RBC Dominion Securities

Headline wisi enim ad minim veniam autem vel eum iriure dolor Intro text is Meta LF nulla. Suspendisse The Piazza Group’s Quarterly Newsletter Fall 2008 Bold dolor sit amet, luctus sodales ante. consectetuer investing Quisque vitae sem elit, sed diam—that the vitae mi tincidunt nummy nibith euismod lobortis. Vestibulum West News tincidunt but laoreet nec felis. dolore magna a liquam Suspendisse is volutpat. potenti. Donec laoreet lorem at When it wisi enim ad diam. Suspendisse Welcome & Thank You minim veniam, quis potenti. Integer nostrud exerci tation Welcome to all the new clients who ligula lorem, com- ullamcorper this ipit have joined us since our last modo eget, lobortis—but aliquip newsletter. pharetra nec, ali- ex each of the com- Thanks to the people who quam a, ligula. modo consequat. Duis recommended our services. Nam suscipit erat. autem vel eum iriure In quis nunc. dolor in hendrerit into Pellentesque Views and opinions vulputate velit esse molestie consequat, nulla. Nullam mauris. Nulla porta tortor mauris ante, tempor in, lobortis a, dig- for the clients and friends of Dear Clients and Friends, vel illum dolore, eu feugiat nulla facil- eu risus aliquet ultricies. Ut interdum nissim a, diam. Donec quis Bobby L. Piazza isis at vero eros et accumsan et iusto tempor lectus. Nulla congue sem sed Vice-President We would generally dedicate part of our newsletter to the global fi nancial crisis, ligula.vulputate velit esse molestie con- odio dignissim qui blandit. Nulla ipsum nulla. Aenean vel sem quis urna luctus 514-630-7841 but the 24/7 coverage that has been a constant since the summer, has covered sequat, vel illum dolore, eu feugiat nulla [email protected] orci, mattis congue, volutpat at, viverra tincidunt. Morbi nisl. Nulla a lacus. facilisis at vero eros et accumsan et www.bobbypiazza.com every possibility that may occur after the world’s central bankers have agreed dapibus, dolor. Fusce eu risus. Mauris Proin vulputate tellus a tellus. Duis iusto odio dignissim qui blandit. Nulla to provide capital and liquidity to the fi nancial system. With the fi nacial crisis Jenny Tsakalis - Associate Advisor nearing an end, we cannot help but wonder about another reality that he have Administration & Client Services 514-630-5287 been anxious to see come to an end and that is the bear market that has Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund invest- [email protected] accelerated its losses in September and the fi rst two weeks of October. The ments. Please read the prospectus before investing. Mutual funds are not guaranteed, their values change frequently economy is the driving force behind the equity markets and if you believe that and past performance may not be repeated. The indicated rate(s) of return is (are) the historical annual compounded the economy will emerge from the general slowdown, then you must believe total return(s) and does (do) not take into account sales, redemption, distribution or optional charges or income taxes Jason Cotie - Associate Advisor payable by any securityholder that would have reduced returns. Returns as of [DATE HERE]. Mutual fund securities are not covered by the CDIC or Business Development & Marketing in a turn around in the equity markets as well. Nobody knows the exact timing by any other government insurer. There can be no assurances that the fund will be able to maintain its net asset value per security at a constant 514-630-5348 of when the markets will move higher, but we do know that it will happen. amount or that the full amount of your investment in the fund will be returned to you. *The specific amount of tax credits and minimum holding [email protected] period will depend on the individual's province of residence and type of fund purchased. Tax credits will be refunded if shares are redeemed The only constant in our lives is change. We always remember the past as being prior to the end of the minimum holding period (which may be at least 8 years). Availability of tax credits are subject to certain conditions. such a glorious time without any of the tough issues that we are faced with

