What is a Calendar Year?
A calendar year is the period between January 1 and December 31.
How Does a Calendar Year Work?
If Company XYZ starts its fiscal year on January 1 and ends its fiscal year on December 31, then Company XYZ's fiscal year is said to be on a calendar year basis. Many companies align their fiscal years with the calendar year, but some don't. For example, Company ABC might start its fiscal year on October 1 and end on September 30.
Why Does a Calendar Year Matter?
It is important for investors to know whether a company uses a calendar year or another period for their fiscal year, especially when comparing companies in seasonal industries.
- Create a retirement savings goal
- Design an investment plan to reach it.
- Get a professional money manager to continually monitor and rebalance your portfolio
Sound complicated? Don't stress. Vanguard's new robo advisor service can help you put all of this (and more!) on autopilot, all for an annual gross advisory fee of just 0.20%.
Click here to learn more about Vanguard's new Digital Advisor service.
