The document is a quarterly newsletter from Krygier Wealth Management. It discusses improving consumer financial conditions in the US as default rates on mortgages, auto loans, and credit cards are falling to post-recession lows. It warns that having too many similar investments can fail to properly diversify risk, and that having too many investment strategies can make it difficult to track progress toward financial goals. It advocates having a unified investment strategy and ensuring investments are truly diversified across sectors and regions.

1. KRYGIER WEALTH MANAGEMENT QUARTERLY
June 2013
Volume 16, Issue 2
“Consumer financial condition
continues to improve…for
many consumers the recession
is definitely behind us.”
David M. Blitzer
Managing Director & Chairman
Index Committee
S&P Dow Indices
Did you know?
As of April 2013, U.S. consumer
default rates fell to a post-
recession low of 1.42% in April,
from 1.50% in March. First
mortgages default rates fell to
1.31%, auto loan default rates fell
to 1.07% and credit card defaults
fell to 3.61%.
Too many baskets or too many chefs?
It is simply astounding how many people have such good common sense
when it comes to the basic principles of investing but how few apply it in
practice. One of the first things taught to any investor is to avoid, “putting all
your eggs in one basket”, or simply put, diversify your exposure to any one
investment. The Canadian stock market is a great example of a benchmark
which is not well diversified – with about 50% of it being in cyclical resource
stocks and another 35% in financial stocks, that doesn’t leave a lot of room for
exposure to other sectors such as pharmaceutical, consumer staple, consumer
discretionary, technology and industrial. Yet during the bull phase of the
resource market, from 2003-2007, investors thought this concentrated mix was
the next “sure thing” in the investment world. Therefore, owning several
exchange-traded funds (ETFs), mutual or pooled funds which invest in the
Canadian stock market virtually guarantees that an investor will be duplicating a
high percentage of their risk exposure rather than diversifying it – quite the
opposite of what they intended.
The flip side is how many investors forget the other cliché which also has
application in investing, and that is that “too many chefs spoil the broth”. In this
increasingly complicated world in which information overload is probably the
number one challenge facing investors, having a unified strategy around one’s
investments can help significantly lower risk, reduce investment management
fees, and provide some means of knowing where you stand vis-à-vis your long-
term wealth planning. How can you or your advisor get a sense of your
progress towards your end goals, unless you have a unified strategy in place to
which you can compare your existing investment strategies?
Bottom line – a significant step in planning one’s future is to have a unified
strategy which you or your advisor can use to set a plan to help you reach your
goals. The next step is to look beyond what appears to be a diversified mix of
investments to ensure that you are not simply duplicating your risk exposure to
any individual investment, sector or geographical region. Such an approach
should allow you to “have your cake and eat it too!”
An exclusive newsletter from Mark J. Krygier, LL.B., CFP
Vice President & Portfolio Manager
CAPITAL MARKET HIGHLIGHTS
• The U.S. Central Bank has hinted it may start reducing economic stimulus which has created some unease.
• Japan’s stocks have been volatile, having risen quickly on U.S. style stimulus then dropping 7% in a day.
• Gold prices continue to be weak in spite of concerns regarding U.S. government debt and weak growth.
WHAT TO DO NOW?
Ask yourself what you are trying to accomplish, build a strategy around those goals, and then implement it!
Mark J. Krygier, Portfolio Manager: T : 416-512-6441 E : mark.krygier@td.com
Avital Pearlston, Associate Investment Advisor: T : 416-512-6674 E: avital.pearlston@td.com
Megan Thomson, Investment Representative: T: 416-512-7360 E: megan.thomson@td.com
4950 Yonge St., 16th
Floor, Toronto, ON M2N 6K1 1-800-382-4964 Private Fax: 416-512-8248
www.krygierwealthmanagement.com

2. The information contained herein has been provided by TD Wealth Portfolio Advice & Investment Research for TD Wealth Private Investment Advice and is for information purposes only. The
information has been drawn from sources believed to be reliable. Where such statements are based in whole or in part on information provided by third parties, they are not guaranteed to be
accurate or complete. Graphs and charts are used for illustrative purposes only and do not reflect future values or future performance of any investment. The information does not provide
financial, legal, tax or investment advice. Particular investment, trading or tax strategies should be evaluated relative to each individual’s objectives and risk tolerance. TD Wealth Private
Investment Advice, The Toronto-Dominion Bank and its affiliates and related entities are not liable for any errors or omissions in the information or for any loss or damage suffered. Krygier
Wealth Management consists of Mark J. Krygier, Vice President & Portfolio Manager, Avital Pearlston, Associate Investment Advisor, and Megan Thomson, Investment Representative. Krygier
Wealth Management is part of TD Wealth Private Investment Advice. TD Waterhouse Canada Inc. is a subsidiary of The Toronto-Dominion Bank. TD Waterhouse Canada Inc. – Member of the
Canadian Investor Protection Fund. ® / The TD logo and other trade-marks are the property of The Toronto-Dominion Bank or a wholly-owned subsidiary, in Canada and/or in other countries.
