Which of the following statements is true about financial planning?

A. Any kind of financial expert (such as a stockbroker, lawyer, or accountant) can help you develop a comprehensive financial plan.

B. Once you have painstakingly developed a financial plan, it is not wise to change it.

C. Once you have made a decision to buy an investment, there is no need for continued evaluation.

D. You must always consider the tax consequences of selling your investments.

The correct statement about financial planning is:

D. You must always consider the tax consequences of selling your investments.

Financial planning involves a comprehensive assessment and management of an individual's financial situation, including investment decisions. Considering the tax consequences of selling investments is crucial because it can have a significant impact on your overall financial plan. Taxes can affect your investment returns, so it's important to evaluate and consider the tax implications of any investment decision you make.

To determine which of the statements is true about financial planning, we need to evaluate each statement individually.

A. Any kind of financial expert (such as a stockbroker, lawyer, or accountant) can help you develop a comprehensive financial plan.
This statement is not necessarily true. While financial experts like stockbrokers, lawyers, or accountants can offer valuable advice and assistance in developing a financial plan, it is important to choose someone with specific expertise in financial planning. Financial planners or certified financial advisors are specially trained in creating comprehensive financial plans that take into account various aspects of your financial situation.

B. Once you have painstakingly developed a financial plan, it is not wise to change it.
This statement is not true. Financial planning is an ongoing process that should be regularly reviewed and adjusted based on changes in your financial situation, goals, and market conditions. It is important to review your financial plan periodically, considering any changes in income, expenses, investments, or personal circumstances that may require modification to stay on track with your financial goals.

C. Once you have made a decision to buy an investment, there is no need for continued evaluation.
This statement is not true. It is crucial to continuously evaluate your investments to ensure they are performing as expected and aligning with your financial goals. The financial markets are dynamic, and the performance of investments can change over time. Regularly reviewing and evaluating your investments allows you to make informed decisions regarding potential adjustments, such as selling underperforming investments or rebalancing your portfolio.

D. You must always consider the tax consequences of selling your investments.
This statement is generally true. When selling investments, it is essential to consider the tax implications. Different types of investments may have different tax treatments, and understanding the potential tax consequences can help you make informed decisions and optimize your tax strategies. Consultation with a tax professional or financial advisor can be beneficial in determining the tax implications of selling investments.

In conclusion, the true statement about financial planning is D. You must always consider the tax consequences of selling your investments.

Which of the following statements is true about financial planning?

A. Any kind of financial expert (such as a stockbroker, lawyer, or accountant) can help you develop a comprehensive financial plan.
B. Once you have painstakingly developed a financial plan, it is not wise to change it.
C. Once you have made a decision to buy an investment, there is no need for continued evaluation.
D. You must always consider the tax consequences of selling your investments.