
- Lincoln Financial Distributors
- Lincoln Financial Advisors
- Lincoln Financial Securities Corporation
- Lincoln Financial Foundation
- AA- from S&P
- A1 from Moody’s
- A+ from Fitch
- A+ from A.M. Best Company
Before we get into the gritty details, there are some required legal disclosures here…This is an independent annuity product review. It is not a recommendation to purchase or to sell an annuity. Lincoln National Life has not endorsed this review in any way, nor do we receive any type of compensation for providing this review. This annuity review is meant solely to be an independent review at the request of our readers so that they may see our perspective when breaking down the positives and the negatives of this particular annuity. Prior to committing to the purchase of any type of insurance and/or investment vehicle, it is critical that you do your own due diligence, and that you also talk with a properly licensed professional if you have any questions that relate to your specific situation. All of the names, materials, and marks that have been used in compiling this annuity review are the property of their respective owners. For additional information on how to compare annuities so that you can decide which may be the best one for you, click here in order to obtain our free annuity report.
How Lincoln National Describes the Core Income Variable Annuity Built with iSharesLincoln National describes the Core Income, built with iShares variable annuity as one that offers a guaranteed lifetime income, along with a cost-effective way of building up the account value. When this particular annuity was initially introduced in early 2017, it was the industry’s first ETF-only variable annuity designed to help fee-based financial advisors address their clients’ retirement income challenges. ETFs (Exchange Traded Funds) have helped to make investing more simplistic, as well as transparent and cost-effective for investors. And, as a result, their popularity has more than tripled over the past several years. The Lincoln Core Income annuity is built exclusively with ETFs, which can allow investors who like the benefits of these financial vehicles to pair them with a variable annuity that also offers a guaranteed income for life. Developed through a strategic collaboration with BlackRock, Lincoln Core Income Built with iShares features an investment section that is comprised entirely of ETFs, which can provide advisors and investors with a cost-effective strategy, and a guaranteed lifetime income that is equal to 4% of the initial deposit that also increases annually by a 2% cost of living adjustment. Some of the other key features of this annuity include the following:
- No surrender charge
- Costs all below 1.9% (this reflects contract charges and investment option waivers)
- Return of investment death benefit
How a Financial Advisor Might “Pitch” this AnnuityEven though variable annuities aren’t nearly as popular as they were several years ago, this particular option provides some nice built-in features – including a set amount of lifetime income that increases over time. This can help to keep purchasing power more in check with the rising future prices of goods and services you’ll need in retirement. With that in mind, financial advisors are likely to focus in on the fact that not only can you count on a certain amount of income, but you’ll also have the opportunity to take advantage upward moving market gains before you convert the annuity to an income stream. However, even though all of this sounds really great, just like most other things in life, nothing is really ever free. This means that you’ll need to essentially endure some “trade-offs” in order to get these benefits. For example, you’ll still need to contend with market risk. And, while the market has come back from its recession of 2008 returns, nothing is ever guaranteed, particularly when it comes to investing in equity related vehicles. Also, there are still some charges and fees involved on this annuity – which in turn, can end up lowering your overall return, in some cases, to an amount that is lower than that of a regular fixed annuity (but also with all of the sleepless nights worrying about a potential market downturn).
What About the Fees on the Lincoln National Life Core Income Built with iShares?Although there is generally no up-front sales commission on this annuity, you still need to watch for regular fees that are incurred – which can oftentimes add up to much more over time than just a one-time sales commission. In the case of this annuity, you will find fees associated with the underlying investments, as well as with the Core Income itself. First, according to Lincoln Life, the average annual net expense ratio for open to new assets is 0.76%. In fact, the company’s self-proclaimed “low cost/cost-effective” strategy is quote: “based on a comparison by Morningstar, as of May 31, 2017, between Lincoln iShares ETF’s portfolios which range in fees from 0.28% to 0.29% (as of January 31, 2017) and Morningstar VA sub-account universe open to new assets.” Also, there is an annual charge of 1.60%, which includes the Guarantee of the Principal death benefit, 0.75%, and the rider charge of 0.85% (single or joint). In fact, the rider charge could go as high as 1.50%.
The Annuity Gator’s End Take on the Lincoln National Core Income Built with iShares AnnuityWhere it works the best:
- For those who want the opportunity for higher, market / ETF related returns.
- For those who are seeking a lifetime income
- For those who want their lifetime income to increase over time to help increase their future purchasing power
- For those who don’t want to endure market-related risk
- For those who do not plan to use the lifetime income feature