1. LIFE LESSONS Pursue one of life’s important goals with a smart plan
Presenter Name
Presenter Title
MFS Fund Distributors, Inc. may have sponsored this seminar by paying for all or a portion of the associated costs.
Such sponsorship may create a conflict of interest to the extent that the broker-dealer's financial advisor considers
the sponsorship when rendering advice to customers.
NOT FDIC INSURED • MAY LOSE VALUE • NO BANK GUARANTEE
Before investing in the MFS® 529 Savings Plan, consider the investment objectives, risks, charges, and expenses. For a prospectus or summary prospectus containing this and other information, as well as a Participant Agreement and Disclosure Statement and its Supplement with expense overview, contact your investment professional or view online at mfs.com. Read them carefully.
[This slide remains up prior to beginning this presentation. It provides name recognition and necessary legal language.]
Follow your dreams.
Embrace change.
Push yourself.
Help others.
Be thankful.
Be honest.
Smile.
Just some of life’s rewarding lessons.
Today, we are going to take a look at a few more.
Ones that relate to saving for college.
The kind that can make all the difference in the world.
MFS Fund Distributors, Inc., Boston, MA

2. GENERAL NOTES
The MFS® 529 Savings Plan is a flexible college investing plan sponsored by the state of Oregon, acting by and through the Oregon 529 Savings Board, and is part of the Oregon 529 Savings Network. MFS Fund Distributors, Inc. is the Program Manager. MFS 529 Savings Plan accounts are considered municipal fund securities.
Depending on your state of residence and the state of residence of the beneficiary, an investment in the MFS 529 Savings Plan may not afford you or your beneficiary state tax benefits or other benefits only available for investments in such state's qualified tuition program. State benefits may include financial aid, scholarship funds and protection from creditors. See your tax advisor to be sure you understand the tax issues related to a 529 plan. Withdrawals of earnings not used to pay for qualified higher education expenses are subject to an additional 10% federal tax penalty. State taxes may also apply.
There is a $25 annual account fee associated with the MFS® 529 Savings Plan. This annual fee is waived for Oregon residents and for those accounts with assets of $25,000 or more. Other waivers may apply, check with your financial advisor. Investments in 529 plans involve investment risks. You should consider your financial needs, goals, and risk tolerance prior to investing.
MFS does not provide legal, tax, or accounting advice. Clients of MFS should obtain their own independent tax and legal advice based on their particular circumstances.
Before we get started, I want to cover these general notes.
The MFS 529 Savings Plan (also referred to as the “MFS Plan”) is a qualified tuition program offered by MFS Fund Distributors, Inc. in conjunction with the Oregon 529 Savings Board (the “Board”) and is part of the Oregon 529 Savings Network. The MFS Plan was established by the Board, and MFS Fund Distributors, Inc. is the Program Manager. MFS Plan accounts are considered municipal fund securities.

3. A SMART WAY TO SAVE CONSIDER LESSON ONE:
Lesson one: Consider a smart way to save
Now there is a simpler, smarter way to work toward making college a reality for the important people in your life.
It's called a 529 college savings plan (“529”).
529s are investment programs offered by individual states specifically designed to help families of any income level save for higher education expenses.

4. KEY 529 TAX ADVANTAGES AND FEATURES
LESSON ONE:
KEY 529 TAX ADVANTAGES AND FEATURES
Earnings are tax deferred.
Withdrawals are free from federal taxes if used for qualified higher education expenses.
You get a wide range of investment options.
The owner controls the assets.
You can contribute up to $14,000 per year ($28,000 per married couple) per beneficiary without paying federal gift-tax consequences.
Let's review some of the key advantages of a 529 plan.
Your investment grows tax-deferred and distributions to pay for the beneficiary's college costs come out federally tax free.

