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Pierre M. Movsessian, MBA, CFP®, AIF® Senior Wealth Advisor | LPL Branch Manager Shares of Oppenheimer funds are not deposits or obligations of any bank,

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Presentation on theme: "Pierre M. Movsessian, MBA, CFP®, AIF® Senior Wealth Advisor | LPL Branch Manager Shares of Oppenheimer funds are not deposits or obligations of any bank,"— Presentation transcript:

1 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. CC OppenheimerFunds Beneficiary Planning: Dont Leave Your Legacy to Chance!

2 Source: NY Post, January 31, 2005 Dont Let This Happen to You... Page 2 CC Dilemma: Anne didnt update her beneficiary form after she wed Bruce.

3 Agenda Benefits of Beneficiary Planning Know the Basics What You Can Do Now Benefits of Beneficiary Planning Know the Basics What You Can Do Now Page 3 CC

4 Page 4 CC 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 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

5 Page 5 CC 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 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

6 Know the Basics Page 6 CC

7 Meet Abby… What would happen to Abbys money? Opened a $500,000 IRA online She did not name a beneficiary Opened a $500,000 IRA online She did not name a beneficiary Page 7 CC

8 Expense PublicRecordTime Abbys IRA – [attorney fees + probate fees + taxes] = Not $500,000! Page 8 CC Look what happens to Abbys money... Abbys $500,000 IRA Abbys Estate Probate Court

9 Page 9 CC 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 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

10 To Whom Will You Leave Your Money? Page 10 CC Choosing Your Beneficiaries Spouse Children Grandchildren Charities Other Spouse Children Grandchildren Charities Other

11 Page 11 CC Your Legacy The Stretch IRA Strategy 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 What Is a Stretch IRA Strategy? Distribution strategy Tax-deferred earnings within IRA extends beyond lifetime of account owner potentially over multiple generations

12 Page 12 CC The Stretch IRA Strategy How Does It Work? The Stretch IRA Strategy How Does It Work? Account Owner Spouse Rollover Children Grandchildren Names younger beneficiaries

13 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. Page 13 CC The Stretch IRA Strategy Why Planning Matters The Stretch IRA Strategy Why Planning Matters Childrens Inheritance: $1,188,015 Total Distributions: $4,098,871 Childrens Inheritance: $1,001,001 Total Distributions: $2,276,501 $$ Abbys Starting Balance: $500,000

14 Page 14 CC Life Happens Reasons to update Births and Adoptions Deaths Special needs beneficiaries Marriages and divorces Reasons to update Births and Adoptions Deaths Special needs beneficiaries Marriages and divorces

15 David never named anyone other than his spouse as beneficiary of his retirement benefits! Page 15 CC Meet David and Debbie Sandler...

16 What You Can Do Now Page 16 CC

17 Take inventory of all your accounts Talk to your beneficiaries Work with your financial advisor Page 17 CC What You Can Do Now

18 Page 18 CC Take Inventory of all Your Accounts Where are your beneficiary forms? Who are your beneficiaries? Are your beneficiary forms up-to-date?

19 Page 19 CC 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?

20 Page 20 CC 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 Alleviate stress associated with beneficiary planning Discuss options with you and your beneficiaries Assist beneficiaries when the time comes to transfer assets

21 Page 21 CC 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 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

22 Page 22 CC Take Action Now Collect beneficiary information on all of your accounts Talk to your beneficiaries Make an appointment with your financial advisor today Collect beneficiary information on all of your accounts Talk to your beneficiaries Make an appointment with your financial advisor today

23 Page 23 CC 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 funds 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 or visiting our website at Read prospectuses carefully before investing. Oppenheimer funds are distributed by OppenheimerFunds Distributor, Inc. Two World Financial Center, 225 Liberty Street, New York, NY ©Copyright 2008 OppenheimerFunds Distributor, Inc. All rights reserved.


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