Features | Lincoln Financial Advisors with Sagemark Consulting

Features

Lincoln Financial Advisors (LFA) offers brokerage account services through: National Financial Services, LLC^®, (NFS).

LFA and NFS are members of the Securities Investor Protection Corporation (SIPC). Congress created SIPC in 1970 to protect clients of member broker-dealers that may fail or be liquidated.

Account Protection

Securities in accounts carried by National Financial Services LLC (NFS), a Fidelity Investments company, are protected in accordance with the Securities Investor Protection Corporation (SIPC) up to $500,000. For claims filed on or after July 22, 2010, the $500,000 total amount of SIPC protection is inclusive of up to $250,000 protection on claims for cash, subject to periodic adjustments for inflation in accordance with terms of the SIPC statute and approval by SIPC's board of directors. NFS also has arranged for coverage above these limits. Neither coverage protects against a decline in the market value of securities, nor does either coverage extend to certain securities that are considered ineligible for coverage. For more details on SIPC, or to request an SIPC brochure, visit www.sipc.org or call 202-371-8300.

"Excess of SIPC" Coverage

In addition to SIPC protection, NFS provides for brokerage accounts additional "excess of SIPC" coverage through Lloyd's of London, together with other insurers.¹ The excess of SIPC coverage will be used only when SIPC coverage is exhausted. Like SIPC protection, excess of SIPC protection does not cover investment losses in customer accounts due to market fluctuation. It also does not cover other claims for losses incurred while broker-dealers remain in business. Total aggregate excess of SIPC coverage available through NFS's excess of SIPC policy is $1 billion. Within NFS's excess of SIPC coverage, there is no per-account dollar limit on coverage of securities, but there is a per-account limit of $1.9 million on coverage of cash. This is the maximum excess of SIPC protection currently available in the brokerage industry.

Task Reference

A guide to your brokerage account brochure

Account statements

Monthly or quarterly statements provide easy-to-read summaries of your financial activity and offer clarity and comprehensive data. Depending on the type of account you choose, you may enjoy all or some of these features:

An asset allocation snapshot.
An income summary report.
Portfolio detail on securities positions and current market value.
Detailed cost-basis information, including realized and unrealized gains and losses.
Expense coding to help organize your check-writing activity.

TASK REFERENCE

How to Read Your Statement (NFS)

Additionally, all account holders receive annual statements that summarize their annual account activity for tax-reporting purposes. Ask your LFA financial professional if you may benefit from a consolidated statement that combines your financial holdings from many different financial services providers into one summary.

Bill payment services

A variety of bill payment services are available to you depending on which clearing firm your LFA account is managed through. Visit the Access page for information on bill payment services.

Check writing

LFA brokerage accounts offer a convenient check-writing service, providing an efficient system of cash flow management and making it easy to track your check-writing activity. You have limited or unlimited check-writing access to your cash sweep or margin loan balance, depending on the type of account you hold.

Before you consider check-writing from a margin loan balance, note that margin trading entails considerable risk and is not suitable for all investors. If the market value of securities in a margin account declines, the investor may be required to deposit more money or securities to maintain his or her line of credit. Investment losses do not minimize the obligation of a margin account investor to repay a loan in full.

Cash sweep program

In its capacity as broker-dealer of record for accounts held with NFS, LFA offers a “cash sweep” program that allows clients to have their cash balances awaiting investment (e.g., from cash deposits, securities transactions, dividend and interest payments, and other activities) automatically deposited, or “swept,” into a core account investment vehicle, or “cash sweep,” that LFA makes available for their account type. For additional information on LFA’s cash sweep program for accounts held with NFS, click here and speak with your LFA financial professional.

