How does your financial planner track progress?

I have put together a list of FAQ’s that has helped many people find Montreal’s best financial advisor or best financial planner in Montreal. These questions you should ask your personal financial advisor will differentiate between the mediocre ones and the best ones.

Question: How does your financial planner track progress?

Progress after all is how your Montreal personal financial advisor’s performance will be graded. Bottom line is that every investor like yourself is interested in seeing his assets grow in the long-term.

So how does your financial planner track progress? Well, that’s done in two ways:

• First, he charts the monthly values of your investment and plots it on a graph like that roller-coaster line that we all know, it goes up and down, but hopefully mostly up and not down. The difference between the value at the start of the plotted line and the end of the line is your profit, which is the single most important part in tracking progress in money management.

• The second way to track progress is to measure performance of your financial planner’s investment choices against a leading stock market index such at the S&P 500 or TSE.

The best Montreal personal financial advisor will know that he needs to beat the index to be reputable for long-term grading. He also knows that he needs to plan for market freefalls or corrections. Money management is like risk management. Let me explain: We all know that market crashes happen on a regular basis. Basic money management or risk techniques must be put in place to account for that event. In other words, the best financial planner in Montreal will put ‘stop losses’ instructions on all positions to start again from the top of the plotted line, not the bottom. He knows to keep ahead of the market crashes and capitalize on the upswings.

Remember this: Keep monitoring your progress, question your personal financial advisor’s strategy, and make sure your money management goals are being met. After all, there is no excuse for mismanaging your hard earned money!!