†Annualized performance of the Strategy Focus List since Dec 31, 1984, as of [DATE HERE], does not take into consideration management fees or other account expenses. The actual annualized performance of today. But there have always been issues; the only difference is the ones we the Strategy Focus List is lower than that disclosed when adjusted to reflect management fees and other account expenses. Past performance may not be repeated. **Rates [and/or yields] as of [DATE HERE]. Rates [and/or yields] are subject to change and availability. Investment Trust Units are sold by RBC Dominion Securities Inc. There may be commissions, trailing commissions, management fees and expenses faced in the past have been taken care of and in hindsight, for the most part associated with Investment Trust investments. Please read the prospectus before investing. Investment Trusts are not guaranteed, their values change frequently and past performance may not be repeated. Flow- through investments may not be suitable for all investors. Please read the prospectus before investing. Past performance may not be repeated and there is no guarantee of a return on your initial investment. INDEX YTD were not as bad as they seemed at the time. I have a few more comments on The specific amount of tax credits will depend on the individual's province of residence. This material does not constitute an offer to sell or a solicitation to buy any security. A preliminary prospectus relating to these securities has been filed with the required securities regulator(s). Securities laws prohibit RBC Dominion Securities Inc. from accepting an offer to buy these securities until the final prospectus is filed with the next page. or other authority is granted by the required securities regulator(s). This publication shall not constitute an offer to sell or the solicitation of an offer to buy the mentioned securities. Any U.S. recipient of this - S&P/TSX Composite -15.0% report that is not a registered broker-dealer or a acting in a broker or dealer capacity and that wishes further information regarding, or to effect any transaction in, any of the securities discussed in this Luca has started kindergarden at St. Paul’s school and is honing his hockey report, should contact and place orders with RBC Dominion Securities Corporation, a U.S. registered broker-dealer at (212) 361-2619, which, without in any way limiting the foregoing, accepts responsibility - DJIA -18.2% (within the meaning and for the purposes of Rule 15a-6 under the U.S. Securities Exchange Act of 1934), for this report and its dissemination in the United States. RBC Dominion Securities Inc. will not be respon- skills at the rink once a week. The little guy is defi nitely growing up quickly. sible for any contest entries that are lost, misdirected, illegible, stolen, incomplete or delayed for any reason. We are hereby released from all liability, losses, damages and expenses or claims related to the con- test. We may contact you regarding our products and services based on the information you have provided on the contest entry form. This newsletter is not intended as nor does it constitute tax or legal advice. - S&P 500 -20.6% Readers should consult their own lawyer, accountant or other professional advisor when planning to implement a strategy. The information contained herein has been obtained from sources believed to be reli- Remember- feel free to contact us, if there is anything you would like to discuss. able at the time obtained but neither RBC Dominion Securities Inc. nor its employees, agents, or information suppliers can guarantee its accuracy or completeness. This report is not and under no circumstances is to be construed as an offer to sell or the solicitation of an offer to buy any securities. This report is furnished on the basis and understanding that neither RBC Dominion Securities Inc. nor its employees, agents, - NASDAQ -21.1% or information suppliers is to be under any responsibility or liability whatsoever in respect thereof. The inventories of RBC Dominion Securities Inc. may from time to time include securities mentioned herein. This information is not investment advice and should be used only in conjunction with a discussion with your RBC Dominion Securities Inc. Investment Advisor. This will ensure that your own circumstances have As at September 30 2008 May the fall bring you thanks for your health and family! been considered properly and that action is taken on the latest available information. The strategies and advice in this newsletter are provided for the general guidance and benefit of our clients. Readers should consult their own Investment Advisor when planning to implement a strategy. Interest rates, market conditions, special offers, tax rulings, and other investment factors are subject to sometimes-rapid change. This commentary is based on information that is believed to be accurate at the time of writing, and is subject to change. All opinions and estimates contained in this report constitute RBC Dominion Securities Inc.'s judgment as of the date of this report, are subject to change without notice and are provided in good faith but without legal responsibility. Interest rates, market conditions and other investment factors Bobby, Jenny & Jason are subject to change. Past performance may not be repeated. The information provided is intended only to illustrate certain historical returns and is not intended to reflect future values or returns. RBC Dominion Securities Inc. and its affiliates may have an investment banking or other relationship with some or all of the issuers mentioned herein and may trade in any of the securities mentioned herein either for their own account or the accounts of their customers. RBC Dominion Securities Inc. and its affiliates also may issue options on securities mentioned herein and may trade in options issued by others. Accordingly, RBC Dominion Securities Inc. or its affiliates may at any time have a long or short position in any such security or option thereon. RBC Dominion Securities Inc.* and are separate corporate enti- ties which are affiliated. *Member CIPF. RBC Dominion Securities Inc.* and Royal Bank of Canada are separate corporate entities which are affiliated. *Member CIPF. products are offered through RBC DS Financial Services Inc., a subsidiary of RBC Dominion Securities Inc. When providing life insurance products, Investment Advisors are acting as Insurance Representatives of RBC DS Financial Services Inc. When providing life insurance products, Investment Advisors are acting as Financial Security Advisors of RBC DS Financial Services Inc. RBC DS Financial Services Inc. is licensed as a financial services firm in the province of Quebec. ®Registered trademark of Royal Bank of Canada. Used under licence. RBC Dominion Securities is a registered trademark of Royal Bank of Canada. Used under licence. ©Copyright 2007. All rights reserved. Professional Wealth Management Since 1901 RBC Dominion Securities RBC Dominion Securities (...continued from page 1)

