Welcome to the extended version of the BAM Market Note. We are not bloggers by nature but have had clients and friends inquire about our thoughts on the market in between our newsletters. The number and content of posts will likely be determined by the conditions of the markets and the interests of our readers. We would greatly appreciate your feedback and comments.
Friday, April 11, 2014
Thursday, April 10, 2014
DO YOU HAVE A BENEFICIARY PROBLEM?
With tax day almost here, it is a good time to ensure that another part of your financial house is in order. Beneficiary designation on your 401ks, IRAs and other retirement accounts should be reviewed periodically to ensure that your designated heirs have not changed or that your beneficiaries are who you want them to be. Two common mistakes that people should pay particular attention to is naming your Estate as a beneficiary and having an ex-spouse as your beneficiary. Having your Estate as a beneficiary has many pitfalls and should be carefully considered and, in most cases, should be avoided. Also, many people don't realize that their company 401k defaults by law to your spouse as beneficiary (at the time you started participating) and requires spousal approval to change. If you have gone through a divorce, you should check to ensure that your 401k beneficiary is updated to reflect your current choices. Here is a good article on 401k beneficiaries. As always, please let us know if you have any questions or need to check on the beneficiaries of the accounts we manage on your behalf.
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