1. | 1 EO102 288615 5/14 | 1 EO102 288615 8/14 Not FDIC Insured May Lose Value No Bank Guarantee

2. | 2 EO102 288615 8/14 Asset protection: Preserving your net worth We protect our homes, cars, valuable possessions — even household appliances What about our wealth?

3. | 3 EO102 288615 8/14 Lawsuits target “deep pockets” “How a jury decided that a coffee spill was worth $2.9 million” Wall Street Journal, September 1994 “Mall sued over squirrel attack” Chicago Sun Times, August 2006 “N.J. woman hit with ball sues Little League player” USA Today, June 2012

4. | 4 EO102 288615 8/14 Are your assets at risk? Do you own a home? Are you in a high-risk profession? Do you own a business? Does your business have employees? Do you own rental property or real estate investments? Do you have significant personal savings or other valuable assets? Do you drive a car often? Do teenage drivers live with you? Do you have pets?

5. | 5 EO102 288615 8/14 A critical part of a financial plan Investments Insurance Funding education Planning for income in retirement Minimizing taxes Saving for retirement Comprehensive financial plan Asset protection Estate planning

6. | 6 EO102 288615 8/14 A two-part plan to protect your assets 1 Minimize your risks now 2 Put a protection plan in place — before something happens

7. | 7 EO102 288615 8/14 What asset protection is NOT An excuse or vehicle for evading taxes A method for hiding assets A way to defraud creditors Source: Asset Protection Planning Guide: A State-of-the-Art Approach to Integrated Estate Planning, Barry S. Engel, David L. Lockwood, and Marc Merric.

8. | 8 EO102 288615 8/14 Build your protection plan This material is for informational purposes only. It should not be considered legal advice. You should consult with an attorney to determine what may be best for your individual needs Basic componentsComplex techniques InsuranceIncorporating your business Titling assets Insulating “hot” assets such as real estate Homestead exemptions Equipment leasing and multiple LLCs Protecting retirement and college savings Using trusts to protect your assets

9. | 9 EO102 288615 8/14 Start with the basics Identify and correct property risks Review your insurance coverage Purchase umbrella liability coverage Apply for a homestead exemption Be careful when titling assets Identify and correct any potential risks associated with property and real estate Maintain positive personal and professional relationships

10. | 10 EO102 288615 8/14 Are your retirement savings protected? Type of retirement account File for bankruptcy?No bankruptcy ERISA plans: 401(k), pension, profit sharing, ESOP Full protection Rollover IRA, SEP IRA, SIMPLE IRA, most 403(b) plans, Individual 401(k) Full protection Not protected at federal level, may receive protections at state level Traditional and Roth IRAProtected up to $1 million Not protected at federal level, may receive protections at state level

11. | 11 EO102 288615 8/14 How college savings are protected Point of contribution 1 year720 days Made less than a year before filing: NOT protected from creditors After 1 year, $5,000 is protected Made more than 720 days before filing: 100% protected Federal protection in the event of Chapter 7 bankruptcy filing

12. | 12 EO102 288615 8/14 Is your business putting personal assets at risk? Business owners may be at risk of legal claims by patients, customers, or employees Without a formal business structure, your personal assets may be at risk Select a method of ownership for your business to make it difficult — or expensive — for someone to access your assets

13. | 13 EO102 288615 8/14 Structuring your business Business ownershipBenefitsConsiderations Corporation (C corp or S corp) Business owner does not bear personal liability for debts of the corporation May be more complex to establish and maintain Adverse legal judgment could result in plaintiff receiving ownership shares LLC or LLP Easy to establish and maintain Potentially better liability protection than corporations; creditor attachment may be limited to distributions, not shares of ownership Some states may allow creditors to attach ownership interest of LLC or LLP

14. | 14 EO102 288615 8/14 Insulate “hot” real estate assets Liability for one property won’t affect other properties or personal assets Separate LLCs can insulate risky assets from personal assets Personal assets Summer rental cottage Primary residence Bank accounts Investments Personal belongings LLC #1 Apartment building LLC #2 Commercial real estate LLC #3

15. | 15 EO102 288615 8/14 Example: Using leasing and multiple LLCs to protect assets The medical practice leases office space and equipment from the LLCs Equity in these assets is NOT contained in the medical practice, where it could be at risk LLC#1 Equipment Medical practice LLC#2 Real estate

16. | 16 EO102 288615 8/14 Using trusts to protect your assets Type 0f trustAsset protection considerations Irrevocable trusts Typically prevent trustee from making distributions to satisfy creditors of the trust beneficiary Offshore or foreign trusts Trustee is not subject to jurisdiction of U.S. laws and courts Creditors may find these assets more difficult/expensive to target Certain court cases have exposed limitations Domestic asset protection trusts Trustee and beneficiary are same person Designed specifically to protect assets from creditors Relatively new, available in a few states; lack of existing case law to provide precedent of their effectiveness

17. | 17 EO102 288615 8/14 Your action plan Meet with your financial advisor Review current assets and determine your net worth Take care of basics, such as insurance coverage Identify and minimize any prevalent risks Consult with an attorney

18. | 18 EO102 288615 8/14 Investors should carefully consider the investment objectives, risks, charges, and expenses of a fund before investing. For a prospectus containing this and other information for any Putnam fund or product, call your financial representative or call Putnam at 1-800-225-1581. Please read the prospectus carefully before investing. This information is not meant as tax or legal advice. Please consult your legal or tax advisor before making any decisions. Shares of mutual funds are not deposits or obligations of, or guaranteed or endorsed by, any financial institution; are not insured by the Federal Deposit Insurance Corporation (FDIC), the Federal Reserve Board, or any other agency; and involve risk, including the possible loss of the principal amount invested. Putnam Retail Management putnam.com

19. | 19 EO102 288615 5/14 | 19 EO102 288615 8/14