CommunicatorINVESTWISE

In this issueYear in Review P.1

Federal Budget 09 P.2

Go With the Flow.. . P.3

RRSP Contr ibut ion Reminder P.4

Open a Dundee TFSA Account P.4

Year in Review by Danny W. Leung, CFP, Ch.P., CIM, FMA, FCSI, TEP

2008, particularly the last few months, was one of

the most volatile years on record. The S&P/TSX

Composite Index had strong numbers at the begin-

ning of the year, sitting at 13,926.76 on January 2.

There was some worry that the credit crunch would

affect markets in February when the S&P/TSX

Composite was hovering around the 12,000 point

mark, but the index rebounded, breaking through

the 15,000-point mark for the first time in its history,

on May 20.

Things began to falter in August, as credit fears

mounted and investors started to worry about the

state of the U.S. economy, but the markets took a

major turn for the worst between September 26 and

October 8, falling 2716.96 points during that time.

Since then, the markets have bounced around,

jumping hundreds of points one day and falling

even further the next. As of close on October 27,

the S&P/TSX Composite was at 8,537.34 – num-

bers we haven’t seen in about four years.

Our position going into 2008 was a very defensive

one. We had mentioned to our clients during our

reviews early on last year that the likelihood of a

market downturn was more probable than the con-

tinuation of the market rallies we had been seeing

in the last few years. Hence, our cash position

was much greater than usual, which also served us

well during the meltdown late last year. Relatively

speaking, we have done extremely well managing

the market risk for our clients’ portfolios.

Moving forward to this year, our outlook is such that

the continuation of the market downturn is unlikely,

but at the same time, expecting a return to bull

markets is premature. We do feel that this is an

opportunity to accumulate and increase our hold-

ings in the equity market for the next 8-10 months,

in the eventuality of a market recovery. Thus, our

strategy includes the continuation of Dollar Cost

Averaging, and writing options to generate addi-

tional income within the portfolio.

Y O U R W I N D O W

I N T O T H E W O R L D

O F F I N A N C I A L

P L A N N I N G

www.investwise.com

ISSUE

15FEB

2009

Article was written on February 17, 2008

2008 Tax Reporting Mailing Dates

Internal Revenue Service

Mailed No Later Than

1099DIV/INT/B January 31, 2009

Canada Revenue Agency

Mailed No Later Than

RRSP Contribution Receipts

March to December will be mailed January. First 60 days mailed weekly

T5 February 28, 2009

T5008 February 28, 2009

T4RSP/T4RIF February 28, 2009

T4A February 28, 2009

NR4 March 31, 2009

T3 March 31, 2009

T5013/T5013A March 31, 2009 Upcoming EventsStay InformedAs part of our ongoing effort to

educate our clients with relevant

and timely information, we are

very pleased to be offering our

INVESTWISE Educational Workshop

Series.

We believe strongly in the importance

of continuing education. These work-

shops will endeavor to bring to light

new concepts and ideas that you may

have not considered before -- or clear

up some old misconceptions that you

may have had about others.

We encourage you to attend as many

workshops as possible. We will notify

you personally if we feel that a

presentation is of particular interest to

you. In the meantime, if you have any

questions about future workshops, or

would like to register, please call Abu

at (905) 470 - 5989 Ext. 212 or e-mail

him at abatasi@dundeewealth.com.

Continued on next page...

Looking for the Best GIC Rates in Town? Contact us today

Long-term GIC Rates

1 Year 2.35

18 Months 2.35

2 Years 3.10

2.5 Years 3.10

3 Years 3.35

4 Years 3.55

5 Years 3.85

Short-term GIC Deposits

30 Days 1.31

60 Days 1.50

90 Days 1.80

120 Days 1.80

180 Days 1.50

270 Days 2.20

All rates are annualized and subject to change without notice at any time.

GIC rates shown are as of February 12, 2009, based on information received from the issuers. DundeeWealth Management does not guarantee the rates posted will remain in effect for the entire business day. Please contact our office for accurate rates at the time of interest. Minimum investment amounts apply.

MORTGAGE RATESPrime Rate 3.00%

TERM* RATE

6 Month 5.00

1 Year 3.50

2 Year 4.65

3 Year 4.24

4 Year 4.29

5 Year 4.39

7 Year 5.90

10 Year 6.05

VARIABLE** RATE

5 Year 3.80

* Rates calculated semi-annually, not in advance.

**Rate is Prime Rate plus a factor of 0.80%. Rate changes when Prime Rate changes. Rate is calculated daily.

All interest rates shown above are as of Thursday, February 26, 2009, and may change without notice. They are calculated on a per annum basis, unless indicated otherwise.

Mortgages provided by Dundee Mortgage Services powered byInvis.

