Clear solutions in a complex world®
Russell G. Lowry
CFP®, CRPC®
Wealth Planning Advisor
Sagemark Consulting
100 Northfield Drive
Suite 200
Windsor, CT 06095

ph: 860.298.1800
fax: 860.298.1812
toll free: 888.921.8455

russell.lowry@lfg.com
Employee Bonuses - What's the Bottom Line?
A bonus is an important way to recognize and reward valued employee contributions without increasing the overall level of salary costs to the company. However, it is important to keep in mind that the net value of a bonus is reduced when an employee is required to pay income taxes on the benefit.

Due to this tax factor, many companies pay bonuses along with additional money to help cover the cost of the income tax. This arrangement is commonly referred to as a "double bonus." For example, suppose a company pays a bonus of $6,500 to a key employee. With income tax to pay, this is not what the employee will actually receive. Assuming the employee's combined federal and state income tax rate is 41% (35% federal and 6% state), the tax on the $6,500 would be $2,665, leaving only $3,835 for the employee. If the corporation wants the employee to receive $6,500 free and clear, the bonus will have to be $11,016. This is calculated as the desired net bonus divided by 1 minus the tax rate or $6,500 - (1.00 - .41)).

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Account Access

Whether you are buying a mutual fund for the first time or you're an experienced investor with a diversified portfolio, we can help. With access to state-of-the-art investment databases and communication with a variety of money managers, we have the tools, resources and experience necessary to properly evaluate your needs and develop a customized plan. And taking full advantage of existing tax-free, tax-deductible and tax-deferred alternatives may accelerate wealth accumulation.

Our securities brokerage is a natural extension of the financial services we provide. It's just one of the many ways we can assist you in developing and maintaining a successful financial portfolio.

myStreetscape

myStreetscape is an Internet-based service providing you access to your account(s) 24 hours a day, 7 days a week. It provides a clear and secure, yet powerful, means for you to access your account data and obtain the latest market information. Account information is always current as of the prior business day, while market data is updated throughout the day. And, your information is safeguarded in a secure environment; delivered to you via an encrypted, password protected pathway.

If you would like to learn more about myStreetscape or signup for a login ID/Password, please go here.

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Lincoln Managed Asset Program

The Lincoln Managed Asset Program is a privately managed separate account utilizing one or more private money managers. Unique characteristics of the program include one on one interaction with the money manager, third party custodian, and asset protection of $50,000,000 per account.

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SEI Investments

This program is offered to clients who desire asset allocation using style specific institutional mutual funds. The program utilizes the SEI institutional funds which incorporate multiple style money managers. LFA consults with the client concerning client's objectives and risk tolerance and recommends a specific asset allocation model. This model utilizes the SEI funds to allocate the client's assets and is rebalanced on a monthly basis. LFA monitors and consults with a client concerning the investment performance of his account and may recommend a change in models should the client's investment objective or other conditions warrant.

LFA charges a fee based on a percentage of assets under management. The annual fee will not exceed 1.75%.

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Brinker Capital Portfolio

This service is offered to clients of LFA who desire individual account management services. LFA utilizes Brinker Capital, a registered investment advisor to administer and assist with the asset allocation and individual manager selection. Brinker Capital also provides ongoing due diligence on each of the money managers offered. LFA and/or Brinker Capital will consult with the client concerning client s objectives and risk tolerance and recommend an unaffiliated portfolio management firm(s) to provide customized portfolio management services to the client. LFA and Brinker Capital monitor and consult with the client concerning the investment performance of the account, monitor the continuing capability and general performance of the portfolio management firm, and may recommend a change therein, if appropriate.

LFA charges a bundled fee for the Brinker Core Asset Manager Program, which includes the fee of the portfolio management firm, brokerage costs, Brinker Capital's advisory fee and LFA's advisory fee.

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