Presenter Name Title MFS Investment Management ® Age-Based Milestones ©2010 MFS Investment Management ®. MFS ® investment products are offered through MFS Fund Distributors, Inc., 500 Boylston Street, Boston, MA You should recommend products based on your client’s financial needs, goals, and risk tolerance. MFS does not provide legal, tax or accounting advice. Any statement contained in this communication concerning U.S. tax matters, was not intended or written to be used, and cannot be used, for the purpose of avoiding penalties under the Internal Revenue Code. This communication was written to support the promotion or marketing of the matters addressed. Clients of MFS should obtain their own independent tax and legal advice based on their particular circumstances. FOR INSTITUTIONAL AND INVESTMENT PROFESSIONAL USE ONLY. Should not be shown, quoted, or distributed to the public.

Bank of America Corporation (“Bank of America”) is a financial holding company that, through its subsidiaries and affiliated companies, provides banking and investment products and other financial services. Merrill Lynch, Pierce, Fenner & Smith Incorporated is a wholly-owned subsidiary of Bank of America Corporation, and a registered broker-dealer and member of FINRA and SIPC. Investment products provided by Merrill Lynch, Pierce, Fenner & Smith, Incorporated: The views and opinions expressed in this presentation are not necessarily those of Bank of America Corporation; Merrill Lynch, Pierce, Fenner & Smith Incorporated; or any affiliates. Nothing discussed or suggested in these materials should be construed as permission to supersede or circumvent any Bank of America, Merrill Lynch, Pierce, Fenner & Smith Incorporated policies, procedures, rules, and guidelines. Merrill Lynch, Pierce, Fenner & Smith Incorporated are not tax or legal advisors. Clients should consult a personal tax or legal advisor prior to making any tax or legal related investment decisions. For Investment Professional Use Only Are Not FDIC Insured Are Not Bank Guaranteed May Lose Value

3 Changes in attitudes Source: Yankelovich Consumer Sense Financial Study, 2009 FOR INSTITUTIONAL AND INVESTMENT PROFESSIONAL USE ONLY. Should not be shown, quoted, or distributed to the public.

4 Agenda Clients in their 50s Clients in their 60s Clients in their 70s FOR INSTITUTIONAL AND INVESTMENT PROFESSIONAL USE ONLY. Should not be shown, quoted, or distributed to the public.

5 Clients in their 50s Common characteristics Computer savvy, used to doing own research on Web They like Collaborative approach works best Face-to-face contact appreciated FOR INSTITUTIONAL AND INVESTMENT PROFESSIONAL USE ONLY. Should not be shown, quoted, or distributed to the public.

6 Age 50 Catch-up contributions for IRAs (deductible and nondeductible), Roth IRA, & 401(k)s Opportunities Spousal IRAs Build out funding vehicles Defining your role Conversation starters Clients in their 50s FOR INSTITUTIONAL AND INVESTMENT PROFESSIONAL USE ONLY. Should not be shown, quoted, or distributed to the public.

7 Clients in their 50s Age 55 Separation from Service without 10% penalty Opportunities Affluent client strategy NUA if company stock in DC plan Conversation Starters FOR INSTITUTIONAL AND INVESTMENT PROFESSIONAL USE ONLY. Should not be shown, quoted, or distributed to the public.

8 Clients in their 50s Age 59 ½ IRA withdrawals no longer subject to 10% early withdrawal penalty Income stream for early retirees Opportunities Tune up for retirement with real numbers In service distributions Roth IRA conversions Asset allocation – portfolio positioning Conversation starters FOR INSTITUTIONAL AND INVESTMENT PROFESSIONAL USE ONLY. Should not be shown, quoted, or distributed to the public.

9 Agenda Clients in their 50s Clients in their 60s Clients in their 70s FOR INSTITUTIONAL AND INVESTMENT PROFESSIONAL USE ONLY. Should not be shown, quoted, or distributed to the public.

10 Clients in their 60s Common characteristics Less computer oriented than 50-year olds Crave face to face contact FOR INSTITUTIONAL AND INVESTMENT PROFESSIONAL USE ONLY. Should not be shown, quoted, or distributed to the public.

11 Clients in their 60s Age 62 Earliest date to receive Social Security benefits Opportunities Meet with CPA Create distribution strategy Consolidate, consolidate, consolidate! Roth IRA conversions Conversation starters FOR INSTITUTIONAL AND INVESTMENT PROFESSIONAL USE ONLY. Should not be shown, quoted, or distributed to the public.

12 Clients in their 60s Age 65 DO NOT let client miss Medicare sign up date Possible pension plan distribution start date Opportunities Work with CPA to execute draw down strategies Introduce stretch IRA concept Connect with beneficiaries Conversation starters FOR INSTITUTIONAL AND INVESTMENT PROFESSIONAL USE ONLY. Should not be shown, quoted, or distributed to the public.

13 Clients in their 60s Age 66 First wave boomers eligible for full Social Security benefit Opportunities Adjust draw down strategy to account for taxation of benefit Possible Roth IRA conversion Postpone benefit until age 70 (increases to 130% of full benefit) Conversation starters FOR INSTITUTIONAL AND INVESTMENT PROFESSIONAL USE ONLY. Should not be shown, quoted, or distributed to the public.

14 Agenda Clients in their 50s Clients in their 60s Clients in their 70s FOR INSTITUTIONAL AND INVESTMENT PROFESSIONAL USE ONLY. Should not be shown, quoted, or distributed to the public.

15 Clients in their 70s Age 70 Age for maximum Social Security benefit 130% of the full benefit Opportunities Last chance to consolidate assets before RMDs begin 5498 reporting to IRS by IRA trustees ROTH IRA conversions can take place at any time Get to know the beneficiaries Review distribution strategy with client and CPA Conversation starters FOR INSTITUTIONAL AND INVESTMENT PROFESSIONAL USE ONLY. Should not be shown, quoted, or distributed to the public.

16 Clients in their 70s Age 70 ½ RMDs begin for traditional IRAs No RMD for Roth IRA 401(k) RMDs not required if still working and plan permits it Opportunities Excess RMDs for 529s, additional insurance Conversation starters FOR INSTITUTIONAL AND INVESTMENT PROFESSIONAL USE ONLY. Should not be shown, quoted, or distributed to the public.

17 Asset Allocation Tax buckets Consolidation Connect with client’s other advisors Income and expense modeling Distribution planning Distribution strategy Stretch and beneficiary review Powers of attorney wills Health proxy Trusts FOR INSTITUTIONAL AND INVESTMENT PROFESSIONAL USE ONLY. Should not be shown, quoted, or distributed to the public.

18 Summary Clients in their 50s Clients in their 60s Clients in their 70s Create foundationCritical decisions Harvest benefits FOR INSTITUTIONAL AND INVESTMENT PROFESSIONAL USE ONLY. Should not be shown, quoted, or distributed to the public.

19 MFS Retirement Hotline: Thank you. Not all of the materials highlighted here may be available for your use. Please check with your home office. MFS Fund Distributors, Inc. may have sponsored this seminar by paying for all or a portion of the associated costs. Age-Based Milestones FOR INSTITUTIONAL AND INVESTMENT PROFESSIONAL USE ONLY. Should not be shown, quoted, or distributed to the public.