This document is a newsletter from Q3 2013 that includes the following articles: - An introduction that looks back at the market recovery since the Great Recession and lessons for investors who stayed invested versus those who withdrew during the downturn. - An announcement for a holiday party in December 2013. - An article discussing how dire predictions often don't come true and investors should focus on positive economic factors. - A piece about managing retirement accounts held outside of the main brokerage to get a full view of clients' finances. - A section touting the strong economy and job growth in Houston, Texas. - A brief discussion on whether it's a good time to start investing now rather

1. Q3 2013
Looking Back in
Shock and Awe
INSIDE THIS ISSUE
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LOOKING BACK
1
HOLIDAY EVENT ANNOUNCEMENT
1
WORST CASE SCENARIOS
2
YOUR OUTSIDE ASSETS
2
HOUSTON IS THE PLACE TO BE
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IS NOW A GOOD TIME TO INVEST?
4
FOUR WAYS TO INCREASE LIFE
EXPECTANCY5
ƒƒ OTHER ANNOUNCEMENTS
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“SCIENCE CAN PREDICT THE NEXT ECLIPSE OF THE SUN YEARS IN ADVANCE, BUT CANNOT PREDICT THE WEATHER FOR THE WEEKEND.”
- ANONYMOUS
By Mike Booker, CFP®, ChFC, CFS®
Remember 2008? Yes, I know. Thinking back on the traumatic market downturn evokes memories of anxiety and uncertainty. But
after every dark night, a sunrise. In fact, since the “darkest night” of the Great Recession (March 9, 2009), investors who stayed
the course have not only recovered their losses, but they have stacked up impressive gains as the SP 500 has staged a meteoric
recovery of 173.98% (3/9/09 – 9/30/13). Sadly, many investors cashed out in the first quarter of 2009. With the benefit of hindsight, this was clearly a very bad move.
A study earlier this year from Fidelity highlights what happened to those who went to cash in the first quarter of 2009 and
those who stayed the course. As you might imagine, the disparity of results were quite dramatic. Pre-retirees (age 55 and older)
who dropped stocks from their 401(k) by the first quarter of 2009 and never rebalanced saw their balances grow by just 25.9%
through the first quarter of 2013. Their average balance rose during this period from $80,200 to only $101,000. Those who stayed
put are doing better…much better.
The average pre-retiree 401(k) balance has nearly doubled since the recovery began in March of 2009, rising
from $130,700 to $255,000. According to the president of Fidelity Investments’ Workplace Investing, James
MacDonald, “There is a valuable lesson to be learned from the minority of pre-retirees who abandoned equities altogether and experienced significantly less progress. It underscores the combined importance of a
proper asset allocation and savings behavior as they planned for retirement within all that life entails.”
For those who endured the market downturn and were rewarded with the subsequent recovery, the bad news
is that the average 401(k) balance of $255,000 is only about enough to pay for health care expenses alone in
retirement. But for those that took their 401(k) accounts to cash and waited until “things looked better”, things
couldn’t look worse. 
Save the Date!
3rd Annual Holiday Event
December 5th, 2013
Please join us at 6pm at the Alley Theatre for a
catered reception followed by a presentation of
Charles Dickens’ “A Christmas Carol - A Ghost Story of Christmas”

2. “DIRE PREDICTIONS ARE A DIME A DOZEN THESE DAYS”
Worst Case
Scenarios
By Mike Booker, CFP®, ChFC, CFS®
Negativity has permeated our society of late. Predictions of disastrous consequences from the federal debt ceiling impasse abound.
Some pundits worry that inflation arising from dramatic increases in the monetary supply will surely diminish our future lifestyles. European sovereign debt crises will eventually contaminate the American banking system, and global warming will cause our coastal cities
to flood, etc.
Not everything is wonderful, I admit. But it is pretty clear to me that the dire predictions we read every day may, like so many previous
dire predictions, turn out to be laughably wrong. A few of my favorites:
· 2011 - Japanese Tsunami will cause breakdown in world supply chains, economic calamity and total market collapse.
