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Lincoln National (LNC) Adds Solution to Attain Retirement Goals

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Lincoln National Corporation (LNC - Free Report) recently launched Advisor Managed Accounts — a solution that complements the company’s existing portfolio of custom asset allocation products.

The innovative solution empowers the registered investment advisor (RIA) of a retirement plan to devise plan-specific portfolios utilizing their investment expertise.  It also makes use of the technology platform of Morningstar Investment Management LLC, which facilitates smooth and hassle-free portfolio assignment process for each participant.

Available through the Lincoln Alliance program, the resulting personalized investment programs are devised in such a way that financial professionals and plan sponsors can devise portfolios with thorough information regarding plan participants. This, in turn, helps the participants to achieve their individual retirement goals.

Notably, the Advisor Managed Accounts service can either be made available as the Qualified Default Investment Alternative (QDIA) for all participants or it can be opted voluntarily by each participant.

Shares of Lincoln National have lost 13% in a year compared with the industry’s decline of 16.3%. Notably, it carries a Zacks Rank #4 (Sell).

It is worth mentioning that the latest move seems to be time opportune amid the COVID-19 pandemic, which has further aggravated financial insecurities across the United States. With people remaining concerned about some or the other aspect of financial wellness, inclusion of managed account option in a plan gives an additional boost to the retirement savings of participants desiring a secured future.

Case in point, over half of plan sponsors have been advocating the need of a managed account option to be included in their retirement plans. Their significance of the same has been further substantiated by Morningstar Investment Management, which has been offering managed accounts service for over 15 years. After accounting for age and income, the investment advisor noticed that over 70% of participants, who had less chances of attaining retirement goals, were able to enhance their savings rates by around 33% following the utilization of managed accounts.

Moreover, Lincoln National has launched several retirement solutions in 2020, ranging from next generation of Lincoln AssetEdge Variable Universal Life (VUL) to a Multi-Manager solution in order to assist investment and retirement decisions of small business owners.

Also, the company announced the integration of its two core businesses — Retirement Plan Services and Group Benefits business lines — last month to create a broader Workplace Solutions organization. By combining these two service lines, the company is positioned well to solidify its portfolio and stabilize customer experience. For quite some time now, the life insurer intends to intensify focus on its core businesses by getting rid of its underperforming operations.

Stocks to Consider

Some better-ranked stocks in the insurance space include Manulife Financial Corporation (MFC - Free Report) , Primerica, Inc. (PRI - Free Report) and Kemper Corporation (KMPR - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Manulife Financial, Primerica and Kemper have a trailing four-quarter earnings surprise of 6.87%, 10.04% and 24.01%, on average, respectively.

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