Debit card features

NFS

Brokerage Portfolio^® Accounts through NFS are available at two levels — Gold and Platinum — with VISA^®Debit/ATM cards among the services and features offered at both levels. These features are available with both the VISA Gold and Platinum Debit/ATM cards:

You can use the funds in your cash sweep to purchase goods and services with your VISA card or make cash withdrawals more than 600,000 locations worldwide, wherever you see the VISA symbol displayed.
You can avoid finance charges and monthly credit card bills. Each debit card transaction is automatically deducted from your cash sweep.
You may make up to five free ATM withdrawals per month, although ATM surcharge fees may apply. There is a 50-cent fee for each subsequent transaction.
As a VISA cardholder, you'll also receive auto rental discounts and no cost auto rental insurance, worldwide travel accident insurance, emergency card replacement and more.
Around-the-clock live customer service is available for VISA card questions at 877-506-2399.

Additionally, the VISA Platinum Debit/ATM card offers:

Reward points that may be redeemed for an array of goods and services.
Cash back based on debit card spending and reward points.
Pay-per-use roadside assistance.
One-phone-call concierge service to assist with entertainment, business and travel arrangements.
A lost luggage reimbursement for checked-on baggage. Reimbursement coverage is up to $5,000 of the difference between the value of the amount claimed and the common carrier's payment. The VISA Platinum Card must be used when purchasing the common carrier ticket.

Brokerage Access^® Accounts through NFS offers an optional VISA^® Classic Debit/ATM Card with the following features:

You can use the funds in your cash sweep to purchase goods and services with your VISA card or make cash withdrawals more than 600,000 locations worldwide, wherever you see the VISA symbol displayed.
You can avoid finance charges and monthly credit card bills. Each debit card transaction is automatically deducted from your cash sweep.

Deposits

Periodically, you might wish to make physical check or securities deposits to your brokerage account with LFA. Contact your LFA financial professional to help you facilitate the deposit process.

Margin

The margin feature of a brokerage account allows you to leverage your purchasing power by borrowing against the securities in your account. It allows investors to take advantage of trading opportunities even when investment cash is not readily available. Additionally:

Borrowing costs are generally lower than they are from traditional lending sources.
There is no repayment schedule.
You have access to cash in a margin line of credit without liquidating securities.
Check-writing privileges on a margin line of credit include overdraft protection.

However, consultation with your LFA financial professional is strongly suggested before you consider margin trading. Margin trading entails considerable risk and is not suitable for all investors. If the market value of securities in a margin account declines, you may be required to deposit more money or securities to maintain your line of credit. Investment losses do not minimize the obligation of a margin account investor to repay a loan in full. If you are unable to do so, LFA may be required to sell all or a portion of your pledged assets. We encourage you to read the margin disclosure.

Mutual Fund Trading

Mutual Fund Dollar Cost Averaging is a system of buying mutual fund shares in fixed dollar amounts at regular fixed intervals, regardless of the share's price. The investor purchases more shares when prices are low and fewer when prices are high, thus lowering the average cost per share over time.

Dollar cost averaging does not assure a profit or protect against loss in declining markets. Because dollar cost averaging involves continuous investment regardless of changing price levels, you should consider your ability to continue purchasing through periods of all price levels. This feature provides a convenient method for systematic investing in a wide variety of mutual funds from an extensive list of fund families.

Also, for certain account types, a money market fund will be used as a cash sweep and will hold funds designated for mutual fund dollar cost averaging plans. In these cases, ask your LFA financial professional for a current prospectus for the money market fund used as your cash sweep. The money market fund’s prospectus contains important information regarding, among other things, the money market fund’s charges, risks, and expenses. Please read the prospectus carefully.

Mutual Fund Systematic Withdrawal provides a convenient method for systematic liquidation of mutual fund positions held in your brokerage accounts.

Tax Corner

The following websites are valuable resources for annual tax information regarding your accounts, including statement information and understanding the safeguarding of your accounts.

Task Reference

Transfer Service

Opening a brokerage account with LFA can help simplify the management of multiple investments. Assets at banks, credit unions and other financial institutions may be transferred into a single brokerage account, making it easier to implement your investment strategy — and potentially reduce fees. Such a transfer can be prudent if you're nearing or in retirement. Take a look at your various holdings:

Are you eligible to receive cash or other assets from an Individual Retirement Account (IRA)?
Are you ready to withdraw assets from a pension or profit sharing plan?

