Why You Need to Make Beneficiary Planning a Priority

Posted in: Personal Financial Management

Financial planning is instrumental to creating a successful future for you and your family. And beneficiary planning is a simple, but critical part of effective financial planning.

What is beneficiary planning?

Whenever an account, such as annuities, an IRA, 401(k) or life insurance policy is set-up, it is the responsibility of the owner to name a beneficiary. Once the beneficiary has been named, often this aspect of the account gets swept under the rug and forgotten until some major life event occurs such as a job change, marriage, divorce, children or death of a family member. I recommend a more proactive approach that includes a yearly beneficiary review for all accounts.

Why is it so important to make sure the correct beneficiary is named?

After a lifetime of hard work, disciplined saving and smart investing, the last thing you’d want is for your funds to be distributed to the wrong people – but unfortunately this happens all the time.

Many people believe their finances and accounts will be divided among their loved ones in accordance with directives in their will, but this is far from the truth. If a beneficiary has been named at any point in time to any one of your accounts, then the beneficiary will supersede whatever is written in your will.

For more information:

Make sure to check back to learn how beneficiaries are allowed to take distributions when an IRA is inherited. And in the meantime, please feel free to contact me at julief@psafinanical.org with any questions related to beneficiary planning.

Financial planning services offered through PSA Financial Advisors, Inc.
Securities offered through PSA Equities, Inc. Member SIPC/ NASD
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