Special Presentation

e are currently experiencing an unprecedented fi nancial crisis, with W Are you asking yourself – Will this ever end? several prominent U.S. and European fi nancial institutions going insolvent or being taken over. The crisis has adversely affected stock markets around the Do you question whether or not you are well world, making this a very challenging time for all of us as investors. positioned?

It is not always easy, but during times like this, it is more important than ever Wondering what we can do to help you? to stick to your long-term investment plan. Here are three things to keep in If you answered Yes, then please come join us... mind during this fi nancial crisis: Topics: 1. Don’t panic. Stock markets have declined and it is normal to be concerned. But all too often, investors panic as stock markets bottom out and sell high- Economic & Market Outlook quality investments, which are typically the top performers when the markets What we think? Where do we go from here? rally. Roundtable Discussion: Q & A I also want to assure you that RBC Dominion Securities has several safeguards in place to protect your investments. As a member of Investment Industry Presented by: Regulatory Organization of Canada (IIROC), we must maintain minimum Bobby L. Piazza, Vice-President - RBC capital ratios to protect against insolvency and ensure suffi cient liquidity. We Dominion Securities are also part of the Canadian Investor Protection Fund (CIPF), which protects your investments within certain limits. When:

Furthermore, as a fully owned subsidiary of Royal Bank of Canada, Canada’s Wednesday, October 29th 2008 largest fi nancial institution, we offer peace of mind that other investment fi rms simply can’t. Royal Bank continues to boast a very strong f nanciali & profi le, its senior debt ratings are among the highest of any fi nancial institu- Wednesday, November 5th 2008 tion worldwide, and it takes a very disciplined approach to managing risk. 12 pm (lunch will be served) 2. Let history be your guide. Historically, stock markets tend to go up. There may be bumps along the way, but the overall trend is up. After major declines Where: in 1929, 1973/74, 1987, and 2001/2002, stock markets recovered and climbed RBC Dominion Securities: 755, St. Jean, to new highs. In North America, stock market declines have always been followed by stock market gains. Suite 500 Pointe Claire

3. Stay diversifi ed. Your portfolio is specifi cally diversifi ed between different RSVP: Jason Cotie (514) 630-5348 or types of investments to reduce the impact of stock market volatility. How we [email protected] (Seating is limited) diversify your portfolio is based on current market conditions, as well as your investment objectives, time horizons and risk tolerance. You may wish to review these factors given the current market volatility, especially your risk tolerance, which may have drifted upwards with the markets over the last f vei or six years.

Times like this can be very stressful as an investor, but I want you to know that we are here for you. We are continually monitoring your investments, staying up-to-date on the latest market developments, and will contact you immediately if you need to take any action.