As you know, Finance Minister Jim Flaherty recently

delivered his federal budget in Ottawa.

This budget has a few proposed items that could

affect your financial plan and present additional

opportunities. In case you haven’t had a chance to

review the media coverage, I thought you would ap-

preciate a quick overview of the federal budget.

For small business owners: The government plans

to increase the amount of small business income

eligible for a reduced 11% federal tax rate from the

current $400,000 to $500,000 retroactive to January

1, 2009.

RRSPs, RRIFs and estate planning: There will be

income tax provisions to recognize a decrease in

the value of RRSP or RRIF investments that occur

after the annuitant’s death and before they are dis-

tributed to beneficiaries.

RRIF withdrawal reductions: There will be a one-

time 25% reduction in the mandatory withdrawals of

RRIFs for the 2008 taxation year.

Senior age credit increase: The government in-

creased the age credit amount by $1,000 for a total

of $6,408.

Home renovation tax credit: Planning to upgrade

or retrofit your home? This new credit, effective

between January 28, 2009 and February 1, 2010,

allows you to claim 15% on the portion of eligible

expenditures exceeding $1,000, but not more than

$10,000, for a maximum tax credit of $1,350.

I hope you find these highlights useful. If you’d like

to discuss these and other federal budget initiatives

and how they affect your financial plan, please don’t

hesitate to call Mike from our office at (905)470-

5989 Ext 210, or e-mail him at

mike@investwise.com.

FEDERAL BUDGET 09

$ $ $ $ $ $ $ $ $ $ $ $ $ $

Continued from front page...

As everyone now knows, the U.S. election proved to be historic, with the nomination of the first Afri-can American president in U.S. history. While the economic impact of this event remains to be seen, the announcement of government guarantees and programs totaling over $12 trillion is signaling to some that the U.S. recession may end in late sum-mer ‘09, with the Canadian economy to follow suit.

The Beijing Games were seen by many as a suc-cess for the host, in terms of world visibility and recognition. Emerging markets (particularly China) will continue to be a strong influence on the global economy for many years to come.

There will likely be some opportunities in the resource sector in the year ahead, particularly gold - as most resource sectors can control supply to offset demand.

The key to the new year will be to remain active in the markets. Given the prevailing market condi-tions, our approach is to be defensive, but remain actively trading in the market.

Finally, we’d like to thank you once again for choosing INVESTWISE as your financial advising team. As always, should you have any questions about your financial situation, please don’t hesitate to contact us at investwise@dundeewealth.com or 905-470-5989.

Essential Health TipsDaily Tips

1. Reduce StressEasier said than done, stress

busters come in many forms.

Some techniques recom-

mended by experts are to think

positive thoughts. Spend 30

minutes a day doing something

you like. (i.e. soak in a hot tub;

walk on the beach or in a park;

read a good book; visit a friend;

play with your dog; listen to

soothing music; watch a funny

movie. Get a massage, a facial

or a haircut. Meditate. Count

to ten before losing your temper

or getting aggravated. Avoid

difficult people when possible.

Thought for the day: When see-

ing red, think pink clouds...then

float on them.

2. Protect Yourself from

Pollution

If you can’t live in a smog-free

environment, at least avoid

smoke-filled rooms, high traf-

fic areas, breathing in highway

fumes and exercising near

busy thoroughfares. Exercise

outside when the smog rating

is low. Exercise indoors in air

conditioning when air quality is

good. Plant lots of shrubbery in

your yard. Thought for the day:

‘Smoke gets in your eyes’...and

your mouth, and your nose and

your lungs, as do pollutants...

hum the daily tune.

Do you pay too much in income tax? Would you like to find out how to pay less? If so,

then please take a few minutes to review the enclosed information on the tax advantages

associated with investing in flow-through shares.

Flow-through shares are something unique to Canadian investors. They are common

shares of Canadian resource companies that permit the tax advantages associated with

Canadian exploration activity to be passed through from a resource company that incurs

exploration expenses to its shareholders who can use the tax credits and deductions to

shelter income earned from other sources.

A more prudent way to invest in flow-through shares is to do so indirectly by invest-

ing into a limited partnership. Flow-through limited partnerships invest in a diversified

portfolio of flow-through shares, providing investors with the benefits of diversification

and professional management, while enjoying the generous tax benefits afforded by the

flow-through shares it invests with.

Flow-through limited partnerships are one of the few remaining tax-assisted investment

opportunities available to a Canadian investor. They are not a “loophole” found in the

Canadian tax system and they are not based on any complicated interpretation of the tax

act. They are a program created by the Federal government in the early 1980s to help

foster the exploration and development of Canada’s resource sector and are embedded

in the Income Tax Act.

