Using today’s wealth for tomorrow’s goals Welcome, and thanks for coming. Wealth Management is a term that refers to a multifaceted approach to accumulating wealth, preserving wealth, spending down wealth, and passing wealth on to heirs. Today we’re going to focus on three specific areas: Funding college education Minimizing taxes Planning for income in retirement and transferring wealth Funding college education: We’ll explore today’s challenges and highlight effective solutions that investors should consider to meet fund objectives. Minimizing taxes: How can investors preserve more of their wealth by being “tax-smart”? Planning for income in retirement and transferring wealth: Tapping into wealth during retirement to meet expenses is often a complex and daunting process for many investors. What strategies should be considered to ensure current income needs are met and any legacy objectives are fulfilled? Strategies to prepare for college, retirement, taxes, and wealth preservation.

Funding college education Let’s start with funding college education.

College costs are rising Four years of tuition, room, and board College costs are going up. Using a conservative 5% inflation rate, if current trends continue, in 18 years tuition could cost over $185,000 at a public college. Whereas, tuition at a private college would be projected to total over $420,000.   Figures include tuition, fees, room, and board. Estimated growth rate of 5.0%. Sources: The College Board, Trends in College Pricing, 2016.

College debt is also rising Student life 61% of full-time undergraduates use loans to help finance their college costs. Graduates Among graduates from private universities who borrow money, the average debt is $26,900. The median starting salary for a graduate with a bachelor’s degree is $56,500. Few students can afford to pay for college without some form of education financing. 60% of 4-year undergraduate students graduate with some debt. This level of debt seems even more daunting when you consider that the median salary for a graduate with a bachelor’s degree is $56,500. Sources: Trends in Student Aid, 2015; Education Pays, 2013 (The College Board).

A 529 college savings plan has many benefits Do you have existing custodial (UGMA/UTMA) accounts? Converting a custodial account to a 529 can help you benefit from tax advantages while increasing a child’s eligibility for financial aid. Tax advantages: Account grows tax free, and there are no taxes on funds withdrawn for qualified higher education expenses Control: Investor controls account assets after the beneficiary reaches legal age Flexibility: Anyone can contribute — parents, grandparents, other family members, friends So what is a 529 plan? A 529 is a relatively new way to save for college. You contribute money, and you pay no federal taxes on the contribution while the account is accumulating. Also, you generally pay no federal income taxes on withdrawals to pay for qualified higher education expenses like college tuition, room, and board. Even better, thanks to the Pension Protection Act of 2006, the federal income-tax-free treatment of qualified distributions from 529 accounts is permanent. And even though you invest the money for the benefit of someone else, you retain control of the account even after the student reaches legal age, which is generally age 21. This is not the case with custodial accounts like UGMAs or UTMAs, which are often used to help pay for college expenses. That means that if the beneficiary receives a scholarship or doesn’t go to college, you can still use your savings — either for the college expenses of another beneficiary or for whatever use you see fit. Keep in mind that nonqualified withdrawals of earnings are subject to regular income tax and a 10% additional tax. This added level of control doesn’t make contributing any more difficult. Anyone can contribute to a 529 account, including parents, grandparents, and family friends. Although qualified withdrawals are free from federal taxes, state taxes may apply. Not all states currently allow for tax-free qualified distributions of earnings. Withdrawals of earnings not used to pay for qualified higher education expenses are subject to taxes and penalty. You may wish to consult your tax or financial representative to ensure that you obtain the tax benefits you’re looking for.

Contribution to 529 plans* Estate planning Grandparent uses Putnam 529 for AmericaSM to lower estate tax Contribution to 529 plans* Grandparents $700,000 $140,000 $140,000 $140,000 $140,000 $140,000 Ω Ω Ω Ω Ω A 529 plan also offers estate planning benefits. While the contributions will reduce both current taxable assets and the value of their estate, the grandparents still control the assets in the account. * Contributions are generally treated as gifts to the beneficiary for federal gift tax purposes and are subject to annual federal gift tax exclusion amount ($14,000 for 2015). Contributor may elect to treat contribution in excess of that amount (up to $70,000, or $140,000 for couples filing jointly, for 2015) as pro-rated over 5 years. Election is made by filing a federal gift tax return. While contributions are generally excludable from contributor’s gross estate, if the electing contributor dies during the 5-year period, amounts allocable to years after death are includible in contributor’s gross estate. Consult your tax advisor for more information. * Married couples filing jointly may contribute up to $140,000 per beneficiary. Individuals may contribute up to $70,000. Contributions are generally treated as gifts to the beneficiary for federal gift tax purposes and are subject to annual federal gift tax exclusion amount ($14,000 for 2015). Contributor may elect to treat contribution in excess of that amount (up to $70,000 for 2015) as pro-rated over 5 years. Election is made by filing a federal gift tax return. While contributions are generally excludable from contributor’s gross estate, if electing contributor dies during 5-year period, amounts allocable to years after death are includible in contributor’s gross estate. Consult your tax advisor for more information.

