FALL 2011 NEWSLETTER - Assante Wealth Management

Inflows less Reinvested Div. in
Billions ($)
TSX Value (Dec. 31 - Closing)
The Deviney Goodman Team
Assante Capital Management Ltd.
FALL 2011 NEWSLETTER
Prepared by:
The Deviney
Goodman Team
Assante Capital
Management Ltd.
Member Canadian Investor
Protection Plan &
Investment Industry
Regulatory
Organization of Canada
1 Eva Road, Suite 303
Toronto, ON M9C 4Z5
T: (416) 620-6662
D: (416) 840-3847
F: (416) 626-2569
Skype: bryan.deviney
bdeviney@assante.com
M A K ING THE WRONG DECISION
A T THE WRONG TIME
Selling when the markets are down
may be making the wrong decision at
the wrong time. While investors say
they want to buy low and sell high,
the chart below shows that investors
actually do the opposite – they invest
when equities are rising and invest
less as they decline. As the financial
services research firm Dalbar points
out, US equity mutual fund investors
had average annual returns of just
45
35
25
15
1.87% for the 20 years ended
December 31, 2008. That compares
with a total return of 8.4% for the S&P
500. (1) This shows that “Investment
return is far more dependent on investor
behavior than on fund performance”. (2)
The uncertainties we are facing today
may not have a solution in a week, a
Mutual Fund Inflows vs. TSX Performance
(Continued on page 2)
15,000
13,000
11,000
Inside this issue:
Investing During
Volatile Times
Your Portfolio Earns
Dividends & Interest
Three Principles of
Financial Planning
Want To Invest In
Real Estate
More Income Than
From GICs
Bryan’s Triathlon
Update
Go Figure 4
2
2
3
3
3
4
5
(5)
(15)
(25)
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Notice how investors contribute less as prices become
less expensive and invest more as prices become more
expensive.
W E L C OME KALE GARNER, OUR NEW
T E A M MEMBER
In May Kale Garner joined our team. He is part of our continuing effort to give our
clients excellent service as well as the best investment, tax and estate planning
advice we can deliver. Kale has an undergraduate business degree from Brock
University and is a recent graduate of George Brown’s Financial Planning
postgraduate program. In addition to passing the Canadian Securities Course he has
also completed the first set of exams in achieving his Certified Financial Planner
(CFP) designation. Kale's primary role will be in the area of client service and he is
available to assist all our clients. Should you not be able to reach one of us please
give Kale a call at 416 840 3846.
9,000
7,000
5,000

Page 2
(Continued from page 1)
month or even longer. Extreme market volatility
reminds us that equities are best suited as long-term
holdings, rather than as short-term investments. It's
also important to remember that annual returns from
equities - and growth in corporate earnings - have
historically averaged approximately 6% to 8% over
the long term, but they fluctuate from year to
year. Equity prices over the short term are linked not
just to corporate earnings but also to investors'
emotions. When negativity dominates the news, as it
does today, investors become less willing to buy
equities, and this pushes equity prices lower. And
when the news is positive, investors are optimistic and
equity prices are pushed higher. Remember that when
everyone is discouraged and fearful, risk in the market
is substantially reduced and the opportunity might
be greater. That's because when people are negative,
most of the selling has been done and the bad news is
largely factored into security prices. A bearish
consensus is a prerequisite for a market bottom and
sets the stage for above-average returns on the way
back up.
I N V E STING DURING VOLATILE TIMES
Achieving our retirement income goals requires us to
invest in ways that get us higher returns than those
paid by GICs and government bonds. However,
alongside higher returns also comes higher
volatility. With today's 5 year GICs and 10 year
government bonds paying only 2.5% in annual
interest, this return is not enough to meet our
accumulation goals when saving for retirement nor is
it sufficient to meet our income needs in
retirement. The only thing more painful than
watching your savings decline 10 per cent is realizing
how much more money you will have to save for
retirement if you are unwilling to take on any equity
market risk.
Market volatility affects us in different ways
depending on where we are in our lifecycle.
For those saving for retirement depressed markets
offer the opportunity of buying assets cheap and
watching them rise in value over time.
For those nearing retirement or in retirement
market volatility can play havoc with our
retirement income. A market downturn in the 10 -
15 years before retirement or in the early years of
retirement may force you to reduce your
retirement income or run the risk of outliving your
savings.
While we expect market volatility to continue, we
believe that the guaranteed retirement income
solutions that we offer such as Manulife Income Plus,
SunLife Sunwise Essentials and Canada Life
Lifetime Income Benefit are excellent ways to insure
that your retirement income is not adversely affected
by market downturns yet allows you to receive a pay
increase if markets appreciate. It's a "heads you win,
tails you don't lose" proposition. We have promoted
these guaranteed retirement income solutions in our
newsletter and in our client meetings since the Spring
of 2008 and they have proven themselves to be
excellent solutions.
Y OUR PORT F O L I O EAR NS
D I V I DENDS AND INTEREST
The government and corporate bonds as well as the dividend paying
equities that are in your portfolio pay you dividends and interest each
year which accumulate on a tax deferred basis in your RRSP, TFSA
and RESP. The yield on a balanced portfolio, not counting capital
gains, is generally in the range of 3% annually which is actually more
than today's approximate 2.5% rate on a five year GIC.