5. KEY 529 TAX ADVANTAGES AND FEATURES
LESSON ONE:
KEY 529 TAX ADVANTAGES AND FEATURES
Earnings are tax deferred.
Withdrawals are free from federal taxes if used for qualified higher education expenses.
You will be subject to federal income tax on your earnings, and a 10% federal tax penalty may apply on earnings if amounts are withdrawn for something other than qualified higher education expenses.
The owner controls the assets.
You get a wide range of investment options.
You can contribute up to $14,000 per year ($28,000 per married couple) per beneficiary without paying federal gift-tax consequences.
Withdrawals are free from federal tax if used for qualified higher education expenses. A possible 10% federal tax penalty may apply to earnings withdrawn for something other than qualified higher education expenses.

6. KEY 529 TAX ADVANTAGES AND FEATURES
LESSON ONE:
KEY 529 TAX ADVANTAGES AND FEATURES
Earnings are tax deferred.
Withdrawals are free from federal taxes if used for qualified higher education expenses.
You get a wide range of investment options.
The owner controls the assets.
You can contribute up to $14,000 per year ($28,000 per married couple) per beneficiary without paying federal gift-tax consequences.
You get a wide range of investment options. For instance, with the MFS 529 Savings Plan, you can select from a variety of investment choices, including age-based and asset allocation portfolios.

7. KEY 529 TAX ADVANTAGES AND FEATURES
LESSON ONE:
KEY 529 TAX ADVANTAGES AND FEATURES
Earnings are tax deferred.
Withdrawals are free from federal taxes if used for qualified higher education expenses.
You get a wide range of investment options.
The owner controls the assets.
can change the designated beneficiary.
can roll over other college savings accounts.
can name a contingent account owner.
You can contribute up to $14,000 per year ($28,000 per married couple) per beneficiary without paying federal gift-tax consequences.
[READ OWN\ER CONTROLS ASSETS INFORMATION]
Investments in 529s involve risk. You should consider your financial needs, goals and risk tolerance prior to investing.

8. KEY 529 TAX ADVANTAGES AND FEATURES
LESSON ONE:
KEY 529 TAX ADVANTAGES AND FEATURES
Earnings are tax deferred.
Withdrawals are free from federal taxes if used for qualified higher education expenses.
You get a wide range of investment options.
The owner controls the assets.
You can contribute up to $14,000 per year ($28,000 per married couple) per beneficiary without paying federal gift-tax consequences.
Or you may gift up to $70,000 ($140,000 per married couple) to each beneficiary. You will not incur federal gift taxes as long as no additional gifts are made to the beneficiary for four years after the year during which you make the one-time gift.1
A gift- and estate-tax benefit lets you contribute up to $14,000 per year ($28,000 per married couple) per beneficiary without paying federal gift-tax consequences. Or, you may gift up to $70,000 ($140,000 per married couple) to each beneficiary.
You will not incur federal gift taxes as long as no additional gifts are made to the beneficiary for four years after the year during which you make the one-time gift.
Amounts in an account that were considered completed gifts by the account owner will not be included in the account owner's gross estate for federal estate tax purposes.
However, if the account owner elected to treat the gifts as having been made over a five-year period and dies before the end of the five-year period, the portion of the contribution allocable to the remaining years in the five-year period would be includable in computing the account owner's gross estate for federal estate-tax purposes.
Other important information about 529 savings plans is that there are additional fees associated with 529 savings plans.
Also, investments in 529 plans involve investment risks. You should consider your financial needs, goals, and risk tolerance prior to investing.
Let's review some of the key advantages of a 529 plan.
Your investment grows tax-deferred and distributions to pay for the beneficiary's college costs come out federally tax free.
1 Report the gift on a federal tax form. Amounts in an account that are considered completed gifts by the account owner will not be included in the account owner’s gross estate for federal estate tax purposes. However, if the account owner elected to treat the gifts as having been made over a five-year period and dies before the end of the five-year period, the portion of the contribution allocable to the remaining years in the five-year period would be includable in computing the account owner’s gross estate for federal estate tax purposes. Information current as of 1/1/16; tax rules are subject to change.

