1. Name Title John Hancock Investments Date

2. Welcome to Common IRA mistakes 2 Today, you’ll have an opportunity to:  Review some of the most common mistakes  Discuss their implications  Learn how to avoid them  Take a look at actual case studies

3. 10 common IRA mistakes 3 1. Making common rollover mistakes 2. Not considering a Roth IRA 3. Forgetting catch-up contributions 4. Failing to name a beneficiary 5. Having an outdated beneficiary 6. Naming a trust as a beneficiary 7. Not knowing your distribution options regarding inherited IRAs 8. Overlooking income-tax deductions with inherited IRAs 9. Not cleaning up old retirement accounts 10. Trying to do it by yourself

4. A beneficiary primer 4 What is a beneficiary?  The person(s) or entity you wish to inherit your account/assets when you die Who chooses your beneficiary?  You do (as the account/asset owner)

5. 5 Primary and contingent  The person you most wish to receive your assets is your primary beneficiary  If that person is not alive at the time of your death, then contingent beneficiaries will inherit your assets Successor  If you inherit an IRA, your listed beneficiaries become the successor beneficiaries A beneficiary primer

6. 6 SUSAN Hypothetical example  John is married to Susan, and they have two children, Claire and Luke.  John names Susan as his primary beneficiary, so she would inherit his assets if he died.  He names Claire and Luke as contingent beneficiaries; they would inherit his assets if Susan was deceased.

7. 7 To name a beneficiary  Complete the beneficiary section when you open a retirement account, or fill it out later (not recommended). You’ll need to provide your beneficiary’s Social Security number and that person’s relationship to you. To change your beneficiaries  Fill out a beneficiary designation form from the company that holds your account and mail it in. The company must receive the form for it to be valid. To get a beneficiary form  Call, write, or download the beneficiary designation form from the company’s website. A beneficiary primer

8. 8 Failing to name a beneficiary Mistake #4

9. 9 Issue If you don’t name a beneficiary, it can require distributions from your IRA, loss of any ability to stretch the IRA, and a lump sum payout to your estate resulting in probate.  IRAs do not pass to next of kin by the stipulations in a will  They pass according to the terms of the IRA’s beneficiary designation form The IRA beneficiary designation form could be one of your most important estate planning documents! Mistake #4 Failing to name a beneficiary

10. 10 What happens to your IRA if you don’t name a beneficiary?  The IRA will be subject to probate  Probate can be a costly, time-consuming, public process  The default beneficiary will generally be the account owner’s estate  This then requires distributions from the IRA to be made as a lump sum or to be fully distributed within five years after the account owner’s death  The highest income-tax rate is 39.6%  This will most likely result in a loss of the stretch option Mistake #4 Failing to name a beneficiary

11. 11 What is a stretch IRA?  Under the stretch IRA strategy, required minimum distributions (RMDs) are calculated based on the beneficiary’s life expectancy.  Example: Your IRA will be inherited by your 40-year-old son, whose life expectancy is 85. The first year after inheriting the IRA, he would be required to withdraw only 1/45 of the account’s value. The next year, he would withdraw 1/44 of the account’s value, and so on. A stretch IRA allows you to prolong the tax-deferred or tax-free status over one or more generations, “stretching” its value. Mistake #4 Failing to name a beneficiary

12. A sad example: Leon and Beth*  Leon, a John Hancock client, opened a Roth IRA in 2009 and didn’t name beneficiaries on his form. When Leon died in 2011, since no one was named, the funds could only be distributed to his estate.  This required a lot of legal and probate research, costing time and money.  Eventually, the assets went to Beth, Leon’s wife; but the whole process could have been much cheaper, easier, and faster. * Although the names have been changed for privacy, this is a true story from John Hancock Signature Services. 12 Mistake #4 Failing to name a beneficiary

13. 13 Strategy As soon as you open an IRA, make sure you name primary and contingent beneficiaries. Mistake #4 Failing to name a beneficiary

14. 14 Having an outdated beneficiary Mistake #5

15. 15 Issue You might make distributions to unintended beneficiaries, such as an ex-spouse. Mistake #5 Having an outdated beneficiary

16. 16 A sad story: Carl, Sarah, and Denise*  Carl opened an IRA in 2005 and named his wife, Sarah, as his beneficiary.  Carl divorced Sarah in 2007 and married Denise in 2010, but he never updated the beneficiary form on his account.  In 2011 Carl died, and Denise called to inquire about the funds. But because Carl didn’t change his beneficiary, Denise did not inherit the assets. His assets went to his ex-wife, Sarah. * Although the names have been changed for privacy, this is a true story from John Hancock Signature Services. Do you think that’s what Carl intended? Mistake #5 Having an outdated beneficiary

17. 17 Pension pickle: Bruce and Ann*  Bruce and Ann were married for 20 years.  Ann’s pension statement indicated that no beneficiary was named, so Bruce assumed as husband he would be the beneficiary.  After Ann’s death, an old beneficiary form was found, naming Ann’s sister as her beneficiary. It was dated four years before Bruce and Ann met!  Because Ann never updated her beneficiary form, her sister inherited the assets. * Although the names have been changed for privacy, this is a true story from John Hancock Signature Services. Avoid this mistake! Mistake #5 Having an outdated beneficiary