Minimizing taxes Now that we’ve discussed a few strategies for funding college education, let’s discuss preserving your wealth by considering tax-smart strategies.

Taxes have increased Tax item 2016 Ordinary income 43.4% Dividends 23.8% Capital gains Income phase outs of itemized deductions and personal exemptions? Yes Over the past couple of years, taxes have increased for some tax payers as a result of legislation to avoid the “fiscal cliff” and new taxes associated with health-care reform. Note that the 3.8% surtax is included in the ordinary income figure,* the long-term capital gain figure, and qualified dividends figure. * The 3.8% surtax is not applicable to earned income, municipal bond interest, or retirement account distributions but would be applicable to other income sources such as interest income, which is generally taxed at ordinary income rates. Tax rates reflect highest marginal rate and incorporate additional taxes related to the health-care reform law. Health-care-related taxes include a surtax of 3.8% on net investment income and an additional 0.9% payroll tax affecting single filers with income in excess of $200,000, and joint filers with income in excess of $250,000. Highest marginal tax rate on income, capital gains, and dividends apply to tax payers with taxable income above $415,450 ($466,950 for couples).

Total debt remains high based on historical norms Federal debt held by the public (% of GP), 1940–2016 Percentage of GDP Total federal debt remains high based on historical precedent. The most recent uptick occurred coming out of the Great Recession in 2008 as government spending soared (TARP and other bailouts, unemployment insurance, etc.) and tax receipts declined. Current debt to GDP levels are the highest they’ve been since just after WWII. Note that (according to the CBO, 2016) total debt held by the public in 2016 is almost $14T. If you add intra-governmental debt, total federal debt increases to roughly $19T. 2016 Source: Congressional Budget Office, Updated Budget Projections: August 2014; does not include intra-governmental debt.

The aging of America will further strain the system Total U.S. population age 65+ 45 million 98 million The vast majority of health-care spending occurs late in life, often in fighting the diseases that are the leading causes of death. As the Baby Boom generation continues to age and begins to confront late-life medical conditions, demand will almost certainly increase for costly and intensive medical treatment. Today, there are 45 million Americans age 65 and older, which represents 14% of the total population. This is projected to grow to over 98 million Americans by 2060, which will reflect 20% of the population. Meanwhile, there is scant evidence to suggest a corresponding increase in the supply of medical staff and services; as a result, the cost of care is likely to rise. Today 2060 Source: U.S. Census Bureau, Facts for Features, 2014.

New health-care taxes took effect in 2013 Increase in the individual portion of the Medicare payroll tax on wages from 1.45% to 2.35% New Medicare investment income tax of 3.8% Will affect interest, dividends, capital gains, rental income Distributions from retirement accounts are excluded Interest from municipal bonds is not affected Targeted at individuals with more than $200K income (couples with $250K income) You’ll need to save: There are a combination of new taxes and tax increases designed to offset the cost of implementing health-care reform.

Taxes on traditional retirement plans Income for expenses Federal income taxes Let’s explore retirement accounts and taxes. At current federal income tax rates, one dollar inside a traditional retirement plan or IRA may only provide 60 cents of income once taxes are accounted for (assuming the highest current income tax bracket of 39.6%). Since many retirees hold a large portion of their savings inside these traditional retirement accounts and IRAs, taxes can have a major impact on their ability to generate their desired amount of income. A dollar inside a traditional (pretax) retirement savings account may only provide 60¢ of income in retirement