One constraint which limited partnerships do face is time. Unlike a mutual fund – which

is typically open for investment year round – limited partnerships can only be purchased

during a specified selling period which can last anywhere from a month to as little as

three days. For this reason, we encourage anyone who may be interested in this invest-

ment opportunity to contact us at the coordinates below to learn more before the next

series limited partnership offerings come out.

Two of the largest and oldest flow-through partnerships available in Canada are the

CMP Resource Limited Partnership (“CMP”) and the Canada Dominion Resources Limited

Partnership (“Canada Dominion”). Both have established an impressive track record over

the years and are considered by many to be the leaders for flow-through investing in the

resource sector.

There are a variety of tax strategies which can be used in conjunction with an investment

into CMP or Canada Dominion. To find out if any of these tax strategies can work for you,

contact us at (905)470-5989 Ext. 210, or e-mail Mike at mcornacchia@dundeewealth.com.

Go With the Flow...

09$ $ $ $ $ $ $ $ $ $ $ $ $ $

RRSP Contribution Reminder

This is just a reminder that if you are not making regular monthly contributions or haven’t already made your contri-

bution for 2008, don’t forget to book an appointment to see us as soon as you are able. Time is running out before

the deadline on March 2, 2009. Ideally, we will be able to sit down and make investment decisions before March, but

if that’s not possible, we can always deposit your RRSP savings into a short-term savings vehicle until we have a

chance to fully discuss your options. The important thing is to get that money inside your plan before March 2!

Once again, thank you for choosing INVESTWISE as your financial advising team. As always, should you have any

questions about your financial situation, please don’t hesitate to contact us at investwise@dundeewealth.com or 905-

470-5989.

Note: The maximum RRSP deduction for 2008 is $20,000. However, if you did not use your entire RRSP deduction

limit for the years 1991 to 2006, you can carry forward the amount you did not use to 2008. Therefore, your RRSP

deduction limit for 2008 may be more than $20,000.

Contact Information

202 - 80 Tiverton Court, Markham, ON L3R 0G4Phone: 905-470-5989Fax: 905-470-5979

Danny W. LeungCFP, CIM, Ch.P., FMA, FCSI, TEPDirector, Private Client Group, Portfolio Manager, Branch ManagerExt: 208E-mail: investwise@dundeewealth.com

Michael Cornacchia B. Comm. FMALicensed AssistantExt: 210E-mail: mcornacchia@dundeewealth.com

Abu Batasi, B. Comm.Business DevelopmentExt: 212E-mail: abatasi@dundeewealth.com

Andrea Trant AdministratorExt: 213E-mail: atrant@dundeewealth.com

Pauline LewExecutive Assistant Ext: 200E-mail: plew@dundeewealth.com

The new Tax-Free Savings Account (TFSA) became available on January 1, 2009. The TFSA represents a unique way for Canadians to save money and pay less tax. Key features:

- Canadian residents aged 18 and older with a social insurance number can save up to $5,000 every year

- Investments grow tax-free while inside the account

- TFSAs can hold many of the same investments as an RRSP

- Withdrawals can be made at any time for any purpose and are not subject to tax.

- Unused contribution room can be carried forward indefinitely to future years.

- Withdrawals can be re-contributed in future years.

- Withdrawals are not considered income, so they won’t increase taxable income or affect income-based eligibility for

income-tested government benefits or tax credits, including Old Age Security and the Guaranteed Income Supplement.

A TFSA can help you achieve your goals Whether you’re saving for a car, a house or a comfortable retirement, the additional saving benefit of a TFSA can be sig-

nificant both in the short- and the long-term. Call us today at (905)470-5989 Ext. 212 or e-mail Abu at

abatasi@dundeewealth.com to order your free reports today, or to open your Tax-Free Savings Account.

Tax-Planning 2009Don’t wait until the last minute to start

planning for your 2009 taxes. Tax

planning is a year-long strategy, and

we would like to identify all the ways

you can be saving on your ‘09 taxes

as soon as possible. To get the dis-

cussion started, call Mike at (905)470-

5989 Ext. 210, or e-mail him at

mcornacchia@dundeewealth.com

This newsletter is the work of Danny W. Leung for the private information of his clients. Although the author is a registered Investment Advisor with Dundee Securities Corporation, a DundeeWealth Inc. Company, this is not an official publication of

Dundee Securities Corporation and the author is not a Dundee Securities analyst. The views (including any recommendations) expressed in this newsletter are those of the author alone, and they have not been approved by, and are not necessarily those

of, Dundee Securities Corporation.

INTRODUCING THE TAX-FREE SAVINGS ACCOUNT

Have You Opened Your Dundee Tax-Free Savings Account Yet?

REQUEST YOUR FREE REPORTS TODAY