We are financial advisors who specialize in portfolio design for taxable and tax-deferred

investments.

Who We AreDavid White & Associates

Not enough time Not enough knowledge Rear-view mirror data

Investors are uncomfortableselecting investments themselves.

Clients Come to Us for Guidance

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.

Too many investment choices create confusion.

Clients Come to Us for Clarity

Source: Lockwood Investment advisory services

No coordination between taxable and tax-deferred investments

Multiple advisors = Uncoordinated advice

Most investors don’t have

a coherent plan for their total portfolio.

Clients Come to Us for Strategy

Performance? No

Current Tax rates? Yes

Fees? Yes

What can we predict?

Pursuing Portfolio Growth

Investor Awareness of Investor Awareness of Tax Impact isTax Impact is GROWING GROWING

““ Whenever you sell a winner, Whenever you sell a winner, make sure to unload a loser make sure to unload a loser before the tax year is over. before the tax year is over. ””

““ There’s a lot of advice going There’s a lot of advice going around about the need to around about the need to minimize mutual fund taxes. It’s minimize mutual fund taxes. It’s time to set the record straight. time to set the record straight. ””

““ Looking for tax-Looking for tax-efficient funds?efficient funds?””

““ Tax-managed funds; Tax-managed funds; Gain with less pain. Gain with less pain. ””

These logos are trademarks of the respective news organizations. Sources: These logos are trademarks of the respective news organizations. Sources: Smart InvestingSmart Investing, January 1999 by Steven T. Goldberg; , January 1999 by Steven T. Goldberg; FortuneFortune 3/17/1997 by Maggie Topkis; 3/17/1997 by Maggie Topkis; Bloomberg.com and Women’s WireBloomberg.com and Women’s Wire current article dated November 12, 1999 current article dated November 12, 1999

not by-lined; not by-lined; USA TodayUSA Today article dated November 6, 1998 by John Waggoner. article dated November 6, 1998 by John Waggoner.

The reduction of the long-term capital gains rate to 15%

The Opportunity

We help clients take advantageof the 2003 tax law changes,

specifically:

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.

After-Tax Growth of $10,000 over 20 years at Various Tax-Efficiency Rates

The Impact of Taxes on Investment Results

The Tax Bite on Wealth Creation

$67,275

$46,575$51,083 $55,820

$70,000

$60,000

$0

$50,000

$40,000

$30,000

$20,000

$10,000

$80,000Pre-tax return

of 10%

After-tax returnat 80%

tax-efficiency

After-tax returnat 85%

tax-efficiency

After-tax returnat 90%

tax-efficiency

Strategies to Enhance Strategies to Enhance After-Tax ReturnsAfter-Tax Returns

Offset GainsOffset Gainsand Lossesand Losses

LossLossHarvestingHarvesting

Tax-lotTax-lotAccountingAccounting

Tax-awareTax-awareTradingTrading

Private Private AssetAsset

ManagemenManagementt

Private Private AssetAsset

ManagemenManagementt

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

The Economist, January 24, 1998

Source: Comptroller of the Currency

The Problem

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.

The Challenge

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.

What Makes Us Different?

According to a respected academic study, asset allocation is responsible for over 90% of variations in portfolio performance.

Brinson, Hood & Beebower, Financial Analysts Journal, 1986Brinson, Singer & Beebower, Financial Analysts Journal, 1991

91.5%Asset Allocation

4.6%Securities Selection

1.8%Timing

2.1%Other Factors

Importance Of Asset Allocation

Strategy

MFS Investment Management®

MFSB-FUSION-03-04 2

MFS Investment Management®

1929-1999

1906-1921

1922-1928

1929-1941

1942-1965

1966-1981

1982-1999

2000- May 2004

Type Of Market Total Period

Secular Bear

Secular Bull

Secular Bear

Secular Bull

Secular Bear

Secular Bull

Secular Bear

Length in Years 71 yrs 16 yrs 7 yrs 13 yrs 24 yrs 16 yrs 18 yrs 4+ 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 Bonds

5.1 -- -- 4.5 2.1 2.5 12.2 9.5

Long-Term Corporate Bonds

5.6 -- -- 6.1 2.4 2.9 12.0 9.5

* Represents price appreciation only.Past performance is no guarantee of future results. Investors cannot invest directly in an index. Source: Merriman Capital Management, Inc., data through 1929-1999. Meeder Financial, data prior to 1929 and 2000 to current.

“In investing, what is comfortable is rarely profitable.”

Robert Arnott Active Asset

Allocation

SOURCE: Journal Of Financial Planning

Emotion All Too Often Guides Investment

Decisions

Loss

Enthusiasm

Confidence

Caution

Doubt and

Suspicion

Indifference

Denial

Concern

Fear

Panic

Despair

Greed

CYCLE OF EMOTION

Sell

Buy

Investor vs. Investment Returns

3.06%3.51%

11.16%

12.98%

0%

2%

4%

6%

8%

10%

12%

14%

STOCKS BONDS INVESTOR INFLATION

Annualized Returns 1984 through 2003

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

(1965-1982) 1965 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

Bonds50%

Stocks50%

December 31, 1995

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.

Bonds32%

Stocks68%

December 31, 1999

Stocks50%

Bonds50%

December 31, 1999

Bonds68%

Stocks32%

December 31, 2002

$559,113$609,254

$716,380

$0

$200,000

$400,000

$600,000

Chasingperformance

Hoping for arebound

Allocating,diversifying, and

rebalancing

InvestorOne

InvestorTwo

InvestorThree

(Hypothetical $10,000 annual investment from 12/31/83 to 12/31/03)

Time-tested strategiesADR has beaten most strategies

Strategy

MFS Investment Management®

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.

Assess Your Assess Your Needs and Needs and

Establish Goals Establish Goals and Objectivesand Objectives

Select Professional

Money Manager(s) to Implement the

Strategy

Investment Investment AdvisorAdvisor

Develop an Investment

Policy Statement and Asset Allocation

Strategy

Monitor Manager(s) on

an Ongoing Basis

The Planning Process

• 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.

STRATEGIC

Strategic Asset Allocation

• 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, within permissible ranges for each Risk/Return profile

TACTICAL

Tactical Asset Allocation

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

• 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

:

National Financial-Fidelity

• $1.05 Trillion Combined Assets Under Management

• $710 Billion Combined Assets Under Advisement

• Over 2000 Research Analysts and Investment Professionals

• 88 Locations Worldwide

:

AssetMarkCombined Credentials

Alltel Corporation Avon Products Bayer Corporation Bell Atlantic Corp. Black & Decker California Public

Employee Retirement System (CalPERS)

Carnegie Mellon University

Commonwealth of Mass.

Dole Food Company Eastman Kodak Goodyear Tire &

Rubber

Shell Oil Sony Corporation The Ministers and

Missionaries Benefit Board of the American Baptist Churches

University of California University of Pittsburgh Westinghouse Electric World Bank

AssetMarkInstitutional Client List

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.

• 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

:

Lockwood-Bank of New York-Pershing Credentials

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.