FAMILY WEALTH MANAGEMENT: GENERATIONAL WEALTH CONVERSATIONS Helping families successfully transfer wealth 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. The views expressed are those of the speaker and are subject to change at any time. These views do not necessarily reflect the views of others in the MFS organization. © 2016 MFS Investment Management®. 111 Huntington Avenue, Boston, MA Name Title

 Understand: why transfers fail  Plan: to avoid mistakes  Communicate: to engage and educate GENERATIONAL WEALTH CONVERSATIONS

 Parents – Don't have a plan – Don't communicate the plan  Heirs – Fight each other – Fight the plan – Don't get/accept advice UNDERSTAND: WHY TRANSFERS FAIL

Source: MFS Investing Sentiment Survey, February 2016 Methodology: MFS, through Research Collaborative, an independent research firm, sponsored an online survey of individual investors with $100,000 or more in household investable assets (nonretirement) who make or share in making financial decisions for their household and licensed financial advisors (either FINRA or SEC) who have been licensed for at least three years with at least $500,000 annual mutual fund sales. In September 2015, 620 advisors were surveyed. In February 2016, 561 investors and 404 advisors were surveyed. MFS was not identified as the sponsor of the survey. Gen Y refers to investor respondents ages <36. Gen X refers to investor respondents between the ages of Boomers refers to investor respondents between the ages of GI/Silent refers to investor respondents over 70 years of age. Comfortable discussing with your adult children (Extremely/Very Comfortable)

UNDERSTAND: WHY TRANSFERS FAIL No/Not Sure 69% Yes 31% Source: MFS Investing Sentiment Survey, February 2016 Have discussed family wealth management with advisor Yes No/Not Sure Not very/not at all helpful Somewhat helpful Extremely helpful Helpfulness of family wealth management discussion with advisor

UNDERSTAND: WHY TRANSFERS FAIL Why Investors Have/Expect to Move Inheritance Money to a Different Firm Have advisor relationship elsewhere I am happy with 39% Better investment opportunity elsewhere 30% Desire to minimize firms I do business with 29% Geographic distance (firm/advisor not close by) 20% Not a significant enough balance to justify keeping it there 15% Other/not sure 12% Need more help than would be available 12% Prefer to work with an advisor my own age 9% Dislike firm/advisor it was with 5% Source: MFS Investing Sentiment Survey, February 2016

UNDERSTAND: WHY TRANSFERS FAIL Heirs and the family cottage

PLAN: TO AVOID MISTAKES 1.Create a family "map" 2.Identify legacy needs for each

PLAN: TO AVOID MISTAKES

 Engage family members early and often: – Account openings – Gifting discussions – Joint meetings with advisors  Educate for tomorrow: – Who: to talk to when the time comes – How: to avoid mistakes – What and where: documents and accounts COMMUNICATE: ENGAGE AND EDUCATE

Author not affiliated with MFS Investment Management or any of its subsidiaries.

Authors not affiliated with MFS Investment Management or any of its subsidiaries. COMMUNICATE: ENGAGE AND EDUCATE.

Outline a giving plan  Funding areas - Cultural, Education, Social Programs, Environment ect.  Local vs. Global  Organization  Amount and Percentage  Legacy wished

FAMILY WEALTH MANAGEMENT GENERATIONAL WEALTH CONVERSATIONS Successfully transfer wealth:  Understand: why transfers fail  Plan: to avoid mistakes  Communicate: to engage and educate

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