PLAN A SOUND FINANCIAL. A Note from Gary:

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1 A SOUND FINANCIAL PLAN W I N T E R A Note from Gary PG1 How Much Should You Be Saving? PG2 A Note from Scott PG3 FSG Support Team PG4 FSG Advisor Team PG5 Year End Checklist PG6 Gary & Myrna Kwasnecha A Note from Gary: The hard hats are off and I would like to extend a personal invitation to you to join us at our new FSG office location in Leduc. I joined the insurance business in At that time I primarily sold life and disability insurance policies for Imperial Life. In 1981 I left Imperial Life and started Financial Services Group (FSG) as I realized I wanted to represent my clients instead of the life insurance company. I was fortunate to obtain contracts with companies such as National Trust, Credit Foncier, North West Trust, Standard Trust and Fidelity Trust. This gave FSG access to structuring annuities and guaranteed investment certificates for our growing list of clients. At that time interest rates were 16.5% compound annual for a 5 year term. Inflation was high and somehow we made it through those times. Since 1981, 5 year compound interest rates have declined and continue to stay low - I notice our best 5 year rate today is 2.81%. Inflation is much lower; however we have increased life style expectations and face higher taxation. Today s low interest rate environment is catering to Canadians ever increasing debt load and my personal opinion is, "This is simply not a healthy position." At one time I claimed, "Debt reduction was the very best investment," and now, with a bit of grey in my hair, I claim, "Debt elimination is the very best investment." Today the above-mentioned companies along with many others are gone, having been acquired by other financial institutions such as Scotia Bank. As many of you know, Scotia Bank is one of the companies FSG can place money with and they currently have the "best RRIF product" in the market place. As we look to the future I am excited about our move to the new FSG office location. Even more exciting for Myrna and myself is our son Scott s decision to join our business. After an extensive 4 year training program at FSG, Scott, a University of Alberta graduate with a business degree majoring in accounting, has decided to make his career in the financial planning industry. This is great news for the FSG team and for our long time, loyal clients. FSG is well known in Leduc and the surrounding area and Scott's commitment to build his own office in Leduc has shown us he is serious about his career. Scott understands the value of a great support team and is pleased to be surrounded by Susan (30 years), Myrna (22 years), Laurie (18 years), Sue (15 years), Delta (3 years), Nancy (4 years), Starlyn (3 years) and most recently Shannon - our friendly voice on reception who is in her very first month with FSG. Assisting people to accumulate and protect their wealth since 1977 Continued

2 As I celebrate 37 wonderful years in business in 2014, my goal is to continue with FSG for another 5 to 10 years as, "I simply enjoy working with our clients" some of whom are now the 4th generation. Assisting people to accumulate and protect their wealth is challenging and fun. Working with business owners to maximize their company value and to plan for succession to the next generation is gratifying. The sad part of our business is the loss of long time, loyal clients as a result of death. As I write this, I know there are clients, friends and families currently battling illness, the last days with a loved one or undergoing tests themselves for an unexpected medical condition. I am blessed to have met so many fine people in my career. I wish you all a Merry Christmas and the best in 2014 and beyond. Please do drop by our office. We are located just west of Leduc's heritage grain elevator. The coffee is always on, the cream is as real as it can be today, the parking is free and if you are lucky, you may join us on a day when our little whitetail buck journeys by our building - kind of like the old days. At Financial Services Group, we suggest saving 10% of GROSS INCOME (before taxes) as a target to retire comfortably by age 65. The later you start in life the higher the required savings percentage will be. According to Statistics Canada, the average Canadian family income in 2011 was $76,000 per year. Based on this average, Canadian families should save about $7,600 per year or $ per month for retirement. The average family income is higher in western Canada requiring increased monthly savings. Take a moment to calculate the average monthly amount you have committed to savings this year. Does it reach 10%? Another benchmark we often use to calculate retirement savings is provided by Dan Kadlec in a TIME Magazine, Business and Money article written in September 2012: At age 35, you should have saved one times your annual salary. At age 45, you should have saved three times your annual salary. At age 55, you should have saved five times your annual salary. If you retire at age 65, you should have eight times your annual salary. How do your savings compare to these guidelines?

3 A Note from Scott: We have probably all started a fitness program at one time or another. Meal planning, exercise and gym memberships are just some of the tools to help us keep fit. Many of us may have used a personal trainer to help us achieve our goals. When you meet with a trainer, the first thing you do is sit down and discuss your goals. Fitness goals are many and varied. Perhaps it is a goal to lose weight, increase flexibility or to train for a certain event. You assign a specific time frame for your goals such as 3 months, 1 year or the event date. The trainer then creates a personalized exercise program for you and a schedule for workouts as well as assisting you with your exercise routine. A trainer offers ongoing support to keep you motivated and help you stay on track. Most trainers also discuss your diet and suggest areas for improvement including sacrifices you may need to make to ensure your exercise program is a success. In many ways, our role as financial planners is similar to the personal trainer. We meet with you to review your financial goals and create a financial plan to achieve those goals in the time frame desired. We recommend a savings routine to start you working towards your goals and meet with you regularly to help keep you on track. Sometimes we also suggest sacrifices you may need to make to achieve your financial goals. Here are a few examples of some sacrifices you can make to help achieve your financial goals: 1. Skip the take-out coffee and drink the coffee provided for free at your work: $3 coffee per day, 5 days a week for 30 years = future value of $49, Make your own lunch one extra day a week instead of going out for lunch: $25 lunch out per week, for 50 weeks for 30 years = future value of $83, Spend one extra night per month at home rather than the restaurant: $100 dinner per month, 12 months per year for 30 years = future value of $79,727 These 3 items alone add up to more than $210,000 of savings over a 30 year period at an assumed interest rate of 5%. A successful fitness or financial plan starts with you! Take some time today and review your financial goals then give our office a call. We re here to help you get started on your own Personal Finance Program! FSG would like to welcome their new receptionist Shannon Greenough! She is the new friendly voice at the end of the phone when you call Financial Services Group!

