SimpleSmart ADVICE

Our monthly newsletter designed

to keep in touch with you.

October 2018 :

How Happy Are You?

Model Portfolio

Final Thoughts

Aldershot Financial Group of ACPI guides families through decisions that affect their financial well be-

ing and investments. We are the 'go to' people in Aldershot when a life event requires sound financial

advice. We care. We simplify. We've been through this before.

   

cien sts tell us we are less hap-

py than our (great)

grandparents. Yet some of 

them faced a worldwide depression, wars 

that threatened to destroy the world and 

worse, no wifi(!). Ignoring the 24 hour 

news cycle for a moment, the world is at 

rela ve peace, Canadians enjoy one of 

the highest standards of living in the 

world and investment returns have been 

reliably strong for nearly 10 years.  

 

Are you happy, though?  I know, investment returns have 

been shaky this year. But in the context of things, we have 

a lot to be happy about.  Over the past 20 years, stocks 

have returned 7.1%, bonds 6.7% and savings 2.3%. An av-

erage investment por o-

lio with a balance of all 

three might look like 

this: 

 

It would have returned 5.8%1 over the past 20 

years.  Round this down to 5% for expenses and you end 

up with what our average client has earned over the past 

10 years2.  Does 5% make you happy? The answer is “it 

depends”. If you were expec ng 6% you’re not happy. If 

4%, you are. 

In his best selling book, Solve for Happy, Google execu ve, 

Mo Gowdat, suggests that: 

 

 

No ce that this 

equa on doesn’t 

require lots of 

money, a big 

house or the per-

fect family to ex-

perience happi-

ness. Which ex-

plains why people 

can be happy with very li le. 

We experienced this in Hawaii recently. We were holi-

daying on beau ful Oahu while picking up my daugh-

ter on YWAM’s nearby base in Kona (you can check 

out the blog from our trip, here).  

 

Our 19 year old son, Daniel, and I decided on a 5 km, 

1,000   eleva on hike through the jungle. The final 

des na on was a gorgeous 60   waterfall that a ract-

ed cliff jumpers of all kinds (including a middle aged 

Canadian and his fearless son). Along the hike, we met 

a 22 year old na ve named Tevin. Like many Hawai-

ians he didn’t seem to have a care in the world, de-

spite having no apparent access to a car. He had never 

been off the island and, therefore, never flown on a 

plane or visited an amusement park. In short, Tevin 

was des ned to live a life with few of the op ons or 

creature comforts that most Canadians enjoy.  

 

Yet, life for him was working out be er than he had 

hoped. The lesson for me:  pay more a en on to this 

quote on my office wall: 

 

 

 

Thanksgiving may have passed us by for another year 

but thankfulness (and happiness) can last the whole 

year through.  

 

 1 Based on 25% S&P500 return, 25% S&P/TSX Composite Index, 25% UL 

Long Term Government Bonds, 25% FTSE TMX Canada 30-day T-bills for 20 

years ended Dec. 31, 2017.  Source: Dimensional Fund Advisors 

2 Based on Aldershot Financial Group of ACPI Balanced Por olio.  See 

disclosures under Balanced Por olio below, on page 3.  

SimpleSmart ADVICE  -  October  2018 

How Happy Are You?

SS  

Happiness =  

How you see your life working out  

Minus 

 How you hoped it might work out 

“When we covet things we cannot afford,  

we grow poorer, regardless of our incomes. 

Conversely, when we’re sa sfied with what 

we have, we are truly wealthy” 

Jean‐Jacques Rousseau  

This graph represents a model portfolio using 45% DFA Five-Year Global Fixed Income Fund Class A, 15% DFA Canadian Core Equity Fund Class A, 15% DFA US Core Equity Fund Class A (from January 31, 2008 to January 31, 2009) / DFA US Core Equity Fund Class A (H) (from January 31, 2009 to September 30, 2018), 15% DFA International Core Equity Fund Class A and 10% DFA Global Real Estate Securities Fund Class A, initially invested on January 31, 2008 with pricing up to September 30, 2018 using monthly data and rebalanced on a month-end basis. The data series has been smoothed. Actual client portfolio holdings are recommended based on personal circumstances.

Commissions, trailing commissions, management fees, and expenses may all be associated with mutual fund investments. The indicated rates of return are the historical annual compounded total returns including changes in unit/share value and reinvestment of all distributions/dividends. They do not take into account sales, redemption, distribution or optional charges or income taxes payable by any security holder that would have reduced returns. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated. Please read the Fund Facts and consult your Advisor before investing.

SimpleSmart ADVICE  October  2018 

 

This material  is provided  for general  informa on and  is subject  to change without no ce. Every effort has been made  to compile  this material  from  reliable sources however no warranty can be made as to  its accuracy or completeness. Before ac ng on any of the above, please contact the appropriate profession-al.  Aldershot Financial Group is a trade name of Aligned Capital Partners Inc. (ACPI). ACPI is a Member of the Canadian Investor Protec on Fund (www.CIPF.ca) and the Investment Industry Regulatory Organiza on of Canada (www.IIROC.ca). Mark Orr is registered to provide investment advice and transact in securi es/mutual funds in the provinces of Ontario, Manitoba, and B.C. The opinions expressed are those of the author and not necessarily those of Aligned Capital Part-ners Inc. 

Other Resources for Happiness: 

The Happiness Hypothesis: Finding Modern Truth in Ancient Wisdom by Jonathan Haidt 

Happier: Learn the Secrets to Daily Joy and Las ng Fulfillment by Tal Ben-Shahar 

10% Happier: How I Tamed the Voice in My Head, Reduced Stress Without Losing My Edge, and Found Self-Help That Actually Works--A True Story by Dan Harris 

The Bible (really...my personal favourite)  

John Booth, Senior Financial Advisor, CPA, CA, CFP, CDFA Mark Orr, Senior Financial Advisor, CPA, CA, CFP

Nicholas Cup, Associate Financial Advisor, CFP, CIM

9 0 5 - 6 3 1 - 1 2 3 0 • 7 – 107 Plains Road West, Burlington, ON L7T 1E8

email: jbooth@alignedcp.com morr@alignedcp.com ncup@alignedcp.com Website: www.SimpleSmartADVICE.com

Aligned Capital Partners Inc. Aldershot Financial Group 7 – 107 Plains Road West Burlington, ON L7T 1E8

Aligned Capital Partners Inc. is a member of the Investment Industry Regulatory Organization of Canada (www.iiroc.ca) and

the Canadian Investor Protection Fund (www.cipf.ca) 

Aldershot Financial Group