Consider the benefits of a Roth IRA Tax-free income in retirement No required distributions Heirs receive assets free from income taxes Means to achieve tax diversification The Roth IRA can help. It was established by legislation passed into law in 1997. Although investors cannot deduct contributions like Traditional IRAs, withdrawals are not taxed when distributions occur (assuming certain requirements are met). Roth IRA accounts can be funded from contributions or conversions from existing Traditional IRAs or other retirement plans. The fact that Roth IRAs offer tax-free withdrawals is appealing to retirees looking to generate income in retirement. There are additional benefits as well: If you don’t rely on accounts for income: Some affluent retirees do not rely on their retirement accounts to meet their income needs. In these cases, being forced to take required minimum distributions (RMDs) at age 70½ may be a nuisance since this income must be reported on the tax return. As retirees get older, these RMDs will generally increase each year because of their short life expectancy. Conversely, the fact that there are no RMDs with Roth IRAs means that more assets can remain in the account for future tax-free growth. Heirs receive tax-free accounts: Distributions from a Roth IRA are not required until a non-spouse beneficiary, e.g., son, daughter) inherits the account. This preserves more assets for future generations. When a non-spouse beneficiary inherits a Roth IRA, distributions from the account must occur each year, but they can be withdrawn incrementally based on the beneficiary’s life expectancy. And, the income is free from federal income taxes (although the value of the Roth IRA at death is included in the deceased account owner’s estate for the purposes of calculating estate taxes). Although paying taxes immediately on assets converted to a Roth is an adverse factor to consider when making the decision, the act of paying those taxes does reduce the overall size of one’s estate.

Planning for income in retirement and transferring wealth The next phase is planning for income in retirement and transferring your wealth after you’re gone. Let’s look at a few things you can do to preserve as much of your estate as possible for your heirs.

Longevity comes at a cost Amount needed to maintain purchasing power 30 years $50,000 income An important consideration when planning for income in retirement is rising prices or inflation. Although it has been years since the ultra-high inflation days of the early 1980s, over time, even low levels of inflation will make a profound difference. For example, to keep up with a moderate inflation rate of 4%, someone relying on $50,000 in income when starting retirement would need over $160,000 in income at the end of 30 years to maintain the same standard of living. Inflation rate

When you retire can make a big difference Note to Steve: this slide is from “Social Security: 5 things you need to know” PPT you are working on: p. 9 (job: 302670) NEW SLIDE When you retire can make a big difference Assumptions $1 million nest egg 5% withdrawn annually and increased each year to keep up with inflation Invested in a portfolio of 60% stocks, 30% bonds, and 10% cash Results over a 10-year time frame $1,861,592 $1,731,989 $1M $472,238 When you retire can also have a major impact on your financial success in retirement. The math behind withdrawing or distributing assets IN retirement is much different than saving, or accumulating assets FOR retirement. If you begin withdrawing from a portfolio during a deep market downtown — like the latter half of 2008 for example — you have to liquidate more shares to create the same amount of income (because of the decline in the value of those shares). This is often referred to as “sequence of returns” risk. If you analyze three different scenarios — retiring in 1980, retiring in 1990, or retiring in 2000 — it’s clear that timing can make a huge difference in outcomes. Those who retired and began withdrawals in 1980 or 1990 fared well over the first 10 years of their retirement (based on the given assumptions). In fact, even with taking 5% withdrawals each year adjusted for inflation, after 10 years the value of the initial $1 million nest egg had risen dramatically. Conversely, those retiring in 2000 didn’t fare as well. Their retirement nest egg was decimated first in early 2000 when the tech bubble burst and then again in 2008/2009 with the credit crisis and ensuing “Great Recession.” For this reason, it’s critical that retirees invest to avoid potential sharp market downturns or “shocks” when they are withdrawing assets from their portfolio. Retire in 1980 Retire in 1990 Retire in 2000 Sequence-of-returns risk refers to the adverse effect that negative investment returns in the early stages of retirement can have on a nest egg.

Early in your retirement Create an income plan Early in your retirement Later in retirement Social Security Retirement account withdrawals Real estate Long-term care insurance Longevity insurance Part/full -time work Pension income Immediate annuity Life insurance Investment income I’d like to give you a sense of how an income plan might unfold and what some of the key drivers are. Determining when you draw upon certain sources of income is very important. For example, the longer you delay taking Social Security, the more you will receive from it each month. Likewise, if you can take a portion of your savings and invest it for growth, then you may be able to use the time in your early retirement years to let it do so. Tax rates on withdrawals from various sources are going to be taxed at different rates, so the order of withdrawal is important too. Naturally, if you are going to work in retirement, you’ll probably work in your early retirement years. This income is important because it can enable you to maximize your other sources of income; work may also provide a source for health insurance and may, in fact, allow you to continue to save and invest. Early retirement is also a great time to make sure you have the insurance you need, including life and long-term-care insurance — which will be more affordable at younger ages.  At some point, phasing to age 67 over the next several years, you will have to start taking income from Social Security and withdrawals from your retirement accounts. Later on, you may also wish to downsize your home or take out a reverse mortgage, or add one more layer of guaranteed income through the purchase of an immediate annuity. Investments are subject to market risk, including possible loss of principal.