9. SEEK TO HAVE THE REWARD OUTWEIGH THE COST
LESSON TWO:
SEEK TO HAVE THE REWARD OUTWEIGH THE COST
Lesson two: The reward often outweighs the cost
You know how important a college education can be to opening minds and doors. You also know how expensive it can be. A 529 can help keep college in reach.

10. THE RISING COST OF COLLEGE The cost of private college1
LESSON TWO:
THE RISING COST OF COLLEGE The cost of private college1
CHILD'S AGE
But saving is critical.
In the school year, the average cost of tuition for four years at a private college was $143,176.
1 Source: MFS calculations based on data from College Board’s Trends in College Pricing 2016, using average tuition and fees for only a four-year period. Calculations assume private college costs will increase 4.5% per year and public college costs will increase 6.5% per year on average. Estimates for future college costs assume a fixed rate of increase based on an average of the last 15 years. Year-over-year percentage increases used in both categories. For illustrative purposes only.

11. THE RISING COST OF COLLEGE The cost of private and public college1
LESSON TWO:
THE RISING COST OF COLLEGE The cost of private and public college1
CHILD'S AGE
In the school year, the average cost of tuition for four years at an in-state public college was $42,539
It's not hard to see why planning and saving for college is one of the top financial priorities for many families — right behind saving for retirement.
These numbers incorporate MFS estimates using The College Board 2016 tuition and college inflation data and assume that public college costs increase at 6.5% per year and private college costs increase at 4.5% per year on average.
Participation in the plan does not guarantee that contributions and the investment return on contributions, if any, will be adequate to cover future tuition and other higher education expenses. These examples are for illustrative purposes only.
1 Source: MFS calculations based on data from College Board’s Trends in College Pricing 2016, using average tuition and fees for only a four-year period. Calculations assume private college costs will increase 4.5% per year and public college costs will increase 6.5% per year on average. Estimates for future college costs assume a fixed rate of increase based on an average of the last 15 years. Year-over-year percentage increases used in both categories. For illustrative purposes only.

12. MAKE IT A FAMILY AFFAIR LESSON THREE:
Lesson three: Make it a family affair
An important benefit to 529 plans is that anyone — parent, grandparent, aunt, uncle or family friend — can establish one to help a student with future college expenses. You can even set one up for yourself if you are planning to go back to school.

13. A LITTLE GOES A LONG WAY LESSON THREE:
Investing a set amount of money each month can really add up over time. By making monthly contributions to a 529, you are taking a disciplined, tax-deferred route to funding college needs.
Keep in mind that earnings withdrawn for purposes other than educational expenses are subject to income taxes and a 10% federal tax penalty. Qualified withdrawals are tax free as long as they are used for higher education expenses.
Rates of return will vary over time, particularly for long-term investments. There is no guarantee the selected rate of return can be achieved.
Regular investing does not ensure a profit against loss in declining markets. Investors should consider their ability to continue purchasing shares during periods of low price levels. Fees and expenses have not been taken into account.
These examples are for illustrative purposes only and are not intended to predict the returns of any investment choices. Rates of return will vary over time, particularly for long-term investments. There is no guarantee the selected rate of return can be achieved. Any underlying investments of a 529 plan may have fees and expenses that are not taken into account in these illustrations. The performance of the investments will fluctuate with market conditions. Regular investing does not ensure a profit or protect against loss in declining markets. Investors should consider their ability to continue purchasing shares during periods of low price levels.

