The High-Net-Worth Landscape and Opportunity

1. The High-Net-Worth Landscape and Opportunity Prepared for the National Marketing Action Team March 2002 Vin Cipolla, Chairman & CEO (617) 243-9199 x221 vc@hnw.com www.hnw.com

2. Contents: • The High-Net-Worth (HNW) Market • Wealth Management Trends: The Age of the Advisor • High-Net-Worth Individuals (HNWIs) & Giving • Competition in Philanthropic Services • Summary • Opportunity: Leverage the Channels • Taking Action • Conclusions

3. The Wealth Landscape In the market, many different definitions exist for the term “high-net-worth.” Over the last few years, many marketers and practitioners have developed increasingly distinct segmenting concepts for the high-net-worth (HNW) market.  The most common terminology and/or segments are: Emerging Affluent or Mass Affluent $50,000+ Investable Assets* High-Net-Worth $500,000+ Investable Assets Pentamillionaires $5 million+ Investable Assets Decamillionaires $10 million+ Investable Assets Ultra-High-Net-Worth $30 million+ Investable Assets *Excluding primary residence

4. Size of the Market Affluent Households* In spite of the market downturn, the affluent market is growing… • The number of individuals with $1M+ investable assets will continue to grow at 8% per year. • Recent research found that the mass affluent segment has grown significantly over the last decade and will increase in importance. 33.5 million 19.4 million 11.2 million 1995 2005 2000 *Net worth of $500K+, not including primary residences. Sources: Spectrem Group; Cerulli Associates, TowerGroup; Packaged Facts; Celent Communications

5. Geographic Distribution Percentage of Total U.S. Decamillionaires ($10M+) Living in Each State • The highest percentage of U.S. decamillionaires live in the following states (in descending order): • California • New York • Texas • Massachusetts • Illinois • Pennsylvania • Florida Source: HNW, Fall 2001

6. A Demographic Shift The key change in the high-net-worth market is increasing diversity. Old stereotypes about wealth are being eroded. Age Gender The age spectrum of high-net-worth individuals (HNWIs) is broadening. Men are often viewed as the primary wealth holders, but women have increasing significance in the wealth market. Though the average HNWI is still male, a recent study by UBS PaineWebber reported that for the first time ever, women represent nearly half (47%) of all investors with $100,000 or more in investable assets, up 11% from just two years ago. Race Source of Wealth Researchers have found that only 15% of HNWIs became wealthy primarily because of inheritance/trust funds, though almost half received some inheritance. The wealthy are now more likely to be self-made, most commonly through, entrepreneurial interests, small-business ownership, investments, or earned income. The last decade has seen significant growth in wealth among the Hispanic, African-American, and Asian-American populations, though the average HNWI is still white. Asian-American households, for example, have a higher annual median income than all other races, including whites. Sources: Spectrem; HNW WealthPulse; Cerulli Associates; Forrester; Opinion Research Corporation

7. Work Education • HNWIs are more likely to work than the total population, and almost twice as likely to be self-employed (20% vs. 11%) • HNWIs are less likely to fully retire after 60 years old • There are greater percentages of HNWIs who work very long hours or only part-time than in the total population • Most HNWIs hold 4-year college degrees • Half hold graduate degrees Marriage Children • The wealthy are more likely to be married than the total population (72% vs. 53%) • The vast majority of high-net-worth individuals have children or step children • A significant number of high-net-worth individuals have grandchildren, including almost half of all pentamillionaires Demographics Sources: Schervish, et al; HNW WealthPulse

8. The Significance of Demographics Demographic characteristics of the high-net-worth help us understand philanthropic behavior… Age • People start giving in their late twenties or early thirties, regardless of their wealth • The older wealthy are significantly more likely than any other age group to give to educational institutions Gender • Unlike with decision making about household finances, wealthy women are more likely to share or take sole responsibility for household decision making about giving, and have more interest in making charitable donations then wealthy men do Race • A recent report found that minority groups as a whole are taking a more active role in giving, but there are many distinctions between groups. For example, Asian-Americans usually give out of a sense of duty and obligation to family while Indian-Americans give to honor future generations. Source of Wealth • Small business owners, especially women, have a greater desire to give back to their communities than other wealth segments • Inheritors are almost twice as likely to see their taxes as their charitable contribution Sources: U.S. Census Bureau; HNW WealthPulse; W.K. Kellogg Foundation

9. WWII Generation Baby Boomers Generations X & Y The Coming Wealth Transfer • The transfer will result in a vastly different group of high-net-worth individuals • A minimum of $6 trillion is expected to be transferred to philanthropic purposes $41 Trillion - $136 Trillion 2052 1998 2018 An estimated $12 – $18 trillion will be transferred over the next two decades. Sources: Schervish et al.

10. >20 years 11-20 years <3 years 2% 15% 25% 6-10 years 24% 3-5 years 34% Wealth Recency Wealth Recency Among the High-Net-Worth • The economic boom of the late 90s had a significant effect on the high-net-worth: Most doubled their net worth between 1995 and 2000 • 85% say they are better off now than they were growing up • In general, those in the upper-echelons of wealth have been wealthy for longer periods of time. The average decamillionaire obtained that level of wealth 15 years ago • People who have had their money for more than 10 years are generally older, on average 56 years old, when compared to the newly wealthy counterparts, who are on average 41 years old and have had their wealth for 5 years or fewer years • Those who attained their wealth more than 10 years ago are more likely to feel an obligation to give back to their communities than their newly wealthy counterparts Sources of Wealth of the Average Pentamillionaire Other 2% Inheritance/Gifts Investments 18% 21% Business/Profession 59% Sources: Schervish et al.; HNW

11. The wealthier the household, the more likely it is to use the Internet to seek financial advice, research products, trade stocks and bank. Online behavior of affluent individuals Conduct banking 50% Trade stocks Seek financial information View stock quote 40% 30% 20% 10% 0 < 50K $50-99K $100- $200- $500- $750 or 199K 499K 749K more Individuals by investable assets Technology • High-Net-Worth individuals are early adoptersof technology. • They are the most prevalent, habituated Internet users, interacting and transacting on the Internet more than any other group, with 80% or more online penetration compared to 56% of the general population. • These wealthy Americans rely on different forms of technology to get information and manage their finances. Increasingly, they view the web as their primary interface with service providers. • Sophisticated Internet users demandquality content and services in their online experience • High-net-worth individuals increasingly expect high-tech service in all areas, especially wealth management In response, financial services institutions (FSIs) will have spent $38 trillion on online services by 2005. Sources: 1999 Survey of Affluent Americans; HNW

12. Psychographics: Family Life • 97% of pentamillionaires report that they are active in teaching family values to their children, and 60% report taking steps to educate children specifically about their relative wealth. Such education focused especially on exposing the children to philanthropy, communicating the responsibilities and stewardship of wealth, and teaching about the power and privilege of wealth. • High-net-worth individuals see their relationships with their children as they relate to money very differently than the total population. Clear majorities in both populations think it is important to be open with their children about financial matters and believe their children should learn the value of money through hard work, but HNWIs worry less that their children will have a difficult time “making it financially” and instead are more concerned that their children will be too spoiled by money and material possessions. • Only 26% of HNWIs feel very confident that the next generation will be as financially secure as they are now. • Any stress or tension in the relationships of high-net-worth individuals is not likely to be caused by money, unlike in the total population, in which relationships are often financially strained by issues such as paying bills and affording necessities. • Among those who are divorced or separated, 75% of the wealthy say that money was not an important factor in leading to their separation, compared to 50% in the total population. Sources: Schervish et al.; HNW WealthPulse

13. Psychographics: Values Happiness Work Life • 86% of HNWIs rank financial success and security as important to their happiness • 59% say they have become happier as their wealth has grown • 83% believe that money is more likely to solve problems than to create them • The wealthy are less likely to say they work out of financial necessity • While the total population work primarily to provide for their families, HNWIs are much more likely to say they work for the challenge and the value of employment Religion Politics • 61% of pentamillionaires are engaged in advancing their spiritual or religious development • Small business owners and those with higher net worth ($5M+) are more likely to rank religion as an important contributor to their overall happiness than other wealth segments • The wealthy more strongly identify with the Republican party than the total population. 50% identify with the Republican party (vs. 29% in the total population) and 26% with the Democratic party (vs. 40% of the general population) • Wealthy women are more inclined than wealthy men to be Democrats • Those who have inherited or married into their money are more likely to be Democrats Source: HNW WealthPulse