· 2005 - Asian bird flu to trigger 1930s-style economic catastrophe.
· 1974 - Jimmy Carter warns that we will use up all the proven reserves of oil in the entire world by the end of the next decade. In 1970,
the world had 550 billion barrels of proven reserves. Between 1970 and 1990 we actually used 600 billion barrels, so theoretically, we
should have already run out. Instead, actual U.S. crude oil production is expected to exceed Saudi Arabia’s somewhere out in 2015 or
so.
The list goes on and on, but you get the point. Dire predictions are a dime a dozen these days and most are overblown or just wrong.
In an article written in Advisor Perspectives this past August by Bob Veres, advisor to financial advisors, he notes that “Clients and the
world at large give inordinate attention to downside scenarios, and nobody is calling our attention to the much larger upside of our
business and investment landscape. The human brain amplifies this effect, because it is hardwired to notice threats much more than
opportunities.” He notes how important it is for investors to look beyond the negative headlines to see the positive economic stories
out there.
For example, Veres quotes David Sterns of Sterns Financial Services in the article, “The natural gas situation could hardly be more favorable. Within three to five years, the U.S. will become the largest natural gas exporter in the world. It is estimated that the U.S. will be
totally energy-independent within five years, perhaps sooner.”
Sterns believes this will lead to other beneficial effects that are the exact opposite of the discouraging projections
you see in the papers. “Manufacturers are quietly bringing their plants back into the U.S., and using natural gas
to run them,” says Stearns. “This gives them a more stable energy footprint, and in some cases even a lower-cost
footprint. I sit in on a lot of those meetings with companies,” Stearns adds, “and I can tell you, they want stable even
more than they want cheap.”
So, while there is always something to wring our hands about, let’s not forget to notice the beneficial economic
forces that are building while we are hand wringing. There is a lot of good stuff coming our way. Sometimes you
just have to look for it. 
Are your outside assets getting the attention they deserve?
In today’s fast paced world it’s easy to neglect outside accounts like your 401(k) or deferred compensation plan. We are pleased
to announce that we now have the ability to help you manage your 401(k) (or any investment account) held outside of Charles
Schwab for a nominal fee. We believe that a comprehensive understanding of our client’s financial lives is essential when providing
sound advice. We’ve always offered our clients asset allocation recommendations for these “held-away” accounts. However, only
now do we have the technology in place to help our clients with the ongoing management of accounts held outside of Charles
Schwab Co.
In addition to making investment recommendations, we can also provide detailed performance reporting, assistance with trading
and rebalancing, daily account monitoring, and online access through finsyn.com, just as we do now for your managed Schwab
accounts.
We strive to provide our clients with cutting edge service offerings. If you would like ongoing professional guidance with your
401(k), 403(b) or any other account held outside of Charles Schwab Co., please feel free to give us a call. 
2

3. “I LOVE THIS CITY”
Houston Is
The Place to Be
By Mike Minter, CFP®, CFS®
It is probably no surprise that Houston’s economy is strong, but sometimes I take for granted how blessed I am to live in such a prosperous city. The U.S. economy is clawing its way back to normalcy and there are plenty of reasons for optimism, but there are still parts of
the country where things look bleak, e.g. Detroit. And here I am in Houston, TX where the future has never looked brighter.
Houston has become an undisputed leader in domestic and international business, with economic ties reaching across the globe. The
city benefits from a highly skilled workforce and has one of the largest concentrations of engineering talent generated from its energy,
aerospace, and medical industries. People from around the globe are flocking to Houston to fill the growing needs of the region.
Strong GDP Growth
According to the U.S. Bureau of Economic Analysis,
Houston’s economic activity accelerated last year.
Adjusted for inflation, the city’s gross domestic
product (GDP) grew by 5.7% in 2012. In 2011 GDP
grew by 3.7%. In both years Houston’s growth rate
was more than double the U.S. growth rate.
