learn how a putnam ira can help you save for retirement
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putam.om/ira
Lear how a PutamIRA a help yousave for retiremetTraditioal ad Roth
http://www.putnam.com/irahttp://www.putnam.com/http://www.putnam.com/ira -
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ow will you use your IRA savis?The vast majority of Traditioal IRA owers pla
to make withdrawals to pay for livi epeses.
tment Company Institute, The Role of IRAs in U.S. Households
g for Retirement, 2009.
Health-careexpenses
einvestmentor savingin anotheraccount
notheroption
mergencyexpenses
ngenses
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Choose the IRA thats right for you:
Traditional or Roth
Your IRA should t your life. For some, that may mean a tax-deferred Traditional
IRA. For others, a tax-free Roth IRA may make more sense. The big dierence
between the two account types is when your investments get taxed: With
Traditional IRAs, you pay taxes when money is withdrawn; contributions to Roth
IRAs are made with money that has already been taxed.
Traditional IRA
Do you anticipate being in a lower income
tax bracket in retirement?
I so, a Traditional IRA may be or you. The money
you contribute now is tax-deductible, while
withdrawals in retirement are taxed as income.
Are you looking to reduce your taxable income?
I reducing your taxable income would put you in
a lower income tax bracket, the tax-deductible
contributions you make to a Traditional IRA can
help you reduce your tax liability.
Roth IRA
Would you benet rom tax-ree income
in retirement?
I you already have money invested in a tax-deerred
account such as a 401(k) and a taxable account such
as a money market und at your local bank a Roth IRA
could be a good ft or you. Investing in a Roth IRA can
provide you with a source o tax-ree income in retirement.
Is retirement still a way of or you?
I you have many years let until retirement, a Roth IRA
may be worth considering. The longer your account has the
potential to grow, the more you could stand to save on taxes
when it comes time to make withdrawals in retirement.
Its reassuring to know
that no matter where my career
takes me, theres an IRA that
ts my goals.
IRAs are an increasingly popular way to save.
More than 46 million U.S. households own at
least one IRA today.
Investment Company Institute, The Role of IRAs in U.S. Households
Saving for Retirement, 2009.
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Makesureyoufully
understandthedieren
ces
betweenaTraditional
andaRothIRAbefore
youinvest.
Traditional IRA Roth IRA
DIRS
Anyone can contribute, regardless o income*
Tax-deductible contributions
Tax-deerred growth o earnings
Tax-ree growth o earnings
Tax-ree withdrawals
o restrictions due to employer-sponsored
retirement plan eligibility
ontributions permitted ater age 70
Minimum withdrawals required by age 70
ontributions may be withdrawn at any time tax ree
SIMIARITIS
The two account types have a number o similarities, including the ability to make catch-up contributions i youre over age 50
and the exibility to take penalty-ree withdrawals in certain situations.
ontribution limit$5,000 if under age 50
$6,000 if age 50 or older
Same
Age or earliest penalty-ree withdrawal 591 591
Allows penalty-ree withdrawals in certain situations
(rst-time home purchase, certain medical expenses, etc.)
an accept direct rollovers rom workplace retirement plans
1I you are over age 70 or have $0 in income, you cannot contribute to a Traditional IRA.
2ontributions to a Roth IRA can be withdrawn at any time.
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Does a Roth conversion
make sense for you?Will your tax rate be higher in retirement?
I youre worried about acing higher tax rates in
retirement, a Roth conversion may be the solution.
All withdrawals made ater age 59 are ree rom
ederal income taxes, as long as the account has
been open or at least fve years.
Do you already own taxable and tax-deerred
savings accounts?
Many fnancial experts agree that diversiying thetax treatment o your savings accounts is a prudent
move that can help you prepare or unoreseen changes
in tax rates down the road. That means owning a mix
o taxable, tax-deerred, and tax-ree accounts,
such as a Roth IRA.
Do you want to leave a nancial legacy to your
children or grandchildren?
Neither you nor your spousal benefciary are required to
make withdrawals. And your children or grandchildren
who inherit the IRA can take the minimum required
distributions based on their lie expectancies, extending
the tax-ree growth or years.
Do you have the unds to pay taxes on a conversion?
Beore you decide to convert to a Roth IRA, make sure youhave the unds outside o existing retirement accounts to
pay the income taxes due. Tapping into your nest egg to
pay your tax bill is usually counterproductive.