A direct rollover of retirement assets to a retirement account with LFA allows you to continue deferring taxes on the assets without a tax penalty. Your LFA financial professional can help you arrange direct rollovers as well as direct transfers between other custodians and trustees.

Talk to your LFA financial professional today to hear more about the benefits involved with opening an account with us.

¹Fidelity's "excess of SIPC" insurance is provided by Lloyd's of London together with Axis Specialty Europe Ltd., Markel International Insurance Company, XL Specialty Insurance Company, and Munich Reinsurance Co.

Lincoln and its affiliates do not provide tax, legal or accounting advice. Consult your tax professional for any tax, accounting or legal issues.

Any entity named here is separate and not an affiliate of Lincoln Financial Group or any of its affiliates. Any third-party trademarks and service marks appearing herein are the property of their respective owners.

Lincoln Financial Network is the marketing name for Lincoln Financial Advisors Corp. and Lincoln Financial Securities Corporation, affiliates of Lincoln Financial Group. Lincoln Financial Group is the marketing name for Lincoln National Corporation and its affiliates.

Securities offered through Lincoln Financial Advisors Corp., a member of SIPC, 1301 South Harrison Street, Fort Wayne, IN., 46802, tel: 800-237-3813. Investment advisory services offered through Lincoln Financial Advisors Corp. or Sagemark Consulting, a division of Lincoln Financial Advisors Corp., a registered investment adviser. Insurance offered through Lincoln affiliates and other fine companies. In Michigan, securities and investment advisory services offered through Lincoln Financial Advisors Corp. a broker-dealer, a registered investment adviser and an insurance agency. In California, insurance offered through Lincoln Marketing and Insurance Agency, LLC and Lincoln Associates Insurance Agency, Inc. and other fine companies. In Utah, LFA Insurance Agency. In Washington, insurance offered through Lincoln Financial Advisors Corp., LFA, Limited Liability Company and other fine companies. Lincoln Financial Advisors Corp. and its financial professionals do not provide legal or tax advice.

Not all financial professionals with our firm are able to offer advisory services.

See Lincoln Financial Advisors Corp. (LFA’s) Form CRS - Customer Relationship Summary, available here, for succinct information about the relationships and services LFA offers to retail investors, related fees and costs, specified conflicts of interest, standards of conduct, and disciplinary history, among other things. LFA’s Forms ADV, Part 2A, which describe LFA’s investment advisory services, Regulation Best Interest Disclosure Document, which describes LFA’s broker-dealer services, and other client disclosure documents can be found here.

Wealthscape Investor℠ is a service mark of FMR LLC.

Fidelity Investments is a leading provider of investment management, retirement planning, portfolio guidance, brokerage, benefits outsourcing and other financial products and services to institutions, financial intermediaries, and individuals. For more information about Fidelity Investments, visit Fidelity.com.

Fidelity Investments ("Fidelity") is an independent company, unaffiliated with Lincoln Financial Advisors Corp. ("LFA"). Fidelity is a service provider to LFA. There is no form of legal partnership, agency affiliation, or similar relationship between your financial professional and Fidelity, nor is such a relationship created or implied by the information herein. Fidelity is a registered service mark of FMR LLC. Fidelity Investments provides clearing, custody, or other brokerage services through National Financial Services LLC or Fidelity Brokerage Services LLC, Members NYSE, SIPC. 908746.2.0

LINCOLN FINANCIAL ADVISORS				ADDITIONAL SUPPORT
Mailing Address: Lincoln Financial Advisors 1301 S. Harrison Street / Suite 150 Fort Wayne, IN 46802				Questions about Specific Account Issues: Brokerage Account Services/General Information
Investment Services and Trade Phone: 800-237-3813 Monday - Friday 8:30 a.m.-7:00 p.m. ET				Questions about Accessing and Using Wealthscape Investor: Wealthscape Investor
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