What does a perfect day in your retirement look like? Together, we will create a plan for you and your family to help make your dreams a reality. At Lloyd Rutledge Wealth Management, we’re always thinking ahead. In fact, we begin where you want to end up — taking the time to understand what your perfect day in retirement really looks like. With your goals as our guide, we apply our disciplined approach to create an overall wealth strategy that will meet your goals of income and wealth accumulation. With 70 years of collective experience, we know the importance of building enduring relationships founded on trust, care and confidentiality. As a client, you can expect transparent communication, honest advice, utmost discretion and sound investment decisions, every step of the way. Discipline that delivers “ Our goal is to help protect your capital in the long term and deliver risk-adjusted, tax-advantaged returns.” We believe in cultivating enduring relationships built on a foundation of trust, care and confidentiality. Working closely with you and your family, we will get to know your needs and goals so we are well- positioned to recommend the most appropriate investment strategies for you. Our disciplined investment approach is rooted in advanced modern portfolio management theory, and our forward-looking investment strategies are carefully constructed for suitable diversification and asset allocation. We are fully committed to act in your best interests, and highly value privacy, transparency and honest communication in every aspect of our relationship. The value of objective, goals-based advice We keep you on track and in control In our decades helping high-net-worth families reach their goals of income and wealth accumulation, we’ve seen first-hand the difference that steadfast financial guidance can make to an investor’s success. Annual Rate of Saving Assets Built or Lost Maintained 10.8% Relationship +26% 4X 6.7% Ended 3X -34% Relationship Non-Advised Advised Based on period between 2010 to 2014. Building Wealth Fostering Saving Achieving Goals Investors who were Saving continues to be Professional advice can supported by an advisor one of the cornerstones help investors to stick were shown to have three in investing success. to their financial plan, times the net worth and Advised Canadians have even through volatile four times the investable been shown to have a markets. Removing the assets of those who didn’t greater savings rate than emotion from investing work with an advisor. non-advised Canadians. can play an important Advisors help investors role in helping investors stay on track by helping stay focused on achieving investors to save and longer-term goals. invest on a regular basis. Source: “Value of Financial Advice,” Investment Funds Institute of Canada, 2012; “The Gamma Factor and the Value of Financial Advice,” CIRANO, 2016 Canadians who work with an advisor have been shown to be more successful at building wealth and achieving their goals.* Source: “Value of Financial Advice,” Investment Funds Institute of Canada, 2012 We help you see through your financial blindspots As an advisory practice qualified to offer professional portfolio management, one of our key roles is removing the emotion from investing. In doing so, we can help you avoid costly errors, and achieve your goals more efficiently. Euphoria Anxiety Thrill Denial However, by focusing on your Excitement long-term goals, you can When markets fall, remain calm and stay inve sted. we may feel like dashing Fear for the exit. Optimism Desperation Optimism When markets rise we feel that our goals are Panic Relief coming closer to realit y. Capitulation Hope Depression Despondency Human emotion can be one of an investor’s worst enemies. Some studies have shown that psychological factors can be attributed to between 45 to 55 percent of an average investor’s underperformance.* Source: Barclays, Cycle of investor emotions, 2016. It’s important to us that you understand your investments and our process. Please refer to our glossary appended to this document for a detailed explanation of key investment terms. Staying the course As history of the markets has demonstrated, during previous bear markets, Canadian equities eventually recovered and resumed their upward trend. That’s why it’s important to remain focused on your long-term investment objectives and consider staying invested to allow your portfolio the opportunity to participate in any upward market moves. As you can see in the chart below, investors who attempt to time the market or sell during bear markets, may miss out on significant returns during prolonged recovery periods and bull markets. Canadian bull-bear market cycles January 1985 – December 20171 200% 168% 68 months 105.8% 46 months 100% 81.6% 84.5% 31months 25 months 64.6% 39 months 56.6% 43.6% 10 months 45.8% 25 months 84.5% 43 months 25 months % Change 51.8% 6 months 15.7% 15.3% 6 months 16 months 0% -3.0% -0.2% -10.6% 16 months 18 months -20.6% -16.6% -20.1% 5 months -25.4% 10 months 6 months 6 months 4 months -38.2% 13 months -43.3% 9 months 1985 1990 1995 2000 2005 2010 2015 2017 Source: TD Asset Management Inc. and Morningstar® Direct. Market returns are based on S&P/TSX Composite Total Return Index. The index returns are shown for comparative purposes only. Indexes are unmanaged and their returns do not include any sales charges or fees as such costs would lower performance. It is not possible to invest directly in an index. 