Choose the right withdrawal rate How long would your money have lasted? Choose the right withdrawal rate Percentage of your portfolio’s original balance withdrawn each year 3% will last 50 years 4% will last 33 years One of the important expectations to manage is how much you can withdraw from your portfolio if you want it to last. This idea is called “sustainable withdrawals.” This chart takes a balanced portfolio mix of 60% equities, 30% fixed income, and 10% cash, then shows how long it will last at different withdrawal rates. What’s interesting is that because we’re dealing in percentages, the dollar amount of your nest egg doesn’t matter. Whether you have $100 or $100,000, 50% is still half. The chart shows that if you take 10% out of your savings each year, you can expect your savings to last about 10 years. Based upon this mix, a 6% annual withdrawal rate, increased each year to keep up with inflation, will last around 16 years. The moral of this story is that you should try to limit your withdrawals to no more than 5%, given what we know about how long you are likely to spend in retirement. 5% will last 20 years 6% will last 16 years 7% will last 13 years 8% will last 12 years 9% will last 11 years 10% will last 10 years This example assumes a 95% probability rate. These hypothetical illustrations are based on rolling historical time period analysis and do not account for the effect of taxes, nor do they represent the performance of any Putnam fund or product, which will fluctuate. These illustrations use the historical rolling periods from 1926 to 2015 of stocks (as represented by an S&P 500 composite), bonds (as represented by a 20-year long-term government bond (50%) and a 20- year corporate bond (50%)), and cash (U.S. 30-day T-bills) to determine how long a portfolio would have lasted given various withdrawal rates. A one-year rolling average is used to calculate performance of the 20-year bonds. Past performance is not a guarantee of future results. The S&P 500 Index is an unmanaged index of common stock performance. You cannot invest directly in an index.

Watch your asset allocation How long would your money have lasted? 203% Health-insurance premiums Portfolio type Allocation 20 years 30 years 40 years Conservative 20% stocks 50% bonds 30% cash 89% 30% 6% Balanced 60% stocks 30% bonds 10% cash 96% 77% 55% Growth 80% stocks 20% bonds 0% cash 79% 68% 80%–100% probability 60%–79% probability 0–59% probability 56% Workers earnings The information at left shows how various asset allocations affect a portfolio’s expected longevity. It assumes that 5% of the original account balance is withdrawn each year and that withdrawals were increased each year to account for inflation. We know withdrawals are an important factor. What about how your portfolio is invested? This chart shows the probability of success for 4 asset mixes — ranging from conservative to aggressive — assuming a 5% systematic withdrawal rate that is inflated annually at 3%. The mixes range from 20% equities in the conservative portfolio to 80% in the aggressive portfolio. And it looks at retirement or income generation periods of 20, 30, and 40 years. So what does it tell us? It tells us that if you’re planning for a 20-year retirement, you have a pretty solid probability of success withdrawing 5% each year, even with the most conservative portfolio. All of the asset mixes appear to do just fine. But what if you want to plan for a longer income stream — like 30, 35, or 40 years? The numbers tell us that if you want a greater probability of success for a longer period of income, you’ve got to increase the expected return of your portfolio by including a larger allocation to equities in your portfolio. Depending on the income period you’re planning for and your tolerance for risk (i.e., running out of money during the period), you may want to consider moving from a conservative or balanced portfolio to a portfolio that looks more like the growth portfolio — with a mix of 80% equities, 20% bonds, and 0% cash. A 2003 study (“Asset Allocation and Portfolio Survival,” John Norstad, October 2003) indicated that expected return and portfolio volatility are very important in determining portfolio survival. This study showed that a 1% increase in the expected return of a portfolio increases the survival rate by about 9% and a 2% decrease in volatility increases survival rate by about 4%. In fact, 60% to 70% equities seems to be the optimal allocation to equities if you’re planning a 5% withdrawal for a long period of time. Going up to 80% doesn’t really seem to pay off. You’re taking more risk and actually reducing your probability of success. Not a good tradeoff. Even then, there is a fairly significant chance of failure if you’re planning for a 40-year income stream. If that’s your goal, you might consider dialing down your withdrawal rate still further to 4.5 or 4%. Based upon our study, that should help extend the income stream and improve portfolio survival. 43% Overall inflation This example assumed a 95% probability rate. These hypothetical illustrations are based on rolling historical time period analysis and do not account for the effect of taxes, nor do they represent the performance of any Putnam fund or product, which will fluctuate. These illustrations use the historical rolling periods from 1926 to 2014 of stocks (as represented by an S&P 500 composite), bonds (as represented by a 20-year long-term government bond (50%) and a 20- year corporate bond (50%)), and cash (U.S. 30-day T-bills) to determine how long a portfolio would have lasted given various withdrawal rates. A one-year rolling average is used to calculate performance of the 20-year bonds. Past performance is not a guarantee of future results. The S&P 500 Index is an unmanaged index of common stock performance. You cannot invest directly in an index.

