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Should I Invest in Stocks or Bonds for Retirement

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					                        <PLAN NAME> Retirement Plan
             QUALIFIED DEFAULT INVESTMENT ALTERNATIVE (QDIA)
               REQUIRED ANNUAL [or] INITIAL EMPLOYEE NOTICE

[Note to employer:
1) This notice should be printed on your company letterhead and distributed to the appropriate
   participants in your plan.
2) This notice has been provided as a sample only. When completing for your plan, please be sure
   that you add information that is accurate and appropriate to your specific plan. Only retain the
   sample alternatives if these are applicable to your plan. ]


Purpose of this notice
<ER Name> has adopted a qualified retirement plan to help you attain financial security during your
retirement years. As a participant, you decide how your retirement plan dollars will be invested. If you
do not make an investment election, your contributions will be invested in the Qualified Default
Investment Alternative (QDIA).

This Qualified Default Investment Alternative (QDIA) Employee Notice:
(1) describes when the QDIA is used;
(2) provides details regarding the QDIA selected;
(3) outlines your right to direct the investment of your plan dollars to other investments available in
    the Plan or to elect not to have contributions withheld from your pay, if applicable; and
(4) explains how you can obtain additional information regarding those additional investment
    alternatives.
Keep this disclosure with your Summary Plan Description and other retirement plan documents.

When the default fund will be used
You can invest your plan dollars in any of the investment alternatives available in your Plan. In the
absence of an investment election, your future contributions will be invested in the plan’s QDIA under
the following circumstance(s):

 You have made a salary reduction election without an investment election;
 An employer discretionary contribution has been made on your behalf but you have not provided
  an investment election;
 The plan contains an automatic enrollment feature and you did not make an investment election
  during the notice period. <xx%> of your eligible compensation will be contributed to the plan as an
  elective contribution.
 If the asset allocation you complete on your enrollment form does not equal 100% or you choose
  an investment option that is not available in the plan, some or all of your contributions will be
  invested in the QDIA.

The QDIA for your plan is:
[Note to employer: Include QDIA investment description of investment option selected. If LVIP
Wilshire Target Maturity Profile Funds are selected, include description of all four funds]

<Aggressive Balanced – The Aggressive Balanced account consists of holdings in three different
asset classes: stocks, bonds, and money market instruments. The objective of the account is to
maximize long-term total return with an aggressive level of risk. The Lincoln National Life Insurance
Company is the advisor for Aggressive Balanced. Aggressive Balanced uses a sophisticated asset
allocation computer model to determine how much will be directed to each of three asset classes:
stocks, bonds and money market instruments. General policy includes a managed mix of stocks,
bonds and short-term investments. This account is managed with an aggressive style and will



Sample QDIA Notice
PAD0904-0235     EMBC0409-401LD
emphasize equity securities, including a small allocation in foreign stocks. There is a 0.75% annual
investment management fee assessed on assets and a 0.00% underlying mutual fund fee. >

< American Funds American Balanced - The American Funds Balanced account seeks to provide
conservation of capital, current income and long-term growth of capital and income by investing in
stocks, bonds and other fixed-income securities. Capital Research and Management Company is the
advisor for the account. The American Funds American Balanced Fund takes a balanced approach
and is managed as if it constituted the complete investment program of the prudent investor. The
Fund invests primarily in common stocks and preferred stocks, bonds, convertibles and cash. It may
invest up to 12% of its assets in securities of issuers domiciled outside the United States. It may not
invest more than 75% of assets in common stocks. All of the Fund's fixed-income investments must
be investment-grade at the time of purchase. There is a 0.15% annual investment management fee
assessed on assets and a 0.65% underlying mutual fund fee. >

< American Funds Capital Income Builder – The American Funds Capital Income Builder account
seeks to provide a level of current income that exceeds the average yield on U.S. stocks generally
and to provide a growing stream of income over the years. Secondarily, the American Funds Capital
Income Builder account strives to provide growth of capital. Capital Research and Management
Company is the advisor for the account. The American Funds Capital Income Builder account invests
primarily in a broad range of income-producing securities, including stocks with a history of, or
potential for, increasing dividends. The account may also invest significantly in securities of issuers
domiciled outside the United States. The account normally invests at least 90% of its assets in
income-producing securities, with at least 50% of its assets in equity securities. There is a 0.15%
annual investment management fee assessed on assets and a 0.65% underlying mutual fund fee. >

