Improperly designating beneficiaries on a retirement account or insurance policy can be costly.
That’s why we recommend checking beneficiaries on IRAs, 401(k)s, 403(b)s and life insurance and annuity policies every five years or so. It’s simple to designate (or neglect to designate) a beneficiary, but it’s not so simple to do it properly.
Your situation may change or your wishes may change, requiring a new beneficiary designation. Has a beneficiary died? Has there been a birth? Have you established a trust? Has there been an estrangement, or have you developed a new relationship with a charitable organization?
Any of these situations requires a thorough review of beneficiaries. Our advisors make it a part of their comprehensive financial planning process.