Jim Sims-Sometimes the Most Important Thing About Your Investment Account Isn't Your Investments
Hi everybody, Jim Sims with Signature Wealth Management Group bringing you another in a series of life's lessons lerned from over 25 years as a financial advisor. Sometimes the most important thing about your investment account isn't your investments. So what I mean by this is just the basics of the framework of the account and or the context of estate planning might have a much greater impact on what ultimately happens to the account than the investments you make while you are investing in the account.
1. Power of Attorney
If you have IRA account, which is an individual retirement account, you may have a spouse as a beneficiary, but in many cases that spouse doesn't have the ability to Act on your behalf. So if you are incapaciated or disabled, they might not be able to go back to your custodian or advisor and schedule a required minimum distribution, which ultimately leads to some significant tax hangups.
Make sure that your beneficiaries on your 401 and your IRA are exactly as you would like with primary and contigent or second place beneficiaries. Whatever you put in your will does not apply to your 401k or ypour IRA. So the beneficiaries are what is valid in that situation.
Go to an estate planning attorney, a professional. Make sure everything is situated in your will the way that you want it to, and make sure that your executor and successor executor are the people that you want them to be.
Three quick checkups, but I've seen it time and time and time again over the last 25 years. Where with all the best intentions, if the basics aren't done correctly, the entire investment account can get sideways even if it's been a successful investment account. If you like a quick review, check in on everything we'he talked about.
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