< American Funds Income Fund of America – The American Funds Income Fund of America
account seeks to provide current income and, secondarily, growth of capital through a flexible mix of
equity and debt instruments. Capital Research and Management Company (CRMC) is the advisor for
the account. The American Funds Income Fund of America® Fund seeks investments in both the
stock and bond markets that provide an opportunity for above-average current income and long-term
capital growth. The Fund has typically provided income well in excess of that provided by stocks in
general. The Fund invests primarily in common or preferred stocks, convertible securities, bonds,
U.S. and non-U.S. government securities, cash and equivalents. It may invest up to 25% of assets in
equities of non-U.S. companies and up to 10% of assets in fixed-income securities of non-U.S.
issuers and denominated in U.S. dollars. The Fund may invest only 20% of its assets in securities
rated below investment grade. There is a 0.15% annual investment management fee assessed on
assets and a 0.66% underlying mutual fund fee. >

<Balanced – The Balanced account consists of holdings in three different asset classes: stocks,
bonds, and money market instruments. The objective of the account is to maximize long-term total
return with a moderate level of risk. The Lincoln National Life Insurance Company is the advisor for
Balanced. Balanced uses a sophisticated asset allocation computer model to determine how much
will be directed to each of three asset classes: stocks, bonds and money market instruments. General
policy includes a managed mix of stocks, bonds and short-term investments. This account is
managed with a moderate style and will emphasize equity and fixed-income securities. There is a
0.75% annual investment management fee assessed on assets and a 0.00% underlying mutual fund
fee.

<BlackRock Global Allocation – The BlackRock Global Allocation account seeks high total
investment return through a fully managed investment policy utilizing U.S. and foreign equity, debt
and money market securities. BlackRock, Inc. is the advisor for the account. The BlackRock Global
Allocation account invests in a portfolio of equity, debt and money market securities. Generally, the
Fund’s portfolio will include both equity and debt securities. At any given time, however, the Fund
may emphasize either debt securities or equity securities. In selecting equity investments, the Fund
mainly seeks securities that Fund management believes are undervalued. The Fund may buy debt
securities of varying maturities. The Fund may invest in high yield or junk bonds. There is a 0.05%
annual investment management fee assessed on assets and a 1.22% underlying mutual fund fee. >




Sample QDIA Notice
PAD0904-0235     EMBC0409-401LD
<Conservative Balanced – The Conservative Balanced consists of holdings in three different asset
classes: stocks, bonds and money market instruments. The objective of the account is to maximize
long-term total return with a conservative level of risk. The Lincoln National Life Insurance Company
is the advisor for Conservative Balanced. Conservative Balanced uses a sophisticated asset
allocation computer model to determine how much will be directed to each of three asset classes:
stocks, bonds and money market instruments. General policy includes a managed mix of stocks,
bonds and short-term investments. This account is managed with a conservative style and will
emphasize fixed-income securities. There is a 0.75% annual investment management fee assessed
on assets and a 0.00% underlying mutual fund fee.

< FTVIPT Franklin Income Securities – The FTVIPT Franklin Income Securities account seeks to
maximize income while maintaining prospects for capital appreciation. Franklin Advisory Services,
LLC is the advisor for the account. The FTVIPT Franklin Income Securities Fund normally invests in
both debt and equity securities. The Fund seeks income by investing in corporate, foreign and U.S.
Treasury bonds, as well as stocks with dividend yields the manager believes are attractive. There is a
0.15% annual investment management fee assessed on assets and a 0.72% underlying mutual fund
fee. >