14. GREATER GROWTH POTENTIAL
LESSON THREE:
GREATER GROWTH POTENTIAL
As you can see in this chart, an investment that is allowed to grow tax-deferred has the potential to accumulate much more money over a long period of time.
As mentioned before, earnings on 529 assets are tax deferred. And withdrawals, if used for qualified higher education expenses, are not subject to federal income tax.
Nonqualified withdrawals are subject to both income taxes and a 10% federal tax penalty on earnings.
If you have a relatively long time horizon, a 529’s tax-deferred growth potential makes it a great product for systematic investing.
These examples are for illustrative purposes only and are not intended to predict the returns of any investment choices. Rates of return will vary over time, particularly for long-term investments.
There is no guarantee the selected rate of return can be achieved. Any underlying investments of a 529 plan may have fees and expenses that are not taken into account in these illustrations. The performance of the investments will fluctuate with market conditions. Regular investing does not ensure a profit or protect against loss in declining markets. Investors should consider their ability to continue purchasing shares during periods of low price levels.

15. SHARE THE WEALTH LESSON FOUR Lesson four: Share the wealth
With a 529, you not only can help fund a college education, but potentially reduce your estate taxes at the same time.
Under current rules, you can share the wealth by “gifting” up to $14,000 ($28,000 per married couple) per beneficiary per year without paying federal gift tax.
Another 529 option is to gift up to $70,000 ($140,000 per married couple) per beneficiary in a single tax year without gift tax consequences, provided you do not make any more gifts to that beneficiary over a four-year period after the year you made the one-time gift.
Funds contributed are considered complete gifts for federal gift and estate tax purposes and are excluded from your taxable estate. However, if the account owner elects to treat the gifts as having been made over a five-year period and dies before the end of the five-year period, the portion of the contribution allocable to the remaining years in the five-year period would be includable in computing the account owner's gross estate for federal estate tax purposes.

16. LESSON FOUR:
A PLAN TO PASS IT ON
Consider this example of how the 529 gifting feature can be used to help multiple family members and generations attend college.
Any grandparents here? Today, extended family members often help pay for upcoming college educations.
Consider this example of how the 529 gifting feature can be used to help multiple family members and generations attend college.
[Read slide. Be CERTAIN TO READ IMPORTANT DISCLOSURES ON NEXT SLIDE]
1,2 See slide 18.

17. LESSON FOUR:
A PLAN TO PASS IT ON
Consider this example of how the 529 gifting feature can be used to help multiple family members and generations attend college.
Any grandparents here? Today, extended family members often help pay for upcoming college educations.
Consider this example of how the 529 gifting feature can be used to help multiple family members and generations attend college.
[Read slide. Be CERTAIN TO READ IMPORTANT DISCLOSURES ON NEXT SLIDE]
1,2 See slide 18.

18. LESSON FOUR:
A PLAN TO PASS IT ON
Consider this example of how the 529 gifting feature can be used to help multiple family members and generations attend college.
Any grandparents here? Today, extended family members often help pay for upcoming college educations.
Consider this example of how the 529 gifting feature can be used to help multiple family members and generations attend college.
[Read slide. Be CERTAIN TO READ IMPORTANT DISCLOSURES ON NEXT SLIDE]
1,2 See slide 18.

19. A PLAN TO PASS IT ON (continued)
LESSON FOUR:
A PLAN TO PASS IT ON (continued)
These examples are for illustrative purposes only and are not intended to predict the returns of any investment choices. The illustration assumes Charlie’s college costs are not funded entirely from a 529. Any underlying investments of a 529 plan may have fees and expenses that are not taken into account in these illustrations. The performance of the investments will fluctuate with market conditions. Regular investing does not ensure a profit or protect against loss in declining markets. Investors should consider their ability to continue purchasing shares during periods of low price levels.
1 A single person can contribute up to $70,000 in one year per beneficiary; a married couple can contribute up to $140,000 in one year per beneficiary with no gift-tax consequences. Such a contribution will be considered a five-year accelerated annual-exclusion gift, so no additional gifts can be made for that beneficiary for the next four years without incurring gift-tax implications unless the annual gift exclusion increases. The gift amount and subsequent appreciation, however, are removed from your taxable estate. (A portion of the contribution amount may be included in the donor’s taxable-estate calculation if the donor should die within the five-year period.)
2 Earnings are tax deferred and, if used for qualified higher education expenses (such as tuition, room and board, required computers, books and supplies), are not subject to federal income tax. Withdrawals not used for qualified higher education expenses are subject to both income taxes and a 10% federal tax penalty on earnings. State taxes may also apply.
There are no guarantees that 529 plans will be in existence 40 years from now. The rules governing 529 accounts are subject to change. Report gifts on your federal tax return. The illustration does not consider any state taxes that may apply.

