This document summarizes the key points from a presentation on creating a do-it-yourself investment strategy using low-cost index funds rather than paying high fees to investment advisors. It outlines setting realistic return targets based on an investor's goals and risk tolerance. It then discusses how to construct portfolios using broad asset classes like stocks, bonds, and real estate to achieve the targeted risk-return profile. Benchmarks are used to evaluate performance rather than relying on advisors who are unable to outperform the market on average. The presentation argues this approach allows investors to take ownership of their financial future rather than leaving it to salespeople.

1. Si vous ne disposez pas d'un
écran large, vous pouvez
néanmoins créer et présenter
des diapositives au format
16/9. Les diaporamas
PowerPoint redimensionnent
toujours vos diapositives afin
qu'elles s'affichent sur tout
type d'écran.

2. Why are we doing this?
 Because we are retail investors that feel the finance
industry is mainly focused on trading and generating revenue
through sales and commissions. The industry is less focused
on showing clients how to invest and build wealth in the long
run.
 Because it has been proven again and again that when it
comes to trading for most people it is a losing proposition due
to human nature as we take winners right away achieving
instant gratification and hold on to losers longer or “win 1 and
lose 5” (please Google “Prospect Theory” by Nobel
winning D. Kahneman).

3. Ok, so investors shouldn’t day trade. What
about getting an investment adviser?
 FT - wealth management
industry in July15, 2014 : “In
Canada it’s been impossible for
people to figure out what they’ve
been paying and how their account
is performing“
(link: http://tinyurl.com/qfmkrha)
 A client should simply ask their
advisor: How much have I been
paying you all this years for your
services? (we bet they can’t
answer that)
 This chart might help and yes,
the less money an investor has the
more expensive the advice gets!!
 Globe and Mail:
http://tinyurl.com/oxgsu34

4. Why do benchmarking and fees matter?
 Investopedia : “A Financial Advisor’s Job Is
Not to Beat the Market”
http://tinyurl.com/pu7aeyz
 If we can’t use the benchmark how can we
compare and assess performance?
 Institutional mangers are assessed against
clear benchmarks. Why shouldn’t investment
advisors be held against the same standard?
(Institutional Managers take on risk different
from retail investors because they have teams
of risk mangers with very strict limits that don’t
let them bet it all on number 7[Crapshoot])
 A very common solution to the benchmark
problem has been, park retail investors in a
mutual fund tracking the market – meanwhile,
average equity mutual fund fee in Canada is
close to 2.5% per year.

5. Ok so what is the alternative?
Investors should take ownership of their own financial future and work
to understand that there are better options other than giving your money
to a sales guy and crossing your fingers, or making 50/50 bets day-
trading.
The iPlanner investment philosophy:
 Realistic investor goals that can be translated into a return targets
 Investor risk tolerance that can be quantified, “Goal Based” investing with
set target risk and return profiles, minimize risk through diversification
 We track the risk and returns of broad assets classes like Cash, Equities,
Bonds, Commodities, Real Estate to establish acceptable ranges of risk
return targets

6. Investor goals
 What you want from your investments depends on who you are. Your
goals may be:
 to make as much money as you can
 to provide a comfortable income at retirement
 to make enough money to do something specific, like pay for your
child’s college
 to keep your money from losing value due to inflation.
 Each one of the goal set for you should have a target return number for
example: If I have $10 today and I would like to invest it and have $12 in
a year from now that equates to a 20% yearly return. In order to achieve
this target my portfolio should d be constructed with securities that can
offer the desired return.

7. Investor risk tolerance
 Risk tolerance varies for individual investors and it is often a
function of :
 Investors age, investments knowledge, investment horizon, return goals
etc.
 For example :
 A retired individual looking for steady cash flows or capital preservation
during retirement is encouraged to stay away from risky assets that
fluctuate considerably in value and have unpredictable returns.
Investing in such assets can lead to a shortfall in the required cash flow
which can lead to financial difficulties or simply not meeting the set
goals.

8. Risk vs. Returns
 It is important to be familiar with the risks/returns of each
asset class as they are the building block of every
investment portfolio.
 For example: An investor should know that if we invested in
equities for the past ten years the average return has been
8.1% with a risk of 16.6%. Ok what does that really mean?
Does it mean that this year equities will go up 8.1% too? No
it doesn’t. It simply gives us a measure for the risk taken for
each return earned.
 We aim to create risk vs. return benchmark to allow
investors to measure possible investments and create
reasonable expectations.
 For example: If equities have returned on average 8% for
the last ten years, how reasonable is it to expect to make
30% from equities for the next ten years?

