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					          Who We Are
    David White & Associates


We are financial advisors who specialize in
portfolio design for taxable and tax-deferred
                investments.
Clients Come to Us for Guidance

     Investors are uncomfortable
  selecting investments themselves.

         Not enough time
         Not enough knowledge
         Rear-view mirror data
    Clients Come to Us for Clarity

Too many investment choices create confusion.

      In 1986, there were 1,940 mutual funds.
      By the end of 1997, there were over
       6,300.
      Today there are more than 8,000.
      There are an additional 20,000 options
       for privately managed accounts.
      Source: Lockwood Investment advisory services
Clients Come to Us for Strategy

      Most investors don’t have
a coherent plan for their total portfolio.

 No coordination between taxable and tax-
  deferred investments

 Multiple   advisors = Uncoordinated advice
Pursuing Portfolio Growth

   What can we predict?

   Performance?        No
   Current   Tax rates? Yes
   Fees?               Yes
                     Investor Awareness of
                    Tax Impact is GROWING

                                                               “ Whenever you sell a winner,
     “ Tax-managed funds;                                        make sure to unload a loser
       Gain with less pain. ”                                    before the tax year is over. ”




                                                            “ There’s a lot of advice going
         “ Looking for tax-                                     around about the need to
           efficient funds?”                                    minimize mutual fund taxes. It’s
                                                                time to set the record straight. ”

These logos are trademarks of the respective news organizations. Sources: Smart Investing, January 1999 by Steven T. Goldberg;
        Fortune 3/17/1997 by Maggie Topkis; Bloomberg.com and Women’s Wire current article dated November 12, 1999
                          not by-lined; USA Today article dated November 6, 1998 by John Waggoner.
           The Opportunity
      We help clients take advantage
       of the 2003 tax law changes,
                specifically:

The reduction of the long-term capital
 gains rate to 15%
         The Impact of Taxes on
           Investment Results
     The Tax Bite on Wealth Creation
After-Tax Growth of $10,000 over 20 years at Various Tax-Efficiency Rates

        $80,000
                         Pre-tax return
        $70,000             of 10%                                             After-tax return
                                                                                   at 90%
                                                            After-tax return    tax-efficiency
        $60,000                                                 at 85%
                                           After-tax return
                                               at 80%        tax-efficiency
        $50,000                             tax-efficiency
        $40,000
                           $67,275
        $30,000                                                                 $55,820
                                                              $51,083
        $20,000                             $46,575

        $10,000
             $0
          Source: T. Rowe Price Associates. Assumes 10% average annual pre-tax return and
          liquidation of account after 20 years, 20% tax rate for capital gains, 30% for income. Rates
          are assumed for illustrative purposes only and are not indicative of any particular
          investment.
     Strategies to Enhance
       After-Tax Returns
Tax-aware                  Offset Gains
 Trading                   and Losses


               Private
                Asset
             Management


  Loss                      Tax-lot
Harvesting                Accounting
                                      The Problem



     “Fewer than one American in five knows
     how much his/her funds charge.”



The Economist, January 24, 1998
Source: Comptroller of the Currency
                                   The Challenge

                       Fees are high and rising!

            1992 Average stock fund fees 1.46%
            1997 Average stock fund fees 1.70%
            2002 Average stock fund fees 1.75%


Source: Morningstar, Inc.: 12/31/02
Note: Fees include mutual fund expense ratio and .30 basis points clearing/custody fees.
         What Makes Us Different?

   We construct portfolios with an emphasis on
    what is predictable: fees and taxes.
 We coordinate a strategy for taxable and non-
    taxable pools of assets under one investment plan.
 We have access to one of the most comprehensive
    universe of investment vehicles in the marketplace.
             Importance Of Asset
                 Allocation
According to a respected academic study, asset
allocation is responsible for over 90% of variations in
portfolio performance.