4 The FSG Support Team Laurie has been with Financial Services Group for 18 years. She has a strong background of client services and office administration. Laurie s focus is looking after our clients GIC investments. Her department manages over one hundred and sixty million dollars in guaranteed investments! Nancy joined the FSG team in the spring of 2010 bringing with her 25 years of experience in insurance and financial planning administration. Nancy graduated in 2000 with a Bachelor of Theology degree. Nancy works closely with advisors preparing for appointments as well as covering the administration side of insurance and FSG group savings plans. Delta has been a part of the FSG team since December She achieved her diploma in Management Studies from Grant Macewan University in 2011 and is currently in her last semester at the University of Lethbridge, working towards attaining a Bachelor of Management degree with a major in finance. Delta is responsible for assisting the GIC department with all administrative duties. Delta also maintains the FSG website and Facebook page as well as creates all of our newsletters, flyers and advertisements. Starlyn has been with Financial Services Group since March She has an extensive background in office administration and customer service. Starlyn works in the GIC department providing assistance to all the administrative areas. She also manages our bank deposits and provides our clients with the best service by ensuring they get the best interest rates possible.

5 The FSG Advisor Team Gary and Myrna Kwasnecha In 1974, Gary graduated from SAIT with an Honours Applied Arts diploma in Hotel Restaurant Management. In 1977, his passion to help people brought him to the life insurance industry and in 1981, he opened his own business. Gary guides clients as they develop and implement their personal and business financial plans. Myrna graduated from the University of Alberta in 1977 with a Bachelor of Science in Pharmacy. Her career took a different direction in the late 1980 s when she joined FSG. Myrna achieved her Mutual Fund License in Her combined education and health sciences background equips her to implement and monitor customized employee benefit plans including life and health plans, health spending accounts and group retirement savings plans. Scott Kwasnecha Scott graduated from the University of Alberta School of Business in 2006 with a Bachelor of Commerce degree, majoring in accounting and business strategy. Scott obtained his Alberta Insurance Council Life License in 2009 and is currently working towards his Certified Financial Planner designation. Scott works with clients to formulate and evaluate their financial plans. He ensures that clients are implementing the right financial strategies to be able to get ahead. Susan Jones Susan is dedicated to helping FSG clients enhance their retirement income. Susan s expertise includes retirement income planning, coordination of government benefits, interest income and registered investment income. Susan can also assist you with security products such as life insurance, critical illness, long term care and disability insurance. Sue Hanson Sue brings her extensive banking background to FSG, including her knowledge and skills from the Life License Qualification Program, the Investment Fund Institute of Canada mutual funds course, the Canadian Securities course and the Professional Financial Planning course. Sue prepares client s financial plans which consist of a net worth, summary of projected monthly income and overall portfolio review services.

6 Travelling This Year? Purchase your travel insurance through Financial Services Group with Manulife s CoverMe Travel Insurance. Simply go to our website to get your quote today! Year End Checklist If you have unused RRSP or TFSA contribution room, you may want to top up these accounts as part of your year end activities. The deadline for RRSP contributions for the 2013 tax year is prior to March 1, The 2013 maximum RRSP contribution limit is $24,270. Donate to your favorite charity by December 31 st to reduce your tax bill for T4 slips are mailed on or before the last day of February. T5 slips are mailed on or before the last day of February. T3 slips are mailed on or before the last day of March. What s New for this Tax-Filing Season? You may be eligible for the following tax relief measures and services when filing your 2013 income tax and benefit return: First-time donor s super credit o This new credit for first time donors gives an extra 25% credit for cash donations when you claim your charitable donations tax credit. This means you can get a 40% federal credit for up to $200 in donations and a 54% credit for the part of donations that is over $200 but not more than $1,000. This is in addition to the provincial credit. Family caregiver amount o If you have a dependant with an impairment in physical or mental functions, the additional amount you may be able to claim has increased to $2,040 when calculating certain nonrefundable tax credits. Adoption expenses o The period to claim adoption expenses has been extended for adoptions finalized in 2013 and later years. Investment tax credit o Eligibility for the mineral exploration tax credit has been extended to flow-through share agreements entered into before April 1, Tax free savings account o The annual TFSA dollar limit increased to $5,500 on January 1, 2013 and remains at that amount for the 2014 contribution year. Maximum deposit amount in TFSA is $31,000 per person. Our New Address: Street Leduc, Alberta T9E 6Z1 Visit our website at Office Hours: Monday through Thursday, 8:30 am to 4:30 pm Financial Services Group supports a healthy family lifestyle. This Holiday Season we will be taking the opportunity to enjoy time with our families between December 24th, 2013 and January 1st, Regular business hours will resume on January 2nd, We thank you for your continued business and appreciate your ongoing support. Visit us on Facebook: