It’s hard to believe that 2021 is nearing an end. 2020 seemed to last 5 years, while 2021 flew by! There is still so much going on around us, but now the year-end holiday season is almost at our doorstep…and with it our thoughts turn to our home, family and friends.
I would like to express my deep appreciation and gratitude for you, my clients. I receive so much fulfillment through our partnership…in updating your financial plans, managing your portfolios and positioning you for continued financial success in the years ahead. I hope you will find the time to pause this month…to reflect about all that you are thankful for. However you celebrate Thanksgiving this year…in small gatherings or larger ones (and perhaps still some virtual ones) …I wish you a warm and spiritually uplifting holiday. From my family to yours, Happy Thanksgiving!
Your Estate Planning
It’s not uncommon to think about one’s estate planning as a one-time event. In reality, all plans are subject to change and require periodic review and consideration to ensure they remain relevant. Some of you have created legal Trusts that specify how your assets will be cared for during your lifetime and following your death. Some of you have taken an additional step by titling a brokerage account in the name of your Trust…to ensure the assets fall under and flow through it. Yet there is a basic task that is sometimes overlooked…designating one or more beneficiaries who will receive specific assets, such as an IRA or Individual/Joint brokerage account titled in your/your spouse’s name(s).
Over the past several months, we have been carefully reviewing your beneficiary designations. This is because TD Ameritrade (the financial custodian for Dorsey Wealth Management) maintains these designations and will act upon them should you pass away. When appropriate, I have raised the topic in our semi-annual review meetings to ensure your accounts have beneficiaries designated and those designations are consistent across your accounts. I’ll continue to bring this matter to your attention. However, if your life circumstances change, you are welcome to revise/update both your primary and contingent beneficiaries.
Estate planning can be a complex matter. While Dorsey Wealth Management is not qualified to provide legal advice, I do encourage you to work with an Estate Planning attorney on creating your Plan and/or keeping it up to date. I’ll do my part to ensure your assets which my firm manages have the appropriate documentation in place to support your end-of-life wishes.
November is RMD Month
The SECURE (Setting Every Community Up for Retirement Enhancement) Act passed into law in December 2019 moved the mandatory age for receiving Required Minimum Distributions (RMDs) from age 70-1/2 to 72. For those of you who turned age 72 this year as well as those of you who have been receiving Required Minimum Distributions in previous years…this month is one to mark on your calendars.
Dorsey Wealth Management has identified those of you that must receive an RMD by December 31 of this year. I will be working with you and TD Ameritrade to arrange for your RMDs to be processed from your retirement accounts (i.e., Traditional, Rollover and Inherited IRA accounts). We will make sure the monies are distributed in a timely manner.
Angela Dorsey is the founder and fiduciary wealth manager at Dorsey Wealth Management, a fee-only financial planning firm helping successful women and couples prepare for retirement. Angela earned a BS in computer science from Loyola Marymount University, an MBA from UCLA Anderson School of Management, and spent 20 years as a Senior Compensation Specialist in large corporations before becoming a Certified Financial Planner™ (CFP®) and a Registered Investment Advisor (RIA). That background gave her the tools to couple with her passion for empowering women to make the best financial decisions possible. Angela lives in Torrance, California, with her husband and two children. She enjoys spending time at the beach or surrounded by nature. To learn more about Angela, connect with her on LinkedIn.