LOWERYOUR TAXES

YOUR HANDICAP

Tips to help you enjoy potentially more Tips to help you enjoy potentially more success in golf and retirementsuccess in golf and retirement

Tips to help you enjoy potentially more Tips to help you enjoy potentially more success in golf and retirementsuccess in golf and retirement

LOWER

Enhancing Your Game

5 tips to help reduce your handicap

Always anticipate a positive result

→ When setting up your shot, always put yourself in the mindset that something good is going to happen

→ Tell yourself that you couldn’t miss if you tried

→ This will increase your confidence and help you relax, greatly increasing the chances of a positive result

YOUR MINDSET Save up to 5-7 shots per round

Maintaining your focus for the entire 18 holes is impossible; don’t even try to do it!

The two times when focus is required:

→ When deciding what shot to play and which club to hit

→ When you are actually swinging, at which time you’ll need to be completely committed and focused

You only need short and intermediate periods of focus with plenty of time in between for a mental break, making it easy to stay focused for the entire 18 holes!

FOCUS Know when to maintain your focus

Maximize your practice time

→ Make sure you put in as much practice time from 50 yards and in as you do from 50 yards and out!

Practice your short game first, then move to your long game

→ This guarantees that the short game won’t be forgotten!

PRACTICE TIME Save up to 3-5 shots per round

If you’re taking more than 31 putts per round, then you’re losing strokes in your scoring game

→ Make sure you are hitting your chip shots solid for good distance control

→ Work on your lag putting to keep 3-putts to a minimum

→ Practice short putts from 3 feet or less

PUTTING Focus on the Magic Number 31

Make sure you are sharp on all shots from 50 yards in

→ Focus on great control on the greens, consistent bunker shots, high and soft lob shots, and good bump and run shots

→ Don’t forget the short putts too!

Concentrate on accuracy with your tee shots

→ Keep the ball in play so you have the opportunity to score. Length off the tee will not be a huge factor in posting a low number

Know the course before a big round

→ Schedule a practice round to get familiar with the course condition and layout. (This alone could save you 3 to 5 shots per round.)

TOURNAMENT TIME Save up to 5-10 shots per round

Lowering Your Taxes

Tips to help you save in 3 areas:

Investments Retirement Estate plan

Please note that most of the tax discussion in this presentation applies only to federal income taxes and not necessarily to state and local income taxes. Federal income tax laws are complex and subject to change. While the tax representations made herein are believed to be accurate, the information may not necessarily be current or complete. You are cautioned to seek the advice and counsel of your tax attorney or advisor for complete information concerning your particular circumstances.

*Current tax breaks will expire on December 31, 2012, if no new laws are passed or extensions made.

Note: Federal tax laws are complex and subject to change. Please seek the advice of an independent tax advisor for complete information concerning your particular circumstances.

Upcoming tax changes could have a big impact on your retirement income and legacy

Preparing for Future Tax Hikes

Type Current Expected Post-2012*

Maximum income tax rate 35% 39.6%

Maximum capital gains rate 15% 20%

Maximum estate and gift tax rate 35% 55%

Unified estate, gift and generation-skipping tax exemptions

$5,120,000 $1,000,000

Reducing capital gains tax by selling securities at a loss

Losses can be used to offset capital gains

Up to $3,000 can be applied to reduce current taxable income even if there are no capital gains for the year

Unused losses generally can be carried forward to the next year until they are exhausted

INVESTMENTS

Tip #1

Note that selling a security for a loss and buying a substantially identical security within 30 days of the sale date is considered a "wash sale.” Losses from wash sales cannot offset gains.

Investing tax-free with municipal bonds

INVESTMENTS

Tip #2

Pay no federal income tax on

earnings*

Avoid state and local income tax if bonds are

purchased from your home state

Tax-exempt income can cause you to pay taxes on up to 85% of your

Social Security benefits

*Alternative Minimum Tax (AMT) may apply in some cases.

