Pierre M. Movsessian, MBA, CFP®, AIF® Senior Wealth Advisor | LPL Branch Manager Shares of...

Pierre M. Movsessian, MBA, CFP®, AIF® Senior Wealth Advisor | LPL Branch Manager

Shares of Oppenheimer funds are not deposits or obligations of any bank, are not guaranteed by any bank, are not insured by the FDIC or any other agency, and involve investment risks, including the possible loss of the principal amount invested.CC0000.215.0608

OppenheimerFunds

Beneficiary Planning: Don’t Leave Your Legacy to Chance!

Source: NY Post, January 31, 2005

Don’t Let This Happen to You . . .

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Dilemma: Anne didn’t update her beneficiary form after she wed Bruce.

Agenda

• Benefits of Beneficiary Planning

• Know the Basics

• What You Can Do Now

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Benefits of Beneficiary Planning

Account Owner Benefits:• Ensure assets reach

intended beneficiaries• Provide for financial needs of

loved ones in orderly fashion• Potentially reduce taxes• Help a favorite cause

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Benefits of Beneficiary Planning

Beneficiary Benefits:• Know what to expect during

this emotional time • Avoid potential delay

and expense of probate • Potential opportunity to take

advantage of tax-deferred strategies

Know the Basics

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Meet Abby…

What would happen to Abby’s money?

• Opened a $500,000 IRA online

• She did not name a beneficiary

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Expense

Public Record Time

Abby’s IRA – [attorney fees + probate fees + taxes] = Not $500,000!

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Look what happens to Abby’s money . . .

Abby’s $500,000 IRA

Abby’s Estate

Probate Court

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Why Is the Beneficiary Form Important?

• Your will has no bearing on retirement account disbursements

• Valid beneficiary form

• Impacts amount and timing of retirement distributions

• Enables beneficiaries to take advantage of available tax opportunities

To Whom Will You Leave Your Money?

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Choosing Your Beneficiaries

• Spouse• Children• Grandchildren• Charities• Other

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Your Legacy

The Stretch IRA Strategy

What Is a Stretch IRA Strategy?

• Distribution strategy

• Tax-deferred earnings within IRA extends beyond lifetime of account owner potentially over multiple generations

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How Does It Work?Account Owner Spouse

Rollover

Children Grandchildren

Names younger beneficiaries

Note: Hypothetical based on 8% annual rate of return. Account values subject to income tax upon distribution. This hypothetical example is not intended to show the performance of any Oppenheimer fund for any period of time or fluctuations in principal value or investment return.

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Why Planning Matters

Children’s Inheritance: $1,188,015Total Distributions: $4,098,871

Children’s Inheritance: $1,001,001Total Distributions: $2,276,501

0

955,918

1,911,836

2,867,754

3,823,672

4,779,590

2007 2012 2017 2022 2027 2032 2037 2042 2047 2052

40 Year Account Balance 40 Year Total Distribution 22 Year Account Balance 22 Year Total Distribution

$

Abby’s Starting Balance: $500,000

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Life Happens

Reasons to update

• Births and Adoptions

• Deaths

• Special needs beneficiaries

• Marriages and divorces

David never named anyone other than his spouse as beneficiary of his retirement benefits!

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Meet David and Debbie Sandler . . .

What You Can Do Now

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Take inventory of

all your accounts

Talk to your

beneficiaries

Work with your

financial advisor

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What You Can Do Now

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Take Inventory of all Your Accounts

Where are your beneficiary forms?Who are your beneficiaries? Are your beneficiary forms up-to-date?

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Talk to Your Beneficiaries

How will your decisions affect your beneficiaries?

Do your beneficiaries have copies of your forms?

Do they know what to do when they inherit the assets?

Do they have current beneficiary designations for their own accounts?

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Work with Your Financial Advisor

• Alleviate stress associated with beneficiary planning

• Discuss options with you and your beneficiaries

• Assist beneficiaries when the time comes to transfer assets

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Remember . . .

• Designating the correct beneficiaries benefits both account owners and beneficiaries

• Proper planning can help prevent your money from falling into the wrong hands

• Review your beneficiary designations on a regular basis

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Take Action Now

• Collect beneficiary information on all of your accounts

• Talk to your beneficiaries

• Make an appointment with your financial advisor today

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Thank You!

This material is provided for general and educational purposes only, and is not intended to provide legal, tax or investment advice, or for use to avoid penalties that may be imposed under U.S. federal tax laws. Contact your attorney or other advisor regarding your specific legal, investment or tax situation.

Before investing in any of the Oppenheimer funds, investors should carefully consider a fund’s investment objectives, risks, charges and expenses. Fund prospectuses contain this and other information about the funds, and may be obtained by asking your financial advisor, calling us at 1.800.525.7048 or visiting our website at www.oppenheimerfunds.com. Read prospectuses carefully before investing.

Oppenheimer funds are distributed by OppenheimerFunds Distributor, Inc.Two World Financial Center, 225 Liberty Street, New York, NY 10281-1008©Copyright 2008 OppenheimerFunds Distributor, Inc. All rights reserved.

Pierre M. Movsessian, MBA, CFP®, AIF® Senior Wealth Advisor | LPL Branch Manager Shares of...

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