1. Copyright ©2005 Ibbotson Associates, Inc. Principles of Investing Securities offered through Lincoln Financial Advisors Corp., a broker/dealer, 1300 S. Clinton Street, Fort Wayne, IN 46802-3506, Phone 800-454-6265. Insurance offered through Lincoln affiliates and other fine companies. Lincoln Financial Group is the marketing name for Lincoln National Corporation and its affiliates. CRN200510-1003372

2. This is for illustrative purposes only and not indicative of any investment. An investment cannot be made directly in an index. Past performance is no guarantee of future results. 3/1/2005 Copyright ©2005 Ibbotson Associates, Inc. 3.3% Bonds without reinvestment $1,907 Power of reinvesting 1984–2004 Hypothetical value of $1,000 invested at year-end 1984. Data does not account for taxes or transactions costs. The average return represents a compound annual return. $100 $1,000 $10,000 $100,000 19841989199419992004 This is for illustrative purposes only and not indicative of any investment. An investment cannot be made directly in an index. Past performance is no guarantee of future results. 3/1/2004 Average return Ending wealth Stocks without reinvestment 10.4%$7,249 10.8%$7,798 Stocks with reinvestment 13.2%$11,994 Bonds with reinvestment

3. This is for illustrative purposes only and not indicative of any investment. An investment cannot be made directly in an index. Past performance is no guarantee of future results. 3/1/2005 Copyright ©2005 Ibbotson Associates, Inc. Stocks: 50% large and 50% small company stocks. Bonds: intermediate-term government bonds. Stock allocation Bond allocation Portfolio weightings Target asset mix: 50% stocks/50% bonds 1984–2004 Importance of rebalancing 50% 72% 28% 75% 25% 58% 42% 55% 45% 50% 0% 20% 40% 60% 80% 100% 19841989199419992004

4. This is for illustrative purposes only and not indicative of any investment. An investment cannot be made directly in an index. Past performance is no guarantee of future results. 3/1/2005 Copyright ©2005 Ibbotson Associates, Inc. Non-rebalanced portfolio Rebalanced portfolio Jan 1970– Dec 2004 Jan 1980– Dec 2004 Jan 1990– Dec 2004 Rebalancing versus not rebalancing The risk and return of rebalanced versus non-rebalanced portfolios RiskReturn Jan 1970– Dec 2004 Jan 1980– Dec 2004 Jan 1990– Dec 2004 Risk is measured by annualized standard deviation. Return is measured by compound annual return. 11.3% 12.1% 9.4% 11.0% 11.7% 8.8% 0% 2% 4% 6% 8% 10% 12% 14% 12.8%12.7% 11.1% 9.4% 10.4%10.1% 0% 2% 4% 6% 8% 10% 12% 14%

5. This is for illustrative purposes only and not indicative of any investment. An investment cannot be made directly in an index. Past performance is no guarantee of future results. 3/1/2005 Copyright ©2005 Ibbotson Associates, Inc. Hypothetical value of $1 invested from year-end 1925–2004 Dangers of market timing $2,533 $17.87 $0 $500 $1,000 $1,500 $2,000 $2,500 $3,000 S&P 500 $17.75 S&P minus best 38 months Treasury Bills

6. This is for illustrative purposes only and not indicative of any investment. An investment cannot be made directly in an index. Past performance is no guarantee of future results. 3/1/2005 Copyright ©2005 Ibbotson Associates, Inc. Dangers of market timing Hypothetical value of $1 invested from year-end 1984–2004 $5 $15 $10 $11.99 $2.57 S&P 500 $0 $2.39 S&P 500 minus best 19 months Treasury bills

7. This is for illustrative purposes only and not indicative of any investment. An investment cannot be made directly in an index. Past performance is no guarantee of future results. 3/1/2005 Copyright ©2005 Ibbotson Associates, Inc. Annual return minus best month Annual return The effects of missing the best month on annual returns Market timing risk Return if the best month is missed Compound annual return Return if invested for the whole year Return if invested for the whole year Return if the best month is missed -40% -30% -20% -10% 0% 10% 20% 30% 40% 19701975198019851990199520002004

8. This is for illustrative purposes only and not indicative of any investment. An investment cannot be made directly in an index. Past performance is no guarantee of future results. 3/1/2005 Copyright ©2005 Ibbotson Associates, Inc. $40,000 $60,906 $20,000 $124,550 $150,000 Power of compounding Total amount invested Compounded value at year-end 2004 Investor B 10 $4,000 Year-end 1994–2004 Investor A 10 $2,000 Year-end 1984–2004 Years contributing: Annual amount contributed: $0 $100,000 $50,000 Hypothetical investment in stocks

9. This is for illustrative purposes only and not indicative of any investment. An investment cannot be made directly in an index. Past performance is no guarantee of future results. 3/1/2005 Copyright ©2005 Ibbotson Associates, Inc. *Assumes capital gains tax rate of 15%. $(3,500) $(2,500) $(1,500) $(500) $500 $1,500 $2,500 $3,500 $4,500 $5,500 $2,000 $300 ($3,000) ($450) $5,000 Taxable gain (loss) Investment with gain Investment with loss Results of harvesting losses Taxes paid (credit)* $750 += Tax-loss harvesting

10. This is for illustrative purposes only and not indicative of any investment. An investment cannot be made directly in an index. Past performance is no guarantee of future results. 3/1/2005 Copyright ©2005 Ibbotson Associates, Inc. Each bar shows the range of compound annual returns for each asset class over the period 1926–2004. 1-year holding periods Small company stocks Large company stocks Government bonds Treasury bills -75% -50% -25% 0% 25% 50% 75% 100% 125% 150% 20-year holding periods 5-year holding periods 10.4% 12.7% 5.4% 3.7% Compound annual return 1926–2004 Reduction of risk over time

11. This is for illustrative purposes only and not indicative of any investment. An investment cannot be made directly in an index. Past performance is no guarantee of future results. 3/1/2005 Copyright ©2005 Ibbotson Associates, Inc. Can you stay on track? Bonds $600 $800 $1,200 $1,400 1971197219731974 $1,000 $1,091 $15,382 $100 $1,000 $10,000 $100,000 Stocks $747 $47,517 1974198419942004 $912 50/50 portfolio $29,945

12. This is for illustrative purposes only and not indicative of any investment. An investment cannot be made directly in an index. Past performance is no guarantee of future results. 3/1/2005 Copyright ©2005 Ibbotson Associates, Inc. Returns before and after inflation 1926–2004 Compound annual return StocksBonds Cash 0% 4% 8% 12% 10% 6% 2% Before inflation 10.4% 5.4% 3.7% 7.2% 2.3% 0.7% After inflation Assumes reinvestment of income and no transaction costs or taxes.