20. ASK AN EXPERT LESSON FIVE Lesson five: Ask an expert
Don't go it alone. College investing programs come in many shapes and sizes today, highlighting the importance of professional insight and guidance when it's time to
- review all of the options available to you
- help you choose the right college plan
- help you select the investment options that best fit your needs and
tolerance for risk

21. COMPARISON SHOP LESSON FIVE: MFS® 529 Savings Plan UGMA/UTMA
Income tax treatment
Withdrawals are federal tax free if used for qualified higher education expenses.
Earnings taxed at beneficiary’s rate
Contribution limits
Up to $310,000 account balance per beneficiary
None
Income limits
No limits
Control of assets
Account owner
Custodian until child reaches majority; then the child
Investment flexibility
You can move assets among funds twice each calendar year or when you change beneficiaries.
You can move assets as often as you want, but each transfer usually is a taxable event.
Let's look at the MFS 529 Savings Plan compared to a UGMA account.
A few features to note:
– You get tax-free qualified withdrawals under the MFS 529
– The account owner controls the assets
– Beneficiaries may be transferred to another member of the same family without penalty

22. COMPARISON SHOP (continued)
LESSON FIVE:
COMPARISON SHOP (continued)
MFS® 529 Savings Plan
UGMA/UTMA
Estate planning features
Assets are transferred out of the owner’s estate. Owner retains control.
Assets are transferred out of the estate.
Uses
Can be used for almost any accredited post-secondary school
No restrictions
Ability to change beneficiaries
Can be transferred to another member of the same family without penalty
Not permitted
Penalties on nonqualified withdrawals
Ordinary income taxes and a 10% IRS penalty on earnings
None
State tax deduction
$2,310 per individual; $4,620 if married (filing jointly) — Oregon taxpayers only1 No
Annual fee
$25 annual fee, waived for accounts valued over $25,000 and for residents of Oregon*
Differs, depending on funding vehicle
Additional features include [READ SLIDE].
* Other waivers may apply, check with your financial advisor.
1 Oregon taxpayers may be eligible for a state tax deduction from Oregon taxable income for contributions to the MFS 529 Savings Plan. For 2016, the limit is $2,310 if single or married and filing separately, or $4,620 if married and filing jointly. These deduction limits will be adjusted for inflation by the Oregon Department of Revenue. Learn more at

23. FLEXIBILITY High contribution limit $310,000
LESSON FIVE:
FLEXIBILITY
High contribution limit
$310,000
Low initial minimum contribution
$250
Additional contributions
No minimum
Reallocate among MFS® funds
Up to twice per year
MFS® Automatic Exchange Plan
Yes
Now that we've compared the MFS plan to other college savings vehicle, let's take a look at features that are unique to the MFS plan, starting with flexibility.
[READ SLIDE]

24. Age-based investment option Built-in allocation approach
YOU HAVE MANY CHOICES
Age-based investment option
Built-in allocation approach
Customized approach
With the MFS 529, you also get a wide range of investment options:
– age-based investment option
– built-in allocation approach
– customized approach, including a menu of investment options that invest in MFS mutual funds
You and your advisor can pick the one that best matches your diversification needs, risk tolerance, and time horizon.