14. Psychographics: Financial Success & Security For high-net-worth individuals, financial security is related to both psychological comfort and material wealth. • A recent survey of affluent investors indicates their greatest fear is a decline in their living standards during retirement. • While significantly more of the total population than the high-net-worth population work because it is necessary for financial security and stability, a remarkable number of high-net-worth people maintain that they work predominantly to ensure that their family is secure • The higher the net worth, the greater the amount of wealth respondents say they need to feel financially secure. Only 36% of pentamillionaires feel completely financially secure. The median amount needed for financial security is $20 million, or 67% more than current wealth, with the average amount needed $45 million, or 75% more than current wealth • Wealthy women also seem to need more money to feel secure than wealthy men. 29% of wealthy women say they would need more than $50 million to feel completely secure, compared to 4% of wealthy men. • Wealth recency also has a significant impact on financial concerns. The more recently people have acquired wealth, the more concerned they are about providing for retirement, their family’s security, and the educational needs of their children, and the less concerned they are about managing investments, tax and/or estate planning, and providing for health and wellness. Source: HNW WealthPulse; Schervish et al.; Nationwide

15. Psychographics: Risk Profile • The high-net-worth population is much more comfortable taking financial risks than the general population • Many high-net-worth individuals see higher-risk investments as necessary to achieving high performance in their portfolios • They are twice as likely to have started their own business • However, wealth management professionals are reporting that over the last 6 months the risk profile of affluent investors has changed. Many are reducing their equity positions and moving into other asset classes, particularly fixed-income and alternative investments. Recent research shows that between 15% and 25% of high-net-worth individuals’ portfolios are now devoted to alternative investments, a significant increase from only 5 years ago. Source: HNW WealthPulse; Andersen; Goldman Sachs

16. Contents: • The High-Net-Worth Market • Wealth Management Trends: The Age of the Advisor • High-Net-Worth Individuals & Giving • Competition in Philanthropic Services • Summary • Opportunity: Leverage the Channels • Taking Action • Conclusions

17. The Age of the Advisor Professional advisors remain at the center of financial decision-making for the nation's wealthiest households, according to recent research, but their role is changing. The breadth of easily accessible investment information, increasingly complicated tax laws, escalating investor sophistication and the complexity of financial instruments designed for this market place even greater demands on advisors to meet their wealthy clients' expectations. • 75% of high-net-worth individuals have at least one wealth management advisor and are likely to have multiple different types of advisors • Only 34% of those with less than $200,000 of investable assets are already working with advisors. However, this number is set to grow significantly to almost 75% over the next few years • With at least 80% online and the majority actively involved in their own wealth management, high-net-worth individuals now view advisors as primary guides and counselors. • High-net-worth individuals expect their advisors to understand the “full picture” of their financial and personal life, catering to their needs and goals. • A much more collaborative client/advisor relationship is emerging as advisors and financial services institutions (FSIs) try to determine how best to meet the changing demands. Source: Spectrem; Forrester

18. Major Trends • Results in FSIs providing: • Customization & flexibility • Advanced technology • Personal, face-to-face attention • More and more comprehensive, specialized services

19. Advice & Personalized Attention • Over the last few years HNWIs have been seeking more advice and personal attention. According to recent research, affluent people have been shaken by the market downturn and the events of September 11th and this trend has accelerated, with HNWIs seeking expanded advice and personalized guidance on all areas of wealth management from their financial service providers. • This trend is illustrated by an in-flow of new business at financial service firms. For example, at the 50 fastest-growing wealth-management firms in the country investors' assets jumped 67% last year. New assets at wealth management firms rose as investors transferred assets out of their self-directed accounts to professionally managed accounts. • Advisors and FSIs are jumping to respond to these consumer marketplace shifts in order to reap the dual rewards of customer loyalty and long-term profitability. Sources: TowerGroup; Jupiter Research; Bloomberg Wealth Manager

20. All Kinds of Advisors There are many different types of professional advisors, either independent or affiliated with particular FSIs… • Relationship managers (Generalists at FSIs who help clients connect with resources) • Specialized accountants • Specialized lawyers • Specialized philanthropic advisors • Trust officers • Family office professionals • Estate Planners + …All seeking to build and maintain relationships with demanding affluent clients—the most profitable group.

