2020 is a Leap year.
February 29 is a date that usually occurs every four years and is called Leap Day. This day is added to the calendar in leap years as a corrective measure because the Earth does not orbit the sun in precisely 365 days.
The term corrective measure caught my attention. The definition is, “an intent to improve something or make right”. As part of the Financial Planning process we often suggest “corrective measures”. This can be either to improve a current financial strategy or prevent an undesirable outcome.
We believe it’s important to periodically review your plan because life does not stay stagnant and you should make adjustments along the way. In our own families there are life changing events like a birth, death, marriage, or divorce, as well as outside influences that prompt changes, such as tax laws. A recent legislative update went into effect on January 1st of this year called the SECURE Act. This new tax law changed the date that required minimum distributions must be withdrawn from IRAs and how distributions must be taken for non-spousal beneficiaries. These changes, along with other provisions of the Act, may require you to update your current plan.
We encourage you to take advantage of February 29 this year. We hope you use this “extra day” to make time to do something fun AND take a few minutes to review your financial plan. Please contact our office if you would like to schedule a meeting. We are here to answer questions, provide guidance, and keep you on track for reaching your financial goals.
All the Best,
Craig & Kim
Content in this material is for general information only and not intended to provide specific advice or recommendations for any individual. This information is not intended to be a substitute for specific individualized tax advice. We suggest that you discuss your specific tax issues with a qualified tax advisor.