<MFS VIT Total Return – The MFS VIT Total Return account seeks total return. Massachusetts
Financial Services Company is the advisor for the account. The MFS VIT Total Return Series invests
in equity securities and debt instruments. MFS seeks to invest between 40% and 75% of the fund's
assets in equity securities and at least 25% of the fund's total assets in fixed-income senior securities.
MFS focuses on investing the fund's assets in the stocks of companies that it believes are
undervalued compared to their perceived worth (value companies). Value companies tend to have
stock prices that are low relative to their earnings, dividends, assets or other financial measures. MFS
may invest the fund's assets in companies of any size, but generally focuses on companies with large
capitalizations. MFS generally invests substantially all of the fund's investments in debt instruments in
investment grade debt instruments. There is a 0.30% annual investment management fee assessed
on assets and a 1.06% underlying mutual fund fee.>

< LVIP Delaware Foundation Aggressive Allocation – The LVIP Delaware Foundation Aggressive
Allocation account seeks long term capital growth. Lincoln Investment Advisors Corporation is the
advisor for the account. The LVIP Delaware Foundation Aggressive Allocation invests approximately
20% of its assets in underlying funds which invest primarily in fixed-income securities and
approximately 80% in underlying funds which invest primarily in equity securities. There is a 0.20%
annual investment management fee assessed and a 0.76% underlying mutual fund fee. >

< LVIP Delaware Foundation Conservative Allocation – The LVIP Delaware Foundation
Conservative Allocation account seeks a combination of current income and preservation of capital
with capital appreciation. Lincoln Investment Advisors Corporation is the advisor for the account. The
LVIP Delaware Foundation Conservative Allocation account invests approximately 60% of its assets
in underlying funds which invest primarily in fixed-income securities and approximately 40% in
underlying funds which invest primarily in equity securities. There is a 0.20% annual investment
management fee assessed on assets and a 0.75% underlying mutual fund fee.>

< LVIP Delaware Foundation Moderate Allocation – The LVIP Delaware Foundation Moderate
Allocation account seeks capital appreciation with current income as a secondary objective. Lincoln
Investment Advisors Corporation is the advisor for the account. The LVIP Delaware Foundation
Moderate Allocation account invests approximately 40% of its assets in underlying funds which invest
primarily in fixed-income securities and approximately 60% in underlying funds which invest primarily
in equity securities. There is a 0.20% annual investment management fee assessed on assets and a
0.76% underlying mutual fund fee. >

<LVIP Wilshire Target Maturity Profile Funds – The following four LVIP Wilshire Target Maturity
options are designed for investors planning to retire close to the year indicated in the name of the
fund. If the date of birth is not provided, defaulted contributions will be invested in Short Term (SA14)
until the missing information is received. Upon receipt, the participant’s future investment allocations
will be directed to the age-appropriate LVIP Wilshire Target Maturity Profile. The participant’s



Sample QDIA Notice
PAD0904-0235     EMBC0409-401LD
accumulated balance will remain in the LVIP Money Market investment option until the participant
transfers the balance by accessing their account via the Web or by calling the Customer Contact
Center.

•   LVIP Wilshire 2010 Profile – The 2010 profile is designed for investors with a birth year before
    1947. The LVIP Wilshire Target Maturity Profiles seek the highest total return over time with an
    increased emphasis on capital preservation as the target date approaches. Thereafter, an
    emphasis will be placed on high current income with a secondary focus on capital appreciation.
    Lincoln Investment Advisors Corporation is the advisor for the account. The current target
    allocation for the LVIP Wilshire 2010 Profile includes investing approximately 45% of its assets in
    underlying funds which invest primarily in fixed-income securities and approximately 55% in
    underlying funds which invest primarily in equity securities. The fund will change over time,
    becoming more conservative as you approach retirement age. There is a 0.20% annual
    investment management fee assessed on assets and a 0.71% underlying mutual fund fee.

