American Investment Services, Inc.

Disciplined, Diversified, & Cost Effective

Jan. 2013 – New Year’s Resolutions

Investors who heeded our simple, timeless principles and followed our recommended allocations would have generated respectable returns during 2012. This is also true for longer time periods (see page 2 for hypothetical returns on our recommended portfolios).

• I will understand my own circumstances and formulate an investment plan based on my needs, not in anticipation of market trends.

• I will remind myself that investing is not a form of entertainment—if I have an urge to gamble, I will go to Las Vegas.

• I will stick to my plan.

• I will not attempt to pick winning stocks.

• I will ensure that my holdings are adequately diversified within each asset class I own.

• I will focus on minimizing my investment-related costs.

• I will stay abreast of changes in investment-related tax laws.

• I will not purchase any financial instrument I do not understand.

• I will ignore money managers or others selling products rather than advice.

• I will ignore market prognosticators.

• I will take full advantage of my qualified retirement plans by making the maximum allowable contributions consistent with my budget.

• I will hold my least tax-efficient assets in my tax-deferred accounts.

• I will rebalance my portfolio infrequently, but at regular intervals regardless of the current state of the markets.

• I will not allow the price I have paid for a security to influence my future investment decisions—except for tax considerations regarding capital gains and losses.

• At year end I will harvest tax losses simply and without deviating from my target portfolio allocations, by selling and buying index-type funds within the same asset class.

• I will appreciate the simplicity of the AIS approach; instead of worrying about factors that are not within my control, I will establish my plan and turn my attention to enjoying life.

Also In This Issue

Quarterly Review Of Capital Markets
Tax Changes: The Impact On Individual Investors
87 Years Of U.S. Stock Market Returns
The High-Yield Dow Investment Strategy
Recent Market Statistics
The Dow Jones Industrials Ranked By Yield
Recommended Investment Vehicles