18. 18 IRA owners should review their beneficiary designations:  At least annually  When getting married  When there is a divorce  When there is a birth or adoption of a child  After the death of a family member  Whenever there is a significant life event Mistake #5 Having an outdated beneficiary

19. 19 Strategy  Plan an annual review of your beneficiary designation forms to make sure they are up-to-date and accurate.  To change a beneficiary designation on an IRA or other account, you must actively change it by filling out a new beneficiary form.  Missing forms? Ask your financial professional for the beneficiary forms you need. Be sure to regularly review and update your accounts. Mistake #5 Having an outdated beneficiary

20. 20 Not knowing your distribution options regarding inherited IRAs Mistake #7

21. 21 Issue If no successor beneficiary is named and the primary beneficiary dies, your IRA will distribute to your estate, pass through probate, and will result in the loss of stretching the IRA. Mistake #7 Not knowing your distribution options regarding inherited IRAs

22. 22  The beneficiary receives the IRA  The beneficiary should name a successor beneficiary  If the beneficiary dies prior to receiving all of the IRA distributions, the successor beneficiary could continue stretching the distributions over the remaining life expectancy of the deceased beneficiary  The successor beneficiary may be able to maximize the stretch potential Mistake #7 Not knowing your distribution options regarding inherited IRAs

23. 23 Strategy As soon as you inherit an IRA, make sure you name primary and contingent beneficiaries of your own. Mistake #7 Not knowing your distribution options regarding inherited IRAs

24. 24 Not cleaning up old retirement accounts Mistake #9

25. 25 1 Source: “Number of Jobs Held, Labor Market Activity, and Earnings Growth Among the Youngest Baby Boomers: Results from a Longitudinal Survey,” Bureau of Labor Statistics, U.S. Department of Labor, 7/25/12. Issue  Complicated recordkeeping, asset allocation mistakes, and inconsistent or contradictory beneficiary designations can lead to problems  401(k)s may have different rules regarding distributions  Keeping track of multiple IRS Form 5498s can prove difficult Mistake #9 Not cleaning up old retirement accounts The average person changes jobs about 11 times during his or her lifetime 1

26. 26 Strategy Consolidate multiple accounts into a single IRA and simplify your records. Mistake #9 Not cleaning up old retirement accounts

27. 27 Trying to do it by yourself Mistake #10

28. 28 Issue Do you have someone to help you set long-term goals and plan for the future? Mistake #10 Trying to do it by yourself

29. 29 You might use some or all of these professionals over the course of your life. Strategy  Financial advisors and professionals  Accountants  Insurance planners  Attorneys Mistake #10 Trying to do it by yourself

30. 30 Common IRA mistakes Our goal today  Review some of the most common mistakes  Discuss their implications  Learn how to avoid them  Take a look at actual case studies Did we reach our goals?

31. 31 A trusted brand John Hancock has helped individuals and institutions build and protect wealth since 1862. Today, we are one of America’s strongest and most-recognized brands. A better way to invest As a manager of managers, we search management teams with specialized then apply vigorous investment oversight meet our uncompromising standards. Results for investors Our unique approach to asset management has led to a diverse set of investments deeply rooted in investor needs, along with strong risk-adjusted returns across asset classes. Why John Hancock?

32. John Hancock Funds, LLC ▪ Member FINRA, SIPC 601 Congress Street ▪ Boston, MA 02210-2805 ▪ 800-225-5291 ▪ jhinvestments.com NOT FDIC INSURED. MAY LOSE VALUE. NO BANK GUARANTEE. NOT INSURED BY ANY GOVERNMENT AGENCY. For more information, contact John Hancock Investments at 800-225-5291 or visit jhinvestments.com. A word about risk A fund’s investment objectives, risks, charges, and expenses should be considered carefully before investing. The prospectus contains this and other important information about the fund. To obtain a prospectus, contact your financial professional, call John Hancock Investments at 800-225-5291, or visit our website at jhinvestments.com. Please read the prospectus carefully before investing or sending money. MF188845BB10MISSPPT 8/14 This material was prepared to support the promotion and marketing of John Hancock products. John Hancock, its distributors, and their respective representatives do not provide tax, accounting, investment, or legal advice. Any tax statements contained herein were not intended or written to be used, and cannot be used, for the purpose of avoiding U.S. federal, state, or local tax penalties. Please consult your own independent advisor as to any tax, accounting, investment, or legal statements made herein. This material does not constitute tax, legal, or accounting advice and neither John Hancock nor any of its agents, employees, or registered representatives are in the business of offering such advice. It was not intended or written for use and cannot be used by any taxpayer for the purpose of avoiding any IRS penalty. It was written to support the marketing of the transactions or topics it addresses. Anyone interested in these transactions or topics should seek advice based on his or her particular circumstances from independent professional advisors.