Note: Municipal bonds are subject to risks, including call risk, credit risk, inflation risk, interest rate risk, and liquidity risk.

Tax-deferred income is generally not used to determine the taxable amount of Social Security benefits

With tax-deferred investments like IRAs, 401(k)s and variable annuities, an individual generally pays no current income tax on capital gains, interest or dividends

100% of your money stays in your investment, giving you the potential to generate more earnings over time

RETIREMENT

Tip #3

Deferring taxes

Note: Withdrawals of taxable amounts are subject to ordinary income tax and, if taken prior to age 59½, a 10% federal tax penalty may apply.

Maximizing IRA or 401(k) contributions

RETIREMENT

Tip #4

401(k) Example—for investors aged 50 or older:

Lower Contribution(3% of $150,000 annual salary)

Maximum Contribution(15% of $150,000 annual salary)

Annual contribution $4,500 $22,500

Current taxable income $144,450 $127,500

Marginal income tax bracket 28% 25%

Total contributions over 20 yrs. $90,000 $450,000

Balance w/ 8% returns over 20 yrs. $214,748 $1,073,738

Earnings $124,748 $623,738

With maximum contributions, you would pay less tax and earn $498,990 more over 20 years!

Note: This hypothetical illustration does not represent the performance of any investment, nor the fees and charges associated with any investment. Contributions are made on a pre-tax basis. Withdrawals are subject to ordinary income tax, and a 10% federal tax penalty may apply if withdrawals are made prior to age 59½. Please note that you can withdraw assets from an employer-sponsored plan without paying the 10% federal tax penalty, as long as you’ve left the company and the separation occurred on or after age 55.

RETIREMENT

Tip #5

Example: Rollover Option NUA Option

Total market value of employer stock(Cost basis = $200,000; net unrealized appreciation (NUA) = $800,000)

$1 million $1 million

Income tax at time of distribution $0Rollover is tax free

$70,00035% income tax on $200,000 cost basis

Tax when stock is sold for $1 million $350,00035% income tax on $1 million

$120,00015% capital gains on $800,000 NUA

Total tax paid $350,000 $190,000

TAX SAVINGS $160,000

This hypothetical illustration is intended only to show how the NUA Strategy works. It does not reflect the tax or investment value of any specific investment. This example does not reflect any transaction fees or state and local taxes. Assumptions: $1 million in highly appreciated company stock that has been held for more than 12 months; $200,000 original purchase price (i.e. cost basis); 35% federal income tax rate; no 10% early withdrawal tax penalty; and no state or local income tax.

Using the NUA Strategy to reduce taxes on plan distributions of company stock to 15%

Reducing a taxable estate by giving away up to $5.12 million

Pay no tax on lifetime gifts of up to $5.12 million ($10.24 million for married couples)

The clock is ticking: these exemptions may drop significantly after 2012

ESTATE PLAN

Tip #6

Plus, individuals can continue to make gifts free of estate or gift tax, as long as they are under the annual exclusion amount ($13,000 for 2012)!

Creating a tax-free legacy using Roth IRAs

ESTATE PLAN

Tip #7

Naming your spouse or child as the beneficiary

→ Beneficiaries can withdraw earnings tax-free, provided the assets have been in the Roth IRA for at least 5 years

→ Tax-free income may be stretched for many years

→ Planning considerations: income tax due upon Roth IRA conversion; best to pay income tax with assets outside of the Roth IRA

Creating Roth IRAs for your children or grandchildren

→ Can reduce your taxable estate and help your loved ones grow their retirement assets on a tax-free basis!

Let’s get started by teeing off for retirement!

Are you ready to lower your golf and tax handicaps?

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Not FDIC or NCUA/NCUSIF InsuredMay Lose Value No Bank or Credit Union Guarantee Not a Deposit Not Insured by Any Federal Government Agency

Investments involve risk, including the possible loss of principal. Please ask me about the risks and fees associated with your current investments and any investments that may be recommended in the future.

Securities offered through [company name]

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