1. For Financial Professional Use Only Chris Fullerton Regional Vice President WM Funds Distributor, Inc. October 12, 2006 Catch the Wave Navigating the Rollover Marketplace

2. For Financial Professional Use Only The Rollover Wave Is Coming Catch It!

3. For Financial Professional Use Only Navigating the Rollover Seas  Rollover Market—A Sea of Opportunity  Rollover Do’s and Don’ts  Navigation Guide: How to Catch the Rollover Wave  Prospecting  Administering  Investing

4. For Financial Professional Use Only $13T in U.S. Retirement Assets Source: Financial Research Corporation (FRC), Employee Benefit Research Institute (EBRI), January 2006 Who will get to manage the $$$ when Boomers retire? IRA & Keogh $3.0T Private Insured $1.7T Government $3.5T Defined Benefit $1.9T Defined Contribution $2.9T

5. For Financial Professional Use Only An Ocean of Opportunity  Over $8.3 trillion in assets “in play” right now  Key Trend: Boomers will push rollovers to $5 trillion by 2010*  Will the top carriers keep these assets after participants retire? * Source: “Affluent Boomer Pre-Retirement Survey,” Tom Dente, author. Bain and Company. February 2005

6. For Financial Professional Use Only Rollovers are the Largest Source of New Client Assets Source: Independent Rep Best Practices Survey; Tiburon Research & Analysis, May 2003 Sources of New Client Assets Across All Independent Reps Moved from all other sources 12% Moved from full- service brokers 13% Periodic investments from earnings 17% Other sources of new money 22% Retirement Plan Rollovers 36%

7. For Financial Professional Use Only What is the Average 401(k) Plan Account Balance? Average Job Change Rollover: $54,168 Average Retiree Rollover: $97,511 Source: Investment Company Institute, September 2005 Average balance $56,878. Based on information from the Employee Benefit Research Institute (EBRI) and ICI Participant-Directed Retirement Plan Data Collection Project, the largest database on participants in 401(k) plans. Distribution of 401(k) Account Balances by Size of Account Balance, 2004 (percent of participants with account balanced in specified ranges) Note: Percentages do not add to 100 percent because of rounding.

8. For Financial Professional Use Only  Boomer retirement is triggering rollovers  Rollover assets are the most frequent source of new business  QP participants are not loyal to current providers  Getting rollover business, large or small, can lead to more business  Participants are in dire need of good advice Rollover Insights

9. For Financial Professional Use Only Navigating the Rollover Seas  Rollover Market—A Sea of Opportunity  Rollover Do’s and Don’ts  Navigation Guide: How to Catch the Rollover Wave  Prospecting  Administering  Investing

10. For Financial Professional Use Only  Do consider rolling over after-tax contributions from a QP into an IRA, but be sure to have them account for the accounts separately.  Do invest rollover dollars to a new qualified account within 60 days if the check is payable to the participant. Rollover Do’s

11. For Financial Professional Use Only  Do name new beneficiaries on the account after a rollover.  Do take care when considering a trust or estate as beneficiary.  Do remind a surviving spouse beneficiary that he/she may roll the inherited assets into his/her own retirement plan, into a spousal IRA, or into their own IRA. Rollover Do’s

12. For Financial Professional Use Only  Do use a direct trustee-to-trustee transfer for after-tax assets going from one qualified plan to another.  Do consider rolling over lump sums from a defined benefit plan to an IRA. Rollover Do’s

13. For Financial Professional Use Only  Don’t forget to re-name beneficiaries after mandatory rollovers are made from a company plan.  Don’t try to roll over after-tax distributions from one type of qualified plan to a different type of qualified plan [e.g. 401(k) to 403(b)]. Rollover Don’ts

14. For Financial Professional Use Only  Don’t roll over money directly from a qualified plan to a Roth IRA. Only IRA money can be moved into a Roth IRA.  Don’t roll over assets if the participant needs access to funds.  Don’t roll over defined benefit (DB) plan distributions taken in the form of a lifetime annuity. Rollover Don’ts

15. For Financial Professional Use Only Navigating the Rollover Seas  Rollover Market—A Sea of Opportunity  Rollover Do’s and Don’ts  Navigation Guide: How to Catch the Rollover Wave  Prospecting  Administering  Investing

16. For Financial Professional Use Only Simply… When a worker leaves a company while owning retirement plan assets. What Triggers a Rollover Opportunity?

