Taxes and Your Retirement Savings Securities and Investment

Taxes and Your Retirement Savings Securities and Investment Advice Offered Through <Broker Dealer Name> Financial Services, Inc. Member FINRA/SIPC. Tarkenton Financial and <Broker Dealer/RIA> are independent of each other. Our firm is not affiliated with nor endorsed by any government agency, including the IRS and the Social Security Administration. Presented by: <Advisor Name> <Advisor Job Title/Designations> Advisor Photo Here

Advisor Photo Here • • • Advisor bio highlights here Certifications Qualifications Designations Something personal about you (the advisor) Jeremy M. Remily Investment Advisor Representative Great Plains Capital Investments 319 11 th St. North Wahpeton, ND 58075 701 -591 -0200 Office 701 -640 -2380 Cell Securities and Investment Advice Offered Through <Broker Dealer Name> Member FINRA/SIPC. Tarkenton Financial and <Broker Dealer Name> are independent of each other.

Disclosures Securities and Investment Advice Offered Through <Broker Dealer Name>. Member FINRA/SIPC. Tarkenton Financial and <Broker Dealer Name> are independent of each other. This presentation is designed to provide general information on the subjects covered. It is not, however, intended to provide specific legal or tax advice and cannot be used to avoid tax penalties or to promote, market, or recommend any tax plan or arrangement. Please note that <Advisor Name>, their affiliated companies, and their representatives and employees do not give legal or tax advice. Guarantees are backed by the financial strength and claims-paying ability of the issuing company and do not apply to the performance of the variable subaccounts, which will fluctuate with market conditions. Investing in securities does involve risk, including the possible loss of principal. • Not FDIC insured • May lose value • No bank or credit union guarantee • Not a deposit • Not insured by any federal government agency or NCUA/NCUSIF

Your Three Big Risks for Retirement Structural Risk You may be on your own when putting assets aside Market Risk Markets and interest rates impact you Tax Risk Taxes will be an important consideration

Market Risk The chance that investments will lose value over time due to negative market performance.

Market Risk

Tax Risk The chance that investments will lose value over time due to tax rules changing resulting in higher than expected taxes.

Tax Deferred Working Years: Saving Money Taxes Deferred Retirement Years: Spending Money TAXED This hypothetical example does not consider every product or feature of tax-deferred accounts and is for illustrative purposes only. It should not be deemed a representation of past or future results, and is no guarantee of return or future performance. This information is not intended to provide tax, legal or investment advice. Be sure to speak with qualified professionals before making any decisions about your personal situation.

Saving and Spending SAVING ASSETS SPENDING ASSETS Contributions: $7, 500 annually for 30 years Withdrawals: $75, 000 annually for 15 years Tax Deferral: $2, 500 in taxes annually Tax Liability: $25, 000 in taxes each year $75, 000 in taxes deferred $375, 000 in taxes paid For this example, we’ve assumed an individual in the 33% tax bracket contributes $7, 500 annually for 30 years with a 7% net annual growth rate into a tax-deferred asset, like a 401(k) or IRA. We’ve also assumed his tax bracket stays the same in retirement. Your tax bracket may be higher or lower in retirement, unlike this example. This hypothetical example does not consider every product or feature of tax-deferred accounts and is for illustrative purposes only. It should not be deemed a representation of past or future results, and is no guarantee of return or future performance. This information is not intended to provide tax, legal or investment advice. Be sure to speak with qualified professionals before making any decisions about your personal situation.

Statutory Tax Rates are Historically Low Highest Marginal Tax Rate 100, 00% 90, 00% 80, 00% 70, 00% 60, 00% 50, 00% 40, 00% 30, 00% 20, 00% 1913 1915 1917 1919 1921 1923 1925 1927 1929 1931 1933 1935 1937 1939 1941 1943 1945 1947 1949 1951 1953 1955 1957 1959 1961 1963 1965 1967 1969 1971 1973 1975 1977 1979 1981 1983 1985 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 2011 2013 2015 2017 2019 0, 00% Highest Marginal Tax Rate Source: Tax Policy Center, https: //www. taxpolicycenter. org/statistics/historical-highestmarginal-income-tax-rates, 2/4/2020

Government Spending > Revenue What do you think this may mean for your future tax rates? - In April 2020 alone, the US budget deficit was $738 billion - We are on track for the US budget deficit to be near $4 trillion in 2020 - With Congress suggesting more “relief” packages with hundreds of billions more in spending for 2020 who knows where the deficit will end up