Consider delaying Social Security if possible NEW SLIDE Consider delaying Social Security if possible $2,660 $1,983 $1,394 Here’s an illustration highlighting just how valuable delaying Social Security can be. Source: Social Security Quick Calculator benefit estimate based on an individual age 62 with $75,000 in current earnings. Does not include increases in benefit levels due to regular cost-of-living adjustments.

Pay attention to order Type of income Taxability Social Security May be partially taxable as ordinary income Pension income Taxed as ordinary income IRA and 401(k) distributions Ordinary income rates Dividend income 23.8% rate Long-term capital gains Liquidation of investment principal Not subject to taxation On that topic, it’s important to consider where your income — or more accurately your cash flow will come from — since where the money comes from determines its taxability. Dividends and capital gains are generally taxed at a 23.8% tax rate. Distributions from IRAs and 401(k)s are taxed as ordinary income at rates that range from 10% up to 39.6% depending on your total level of income. So, given a choice of where to draw your next dollar from — all things being equal — you’d want to take it from a taxable account where you’ll generate a capital gain — taxable at a possible 15% rate — versus a tax-deferred account — taxable at some higher rate. In other words, as you plan the order in which you will liquidate assets to provide retirement income, you’ll want to delay dipping into your IRA and 401(k) balances as long as you can. Bottom line is that taxes you pay now unnecessarily reduce the amount of savings you’ve got working for you — so you miss out on not just the extra money paid as taxes, but also the earnings (potentially over a long time) on that money. Now, based upon current tax rules, you’ll have to start pulling money out of your IRA or 401(k) accounts once you reach age 70½, but as a general rule, the longer you delay accessing those monies, the better off you’ll be. Having said all that, it’s important to recognize that the optimal solution is based upon your specific fact set, so it’s important to talk to your financial advisor and tax professional about your situation. For example, these general rules can be skewed by your overall income, which drives your tax rate and other issues such as Social Security taxation. This is not intended as tax advice. Please consult your independent tax advisor regarding tax ramifications. Dividend and capital gains rates reflect highest marginal tax rate (20%) plus the 3.8% net investment income surtax.

Stretching an IRA to create generations of wealth Annual required minimum distributions in selected years IRA owner’s wife dies at age 70, ten years after the IRA was created and before taking RMDs. Their 46-year old son begins receiving annual payments based on his life expectancy. He names his wife as his beneficiary. Value of IRA: $200,000. The son dies 29 years later. His wife continues the established distribution schedule. She may not treat the IRA as her own and no rollover is available. The IRA is depleted, having generated over $3 million in income. First year Year 10 Year 20 Year 30 Year 39 $12,019 $24,506 $54,566 Let’s talk a little more about stretching the life of your IRA. A great way to extend your IRA’s tax-deferral benefits after you’re gone is by creating something called, appropriately, a Stretch IRA. A Stretch IRA is designed for someone who can fund retirement without using IRA assets. It allows the beneficiary to stretch the required distributions over his or her own own lifetime and therefore provides the longest allowable period of tax deferral. As a result, it reduces the short-term tax burden on the beneficiary. This example shows how a $200,000 IRA can continue to grow and benefit from tax deferral long after the initial owner dies, and produces over $3 million in distributions before it is fully withdrawn. $124,329 $270,526 Income is based upon an initial investment of $200,000 and cumulative annual distributions for 39 years. This hypothetical illustration assumes an 8% annualized return (8.30% effective return) and that distributions are kept to the required minimum. It does not represent the performance of any Putnam fund or investment or take into account the effect of any fees or taxes. Investors should consider various factors that can affect their decision, such as possible changes to tax laws and the impact of inflation and other risks, including periods of market volatility when investment return and principal value may fluctuate with market conditions. The Stretch IRA feature is designed for investors who will not need the money in the account for their own retirement needs.