21. An Advisor Challenge: Affluent Customer Loyalty The affluent client is demanding, and increasingly disloyal to particular advisors… • One-third of the nation's leading financial advisors—those with an average of 20 years' experience and $82 million in assets under management—say it is more difficult to retain clients today than it was five years ago. • As many as 40% of clients would consider another advisor or are actively seeking one. • Research reveals that outside influences on clients combined with poor customer service and unrealistic expectations are the primary reasons for the retention issues. • Advisors are responding by increasing their contact with clients and incorporating the Internet into their relationships. • Client contact remains the primary driver of client satisfaction. Affluent investors who say they are "highly satisfied" with their primary financial advisor have an average of 14 contacts with that advisor over six months. "Contact" can be a telephone call, a personal meeting, or even a personalized letter or email. Sources: Prince & Associates; 2000 AIM/ Gresham Wealth Management Survey; Yankelovich Partners

22. Advisors are now viewed as the primary conduit for building relationships with high-net-worth individuals: FSIs & Nonprofit Organizations Professional Advisors HNWIs

23. The Advisor Balancing Act • Financial Services Institutions (FSIs) are seeking: • Increased profitability • Client contentment and loyalty • New client referrals / relationships • Affluent individuals are seeking: • Personalized advice and in-person attention • Specialized expertise in many areas • Complex, customized products and services • Improved bottom-line • High tech resources • …And much more Primary Professional Advisors: Limited Resources Source: Andersen

24. Advisors as a Powerful Channel Advisor Characteristics • Independent, even when employed by a specific financial firm. • Creative and entrepreneurial, especially when prospecting. • Consistently seek out a competitive advantage: knowledge, tools, training, etc. • Committed to securing their relationships with high-net-worth clients and prospects Example of a Merrill Lynch banker’s personal direct mail materials Giving is an area that advisors have not focused on historically, but with the trend towards more aggressive, holistic wealth management approaches and clients less loyal clients, advisors are including giving in their core offering. HUGE GIVING OPPORTUNITY TENS OF MILLIONS OF HNWIs HUNDREDS OF THOUSANDS OF ADVISORS

25. Receives Delivers Core Associations Millions of Clients 100,000s of Advisors 600 Community Foundations • Tools • Information • Links • Partnership • Event Packages 600 Community Foundations • Access to Advisors • Access to Donors • Expanded Reach • Awareness • Increased Donations

26. American Institute of CPAs. www.aicpa.org 330,000 members National Association of Insurance and Financial Advisors (NAIFA) www.naifa.org 80,000 members Financial Planning Association www.fpanet.org 30,000 members Advisor Channels Developing the Channel Advisors join and participate with associations to receive support, information, training and tools to help in their professional efforts. Associations in turn attempt to provide advisors with benefits and resources that are relevant, but at the same time cost efficient to their organization. This provides an opportunity for Community Foundations (CFs) to provide national organizations with information, tools and “client-facing” support in exchange for access to a valuable base of advisors and, ultimately, their clients. Advisor Channels: Associations

27. Advisor Channels Associations The National Association of Personal Financial Advisors (NAPFA) www.napfa.org 750+ members (fee-only planners) International Association of Registered Financial Planners www.iarfc.org 2,000+ members American Insurance Association www.aiadc.org National Association of Tax Professionals (NATPTax) www.natptax.com National Association of Family Wealth Counselors www.nafwc.org National Committee on Planned Giving (NCPG) www.ncpg.org 11,000 members The National Association of Estate Planner & Councils (NAEPC) www.naepc.org Society of Financial Service Professionals www.financialpro.org 27,000 members

28. Advisors and Giving • Historically, significant amounts of charitable giving has resulted directly from advice by financial advisors, lawyers, and accountants, even if it was not especially emphasized. • Advisors are including strategic charitable giving elements in their work with high-net-worth clients now more than ever, including it as part of the general wealth management process • Research shows that advisors would like to have more information and tools around charitable giving. Many do not feel confident in their ability to address philanthropic issues with their clients. In particular, advisors reported that they had concerns about the subject being too personal, or about their ability to speak about the subject knowledgeably. Sources: The Philanthropic Initiative; The Million Dollar Roundtable

29. Contents: • The High-Net-Worth Market • Wealth Management Trends: The Age of the Advisor • High-Net-Worth Individuals & Giving • Competition in Philanthropic Services • Summary • Opportunity: Leverage the Channels • Taking Action • Conclusions

30. Net Worth and Giving Annual giving clearly correlates with net worth. Source: Schervish et al.

31. Estate Planning • The proportion of ultra-HNW estates left to charity is steadily rising. The share of estates of $20M+ or more allocated to charity increased from 34% in 1992 to 49% in 1997 . • Among all estates there is a generally downward change in the percentage taking a deduction for charitable contributions, which may be due to increasing use of other forms of planned giving during one’s lifetime, including annuities, trusts, foundations, etc. • Most Americans report having a will, but among those whose estates could be subject to estate taxes because they exceed $675,000, only 40% have an estate plan. • Reported reasons why wealthy individuals with estate plans might review them include having better information about: • Their planning options • Future needs of family • Tax benefits of giving to charity • Most HNWIs rely on individual professionals rather than financial or charitable institutions to best provide such advice. Source: Schervish et al.; Giving USA 2001; Fidelity Investments