If you have any questions about what’s happening in the markets, or any concerns about your investments, please do not hesitate to call us. We would also be pleased to speak with anyone you know who may be concerned about their investments. We are also holding some informational market discussions, to ensure you are up-to-date and understand we are here to help. Feel free to invite a friend or colleague,

Thank you for your continued trust and confi dence. The Piazza Group RBC Dominion Securities RBC Dominion Securities Seven psychological pitfalls of investing – and how to avoid them

investors try to time the market so that they continue to hold an investment that has gone o you get anxious when the stock D always buy low and sell high – despite the bad, thinking it will eventually come back. It markets are volatile? Or do you feel fact that not even the most accomplished can be hard, but when an investment has optimistic that everything will turn out professional investors can do this fundamentally deteriorated, it may be time fi ne? Both reactions – natural parts of your consistently. to sell. Having an investment discipline in psychological makeup – can actually place with specifi c, rational criteria for impede your progress towards your Recognizing this tendency towards buying and selling can help you overcome investment goals. overconfi dence is the fi rst step towards this tendency. dealing with it. Try to be honest about your The good news is that you can gain some abilities, and if you fi nd yourself falling into 6. Greed control over your psychological responses traps such as market timing, take a step The desire to “get rich quick” compels many – unlike the fi nancial markets. Following back and rethink your approach. investors to take bigger risks than they are seven psychological pitfalls of should, such as investing too much in a single investing – and how you can avoid them. 3. Hindsight investment. When the risk doesn’t pay off, it 1. Optimism Hindsight is the tendency to believe that can jeopardize their fi nancial security. That after something has happened, you knew People have a natural tendency to doesn’t mean you should never take a risk – all along that it would – even though you overestimate the likelihood of positive it’s a normal part of investing. The key is to didn’t. This tendency can lead you to results on everything from the weather to take well-calculated risks within a properly believe that events are far more predictable investing. This largely explains why people diversifi ed investment portfolio, which is than they really are, raising unrealistic are so often disappointed by their designed with your personal risk tolerance in expectations about how well your investment performance – they simply felt mind. That way, when the occasional risk investments will perform and your they would do better based on this doesn’t pay off, the impact is mitigated by advisor’s ability to foretell the future, psychological bias. the other investments in your portfolio. among other things. If you fi nd yourself Avoiding the feeling of disappointment is confi dently declaring that you “knew it all 7. Herd instinct only one good reason why you should along” ask yourself whether you really did. When we see other people doing something, consciously compensate for this natural As with optimism and over confi dence, you we have a natural tendency to think that it optimism. If you base your fi nancial goals may have to consciously compensate for must be a good thing and we should do it too. on unrealistically positive expectations, hindsight. This “herd instinct” is often behind sharp ups you will almost certainly fall short of these and downs in the fi nancial markets. When 4. Obsession goals. This can affect your anticipated other people are buying, propelling the retirement date, amount of retirement Do you follow the performance of your market upwards, we buy too, sending the income, or the value of your estate. investments minute-by-minute on TV or market even higher. Similarly, when other the Internet? Do you dwell on short-term people sell in a panic, sending the market How much should you compensate for changes in the market value of your downwards, we sell too, fueling the decline. this bias? Some people are better investments? Do you fi xate on the negative Unfortunately, this often results in buying at calibrated than others, but studies performance of a single investment, even the height of the market euphoria, or selling indicate that in general if you feel there is when your overall portfolio is doing well? close to the depths of the panic. Instead of a 99% chance of something happening, These can all be signs of obsessive following the herd, follow a disciplined the actual odds are closer to 85%. behaviour commonly displayed by investment strategy based on logic and 2. Overconfi dence investors. reason.