Page 3
T HREE PRINCIPLES OF FINANCIAL PLANNING
1. Spend Less Than You Earn
Twenty-two years after releasing The Wealthy Barber with its focus on Paying Yourself First, David Chilton is
back with a follow-up, The Wealthy Barber Returns. In this sequel, David makes it clear that there is no magic
bullet that can substitute for consistently saving for retirement, year in and year out. Most need to save till it
hurts, he says. Recognizing that most people find it near impossible to save, Chilton tries to shift their focus to
spending less. His mantra this time is "I can't afford it". He feels this battle cry needs to be used more.
2. Your Debt Needs To Retire Before You Do
Entering retirement free of debt is one of the best ways to increase your discretionary retirement income. Not
having to make payments for mortgages, lines of credit, car loans, student loans or credit cards means you will
have a lot more income to spend on your favourite activities.
3. Have a Financial Plan
Developing a financial plan that includes a roadmap to achieving your financial objectives is one of the key
factors to achieving financial success. Canadians who undertook comprehensive and integrated financial plans
are “significantly more optimistic about their personal wellbeing as compared with those who have not.” and
generally are “more confident about reaching a wide spectrum of life goals.” (3) If you want to update your
financial plan please call Bryan to book an appointment.
W ANT TO INVEST IN REAL ESTATE
Real estate investing is seen by many as an
excellent way to make money. After all, we
have seen our own homes increase in value
and therefore it follows that owning even
more real estate will only add to our
wealth. There is one major problem with
investing in property - being a landlord.
Fortunately, there's a way to invest in real
estate without ever having to chase after the
rent money or unplug blocked toilets. REITs
(real estate investment trusts) allow you to be
an armchair landlord in sectors of the property
market including apartment blocks,
retirement homes and commercial
space. For example, if you invest
$300,000 and it earns a return of 6%
annually you will receive $1,500 per
month of tax advantaged income. (4) We
have available a number of investment
vehicles that diversify your investment
across a number of these real estate
investments. Ask Bryan about this at
your next appointment or by e-mail.
M ORE INCOME THAN FROM GICS: MANULIFE
P E N S I ONBUILDER
If you find that the income you are or will be receiving from your GICs or government bonds will not be
sufficient to meet your income needs, Manulife is now offering PensionBuilder. If you are over 50 years of age
and find that a 2.5% return is too low, PensionBuilder is a guaranteed income solution that can help you better
meet your income objectives. This brand new guaranteed solution works even better over the longer term, so
the sooner you start and the more time before you need the income, the better you will do. Call Bryan to book
an appointment to find out how you can generate higher income.

B RYAN’S TRIATHLON UPDATE
On Sunday, September 11 th I crossed the finish line of the Muskoka 70.3 half iron-man. Most importantly, I
finished healthy and in good spirits. The last six months of training consumed a noteworthy amount of my life.
In many cases I needed to wake up at 4 am in order to get in a workout. As Steven Covey, author of The 7
Habits of Effective People, wrote: "Put First Things First.” The early morning became my greatest ally. Below
are four lessons that reinforced themselves during the training process.
Get help and save time. There are countless strategies and books on triathlon. I read a few and more
information only caused more confusion. Essentially, the books were telling me how to become a coach when I
wanted to be an athlete. So, I hired a coach and let him deal with the details. This let me concentrate on training.
Try not to worry about what you can't control. I tried not to concern myself with results and improvement
levels too much. I wanted my focus to be on what I could directly affect. Getting workouts done 6 days a week
was tough enough. The rest would come. I often think to myself that people worry too much about the
insignificant things, like what protein shake to drink, and miss the big picture, like not getting enough exercise.
Life throws curveballs. I ran into the misfortune of getting quite ill the week before the race. Overcoming the
physical illness was one thing but adjusting my expectations for the race was another. I reconciled that I would
probably be slower and more tired along the way. That was ok.
Don’t measure your success against the success of others. I tried not to worry about who was passing me or
what time I would end up with. It will drive you crazy. There will always be someone faster out there. Enjoy
the moment. It was unbelievable to ride a closed 94 km bike course in the Muskoka hills without any worry
about cars.
What now I really enjoyed the training process and know that I will continue with my triathlon hobby. But in
what shape or form First, I'll take a month off, do some breaststroke and enjoy my sour cream and onion chips.
Thank you for all your well wishes along the way.
Go Figure
References:
(1) The Globe and Mail, April 7, 2010
(2) Quantitative Analysis of Investor Behaviour, 2007
(3) The Financial Planning Standards Council, 2010
(4) Sentry REIT Fund - Estimated Yield as at Oct. 3, 2011.
Assante Capital Management Ltd. is a member of the Canadian
Investor Protection Fund and is registered with the Investment
Industry Regulatory Organization of Canada.
This material is provided for general information and is subject
to change without notice. Every effort has been made to compile
this material from reliable sources however no warranty can be
made as to its accuracy or completeness. Before acting on any of
the above, please make sure to see me for individual financial
advice based on your personal circumstances. Services and products
may be provided by an Assante Advisor or through affiliated
or non-affiliated third parties. Commissions, trailing commissions,
management fees and expenses, may all be associated with
mutual fund investments. Mutual funds are not guaranteed, their
values change frequently and past performance may not be repeated.
Please read the prospectus and consult your Assante
Advisor before investing.