Asset Class 1-Year 3-Years
S&P 500 (USA) 27.8% 16.6%
NASDAQ 22.7% 15.0%
TSX 60 (Canada) 14.2% 4.6%
MSCI Europe 31.2% 8.3%
MSCI EAFE 28.2 7.4%
China Shanghai 1.0% -0.7%
Brazil Bovespa -6.9% -10.1%
MSCI World 25.5% 10.6%
3-mo. CDN T-Bill 1.0% 0.9%
5-yr GOC Bonds 0.6% 4.5%
U.S.$/CDN$
1.0369 (% change)
0.4% -0.2%
FINANCIAL SUCCESS SOLUTION$ - Plan your estate in advance!
Many people have been asking me about what are the items we need to consider when planning one’s estate.
According to TD Trust, the issues that need to be resolved and dealt with in one’s lifetime, in order to avoid future family
conflict and to avoid chaos for one’s heirs, include:
• Inventory and transfer of assets – this is the number one area that creates family conflict if it is not clear and reasonable.
• Planning for the impact of family situations (i.e. multiple marriages, dependant adult children).
• Will preparation – to avoid the problems of intestacy, delays in administering the will, extra costs and additional taxes.
• Choosing executors – this is often a more arduous task than one might imagine so be sure you have the right people.
• Planning ahead to minimize taxes – a Will creates opportunities for tax planning which cannot be done retroactively.
• Powers of Attorney – if not done in advance, people other than your trusted loved ones will be making decisions for you.
• Other considerations include insurance planning, funeral arrangements, etc.
If you would like more information about any of these issues, please call Megan at 416-512-7360.
WHAT AM I UP TO?
I started coaching my 7-year old son in
a local community baseball league
which has been a lot of fun.
I also had the pleasure of having my
oldest child complete his G2 driving
test. It doesn’t seem that long ago that
I passed my test…
STOCK WATCH
CANADA
Power Financial Corp
PWF (TSX) - $31.20
Year High: $31.46 Low: $24.06
• Diversified management and
holding company
• In Canada it offers life
insurance, retirement and
investment products
• In Europe it is active in
specialty minerals, building
materials, etc.
Risks: general economic
malaise could impact its growth.
U.S./ INTERNATIONAL
Kraft Foods Group Inc.
KRFT (NYSE) - U.S. $56.71
Year High: $57.84 Low: $42
• Spun-off from parent
company, KRFT is only the
North American food group
• Major brands include Kraft,
Oscar Mayer and Maxwell
House
Risks: Valuation is high now so
new investors may want to wait
for a pull back before buying.
ETFs TO WATCH
I-Shares Advantage Short
Duration High Income ETF -
CSD (TSX):$20.08
In Brief: This ETF offers a low cost
way of gaining exposure to a
broad universe of U.S. short-term
high-yield (riskier) bonds.
Some of the benefits of this ETF:
• It holds a basket of bonds to
diversify the risk exposure
• The maturity date of the bonds
is short so default risk is
reduced
• ETFs are bought like a stock
so pricing is transparent.
• Yield of 4.9% is attractive.
In summary: This ETF is suitable
for those seeking a diversified mix
of high-yield bonds.
MY THANKS:
To Gloria C., Adrian P., and Arnie
D. for referring my services. If you
know someone - family, friends or
colleagues - who could benefit
from our wealth management
services, kindly contact me and I
would be pleased to call and meet
with them personally.
GLOBAL BENCHMARKS
(In Canadian Dollars to May 31, 2013)