1) Low interest rates have made traditionally safe investments like government bonds much less attractive as they now provide little income without risking capital. 2) With people living longer, pensions are under pressure to remain fully funded with lower expected returns. 3) Investors now face the "investment challenge" of being realistic about their needs and return expectations in the current environment of low yields.

1. KRYGIER WEALTH MANAGEMENT
QUARTERLY
An exclusive newsletter from Mark J. Krygier, LL.B., CFP
Vice President & Portfolio Manager
Take the “Investment Challenge”!
Historically, investors seeking a safe place to invest their money would look to
those products which offered the highest amount of yield. Historically this made
sense, as five to ten year safe government and high quality corporate bonds
provided rich yields of 6-8%, so a retiree could expect income of $60-80,000 for
every million invested, without fear and without the need to dip into his or her
capital. That was yesterday’s story. Today, and perhaps for the foreseeable
future, those products which offer safety and protection from the increasingly
September 2012 volatile stock markets provide zero to negative yields, on an after-tax, and on an
Volume 15, Issue 3 after-inflation basis. Yield and safety, once congruous goals, in today’s
environment appear to be at complete odds with one another.
Cash, and other liquid products, yield close to zero as anyone with a savings
“Accounting for differing tax account will attest. In contrast, in 1980 I remember investing my bar-mitzvah
treatments, the yield on stocks is gift money in 90-day term deposits at 8%. What a shame I didn’t purchase 30-
currently about four times that of
year Government of Canada (GOC) bonds which, by the mid-80s, were yielding
10 year government bonds.”
close to 20%. Today’s 30-year GOC bonds yield a pitiful 2.37%! Overseas it is
David Baskin no better, as yields on the two-year German government bond recently sank to
Portfolio Manager
an all-time low of -0.012%. To add proverbial salt into the wound, the “safe”
30-year GOC bond yielding 2.37% is currently priced at $134 for every $100 of
Did you know? maturity value. Such pricing only guarantees today’s buyer of long-term GOC
Before getting too bullish about bonds a loss of $34 for every $100 of bond purchased.
energy prices, consider that Governments globally are taking note of this phenomenon, as is evident in our
demand in the U.S. is falling, and federal government’s current review of the CPP funding formula. As well,
fuel economy is improving. In corporations globally are under pressure to keep their pensions fully funded.
the mid-40s, 510 million barrels
of gasoline were used. The trend
Employees are living longer and therefore need retirement income far longer
was up until the late 70s, peaking than initially expected. Exceedingly low interest rates have exacerbated this
at 2.7 billion barrels. After problem by lowering the returns on pension fund investments.
dropping to 2.4 billion it rose to a Bottom line – today’s “Investment Challenge” is undoubtedly the challenge of
peak of 3.4 billion in ’09 and is our generation. The first step we all need to take is to be realistic about our needs
back to 3.25 billion, despite many
more cars being on the road. and about what we can expect. Are you ready to take the challenge?
CAPITAL MARKET HIGHLIGHTS
 The U.S. economy grew by more than originally forecast in Q2/12, helped by stronger export growth and
consumer spending.
 The U.S. Central Bank (Federal Reserve) anticipated that weak economic conditions will warrant exceptionally
low levels of interest rates for an extended period, to “at least through late 2014”.
 European Central Bank President Mario Draghi repeated that it may need to take “exceptional measures.”
WHAT TO DO NOW?
 Review your assumptions and consider solutions which you may not have thought reasonable in the past.
Mark J. Krygier: T : 416-512-6441 E : mark.krygier@td.com Avital Pearlston: T : 416-512-6674 E: avital.pearlston@td.com
4950 Yonge St., 16th Floor, Toronto, ON M2N 6K1 Toll-Free 1-800-382-4964

2. FINANCIAL SUCCESS SOLUTION$ - Help save the trees! It’s really easy!
In this era of electronic delivery capability of most documents, it is incredible how many trees are being destroyed, and
how much money is being wasted regularly by large institutions, to print information, most of which we would frankly
rather not receive. For instance, TD Waterhouse Private Investment Advice division alone spends approximately $4.2
million annually to print and mail client documents (e.g. trade confirmations, account statements and tax documents).
Therefore, to both provide our clients with a faster and secure way to access their account documents while at the
same time helping our environment (and the unnecessary printing and mailing costs), I wanted to bring your attention to
the ease of signing yourself up for our “eServices”. To save a tree you simply need to do the following:
 You will need each of your investment account numbers – you will find these on the top of your statements.
 Call the TD Support Desk at 416-982-6000, press Option #1, and then press Option #2.
 After answering some questions for privacy protection purposes, your accounts will be listed on-line.
 You may then choose electronic delivery for some or all of your documents that are currently being mailed.
If you would like assistance with this process, or more information, please call Avital at 416-512-6674.
GLOBAL BENCHMARKS
STOCK WATCH ETFs TO WATCH (In Canadian Dollars to August 31, 2012)
CANADA I-Shares U.S.$ Advantaged
Short Duration High Income
Brookfield Asset Management Asset Class YTD 3-Year
Bond ETF-CSD.U (TSX):$19.54
BAM.A (TSX) - $34.44 S&P 500 (USA) 9.6% 9.8%
Year High: $35.25 Low: $25.91 In Brief: This ETF offers a low cost
way of investing U.S. dollars into NASDAQ 13.7% 11.2%
 BAM.A is a global asset shorter term, but higher yielding TSX 60 (Canada) 2.3% 4.3%
manager focused on corporate bonds, which offer MSCI Europe 1.4% -3.9%
property, renewable power, compelling yields.
MSCI EAFE 0.7% -4.0%
infrastructure and private Some of the benefits of this ETF:
equity assets. China Shanghai -10.9% -9.4%
 Good way to hold a diversified
 $150 billion of assets and basket of bonds that are not Brazil Bovespa -10.8% -5.6%
highly competent investment grade to reduce MSCI World 4.5% 2.0%
management. individual security risk. 3-mo. CDN T-Bill 0.6% 0.7%
 ETFs are bought like a stock
Risks: a challenging economy 5-yr GOC Bonds 0.9% 5.0%
so pricing is transparent.
may impact its opportunities.
 Yield of 5.10% is attractive. U.S.$/CDN$ -3.4% -3.4%
U.S./ INTERNATIONAL In summary: This ETF is suitable 0.9862 (% change)
for those seeking higher yields
Merck & Co. from their U.S.$ holdings.
MRK (NYSE) - U.S. $43.12
Year High: $45.17 Low: $30.54
 MRK is a global health care
company. MY THANKS: WHAT AM I UP TO?
 Operations are in four To Reanne P. and Ryan S. for
segments: pharmaceutical, As a break from the concrete jungle, I
referring my services. If you know
recently took my two eldest children
animal health, consumer care someone - family, friends or
camping near Huntsville. We enjoyed
and alliances. colleagues - who may be able to
some great canoeing and hiking as
 High dividend of 3.8%. use some assistance with their
well as campfire time. While canoeing
wealth management and you think
Risks: Generic competition we saw a deer resting in the forest and
that I can be of some help, contact
remains a risk and it has few in the water a large turtle swam right
me and I would be pleased to call
new products coming to market. next to our canoe.
and meet with them personally.
The information contained herein has been provided by TD Waterhouse 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 Waterhouse 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 and Avital Pearlston, Associate Investment Advisor. Krygier Wealth Management is part of TD Waterhouse Private Investment Advice.TD Waterhouse Private
Investment Advice is a division of TD Waterhouse Canada Inc., 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.