17. For Financial Professional Use Only  70% rolled over assets from employer plans to traditional IRAs because of a job change, layoff, or termination  27% rolled over due to retirement  8% were for other reasons* Source: Investment Company Institute, February 2005 *Note: Participants allowed to select multiple responses. Why Participants Executed a Rollover 91% rolled their entire balance out of their employer plan

18. For Financial Professional Use Only Pre-RetireesRetirees Mass Market Affluent / HNW  More investment options  Conduit to a Roth  Set up a stretch IRA  Roth IRA avoids RMDs  Consider in-service withdrawals  Simplify with asset allocation  Look to insurance products to guarantee income  Simplify with asset allocation Sales Idea

19. Have you thought about what you’ll do with your retirement plan balance? Why would you move your account? Why would you leave it where it is? Are you happy with the plan’s provisions, investment choices, and administrator? Will you get the support you need going forward from the company or plan administrator? What do you want your money to do? Stay safe? Grow? Do you know and understand all of your options and their impact on your future? Tap Your Current Clients Key Questions to Uncover Rollover Opportunities: Q Q Q Q Q Q For Financial Professional Use Only

20. Look for Prospects  Referrals from current clients  Look for local layoffs announcements  Hold seminars targeted to job changers

21.  Net Unrealized Appreciation rules  Beneficiary rules (mandatory rollovers)  Substantially Equal Periodic Payment rules (SEPP, or 72 (t) withdrawals)  Hardship withdrawal rules  Beneficiary rules (mandatory rollovers)  RMD deadline  Beneficiary rules (stretch)  “Trust as beneficiary” rules  RMD deadline  Beneficiary rules  Rules for converting to annuity Note: For all participants, know the 60-day rule, the 20% withholding rule, and the once per year rule/unlimited direct transfer rule. Technical Concepts To Know Pre-RetireesRetirees Mass Market Affluent / HNW For Financial Professional Use Only

22. Navigating the Rollover Seas  Rollover Market—A Sea of Opportunity  Rollover Do’s and Don’ts  Navigation Guide: How to Catch the Rollover Wave  Prospecting  Administering  Investing

23. For Financial Professional Use Only Achieving Smooth Workflow Streamline administrative activities:  Build a file of asset transfer forms  Get new account rollover forms  Develop procedures for annual reviews of life events

24. For Financial Professional Use Only The Top 10 plan administrators account for 60% of all plan assets. Source: Financial Research Corporation (FRC), Pensions & Investments, December 31, 2004 Don’t get Swamped by Paperwork Top 10 60% All Others 40%

25. For Financial Professional Use Only Navigating the Rollover Seas  Rollover Market—A Sea of Opportunity  Rollover Do’s and Don’ts  Navigation Guide: How to Catch the Rollover Wave  Prospecting  Administering  Investing

26. For Financial Professional Use Only Catching the Investing Wave  The average prospect does not understand investment lingo.  Qualified plan money comes from automatic investing.  “Set it and forget it” means investors lose track of their qualified investments.  Rollover solutions need to be simple, easy to understand, and efficient to execute.  An “active asset allocation” fund can solve the investment problem.

27. For Financial Professional Use Only Why “Active Allocation” Inside a Rollover? * Source: Financial Research Corporation (FRC), December 31, 2004 Asset allocation does not guarantee a profit or protect against a loss. Asset allocation forms the base of the “wealth building strategy”* and offers benefits while keeping things simple. Steps Used in a Wealth-Based Product & Service Strategy Investor Affluence

28. For Financial Professional Use Only Active Asset Allocation The Specific Mix of Asset Classes Portfolio Composition Equity/Fixed Income Mix Portfolio A 60/40 Portfolio B 60/40 Fixed Income Assets % Govt + Mtge63%20% % Corporate20%38% % High Yield7%25% Equity Assets % Large-Cap71%69% % Small-Cap10%7% % Growth50%35% % Value50%65% Expected Risk*10.7 * Risk is measured by standard deviation. Standard deviation measures the historical fluctuation of returns around the arithmetic average return of the investment. The higher the standard deviation (as one measure of risk), the greater the variability of the investment returns.

29. For Financial Professional Use Only Summary  The rollover market is there. Build the foundation you need now.  Prospecting, administering, and investing can all be enhanced by using the right tools.  A streamlined process calls for an efficient, effective investment solution.

30. For Financial Professional Use Only Catch the Wave The information provided in this presentation should not be considered legal or tax advise. You should consult a qualified tax, legal or financial advisor to discuss your specific tax situation. The WM Group of mutual funds is advised by WM Advisors, Inc., distributed by WM Funds Distributor, Inc., and sold through WM Financial Services, Inc. (all affiliates of Washington Mutual, Inc.) and independent broker/dealers. Thank You! Questions?