Getting Your House In Order

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With Summer flying by, August is usually seen as the ‘last hurrah’ before school starts again in September. The last month to be outside, breathe and make family memories. 

I remember as a little girl that the last week of August would bring a flurry of activity to our house. Sports starting, school shopping, and calendars filling up with all activities school related. With five kids to corral, my mom and dad would be getting our house in order to tackle yet another busy year. It was all very exciting from my perspective and I am sure a bit overwhelming from theirs. 

‘Getting your house in order’ takes time, planning, effort, focus and commitment. When it comes to your retirement plan, is your ‘house in good order’? You spend 30-40 years working to save for retirement. Have you taken the time and care necessary to ensure that if something should unexpectedly happen to you that those you love most will benefit from your years of saving? That it will go to the people you intended it to? Have you designated beneficiaries in your retirement plan? Are they current in the event that you have had any major life changes – marriage, divorce, children-, have they been updated? 

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You may ask, what happens to my 401(k) when I pass? 

• In a perfect world, you have designated both Primary and Contingent beneficiaries using a Beneficiary Designation Form, and it is current. In this case, your 401(k) will be distributed according to your wishes. 

• If you are married and do not designate a beneficiary, by default, your spouse automatically inherits your 401(k) upon your death. 

• If you are married and choose to designate someone other than your spouse to receive all or a portion of your 401(k), you will need your spouse to consent by executing an authorization in front of a Plan representative or Notary Public. 

• IMPORTANT: Any named beneficiary in your 401(k), inherits your 401(k) balance, even if you designate other people to receive it in your will. 

• A contingent beneficiary is important if you and your primary beneficiary are both deceased. If you don’t have a named contingent beneficiary, your 401(k) becomes part of your estate and will go through probate with the rest of your possessions. 

• Similarly, if you are single and have not named a primary or contingent beneficiary, your 401(k) becomes part of your estate and goes through probate. 

If you need help locating your Beneficiary Designation Form, or signing into your account to make the necessary elections, please do not hesitate to contact me. I am happy to help! 

August is a great month to GET YOUR HOUSE IN ORDER.