Keep in mind, i you fnd your tax bill is too high or i
your account posts a signifcant decline, you can always
undo, or recharacterize, all or a portion o your Roth IRA
conversion without penalty, as long as you do so beore
the tax-fling deadline, plus extensions.
1Income limits are based on modiied adjusted gross income (MAGI).
2The spousal beneiciary is not required to make withdrawals i they take the inherited account as their own.
3Account must have been established or at least ive years prior to inheritance.
Consider the tax benets
of converting to a Roth IRA
Since Roth IRAs were rst introduced, tax lers earning more than $100,000* have
been ineligible to convert existing accounts. But thanks to changes in the tax law,
if you have money in a tax-deferred retirement account, you now have the option to
convert it to a Roth IRA regardless of your income.
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What are the next steps
for converting to a Roth IRA?
Se 1: Discuss your specic situation with
your tax proessional or nancial advisor.
Converting an account has signifcant tax implications
now and in retirement. Make sure you understand how
converting fts into your long-term investment goals.
Se 2: Decide how much o your savingsyou want to convert.
You can elect to convert only a portion o your
traditional retirement account.
Se 3: Decide how youll pay taxes due on
the conversion.
Youll pay income taxes on the value o the account
(including both pretax contributions and earnings).
It is recommended that you have assets outside o
your retirement accounts to pay the taxes due on aRoth conversion.
Se 4: ill out an account application and
choose your investments.
Your fnancial advisor can walk you through the
application process and will send the completed
orms to Putnam.
Get the facts.
putnam.com/rothira
Use our online conversion evaluator to put yourunique retirement savings situation in perspective.
rothirablog.com
Get the latest updates on saving for retirement
from our panel of experts.
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International investing involves certain risks, such as currencyuctuations, economic instability, and political developments.
Additional risks may be associated with emerging-market securities,
including illiquidity and volatility.
The funds invest some or all of their assets in small and/or midsize
companies. Such investments increase the risk of greater price
uctuations.
Lower-rated bonds may oer higher yields in return for more risk.
Funds that invest in government securities are not guaranteed.
Mortgage-backed securities are subject to prepayment risk.
The rst suite of lifecycle funds to integrate absolute return strategies
2055 2050 2045 2040 2035
Asset allocation Absolute return Money market
Invest in one easy step with
Putnam RetirementReady Funds
Putnam RetirementReady Funds take the guesswork out of investing your IRA
assets by combining the best of Putnams asset allocation strategies for growth
with our absolute return strategies for lower volatility, in one innovative package.
Built with retirement in mind
With Putnam RetirementReady Funds, each portolio
is targeted to match your specifc retirement date while
automatically growing more conservative over time.
Just pick the portolio that most closely matches the
year in which you plan to start withdrawing money
and youre done.
xperienced managers With more than 16 years o
experience managing multi-asset-class portolios,
Putnams RetirementReady und managers are some
o the most tenured in the industry.
With 25 years to mat
the RetirementReady
2035 und is invested
global mix o stocks a
bonds seeking growt
A portion is reserved
absolute return strate
to help smooth out th
bumps along the way
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Money market funds are not insured or guaranteed by the Federal DepositInsurance Corporation (FDIC) or any other governmental agency. Although
the fund seeks to preserve the value of your investment at $1.00 per share,
it is possible to lose money by investing in this fund.
Funds that invest in bonds are subject to certain risks including interest-rate
risk, credit risk, and ination risk. As interest rates rise, the prices of bonds
fall. Long-term bonds are more exposed to interest-rate risk than short-term
bonds. Unlike bonds, bond funds have ongoing fees and expenses.
Principal value of the funds is not guaranteed at any time, including the
target date.
2030 2025 2020 2015 Maturity
A range o investment opportunities The unds
provide exposure to traditional investments such as
stocks and bonds, as well as to alternative asset classes
such as real estate, emerging markets, and international
currency markets.
Active investment management Unlike target-maturity
strategies that use a und-o-unds approach, each
RetirementReady portolio is proessionally managed or
comprehensive diversifcation, active risk management,
and ecient rebalancing.
At maturity, this
RetirementReady und
is invested primarily
in strategies designed
to minimize volatility
while preserving
enough o the growth
strategies to stay ahead
o ination.
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Absolute return undsare designed or a wide range o
investors and pursue positive returns with less volatility
over time than more traditional unds.
Asset allocation unds invest in a mix o many dierent
types o investments to help weather changing market
environments.
