Question

Holly created a saving and investing plan over twelve years ago. She has not looked at it or made any changes to it. What saving and investing principle should Holly have followed?
-Understand your risk tolerance.-Diversify.-Keep investments simple.-Continuously reassess your plan.

Answer 1

Continually reassess your plan. As part of the investment process and financial planning process, Holly should monitor and reassess her savings and investing plan annually to determine if her goals have changed and if she is meeting her goals through the plan's performance.