Consider a bucket approach Short-term income bucket Meet immediate cash-flow needs, emergency fund, etc. Cash CDs/money market Short-term bonds Immediate annuities Social Security, pension income Wages Mid-term income bucket Mix of growth and income, replenish short-term bucket, guard against market volatility Bonds Deferred annuities Absolute return funds Asset allocation funds, balanced funds Long-term income bucket Inflation hedge, address longevity risk Growth stocks/funds Real estate Commodities Some retirees may find it useful to segregate their nest egg into different “buckets” based on when they will need the funds to meet their income needs. There are many different versions of this type of strategy. For example, in order to meet current income needs and prepare against any short-term circumstances, a portion of the overall nest egg would be invested in very safe, liquid accounts (CDs, money market, etc.). For the mid-term and longer-term buckets, accounts would be allocated according to their investment objective. For example, the longer-term bucket might consist of growth stocks or funds, real estate, and commodities in order to keep up with inflation and protect against the risk of outliving your assets.

Do you need an estate plan? Do you have children who are minors? Are all of your assets owned jointly with your spouse? Are most of your assets in real estate, a business, or a retirement plan? Do you have a durable power of attorney? Do you have a living will/health-care proxy? Do you own property in another state? Do you have children from a prior marriage? First, everyone should consider developing an estate plan. If you can answer “yes” to even one of the questions listed here — and just about everyone can — you need an estate plan.

Stick to your plan: Important documents for staying in control Durable power of attorney Health-care proxy Will Revocable and irrevocable trusts The biggest risk of not having an estate plan is that your estate won’t be distributed the way you want it to be after you’re gone. If you die intestate — which means dying without a will or dying with a will that doesn’t dispose of all property — you can be sure that your wishes won’t be fulfilled. When someone dies intestate, his or her property is transferred by state law, which may or may not be the way the decedent would have liked. Estate planning puts you in control. These estate planning tools are relatively easy to set up and constitute the foundation of any good estate plan. A durable power of attorney gives someone else the right to act on behalf of the person creating the power. And it’s durable in that it remains in force after the incapacity or disability of the maker. It does not remain in force, however, if the maker dies. That’s when the will would take over. A living will spells out the individual’s wishes regarding life-sustaining measures. And it might incorporate a do-not-resuscitate order if a person doesn’t want to be mechanically or chemically resuscitated if his or her heart stops. You might have also heard of something called a health-care proxy, or a durable power of attorney for health care. This document is designed to appoint a surrogate decision-maker for health-care decisions if the creator becomes incapacitated to the point that he/she can no longer make those decisions for him/herself. Finally, there’s the will. This document instructs how your assets are to pass to heirs at the time of your death, who will wrap up your affairs (your executor), and who will be the guardian of any minor children.

✓ ✓ ✓ ✓ ✓ What are the next steps? Consider transferring existing custodial accounts to a 529 Fund a 529 to remove assets from your estate Use a Roth IRA to create tax-free income in retirement and avoid required distributions Consolidate retirement assets and develop an income plan Review legal documents like wills and trusts ✓ ✓ We’ve covered a lot of ground in our discussion today. So what are the next steps? Consider transferring existing custodial accounts to a 529 Fund a 529 to remove assets from your estate Use a Roth IRA to create tax-free income in retirement and avoid required distributions Consolidate retirement assets and develop an income plan Review legal documents like wills and trusts ✓ ✓

Putnam 529 for America is sponsored by the State of Nevada, acting through the Trustees of the College Savings Plans of Nevada and the Nevada College Savings Trust Fund. Anyone may invest in the plan and use the proceeds to attend school in any state. Before investing, consider whether your state’s plan or that of your beneficiary offers state tax and other benefits not available through Putnam 529 for America. If you withdraw money for something other than qualified higher education expenses, you will owe federal income tax and may face a 10% federal tax penalty on earnings. Consult your tax advisor. Putnam Retail Management, principal underwriter and distributor Putnam Investment Management, investment manager. You should carefully consider the investment objectives, risks, charges, and expenses of the plan before investing. Ask your financial representative or call Putnam at 1-877-PUTNAM529 for an offering statement containing this and other information for Putnam 529 for America, and read it carefully before investing. This information is not meant as tax or legal advice. Please consult your legal or tax advisor before making any decisions.