32. Charitable Vehicles • 37% of pentamillionaire households identify charitable trusts and foundation as their fourth most important financial goal, after trust and estate planning, investment advice, and tax-management strategy. • For this group, the bulk of charitable giving is via trusts, donor-advised funds, foundations, and other charitable vehicles rather than directly to charitable organizations. • An average of $750,000 is contributed per pentamillionaire family through these vehicles annually. • The older people are or the longer they have had their wealth, the more likely they are to set up a charitable vehicle. • Wealthy inheritors and wealthy small business owners are more likely than other groups to have such a vehicle. Sources: Spectrem Group; Schervish et al..; HNW WealthPulse

33. The Effects of September 11th • Banks, brokerage firms, and trust companies reported a significant increase immediately following September 11thin the number of wealthy customers wanting advice on how to use their charitable portfolios and private foundations to help with disaster relief. Customers without such charitable giving mechanisms in place are also asking for help in contributing, financial executives say. • Analysts predict that the wealthy will continue giving more as they take advantage of tax laws, even during a recession. There may be a "second wave" of giving in response to September 11th, after the cautious wealthy have considered their options and reacted to stories about poor handling of donations. • In a recent study by Citigroup Private Bank, fewer than half the customers ($3M+) say their charitable giving was affected by the September 11th attacks, recession, or tax-law changes, but they havemade giving a topic of conversation. • The higher the net worth the less likely that giving was directly affected by September 11th. The ultra-HNW have the most to give but their wealth is heavily insulated from market events and they are more directed in their giving: most of the gifts were promised before September 11th. Sources: American Banker; Lobue & Associates; Citigroup Private Bank

34. Reasons to Give • Top motivations to give, in order of importance: • Feel strongly about the cause • Personal experience with the organization • Tax benefits • Response to specific requests • Moral imperative or “right thing to do” • Involvement of friends and family with the charity • Religion or spirituality Source: HNW WealthPulse

35. Giving Attitudes • Major Differences • HNWIs are more likely to: • Make giving decisions with the help of an advisor • Report that giving has always been a part of their family’s way of life • Give because it benefits both their business and their community • Give because tax and estate laws provide an incentive • Enjoy and attend social functions associated with giving • HNWIs are significantly less likely to give anonymously. Source: HNW WealthPulse

36. Giving Triggers • 57% of HNWIs were triggered to give by attending a local community event • 49% gave after attending a charity event, such as a black-tie dinner Source: HNW WealthPulse

37. Philanthropy Among Men & Women: How Gender Makes a Difference • High-net-worth women are significantly more likely than high-net-worth men to say they give for the following reasons: • Feel strongly about the cause • Feel a moral imperative or that it is the “right thing to do” • Have a friend, family member or co-worker involved with the charity • Health (illness of a family member, friend, or self) • High-net-worth men are more likely than high-net-worth women to say they give for the following reasons: • Tax benefits • Response to a specific request • Religion or spirituality Source: HNW WealthPulse

38. Philanthropy Among Men & Women: How Gender Makes a Difference • High-net-worth women are more likely than high-net-worth men to have the following attitudes: • Because of religious beliefs, I believe it is essential for me to help others • I give to social causes that I strongly believe in • I feel an obligation to repay organizations that have helped me in the past • Charitable giving has always been a part of my family’s way of life • High-net-worth men are more likely than high-net-worth women to have the following attitudes: • I give because it benefits both my business and my community • Tax and estate laws provide mewith a huge incentive to give Source: HNW WealthPulse

39. Giving Deterrents 24% of high-net-worth individuals report that they do not see any obstacles to giving. For those who do, major obstacles they report include: • Not confident that donations will be used in a productive and valuable way • Have not found a compelling reason to give • Lack of time • Are uncertain about their own future financial situation Sources: HNW WealthPulse; Schervish, et al.

40. Satisfaction with Effectiveness of Charitable Giving - Pentamillionaires Satisfied Partially Not Satisfied Satisfied Ways to Increase Giving • Top factors likely to increase charitable giving among those with net worth of $5M+: • Finding a new cause that you feel passionate about • Increased net worth • Increased tax benefits • Better information about effectiveness of gifts—HNWIs are seeking tangible results and deep knowledge of how a recipient will use the gift Sources: Schervish, et al.