Another powerful psychological bias is Take a step back and look at the big picture. Successful investing over the long term is less overconfi dence. Just as people tend to be Are you on track to achieving your longer- about how the markets are doing than how overly optimistic about the probability of term goals? Are you comfortable with the we react to what the markets are doing. positive results, they also tend to be level of investment risk in your portfolio? If Unfortunately, many of our natural overconfi dent about their own talents. not, you may have to make adjustments to psychological reactions – like denial, panic Some investors think that they can stop obsessing about short-term events. or greed – can impede our long-term success. “outsmart the market” – and even control 5. Denial largely unpredictable events such as stock We can show you how a disciplined approach market volatility. When stock markets go down, investors that removes the emotions and guesswork can sometimes panic and sell what is still from investing can help you avoid these This leads to one of the most common fundamentally a good investment. The psychological pitfalls of investing. Please pitfalls of investing – market timing. fl ipside of this is denial – when investors contact us for more information. Confi dent in their own abilities, many RBC Dominion Securities RBC Dominion Securities

The family vacation home

Selling the property may be the only way with a sum equal to the expected tax bill As you relax at your home away from to cover these tax bills. However, there when your estate is settled. Your benef ci-i home, enjoying time with your family, you are ways you can reduce or defer this tax aries may even be willing to pay the might think to yourself “How can I make burden – and help keep the family insurance premiums since they will this moment last forever?” While you can’t vacation home in the family. ultimately benefi t. freeze the moment in time, you can take steps to make sure that your family will > Consider giving the vacation property > Enter into a joint tenancy with right of enjoy moments just like it for generations to your children ahead of time, either survivorship ownership agreement. With to come. this type of ownership, you own a share of the property together with Keeping the family vacation other individuals. If the home in the family from one agreement is properly generation to the next is a goal structured, when one person that many families have. But for passes away, their share of a variety of reasons – some the property passes to the fi nancial and others personal – others, bypassing probate the next generation is often (not applicable in Quebec). forced to sell the family vacation home. Following are some Maintaining family strategies to help you prevent harmony this from happening. If you intend to pass along the property to more than Minimizing the tax burden one family member, it’s a When you pass on your vacation good idea to establish some home to your children, you are ground rules to avoid potentially passing on a very disputes over issues such as large tax bill as well. The property that your directly or through a family trust if you paying taxes and other expenses, handling family purchased for thousands of dollars want to maintain control. While this maintenance, and accessing the property. A several decades ago could be worth triggers a taxable capital gain, it should formal co-ownership agreement can help hundreds of thousands of dollars now. This be smaller than it would be later, since minimize the confl icts that all too often increase in value is a taxable capital gain property values tend to rise. Plus it avoids arise over these issues. that is triggered when you pass along your probate taxes, although you may incur property to anyone other than your spouse Get expert advice land transfer tax, which in some (assuming you cannot or chose not to claim Qualifi ed tax and legal advisors can help provinces can be similar to probate tax. a principal residence exemption). you design a plan to pass along your family > Cover the capital gains tax bill with an vacation home, while minimizing taxes and In addition, there may also be probate taxes insurance policy. You can take out a family confl ict. For more information, payable when your estate is settled. policy that provides your benef ciariesi please contact us.

This information is not investment advice and should be used only in conjunction with a discussion with your RBC Dominion Securities Inc. Investment Advisor. This will ensure that your own circumstances have been considered properly and that action is taken on the latest available information. The information contained herein has been obtained from sources believed to be reliable at the time obtained but neither RBC Dominion Securities Inc. nor its employees, agents, or information suppliers can guarantee its accuracy or completeness. This report is not and under no circumstances is to be construed as an offer to sell or the solicitation of an offer to buy any securities. This report is furnished on the basis and understanding that neither RBC Dominion Securities Inc. nor its employees, agents, or information suppliers is to be under any responsibility or liability whatsoever in respect thereof. The inventories of RBC Dominion Securities Inc. may from time to time include securities mentioned herein. RBC Dominion Securities Inc.* and Royal Bank of Canada are separate corporate entities which are affi liated. *Member CIPF. ®Registered trademark of Royal Bank of Canada. Used under licence. RBC Dominion Securities is a registered trademark of Royal Bank of Canada. Used under licence. ©Copyright 2008. All rights reserved.