Securing your future: Why it's important to update your beneficiary designations.

Reviewing your beneficiary designations each year is one of the simplest ways to protect your assets and ensure your wishes reflect your current life. As the holiday rush slows and the new year begins, it's the perfect time for a quick financial checkup. 

Beneficiary designations determine who receives assets like retirement accounts and life insurance policies. Taking a few minutes to review them helps secure the future you've worked hard to build is protected. 

Here's why it's important to review your beneficiaries annually:

1. Prevents mistakes - Life changes fast. Keeping your information current helps ensure your assets go where you intend, especially after major life events like marriage, divorce or welcoming a new family member.
2. Overrides your will - Many people assume their will determines how all assets are distributed. However, for accounts like 401(k)s, Individual Retirement Accounts (IRAs) and life insurance policies, the beneficiary listed on the account takes priority. It's essential to keep your designations up to date. 
3. Helps avoid probate - Clear beneficiary designations allow assets to transfer directly to your loved ones, helping them avoid the time and expense of the probate process. 

At Abound, we've been proudly serving hardworking Kentuckians for 75 years. You've worked hard for what you have, and you deserve the peace of mind knowing it's protected. 

Need to review or update beneficiaries on your IRAs with Abound? Visit your local branch today!