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Keeping Your Beneficiary Designations Current

Investor Insights

One aspect of the financial planning process that is often overlooked by investors and their financial advisors is an annual review of beneficiary designations associated with financial accounts. This potential mistake can be easily avoided, and it doesn’t take much time.    

When financial accounts are initially established, beneficiary designations are typically required during the initial account setup process. Some of these account types include:

  • Employer-sponsored retirement plans like 401(k) plans
  • IRAs (Traditional, Roth, SEP, and Simple)
  • Insurance policies
  • TOD accounts (Transfer on Death)

Over time, the beneficiary information that you initially provided when your accounts were established may become out of sync with your current situation and wishes. An annual review of this information with your advisor and making necessary adjustments in a timely manner will help keep your financial house in order and provide peace of mind. 

In addition to an annual review of your beneficiary information, the American Portfolios Denver team suggests reviewing the beneficiaries on your financial accounts when important life events take place, like marriage, divorce, birth of a child, or death. 

As with many things in life, routine maintenance is key to avoiding future pitfalls and we’re here to help you every step of the way.