This week I’m sharing with you 5 beneficiary mistakes to avoid. If you’re like most people, you probably set up your beneficiaries on your IRA and 401k accounts 2 decades ago, and you haven’t revisited them since. So this week, I’m sharing with you the mistakes that I see people make most often and how you can avoid those same mistakes.
Today, I’m talking about beneficiary mistake #5 - Not coordinating your beneficiaries with your other estate planning documents.
If you’ve been listening to the other tips this week, hopefully by now you appreciate the importance of thoughtfully choosing and frequently reviewing your beneficiary designations.
But there’s one extra step to this process that is so essential, yet rarely done. For most people - out of laziness or of wanting to save a few bucks - they don’t take the time to coordinate their benes with all of their other estate planning documents.
The best piece of advice I can give you this week is this: Don’t be penny-wise and pound-foolish. Take the time to meet with your estate attorney and coordinate all of your beneficiaries with your overall estate plan.
Yes, this will cost you money, but what will it cost you if you don’t do this? You could potentially cost your heirs hundreds of thousands of dollars or more, depending on the size of your estate, in unnecessary taxes and lost growth by making mistakes that I’ve laid out for you this week.
Not to mention the resentment,anger, and most importantly, potential loss of financial resources for loved ones who were left out, which could happen if your assets aren’t trasnfered appropriately based on your intentions.
That’s it for today. Thanks for listening. Tomorrow, we’re going to recap the week and I’m going to give you a little preview of next week’s theme.
My name is Ashley Micciche and this is the One Minute Retirement Tip.
>>> Subscribe on iTunes: https://apple.co/2DI2LSP
>>> Subscribe on Amazon Alexa: https://amzn.to/2xRKrCs
>>> Check out our blog: https://truenorthretirementadvisors.com/blog/
Tags: retirement, investing, money, finance, financial planning, retirement planning, saving money, personal finance, wealth management, fee only financial advisor, financial planner, financial podcast, retirement podcast, financial independence podcast, beneficiary designation vs will, ira beneficiary designation rules, bank account beneficiary vs will, IRA beneficiary, what is an IRA, inherited annuity, life insurance beneficiary, beneficiaries, primary beneficiary, contingent beneficiary, beneficiary designation, beneficiary form, secondary beneficiary, beneficiary insurance definition, 401k beneficiary, 401k beneficiary rules surviving spouse, 401k beneficiary designation rules, 401k contingent beneficiary, spousal 401k