1The terms bull market and bear market describe upward and downward market trends, respectively. In the illustration above, we classify a price movement of 20% or more (up or down), over any given period as a bull or bear market respectively. In the illustration above, we classify a price movement of 10% or more (up or down), over any given period as a market correction. The information contained in this sales tool has been provided by TD Asset Management Inc(“TDAM”) and is for information purposes only. The information has been drawn from sources believed to be reliable. Graphs and charts are used for illustrative purposes only and do not reflect future values or future performance of any fund. The information does not provide financial, legal, tax or investment advice. Particular investment or trading strategies should be evaluated relative to each individual’s objectives and risk tolerance. We employ a disciplined approach that emphasizes quality and patience to serve you over the long term. Trying to time the markets may cause an investor to miss out on long-term growth. Here’s a look at the impact of missing the best one percent of days over 30 years while investing $10,000 in the S&P/TSX Composite Price Index. $250,000 S&P 500 Price Index US$ $ 226,626 S&P 500 Price Index US$ $200,000 (minus best 1% of days) $150,000 $100,000 $50,000 $ 5,320 $0 Dec-75 Dec-80 Dec-85 Dec-90 Dec-95 Dec-00 Dec-05 Dec-10 Dec-15 Source: TD Asset Management Inc. and Bloomberg Finance L.P. For illustration purposes only. The index returns are shown for comparative purposes only. Indexes are unmanaged and their returns do not include any sales charges or fees as such costs would lower performance. It is not possible to invest directly in an index. The graph is used only to illustrate the effects of the compound growth rate and does not reflect future values of any fund or returns on investment of any fund. A few days can make a big The best days typically come after difference: some of the worst: A considerable portion of long-term gains Many of the best days in this example can be attributed to a relatively small occurred soon after the bad days. An number of good days. In this example investor who sells their investment on a missing the best one percent of days bad day may miss out on the good days reduced the end value of an investor’s that follow, thus potentially reducing long- portfolio by over $55,000. term portfolio value. Results-driven investment philosophy Cornerstones of our investment philosophy Sound Investments Risk-adjusted return strategies High-quality investment products are the Managing risk is one of our most important foundation of our portfolio construction. jobs. We employ a range of strategies to We have access to: ensure your portfolio is optimally balanced according to your risk profile. Proprietary and third-party investment products, including mutual funds and Asset allocation: Your asset allocation exchange traded funds (ETFs) (including asset class, geography sector North American equities, including and duration) is based on your Investment stocks, preferred shares and income Policy Statement (IPS) and goals-based trusts planning. Fixed income and money market Diversification: Diversification is instruments, including treasury-bills, an important tool we use to reduce guaranteed investment certificates, market volatility and the risk of over government bonds and corporate bonds concentration of assets. Alternative investment products, options Hedge Strategies: We use a variety and derivatives of hedge strategies, including the use of derivatives, covered call option Through extensive analysis and diligence, strategies, risk reduction strategies and we choose the appropriate asset mix that currency hedges. we believe will best meet your objectives. Rebalancing and asset allocation adjustments are made as required Tax efficiency according to market changes or changes in your life. In consultation with your related tax professionals, we utilize corporate class mutual funds, eligible Canadian dividends, capital gains, RSPs, RRIFs, RDSPs, RESPs and Our disciplined investment TFSAs to help reduce taxes.