                                              91.5%
                                              Asset Allocation
                                              4.6%
                                              Securities
                                              Selection
                                              1.8%
                                              Timing
                                              2.1%
                                              Other Factors




                                  Brinson, Hood & Beebower, Financial Analysts Journal, 1986
                                 Brinson, Singer & Beebower, Financial Analysts Journal, 1991
Strategy
MFS Investment Management®




                                                     MFSB-FUSION-03-04   2


                             MFS Investment Management®
                                   1929-          1906-        1922-         1929-         1942-         1966-        1982-       2000- May
                                   1999           1921         1928          1941          1965          1981         1999          2004

                                   Total        Secular       Secular       Secular       Secular       Secular      Secular        Secular
 Type Of Market                    Period        Bear          Bull          Bear          Bull          Bear         Bull           Bear

                                                                                                                       18
 Length in Years                  71 yrs        16 yrs        7 yrs        13 yrs        24 yrs        16 yrs                      4+ yrs
                                                                                                                       yrs
                     Dow*           5.3          (1.1)         20.1          (7.4)          9.4         (0.6)         15.4          (2.7)
               S&P 500             10.6            --            --          (2.4)         15.7          6.0          18.5          (4.5)
Microcap (Decile 9-10)             12.7            --            --          (2.4)         20.7         12.2          14.4          20.3
   Small Cap Value                 14.3            --            --          (4.7)         22.3         14.8          18.4          12.8
 Small Cap Growth                  10.7            --            --          (0.6)         15.2         10.5          13.7           4.4
   Large Cap Value                 12.5            --            --          (4.9)         20.5         11.0          17.4          (0.1)
 Large Cap Growth                   9.7            --            --          (2.3)         14.1          5.1          17.7          (9.0)
   Long-Term Gov’t
                                    5.1            --            --           4.5           2.1          2.5          12.2           9.5
            Bonds
        Long-Term
                                    5.6            --            --           6.1           2.4          2.9          12.0           9.5
   Corporate Bonds




 * Represents price appreciation only.
 Past performance is no guarantee of future results. Investors cannot invest directly in an index. Source: Merriman Capital Management,
   Emotion All Too Often Guides
      Investment Decisions
                                CYCLE OF EMOTION


 “In investing,
                                      Greed

  what is          Enthusiasm                           Indifference

  comfortable is                       Buy
                                                               Denial
  rarely           Confidence

  profitable.”                         Loss
                                                            Concern

 Robert Arnott    Caution                                       Fear
 Active Asset
                                                                Panic
  Allocation       Doubt and           Sell
                   Suspicion                                 Despair




                                      SOURCE: Journal Of Financial Planning
Investor vs. Investment
Returns
                                             Annualized Returns
                                                   1984 through 2003
  14%             12.98%
  12%                                            11.16%
  10%

  8%
  6%

  4%                                                                           3.51%                         3.06%
  2%

  0%
                STOCKS                         BONDS                      INVESTOR                     INFLATION
        Source: Dalbar, Stocks = S&P 500, Bonds = Long Term Government Bond Index, Investor = Avg. Equity Investor, Inflation = CPI
                 Benefit of Active Management
                   during Secular Bear Market
                1965      (1965-1982)       1982
                   969                        Dow Jones Industrial Average*                           1047
           $100,000**                               Average Fund Manager                            $577,265
                              Average Fund Increase: +477% or 10.2% / Year




Source: Bloomberg, Morningstar, as of 6/30/02.
Past performance is no guarantee of future results. Investors cannot invest directly in an index.
                    Benefit of Active Management during
                     Secular Bear Market (1965-1982)




Source: Bloomberg, Morningstar, as of 6/30/02.
Past performance is no guarantee of future results. Investors cannot invest directly in an index.
       The importance of rebalancing
   December 31, 1995                                                                     December 31, 1999
                                                                                Bonds
                                                                                 32%
                        Stocks     Bonds
                         50%        50%
                                                                      Stocks
                                                                       68%




   December 31, 1999                                                                     December 31, 2002

                                                                       Stocks
                                                                        32%
                        Bonds      Stocks
                         50%        50%                                          Bonds
                                                                                  68%




Hypothetical results are for illustrative purposes only and are not intended to represent the future performance of any
MFS portfolio.
Source: Lipper Inc. Stocks are represented by the S&P 500 Stock Index, a commonly used measure of the broad U.S.
stock market. Bonds are represented by the Lehman Brothers Aggregate Bond Index, a measure of the U.S. bond
market. It is not possible to invest directly in an index. Past performance is no guarantee of future results.
           Strategy
                                Time-tested strategies
                              ADR has beaten most strategies
    (Hypothetical $10,000 annual investment from 12/31/83 to 12/31/03)

                                                                                                       $716,380
                                                                              $609,254
                                 $600,000           $559,113