As illustrated below, Houston’s GDP growth for
2011 - 2012 was second fastest among the nation’s
major metro cities; topped only by San Francisco.
Energy Industry Dominance
Obviously a major contributor to Houston’s economic
success is the energy industry. Houston is the country’s energy headquarters and the international center
for every segment of the oil and gas industry including
exploration, production, transmission, marketing, and
technology.
More than 3,700 energy-related companies are located
in the Houston Metro area, including 40 of the nation’s
145 publicly traded oil and gas exploration and production firms. Houston simply dominates the energy
industry, and there is not a more promising sector of
the U.S. economy.
The people
And beyond the strong economy and job market, the people of this great city are the icing on the cake. We
meet with clients and business associates from all over the country and they all have one thing to say about
Houston – everyone is just so nice!
I cannot think of anywhere else in the world I’d rather call home. I love this city. 
*Source: Greater Houston Partnership
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4. Is Now a Good Time
to Start Investing?
By Heath Hightower, CFP®
“Is now a good time to start investing?” It’s a simple question, but
it’s almost impossible to answer because it requires a market prediction. Most people agree that trying to predict the market is impossible, but it’s human nature to try to buy at the “right time.”
Of course, waiting to invest your money has an opportunity cost.
Over the last several years, some investors have kept their portfolios
in cash, waiting for things to look better. Unfortunately these investors missed out on one of the greatest market recoveries in history.
For instance, in 2009 many investors felt the market was too risky and chose to sit on the sidelines until the financial crisis subsided.
In 2010, it was the recession. In 2011, investors held cash because of the Japanese nuclear disaster turmoil in the European banking system. In 2012, the crisis du jour was the election and fiscal cliff. Today, the primary reason that some people prefer to hold
cash rather than stocks is the government shutdown and the ongoing debt ceiling debate.
Some investors have been waiting to buy at the “right time” for several years. Sadly, waiting to invest their portfolios has cost them
dearly. Here’s what the SP 500 has done over the last 5 calendar years:
Year 2009:
+26%
Year 2010:
+15%
Year 2011:
+2%
Year 2012:
+16%
2013 YTD:
+20%
What matters more is where
the market is when you need to sell.
Total Compounded Return from 2009 – 2013, 3rd Quarter: 106.49%*
History lessons aside, the question is always the same… “Is now a good time to start investing?” Rather than trying to predict how
the market will react to the latest political whirlwind (which is impossible to do), I’d rather answer the question by reframing the
conversation. Here’s how the conversation typically goes…
Client: I’m really worried about this (insert latest crisis here) that I saw on the evening news last night. Do you really think that it’s a
good time to start investing? It’s scary out there!
Advisor: That depends on how soon you might need this money. Do you plan on investing it to fund your long term goals like retirement, or do you plan on needing this money over the next 1 – 5 years to buy a car, take a vacation, etc.?
Client: My objectives are long term and my primary goal is to make sure that I don’t outlive my money. I need this money to grow
over the long term so that it can produce an income for me when I retire. I don’t plan on touching it until then and I hope to supplement my income from the portfolio once I’m retired. I’m just spooked by all of the talking heads on the news. You’d think it was
Armageddon every single night!
Advisor: That’s a great point. The nightly news can be quite dramatic; however, it’s important not to lose sight of your long term
objectives. In your case, it really doesn’t matter what the market does in response to the (insert latest crisis here). What matters more
is where the market is when you need to sell. Do you think the market will be higher or lower when that time comes?
Client: I suspect it will be higher since we’re talking about 5, 10, or even 15 years down the road. I’m only 60 years
old, so I might need my portfolio to support my living expenses for another 30+ years.
Advisor: I agree. Over the long term markets tend to go up. Rather than basing your investment plan on unpredictable short term market movements, let’s design a diversified portfolio around your specific long term goals
and objectives. And remember, we also tailor the plan to minimize your risk exposures to the (insert latest crisis
here) by diversifying into multiple asset classes like stocks, bonds, hard assets and alternatives. As time goes on,
we’ll make changes to the portfolio as your investment time horizon and risk tolerance change.
Client: That makes sense. 
4

5. Four Ways You Can Increase Your
Life Expectancy
By Bryan Zschiesche, CFP®, MBA
At a recent event, I was introduced to a book called Living to 100. The book explores many of the factors that contribute
to longevity and is based on research performed by the New England Centenarian Study. As you probably know, a centenarian is a person who has lived beyond the age of 100. The subject of longevity interests me for a couple of reasons.
First, as a financial advisor, life expectancy plays a major role in the planning process and is a critical factor to consider
when planning for the distribution phase of one’s life.
The second and more personal reason is that longevity runs in my family. My father’s paternal grandmother (“Granny
Zschiesche”) lived to the age of 100, and my mother’s paternal grandmother (“Nana”) lived to 94. We often asked both of
these incredible women to what they attributed their long lives. My favorite response always came from Nana, a devout
Catholic, who credited her long life to her daily consumption of two glasses of red wine: one during her “happy hour”
and one during her “holy hour.”
The New England Centenarian Study originally began in 1995 with all centenarians living in eight towns in the Boston
area. According to the latest data on Boston University’s website, the study now includes approximately 1,600 centenarians, including 107 “supercentenarians” (people age 110 and over). The study focuses extensively on genetic and
behavioral drivers of longevity. Given that we have no control over our genes, my interest today lies in the behavioral
factors that contribute to a long, healthy life.
Here are four factors which, according to the study, have the potential to increase life expectancy:
Flossing your teeth daily adds 1 year. I must admit, this one surprised me. According to the study, “Recent scientific
evidence reveals that chronic gum disease leads to the release of inflammatory, toxic substances and certain bacteria
into the bloodstream, which leads to plaque formation in arteries and ultimately to heart disease.”
Taking one 81 mg aspirin daily adds 2 years. It probably goes without saying that you should consult your doctor
before taking any medication, but studies have shown that low doses of aspirin improve heart and brain health and can
reduce the likelihood of heart attack or stroke.
Limiting your consumption of red meat adds 3 years. Keeping your weekly consumption of red meat to 1 – 2 days
limits your iron intake. Evidence suggests that elevated iron levels can lead to the formation of arterial plaque.
Quitting smoking adds 22 years. I debated whether or not to even include this one since the effects of smoking are
so widely known. But more than any other lifestyle habit, smoking has the highest chance of reducing life expectancy.
Approximately 400,000 deaths annually are attributed to smoking.
This is just a sampling of some of the behavioral changes that have the potential in increase longevity. Keeping your weight at a healthy level, exercising frequently and checking blood sugar, cholesterol and blood pressure regularly can all have an impact. If you’re interested in completing a
questionnaire to estimate your own life expectancy and see which factors may benefit you, visit the
site www.livingto100.com.
And if you were wondering whether or not the study mentions anything about the effect of “holy
hour,” you may be interested to know that, “Moderate alcohol consumption has been associated with
decreased heart disease risk.” Our dear Nana may have been on to something. 
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6. Our Speaker Series at Hofheinz House
Thanks to all who came out for our most recent event at the Hofheinz House. On September 4th Financial Synergies entertained clients and a guest speaker, Andres Garcia-Amaya,
Global Market Strategist at J.P. Morgan Funds.
Above are some of the highlights from the evening.
Congrats
Marie!
Marie Villard graduated
Cum Laude with a Master of Arts Degree in
New Media Journalism
from Full Sail University
on October 4th, 2013.
For more information, please contact us at:
Financial Synergies Asset Management
4265 San Felipe, Suite 1450
Houston, TX 77027
Phone: 713-623-6600
www.finsyn.com
©2013 – All rights reserved