9. Investable assets
 Various asset classes have different
risk/return characteristics. Cash and Bonds
have been less risky with more predictable
returns versus Equities and real Estate
which have produced higher returns with
greater associated risks.
 Looking at a portfolio that was invested in
each asset class using equal money in
each class would have returned on average
4.1% every year with a 12% annualized risk
for the period of Oct 20015-Oct 2015.
 It is important to be familiar with the returns
of each asset class as they are the building
block of every investment portfolio.
Assetclass Period
Avg.
Return
Risk/
Volatility
Best
Return
Worst
Return
Cash 2005-2015 1.4% 2.0% 5.1% 0.1%
US Bonds 2005-2015 4.5% 3.4% 11.8% -1.6%
Commodities 2005-2015 -1.0% 16.6% 21.3% -26.2%
US Equities 2005-2015 8.1% 16.6% 34.4% -23.3%
Global Real Estate 2005-2015 7.5% 21.2% 35.2% -34.8%
All Assets 2005-2015 4.1% 12.0% 21.6% -17.2%
Period-StartingOct2005-EndingOct2015
Returnsareannualreturns
RiskisannualizedStandarddeviationofreturns

10. The “Efficient Frontier”- the cornerstone of
modern finance
 Introducing : Real Estate, Commodities,
Emerging Market Equities, Developed
Markets Equities, and Hedge Funds.
 The Efficient frontier is the green line
optimized between the risk and return of all
these asset classes. It serves as a benchmark
or a starting point for assessing risk and
returns.
 In simple terms: Equities have returned
on average 8% by risking 16%, so your odds
are risk 2 to make 1. If you aim to make 30%
a year in equities the rule of thumb says you
may have to risk 60% to make that. Ok, risk
and return are not linear so risk 60% to make
30% is not entirely accurate, but an investor
should know that to earn more you need to
risk more.

11. What does iPlanner offer that isn’t
out there already?
 In finance today you can find anything you look for with a little know how.
 What we aim to do is offer an alternative to day trading, and to having a
money manager who underperforms but still gets hefty fees.
 We aim to create goal based portfolios with set risk and return profiles,
that track the major asset classes, are diversified, and minimize volatility
or unpredictability of returns.
 We are creating technology that will allow an investor to create a financial
plan, set goals and limits tailored around their needs and execute
accordingly.
 Right now our portfolios are a demonstration of how the various asset
classes can be combined to create an efficient portfolio that stays the
course and delivers the long term returns we aim top capture.

12. Our Model Portfolios?
Conservative, Income, Balanced and Growth
 We have 4 model portfolios that use:
 Real market data, courtesy of
Quandl
 We use ETFs as investing
vehicles, (highly liquid, low fees
<0.35%)
 We provide an institutional grade
fact sheet about each portfolio:
Asset Allocation, Position
Allocation, Portfolio PnL,
Position PnL, Portfolio Risk ,
Single Position Risk,
Diversification Factor and a PDF
report generator.
**Note: We are building an optimized rebalancing
technology. The portfolio weights have not changed

13. What’s next?
 We encourage you to explore the Model
Portfolios made available by iPlanner.
 We also would like your feed back on what
can we improve – Please send us and
email!
 We aim to improve our technology and help
retail investors achieve their investing goals.
 Stay tuned and "May the Force be with you"

14. Disclaimer:
 This website is for informational purposes only and does not constitute an
offer or solicitation to sell shares or securities in the Company, any related or
associated company or investment vehicle. None of the information or
analyses presented are intended to form the basis for any investment
decision, and no specific recommendations are intended. Accordingly this
website does not constitute investment advice or counsel or solicitation for
investment in any security. This website does not constitute or form part of,
and should not be construed as, any offer for sale or subscription of, or any
invitation to offer to buy or subscribe for, any securities, nor should it or any
part of it form the basis of, or be relied on in any connection with, any contract
or commitment whatsoever. The Company expressly disclaims any and all
responsibility for any direct or consequential loss or damage of any kind
whatsoever arising directly or indirectly from: (i) reliance on any information
contained in the website, (ii) any error, omission or inaccuracy in any such
information or (iii) any action resulting therefrom.