Exposure to Future Tax Increases No one knows for sure what future tax rates will be • Here’s what we do know: ◦ Right now, tax rates are historically low ◦ Our government spends more money than it takes in ◦ Common sense says the current state of affairs is not sustainable in the long run The case against your tax bracket decreasing in retirement: • Many of your deductions go away: ◦ Mortgage Interest on Personal Residence ◦ Children (both a deduction & credit!) ◦ Qualified Plan Contributions

Tax-Free Growth Working Years: Saving Money TAXED Retirement Years: Spending Money No Taxes Due This hypothetical example does not consider every product or feature of tax-deferred accounts and is for illustrative purposes only. It should not be deemed a representation of past or future results, and is no guarantee of return or future performance. This information is not intended to provide tax, legal or investment advice. Be sure to speak with qualified professionals before making any decisions about your personal situation.

Tax-Free Growth – Account Types Tax-Free Income Growth Potential Subject to Market Risk Death Benefit LTC/Chronic Illness Benefit Additional Notes Municipal Bonds Possibly Yes No No Income is based on bond interest rates Roth IRA’s/401 k’s Yes, after age 59 ½ Yes, depending on investments in account Yes No No Contribution limits apply Indexed Universal Life (IUL) Yes, can have limits No Yes, with additional rider(s) No contribution limits, must qualify with medical underwriting This hypothetical example does not consider every product or feature of tax-deferred accounts and is for illustrative purposes only. It should not be deemed a representation of past or future results, and is no guarantee of return or future performance. This information is not intended to provide tax, legal or investment advice. Be sure to speak with qualified professionals before making any decisions about your personal situation.

Section 7702 Indexed Universal Life Power of Indexing Tax-Free Death Benefit Index Universal Life (IUL) products have guaranteed rate of return, and the potential for additional gains linked to the growth of a linked market index, like the S&P 500®. IUL products are not an investment in the "market" or in the applicable index and are subject to all policy fees and charges normally associated with most universal life insurance. Life insurance policies are contracts between the client and issuing insurance company. Life insurance product guarantees rely on the financial strength and claims paying ability of the issuing insurer. Life insurance policies are not bank or FDIC insured.

What’s Indexing? • How interest is credited to your policy • In rising market: Capture a portion of the potential growth of an index, up to a cap • In a falling market: Floor of zero, past growth is not at risk from market drop

How Funds Grow with Indexing Managing the Volatility 40, 00% 30, 00% 20, 00% 10, 00% -10, 00% -20, 00% -30, 00% -40, 00% -50, 00% -60, 00% Calendar Year Return Inner Year Trough IUL w/8. 75% cap Source: Yahoo Finance GSPC Historical Prices, Wikipedia and Standardsand. Poors. com 1 This historical performance of the S&P 500® is not intended as an indication of its future performance and is not guaranteed. This graph is only intended to demonstrate how the S&P 500®, excluding dividends, would be impacted by the hypothetical growth cap of 12. 5% and the hypothetical floor of 0%. Not prediction of how any IUL product might have operated had it existed over the period depicted above. The actual historical growth of an IUL product existing over the period depicted above may have been higher or lower, and would have fluctuated subject to product guarantees. 2 This graph does not reflect the impact of life insurance policy charges or investment account fees, so the actual comparative values may vary from the chart above.

How Funds Grow with Indexing $340 000 12. 50% $320 000 $300 000 9. 54% $280 000 11. 39% $260 000 $220 000 12. 50% 0. 00% $180 000 $160 000 $140 000 $80 000 $60 000 $40 000 11. 96% 12. 50% $200 000 $100 000 21. 83% 12. 50% $240 000 $120 000 0. 00% 12. 50% 8. 99% 12. 50% 3. 00% 15. 79% 12. 50% 0. 00% 3. 53% 01 02 03 04 05 15. 06% 2. 11% 26. 46% -37. 00% -22. 10% 00 32. 39% 16. 00% 5. 49% 10. 88% 4. 91% 28. 68% -9. 10% -11. 89% 13. 69% 1. 38% 06 07 08 09 10 11 12 13 14 15 16 17 Source: Yahoo Finance GSPC Historical Prices, Wikipedia and Standardsand. Poors. com 1 This historical performance of the S&P 500® is not intended as an indication of its future performance and is not guaranteed. This graph is only intended to demonstrate how the S&P 500®, excluding dividends, would be impacted by the hypothetical growth cap of 12. 5% and the hypothetical floor of 0%. Not prediction of how any IUL product might have operated had it existed over the period depicted above. The actual historical growth of an IUL product existing over the period depicted above may have been higher or lower, and would have fluctuated subject to product guarantees. 2 This graph does not reflect the impact of life insurance policy charges or investment account fees, so the actual comparative values may vary from the chart above.

Case Study: Bob & Bill Bob and Bill are 50 -year-old twin brothers. Bob takes the 401(k) route, while Bill goes with an IUL policy… Bob $13, 482/yr after tax until age 87, when his account is depleted Bill $10, 931/yr before tax for 15 years 401(k) $13, 482/yr tax-free for life + $98, 243 death benefit if he dies at 90 $7, 675/yr after tax for 15 years ($3, 256 in taxes) IUL This hypothetical example makes a number of simplifying assumptions to demonstrate a concept. 401 k assumes 6. 5% return minus 1% for fees. IUL assumes 6. 5% credited interest. It is important to note that the rate of return is not guaranteed in either an IUL or a 401(k). While an IUL will never lose money because the market goes down or the underlying crediting index goes down, it is dependent upon increases over time for interest to be credited to the account and substantial value to build. There is also no way of knowing with certainty what future tax rates will be. Also, don’t forget that any and all guarantees in IUL products are dependent solely on the financial strength and claims-paying ability of the issuing insurance company.

Case Study: Bob & Bill BOB BILL Assume an avg. annual return of 6. 5% reduced by 1% for fees and expenses Assume yearly credited interest at 6. 5% $10, 931/year into 401 k for 15 years $7, 675/year into IUL ($10, 931 minus $3, 256 in taxes he pays yearly at 35% tax rate) for 15 years later, he has account value of $244, 946 15 years later, he has only $154, 992 – BUT… Starting at 66, takes $18, 201/yr (taxed at 35%), giving him $13, 482/yr Starting at 66, he can take $13, 482/yr tax-free for life as policy loans However, his account value is depleted at age 87 Bill’s family also has a death benefit of $98, 243 (assuming he dies at age 90) Bill is also leveraging the power of a participating loan. He is being charged a contractually guaranteed interest rate of 5% on policy loans while his account is growing at 6. 5%. He’s still earning money on his money while he has use of it. This hypothetical example makes a number of simplifying assumptions to demonstrate a concept. 401 k assumes 6. 5% return minus 1% for fees. IUL assumes 6. 5% credited interest. It is important to note that the rate of return is not guaranteed in either an IUL or a 401(k). While an IUL will never lose money because the market goes down or the underlying crediting index goes down, it is dependent upon increases over time for interest to be credited to the account and substantial value to build. There is also no way of knowing with certainty what future tax rates will be. Also, don’t forget that any and all guarantees in IUL products are dependent solely on the financial strength and claims-paying ability of the issuing insurance company.

Dual Protection Accumulate and potentially grow in IUL policy Loans which are not repaid and their compounding interest will reduce death benefit. Ellen Dies Death Benefit paid Tax-Free to Heirs Ellen Retires Borrows cash value to supplement income in retirement

IUL: Helping Address Risk • Structure Risk o Death benefit to help protect heirs o Builds cash value • Market Risk o Potential for growth of cash value o Protection of principal against market volatility • Tax Risk o Access to cash value with tax-free loans

Four Bucket Planning Liquidity Lifetime Income Long Term Growth Legacy Purpose: Emergency Funds Purpose: Reliable Income Purpose: Long Term Growth Purpose: Money to Heirs Products: Money Market CDs, Savings Products: Fixed Index Annuity w/ Income Rider Indexed Universal Life (IUL) Products: Equity Investments Products: Life Insurance Appreciated Assets

Our Approach 4 Simple Steps to a Better Retirement • Inventory: What are your goals? Where are your assets? • Income: Will those assets live as long as you do? • Ideas: Are there are changes you ought to consider? • Implementation: What might the process look like?

Let’s Have a Discussion About Your Goals I am here to help you examine: • • • Asset Allocation and Portfolio Analysis Maximizing Social Security Benefits Creating a Predictable Retirement Income Plan Tax-Free Income Other financial concerns you may have To schedule a time to meet with me individually, for a no obligation appointment, please contact my office at <Advisor Phone Number>. Thank you for your time today! Securities and Investment Advice Offered Through <Broker Dealer Name>. Member FINRA/SIPC. Tarkenton Financial and <Broker Dealer> are independent of each other.