Income unds invest in bonds and other securities with
the goal o providing a steady stream o income over time.
Value unds look or stocks that have been overlooked
by other investors and that may be selling or less than
their true worth.
Growth unds look or stocks o companies that have
the potential to grow over time.
Blend unds invest opportunistically in a variety o stocks,
including both growth and value stocks.
Global sector unds invest worldwide in stocks o compa-
nies rom a single economic sector.
I want a portfolio
built for exibility, so I can
take advantage of changing
investment opportunities
in the markets.
Putnam oers more than 100 funds across seven dierent asset classes so youcan build a portfolio from the ground up, designed with your specic investment
goals in mind.
Or create a portfolio
custom built for your goals
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The one account every retirement
saver should consider
You know how important it is to save for retirement. Fortunately, theres an account
that makes it easier. Whether youre just beginning your career or winding it down,
an Individual Retirement Account (IRA) can help you create a more comfortable
retirement. Talk to your nancial advisor to learn more about the benets of a
Putnam IRA.
A simple way to save
Its easy to set up and contribute to an IRA. You can start
a Putnam IRA with as little as $25 a month, and it can be
linked to your checking account so you can make contri-
butions automatically.
Powerful tax advantages
Depending on what type o IRA you decide to open,
youll save on taxes either on the money you contribute
or on the money you withdraw during retirement.
Either way, your contributions will have the potentialor tax-advantaged growth a beneft you wont fnd
in most other types o savings accounts.*
A range of investment options
IRAs oten oer more investment options than the typical
employer-sponsored retirement plan. With a Putnam
IRA, youll have access to more than 100 unds, including
Putnam RetirementReady Funds broadly diversifed
portolios that adjust automatically as you get closer
to retirement.
Endless portability
No matter where your career takes you, your IRA will
ollow. Its the one lietime retirement savings accountevery investor should consider.
1Taxes may be due upon withdrawal, and withdrawals beore age 59 may be subject to an additional 10% penalty.
Im counting on my IRA to help provide my
income in retirement.
Millions o Americans are, and with good reason: IRAs are an efective way to build
your nest egg. The median wealth o households with IRAs was six times greater than
households that did not own IRAs.
Investment Company Institute, The Role of IRAs in U.S. Households Saving for Retirement, 2009.
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One Post Ofce Square
Boston, MA 02109
1-800-719-9914
putnam.com
Putnam Retail Management IR610 266768 3/11
Consider these risks before investing:Asset allocation deci-
sions may not always be correct and may adversely affect fund
performance. The use of leverage through derivatives may
magnify this risk. Leverage and derivatives carry other risks that
may result in losses, including the effects of unexpected market
shifts and/or the potential illiquidity of certain derivatives.
International investments carry risks of volatile currencies,
economies, and governments, and emerging-market securitiescan be illiquid. Bonds are affected by changes in interest rates,
credit conditions, and inflation. As interest rates rise, prices of
bonds fall. Long-term bonds are more sensitive to interest-rate
risk than short-term bonds, while lower-rated bonds may offer
higher yields in return for more risk. Unlike bonds, bond funds
have ongoing fees and expenses. For the 500 Fund and 700
Fund, these risks also apply: Stocks of small and/or midsize
companies increase the risk of greater price fluctuations.
REITs involve the risks of real estate investing, including
declining property values. Commodities involve the risks of
changes in market, political, regulatory, and natural conditions.Additional risks are listed in the funds prospectus.
This information is not meant as tax or legal advice.
You should consult with the appropriate tax or legal
professional before making any investment decisions.
Investors should carefully consider the investment
objectives, risks, charges, and expenses of a fund before
investing. For a prospectus, or a summary prospectus if
available, containing this and other information for any
Putnam fund or product, call your financial advisor or
contact Putnam at 1-800-225-1581. Please read theprospectus carefully before investing.
A bALAnc APPRAc
Since 1937, when George Putnam created a diverse
mix of stocks and bonds in a single, professionally
managed portfolio, Putnam has championed the
balanced approach.
A RL InTIng
Today, we oer investors a world of equity, xed-
income, multi-asset, and absolute-return portfolios
to suit a range of nancial goals.
A cITnT T xcLLnc
Our portfolio managers seek superior results over time,
backed by original, fundamental research on a global
scale. We believe in the value of experienced nancial
advice, in providing exemplary service, and in putting
clients rst in all we do.
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