•   LVIP Wilshire 2020 Profile – The 2020 profile is designed for investors with a birth year between
    1947 and 1957. The LVIP Wilshire Target Maturity Profiles seek the highest total return over time
    with an increased emphasis on capital preservation as the target date approaches. Thereafter, an
    emphasis will be placed on high current income with a secondary focus on capital appreciation.
    Lincoln Investment Advisors Corporation is the advisor for the account. The current target
    allocation for the LVIP Wilshire 2020 Profile includes investing approximately 63% of its assets in
    underlying funds which invest primarily in equity securities and approximately 37% in underlying
    funds which invest primarily in fixed-income securities. The fund will change over time, becoming
    more conservative as you approach retirement age. There is a 0.20% annual investment
    management fee assessed on assets and a 0.72% underlying mutual fund fee.

•   LVIP Wilshire 2030 Profile – The 2030 profile is designed for investors with a birth year between
    1958 and 1967. The LVIP Wilshire Target Maturity Profiles seek the highest total return over time
    with an increased emphasis on capital preservation as the target date approaches. Thereafter, an
    emphasis will be placed on high current income with a secondary focus on capital appreciation.
    Lincoln Investment Advisors Corporation is the advisor for the account. The current target
    allocation for the LVIP Wilshire 2030 Profile includes investing approximately 76% of its assets in
    underlying funds which invest primarily in equity securities and approximately 24% in underlying
    funds which invest primarily in fixed-income securities. The fund will change over time, becoming
    more conservative as you approach retirement age. There is a 0.20% annual investment
    management fee assessed on assets and a 0.73% underlying mutual fund fee.

•   LVIP Wilshire 2040 Profile – The 2040 profile is designed for investors with a birth year of 1968
    or after. The LVIP Wilshire Target Maturity Profiles seek the highest total return over time with an
    increased emphasis on capital preservation as the target date approaches. Thereafter, an
    emphasis will be placed on high current income with a secondary focus on capital appreciation.
    Lincoln Investment Advisors Corporation is the advisor for the account. The current target
    allocation for the LVIP Wilshire 2040 Profile includes investing approximately 92% of its assets in
    underlying funds which invest primarily in equity securities and approximately 8% in underlying
    funds which invest primarily in fixed-income securities. The fund will change over time, becoming
    more conservative as you approach retirement age. There is a 0.20% annual investment
    management fee assessed on assets and a 0.74% underlying mutual fund fee. >

Making investment elections
You must give instructions to the individual(s) named in the last section of this document as to how
you want your plan dollars invested. You may change (switch) from the QDIA investment to another
investment of your choosing without financial penalty. However, ongoing investment and account fees
may apply.

There are two categories of assets for which you may provide investment instructions – future
contributions and existing account balances.
•   You may change investment elections for your future contributions.



Sample QDIA Notice
PAD0904-0235     EMBC0409-401LD
•   You may change the investment elections for your existing account balances.

For new participants: You may make investment elections on an Enrollment Form.

For existing participants: You may make investment elections one of three ways.
(1) You may access the Lincoln Financial Group secure participant Web site, 24 hours a day, seven
    days a week: https://WebAccess.LFG.com
(2) You may utilize the Lincoln Financial Group automated telephone access system* toll free at
    800 510-4015; or
(3) You may call the Customer Contact Center at 800 510-4015, Monday through Friday, from 8 a.m.
    to 8 p.m. Eastern Time.

The New York Stock Exchange closes for trading at 4:00 p.m. ET on most business days. Therefore,
transactions received before market close will be assigned that day’s closing unit price. Transactions
received after market close, or on a weekend or holiday, will be assigned the closing unit price for the
next business day.
*Access may be subject to system availability.


Additional information
You may view additional information on other investment options available in the plan by visiting
www.LincolnFinancial.com and clicking on Financial Products > Retirement Plans > Lincoln
        SM
Director group variable annuity > Fund Options or obtain additional information by contacting the
individual(s) listed below:

Lincoln Financial Group Customer Contact Center:                 800 510-4015

Designated plan fiduciary
Name or Title of Fiduciary (trustee)
or designee of Fiduciary:                        <Name>
Address:                                         <Address>
                                                 <City, State, Zip>
Phone:                                           <000 000-0000>
Fax:                                             <000 000-0000>




Sample QDIA Notice
PAD0904-0235     EMBC0409-401LD

				
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Description: Should I Invest in Stocks or Bonds for Retirement document sample