Start Here
Menu

Solopreneur Money

A Podcast

Back to Basics #1: The Beneficiary Check, Ep #141

We’re changing things up a bit in our next several episodes. Rather than having interviews from other solopreneurs like you, we’re heading back to basics.

This Back to Basics series will include quick episodes that are designed to ensure that you have all your financial ducks in a row so that you can master your finances and live the life you want.

Each episode will have a call to action so that you take action and apply what you learn.

In this episode, you’ll learn how important it is to have the correct beneficiaries in place on all of your accounts and you’ll apply what you’ve learned and make sure that your beneficiaries are updated and their information is correct.

You will want to hear this episode if you are interested in…

  • Why the beneficiary check is the first thing we discuss in my clients’ annual review [2:02]
  • The three things to look for when checking your beneficiaries [4:40]
  • A story to illustrate how important beneficiaries are [6:21]
  • How I use a testamentary trust [9:02]

What are beneficiaries and why are they so important?

Your beneficiaries are the people named on your accounts that will inherit those accounts when you pass. There are two types of beneficiaries, primary and secondary. The primary beneficiary is the first one named to receive the funds upon your death. The secondary beneficiary is a contingent beneficiary and will inherit the account in case both you and the primary beneficiary pass away.

Since divorce, death, and name changes happen, it is important to check your beneficiaries annually. You want to make sure that the people listed as your beneficiaries are the ones that you want to receive your money.

You may think that your wishes will be executed if you have a will in place, however, the beneficiaries listed actually supersede a will, so it is extremely important that you keep these up to date especially if there has been a death or divorce in your family. Listen in to hear a story as to why keeping your beneficiaries up to date is so important.

It’s time to take action

When you are done listening and have some time today, go in and check your accounts. You’ll want to remember to check your life insurance, any old 401Ks (this is also a great time to roll those over), your SEP or Simple IRA, pensions, and even your investment accounts.

Make sure that you have the correct primary and secondary beneficiaries in place and that their information is correct. Check that the spelling of their names, their date of birth, and their relationship to you are correct. If the money is to go into a trust, is it properly named?

Set a reminder in your phone or in your CRM to ensure you check your beneficiaries yearly so that they stay up to date.

If you want the funds split between your children make sure the percentages are correct. Listen in to learn how I handle the percentage split between my three children.

Connect With Gabe Nelson

Subscribe to Solopreneur Money

Audio Production and Show notes by
PODCAST FAST TRACK
https://www.podcastfasttrack.com