You will know your financial plan is working when
A)the plan has been revised to increase your risk tolerance for improved investment return.
B)your net worth increases each year in step with your goals.
C)you have sufficient capital to meet all of your established goals.
D)you have reached the highest tax bracket.

Question

Quizplus · Accepted Answer

The best way to measure the effectiveness of a financial plan is to track your net worth, which is the difference between your liabilities and assets. If your net worth is increasing each year, then your plan is working as intended and you are making progress towards your financial goals. This is a more objective and reliable measure than subjective factors like risk tolerance or tax brackets. A and C are also important factors, but they are not the primary way to measure the success of a financial plan. D is not a relevant choice.

You Will Know Your Financial Plan Is Working When