ADVERTORIAL

Make a Road Map to Navigate
Market Ups and Downs

A disciplined approach to long-term investment planning is critical, especially with today's unpredictable market conditions. A financial road map points the way to your destination, and helps you avoid wrong turns that could cost you time and money. Yet an InSite eNewsletter poll* showed that 25 per cent of investors don't even have a plan. With BMO InvestorLine's user-friendly online tools, developing one is simple and straightforward.

If you already have a plan, this may be an ideal time to update it. Does it still meet your needs and long-term vision? As your situation changes, revisit and adjust your plan to reflect your current and new goals.

Decide Where You're Headed

The starting point in developing a plan is to know your destination. Are you saving for a house? A child's education? A vacation property? Perhaps you're thinking about a comfortable retirement. Once you've established your goals, use our effective online planning tools to determine what type of investor you are, the current state of your finances, and the specific steps to get you where you want to be.

Get into Gear with the Asset Allocator

Using the Asset Allocator, you assess your financial situation by taking an inventory of all of your registered and non-registered investments, and determine your Investor Profile.

This will help you establish the most direct route to your goals, and ensure that you stay on track. Depending on how savvy an investor you are, you can simply select your Investor Profile type from the choices provided, or complete a short questionnaire to determine it. By answering some key questions, you can evaluate your level of investing knowledge and risk tolerance, set your time horizon, and understand what type of investor you are, from the Aggressive Growth profile to the Capital Preservation type.

Are you a beginner or a sophisticated investor? Can you accept periodic declines in portfolio value as a trade-off for potentially higher returns down the road? How long will you have to invest before you'll need the money?

Based on your Investor Profile, the Asset Allocator shows you a mix of investments - cash, fixed income and equities - that are right for you. You can compare your current investing strategy with the asset mix you just created.

You may need to rebalance your portfolio, save more, or take other steps to stay on track. You can test different scenarios or compare your results with other Investor Profiles. Whatever the case, you'll have the critical information you need to put your plan into action.

A disciplined approach and a solid plan will help you ride out volatile markets and still reach your goals. You can always modify it to meet your goals as circumstances change. By identifying where you are and where you want to go, you can develop the right portfolio strategy and reach your personal investing goals sooner.

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