                                 $400,000

                                                Investor                 Investor                 Investor
                                 $200,000         One                      Two                     Three


                                        $0
                                                   Chasing                 Hoping for a              Allocating,
                                                 performance                rebound               diversifying, and
                                                                                                    rebalancing

Chasing Performance: Invests in best market segment at the end of every year. Hoping for a rebound: Invests in the worst market segment at the end
of every year. Allocating: Rebalances each market segment at the end of every quarter to align portfolio
Source: Lipper Inc. Hypothetical results are for illustrative purposes only and are not intended to represent the future performance of any MFS portfolio.
For purposes of this comparison, we’ve divided the overall market into the six indices listed on the next slide. These indices represent small- to large-
cap, growth to value, international, and fixed-income investing styles. It is not possible to invest directly in an index. Past performance is no
guarantee of future results.
                                                                                                       MFS Investment Management®
    The Planning Process
                    Assess Your Needs
                   and Establish Goals
                     and Objectives

                                            Develop an
   Monitor            Investment         Investment Policy
Manager(s) on an        Advisor            Statement and
 Ongoing Basis                            Asset Allocation
                                              Strategy

                   Select Professional
                   Money Manager(s)
                    to Implement the
                        Strategy
  Strategic Asset Allocation

STRATEGIC   • The strategic approach utilizes
             Modern Portfolio Theory to
             develop a long-term target asset
             mix.
            • The target asset mix remains
             relatively consistent throughout the
             investment period.
            • Periodic rebalancing to the target
             asset mix controls risk and
             promotes disciplined selling of
             winners and buying of losers.
   Tactical Asset Allocation

TACTICAL
           • Establish long-term target asset
            mix by applying the principals
            of Modern Portfolio Theory
           • Gather proprietary capital
            market research from
            investment analysts
           • Determine where the most
            attractive opportunities
            currently exist
           • Adjust asset mix accordingly,
               Tactical Asset Allocation decisions




Past performance is no guarantee of future results. Investors cannot invest directly in an index.
  Private Money management
 Retirement Projections
   Withdrawal strategies
 Asset allocation
 Tax Strategies
 Consolidated Statements
   Measure performance to index
 Fees-Retail vs. Wholesale
    Institutional fees less than retail
    Small investor can now purchase these plans
 Diversification of elite managers
   Ability to trade without fees to top managers
           National Financial-Fidelity
:


• 3.1 Trillion of combined managed assets as
    of Nov. 2004
• 3.9 million customer accounts maintained

• 409 billion in customer assets


•   Source: National Financial Website
             AssetMark
         Combined Credentials
:

• $1.05 Trillion Combined Assets Under
    Management
• $710 Billion Combined Assets Under
    Advisement
• Over 2000 Research Analysts and Investment
    Professionals
• 88 Locations Worldwide
                            AssetMark
                     Institutional Client List
Alltel Corporation                                                                         Shell Oil
Avon Products
                                                                                            Sony Corporation
Bayer Corporation
Bell Atlantic Corp.
                                                                                            The Ministers and
Black & Decker
                                                                                             Missionaries Benefit
California Public
                                                                                             Board of the American
 Employee Retirement                                                                         Baptist Churches
 System (CalPERS)                                                                           University of California
Carnegie Mellon
 University                                                                                 University of Pittsburgh
Commonwealth of                                                                            Westinghouse Electric
 Mass.                                                                                      World Bank
Dole Food Company
Eastman Kodak
Goodyear Tire &
 Rubber

   This is a representative list of institutional clients of the Portfolio Strategists who have granted permission to use their
   names in marketing materials. Clients on this list have been selected to represent the broad range of institutional
   clients advised by the Portfolio Strategists and have not been selected based on portfolio performance. Inclusion on
   this list does not constitute an endorsement by any of these clients.
    Lockwood-Bank of New York-
        Pershing Credentials
:

• Owned by the oldest bank in the U.S.-Bank of
    New York
     •   One of the worlds leading custodians with over
         $8.3 trillion in assets
• Over $7.7 billion in client assets
• 160 Professionals
• 33 Locations Worldwide
Ameritas Investment Corp.
           AIC
  Securities and advisory services offered by registered
  representatives and investment advisor associates of
  Ameritas Investment Corp. 800-335-9858. AIC is not
         affiliated with David White & Associates.

				
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