Press release


With Tax Increases Looming for Millions of Americans, Putnam Seeks to Assist Financial Advisors in their Pivotal Role of Providing Sound, Needed Guidance

BOSTON, March 26, 2012 — Based on a convergence of political and economic factors, financial advisors have their work cut out for them in helping clients navigate expected changes to the country’s tax code next year and beyond. In seeking to assist advisors in building awareness and seizing opportunity around the evolving tax environment, Putnam Investments has developed a comprehensive resource — the “Tax–Smart Opportunities in 2012” kit, which is available on the firm’s advisor website and the Putnam Wealth Management blog.

In light of a worsening budget deficit, and considerable uncertainty about tax policy due to an aging population, expired tax provisions, evolving health–care landscape and the national elections this fall, Putnam believes that there are key tax planning strategies that advisors may want to consider for their clients at this time, including:

  • Accelerating income where feasible — Taxpayers who expect to remain in higher tax brackets going forward may want to consider reporting more income on their tax return in 2012.
  • Completing large financial transactions — Rising long–term capital gains rates and a new Medicare surtax of 3.8% on net investment income may prompt investors to consider completing large financial transactions — the sale of appreciated stock, real estate or businesses — before 2013.
  • Accelerating tax deductions into 2012 — With the return of income phaseouts on itemized deductions in 2013, clients in higher tax brackets might consider accelerating certain tax deductions into 2012 if possible.
  • Making lifetime gifts — Individuals and families with significant wealth should consult with their estate planning attorneys given the unprecedented lifetime gift tax exemption amount — $5.12 million in 2012, which reverts back to $1 million in 2013.

Other important actions that advisors and their clients may want to consider in 2012 include reviewing estate planning documents and strategies, considering significant charitable gifts and exploring options with life insurance trusts to create liquidity at death to pay estate taxes.

“While the winds of uncertainty continue to swirl around the tax code, it does appear very likely that many Americans will experience a directional change — paying higher taxes and receiving fewer deductions on multiple fronts as we approach 2013,” said William D. Cass, CFP®, Senior Wealth Management Marketing Manager, Putnam Retail Management. “Given the environmental factors at play, there are a series of strategic moves that are becoming increasingly important for advisors to discuss with clients as they prepare for looming tax changes.”

“In continuing to provide the marketplace with our best thinking on investments, practice management and financial planning,” explained Cass, “Putnam is seeking to create a comprehensive resource, accessed through multiple mediums, that addresses the changing face of tax policy and offers actionable strategies for advisors to review with clients. As always, it's critical that clients work with a qualified tax professional or estate planning attorney when implementing any of these strategies.”

Cass indicated that the “Tax–Smart Opportunities in 2012” package also includes a white paper entitled, “Tax planning for 2012 and beyond”; 2011 and 2012 tax rates, schedules and contribution limits; insight on new estate tax rules, health–care reform and its impact on investors, and the case for converting a traditional IRA to a Roth IRA. In addition, information is provided on historical tax rates/yields and when to consider a CD versus a municipal bond investment, as well as a tax diversification worksheet and tax–free investments brochure.

Complementing traditional print and online materials, Putnam is making commentary on the 2012 tax outlook and planning strategies available to advisors through video on the firm's YouTube channel, as well as podcasts on iTunes.

Putnam Wealth Management Center
Putnam’s Wealth Management Center seeks to be a useful resource for advisors on an array of topics including college savings, insurance and risk management, investments, retirement savings/income and tax planning. Financial advisors can access Putnam's wealth management content in several ways, including directly or via the Putnam advisor homepage.

Since Robert L. Reynolds became Putnam's president and chief executive officer in 2008, the company has deepened its commitment to financial advisors and launched a series of innovations and initiatives to meet the emerging needs of advisors and their clients. Putnam has emphasized the use of technology, especially the web, to provide advisors with the tools and information they need to assist their clients.

About Putnam Investments
Founded in 1937, Putnam Investments is a leading global money management firm with 75 years of investment experience. At the end of March 2012, Putnam had $124 billion in assets under management. Putnam has offices in Boston, London, Frankfurt, Amsterdam, Tokyo, Singapore and Sydney. For more information, visit

This information is not meant as tax or legal advice. Please consult with the appropriate tax or legal professional regarding your particular circumstances before making any investment decisions.

Investors should carefully consider the investment objectives, risks, charges, and expenses of a fund before investing. For a prospectus, or a summary prospectus if available, 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.

Putnam Retail Management