How often should you review your financial plan?

The correct answer highlights the importance of regular review of your financial plan, ideally at least once a year. This frequency ensures that you are maintaining alignment with your financial goals and adapting to any changes in your personal circumstances or the financial landscape.

By reviewing your financial plan regularly, you can assess your progress toward your goals, make necessary adjustments, and implement new strategies to address unexpected events and opportunities. For instance, if there are changes in income, expenses, investments, or family situations, a yearly review can help you stay on top of your finances and ensure that your financial strategy remains effective.

Regular reviews also allow you to stay educated about financial products, tax law changes, and broader economic conditions that could impact your financial well-being. A proactive approach through annual reviews can help you avoid potential pitfalls and position you for success in achieving both short-term and long-term financial objectives.