25. 1. AGE-BASED INVESTMENT OPTIONS
When you select the age-based investment approach, you do not have to worry about switching to a more conservative portfolio as the child approaches college age. Your assets are automatically transferred to a more conservative asset allocation fund as your beneficiary approaches college age.
This option transfers your assets among five MFS asset allocation funds that are designed to take into account the approximate number of years before your beneficiary starts college. Then, during the child’s college years, the assets are placed in a conservative bond fund. Automatic exchanges take place on the quarterly exchange date on or following the beneficiary’s fifth, tenth, fourteenth, sixteenth and eighteenth birthdays. The funds’ objectives and investment strategies change from one age-based model to another.
If you select the age-based investment approach, you don't have to worry about switching to a more conservative portfolio as the child inches closer to college. It's done for you automatically.
This option transfers your assets among five MFS asset allocation funds that are designed to take into account the approximate number of years before your beneficiary reaches college age. Then, during the child’s college years, the assets are placed in a conservative bond fund.
In January 2015 the Lifetime Income Fund was added to the glide path.
The principal value of the fund options is not guaranteed at any time. The assets will be transferred automatically to a more conservative MFS® asset allocation fund as the designated beneficiary gets older. The fund’s objectives and investment strategies change from one age-based model to another.
For more information on risk associated with these options, please see a prospectus.

26. 2. BUILT-IN ALLOCATION APPROACH
The built-in allocation approach simplifies the decision process by offering asset allocation funds that are preassembled for you. Asset allocation investment options offer targeted asset mixes to match the varying objectives and risk tolerance of investors. They are rebalanced periodically.
*Specialty includes investments in commodities, REITs, derivatives or MFS funds that concentrate in such investments.
Keep in mind that all investments, including mutual funds, carry a certain amount of risk, including the possible loss of the principal amount invested.
The principal value of the fund options are not guaranteed at any time.
Each 529 investment option invests in a single MFS mutual fund.
Performance of the MFS Asset Allocation Funds depends on their underlying MFS funds. These funds may be subject to the volatility of global financial markets (domestic and international) and additional risks associated with investing in high-yield, small-cap, and foreign securities, as well as different fees and expense levels associated with investing in these funds.
Asset allocation, diversification, and rebalancing do not guarantee a profit or protect against loss.
Please see the prospectus for additional information about performance and expenses.
What if an age-based approach is not for you?
What if you want to invest more conservatively or aggressively than the allocation for the child’s age?
The built-in allocation approach simplifies the decision process by offering asset allocation funds that are preassembled for you.
Simply choose any of the five asset allocation funds and consider sticking with it over time based on your goals, financial needs and risk tolerance.
MFS asset allocation funds offer targeted asset mixes to match varying objectives, and risk tolerances are rebalanced periodically to respond to extreme market conditions.

27. 3. CUSTOMIZED APPROACH US Equity Funds Global/ International Equity
Fixed Income
Money Market
Or, you can create your own diversified portfolio from a menu of MFS 529 Savings Plan mutual fund options.
We offer a full spectrum of investment choices, from more aggressive stock funds to middle-of-the-road balanced funds to conservative bond funds.
Periodic rebalancing does not protect against loss in declining markets.

28. 1 2 3 SIMPLE TO START Determine which MFS® investment
options fit your needs. 2
Review the Participation Agreement and Disclosure Statement and the Expense Supplement. 3
Complete the MFS® 529 Savings Plan
account application.
With proper planning and careful consideration, opening a 529 savings plan could be the smartest move you’ll make.
And getting started is easy.
[Read steps] First, determine...

29. Before investing in the MFS® 529 Savings Plan, consider the investment objectives, risks, charges, and expenses. For a prospectus or summary prospectus containing this and other information, as well as a Participant Agreement and Disclosure Statement and Expense Supplement, contact your investment professional or view online at mfs.com. Read it carefully.
MFS does not provide legal, tax, or accounting advice. Individuals should not use or rely upon the information provided herein without first consulting with their tax or legal professional about their particular circumstances. Any statement contained in this communication (including any attachments) concerning US 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 transaction(s) or matter(s) addressed.
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30. Thank you MFS® 529 SAVINGS PLAN Simply smart college investing