41. Top HNWI Giving Interests In general, the high-net-worth are more likely to spread their time and money over a variety of different causes and organizations than the total population. During 2000, more than half of the wealthy dedicated their time or money to 5 or more different causes. • Both the affluent and the total population tend to give primarily to local and community-based charities. • The affluent dedicate more time and money to educational institutions than to any other type of organization, although children and youth services and health and medical charities are close second choices. • For the total population, the most popular recipients of time and money are religious or faith-based organizations and children and youth services organizations are second. • The affluent are twice as likely as the total population to have given to arts or cultural organizations and political or advocacy organizations. • Wealthy women are moved by causes that have a personal or emotional appeal and give more to health and medical charities and homeless or low-income organizations than wealthy men. • Wealthy men are more likely to give to arts or cultural organizations and political and advocacy organizations than wealthy women. Sources: HNW WealthPulse

42. Perceived Comparison to Peers and Total U.S. Population High-net-worth individuals see giving differently than the total population: • While almost half of the high-net-worth market believe that their annual giving is higher or much higher than the total U.S. population, only 36% believe that their giving exceeds their peers • A modest majority of those with $5 million or more in assets also seem to believe that their giving is lower than their peers, which is notable given that they have typically made a much larger single donation than other groups Sources: HNW WealthPulse

43. Contents: • The High-Net-Worth Market • Wealth Management Trends: The Age of the Advisor • High-Net-Worth Individuals & Giving • Competition in Philanthropic Services • Summary • Opportunity: Leverage the Channels • Taking Action • Conclusions

44. Growing FSI Awareness of the Importance of Philanthropy Financial Services Institutions (FSIs) have a growing awareness of the importance of philanthropy to the personal lives and wealth management practices of high-net-worth individuals. Post-September 11th, more and more are beginning to aggressively offer philanthropic services. A sampling of those targeting the high-net-worth for philanthropic services:

45. Examples: FSIs and Philanthropic Services • The first FSI to introduce donor-advised funds • Charitable Gift Fund has had phenomenal success: It is now one of the largest U.S. charities • Currently expanding its reach by providing its back-end system to other FSIs • Examples of FSIs who followed Fidelity to market with donor-advised funds • Market the funds to HNWIs in a variety of ways, but top selling points include: • Up front tax benefits • Excellent investment management • Ease of use • One of several FSIs pushing private family foundation offerings • Pitch traditional benefits of family foundations but offer to reduce the administrative hassles and take care of investment management • Working with Foundation Source to offer quick start-up with low minimum ($250K) • Major FSIs are aggressively offering philanthropic services tailored to meet giving goals and completely integrated with HNWIs’ estate, tax, and wealth planning strategies • Offer a large variety of charitable vehicles, including trusts, annuities, and foundation services • More focused on upper-echelons of wealth

46. How FSIs Efforts Relate • FSIs efforts to promote philanthropic services have raised awareness among high-net-worth individuals of the importance of integrating giving into their financial planning. • Advisors are feeling more pressure to provide full guidance in this area. • This effort provides Community Foundations with an opportunity to position themselves as existing expert resources on giving. • While many FSIs are just beginning to offer philanthropic solutions, they are fast learners and aggressive marketers with significant revenue at stake. • The window of opportunity for Community Foundations to partner with these institutions or gain from their marketing efforts is occurring right now.

47. Examples: FSIs and Philanthropic Services “Dedicated older daughter (Share of estate: 11%)” “Dutiful son (Share of estate: 11%)” “Devoted younger daughter (Share of estate: 11%)” “Delighted Alma Mater (Share of estate: 67%)” “Charity still begins at home, but philanthropy goes far beyond it. Phoenix has been helping people who’ve done well do better for more than 150 years. To learn how we could be helping you, contact your financial advisor and visit us at phoenixwm.com. Accumulate. Preserve. Transfer.”

48. Examples: FSIs and Philanthropic Services “…myCFO offers unbiased and comprehensive services, including tax and estate planning, investment advice, and philanthropic counsel…”

49. Examples: FSIs and Philanthropic Services “…A better way to enrich the lives of others…”

50. Contents: • The High-Net-Worth Market • Wealth Management Trends: The Age of the Advisor • High-Net-Worth Individuals & Giving • Competition in Philanthropic Services • Summary • Opportunity: Leverage the Channels • Taking Action • Conclusions