5 Reasons to Name a Beneficiary

June 3, 2022

There are five main reasons:

  1. They will keep more money
  2. They will get it quicker
  3. It reduces the stress to your loved ones
  4. Beneficiary designations generally supersede a will
  5. It’s easy to do and it’s FREE

Retirement accounts have been established under IRS rules and although it has countless pages of legislation, the best part is if something happens to you, your designated beneficiary will receive the funds from your account, without having to go through the normal process of distributing assets at death called Probate. Probate is costly and time consuming. No matter how clearly you drafted your will, there is still an amount of time designated for people to contest the will and as such the time it takes to distribute an estate can drag on for longer than most would care to deal with. Except of course attorneys.

Because there’s no need for legal due process, your assets in retirement accounts can pass quickly to those you have designated. Generally once notified, the custodian of your assets will assist the beneficiary receive the assets into their name, usually in a timely manner.

The last thing your loved ones need to deal with while grieving is to deal with the complexity and stress of chasing money. Without a designated beneficiary, several calls and meetings will consume your loved ones, while your legacy is getting diminished.

Because IRAs and 401ks fall under ERISA laws, your beneficiary will receive your funds regardless of what your Will states. Life happens and things change. Sometimes it’s hard to get time to get your matters in order, but not this one. Which leads me to the next point…

It’s easy to do, and it’s FREE. Log into your account, select “beneficiary designation” and put the names and percentages that YOU want to receive your hard-earned funds.

Don’t let strangers fight over your funds. Take the time to update your beneficiary now……

Mick Graham, CPM®, AIF®
Branch Manager Raymond James
Financial Advisor Melbourne, FL

The information contained in this report does not purport to be a complete description of the securities, markets, or developments referred to in this material. The information has been obtained from sources considered to be reliable, but we do not guarantee that the foregoing material is accurate or complete. Any opinions are those of Mick Graham and not necessarily those of Raymond James. Expressions of opinion are as of this date and are subject to change without notice.

Continued Reading

Mean Reversion (Part 4)

If you have read anything that I’ve written to you over the past number of years, one of the common themes that I quote is

Let the Bounce Begin

Last Wednesday & Today (It’s Thursday when I’m writing this) you’re seeing the market take a pull back from a number of positive sessions, based

Breaking the Trend

Well, we started 2023 off well, and we now have odds that the year will end well.  I always like to give you stats that

Welcome to 23

Well, that sucked….  S&P 500 ended the year down 18+ % this year, never a good feeling, however nonetheless just part of what markets do. 

Wax On…Wax Off

The market giveth, and taketh away. That’s how quick sentiment can change in today’s market. Last Tuesday’s drop, credited to the inflation data being hotter

Gag this Guy

I was too upset to write last week, after watching Chairman of the Fed Jerome “Elmer Fudd” Powell, give a “speech” from his junket (that

Ask Mick a Question

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.