What Happens if Something Happens?

There are some topics that we would rather avoid. This is understandable, but it's probably a good idea to have those tough conversations anyway. Today's post is about adding beneficiaries to accounts. Let's get to it!

What Happens if Something Happens to You?

While it is a little daunting to think about, tomorrow isn't promised for any of us. You work hard for your money and that money allows you to own assets that you hold near and dear. Have you ever thought about what happens to your assets when you're no longer around? Maybe you know exactly what you want to happen, you want it to go to your children, or another loved one. Knowing is one thing, but if you haven't explicitly made this clear,(you know officially), it may not go to who you want it to go to in the long run.  There's a simple solution that gives you the control to direct what goes to who. Today we'll talk about different accounts you may have (saving other assets for another post!).

What Should you Do?

There are some steps that you can take today to give your assets some direction when you're no longer around to do so yourself. It's important that your accounts have named beneficiaries. That's just someone you want to receive money left in your accounts when you pass away.💔 It's hard to think about, but is necessary and may also make things easier on love-ones through a tough time. 

Here are some things to consider doing for all your accounts including bank, brokerage, retirement, insurance, etc.:

• Add a Payable on Death (POD) beneficiary to bank accounts. 
• Joint accounts are also an option, but only if you're open to that. 
• Brokerage Accounts - name beneficiaries for any brokerage accounts that you have in your name.
• Retirement Accounts - Add Beneficiaries to your retirement account(s).  (This includes individual retirement accounts and workplace retirement accounts).
• Life Insurance Policies - Be sure to add your chosen beneficiary to any life insurance policy.
• Annuities - if you have a death-benefit provision on an annuity contract, it's important to also name a beneficiary. 

These are just some examples of accounts that you want to designate your beneficiary. Keep in mind, you may include multiple beneficiaries/secondary beneficiaries in some cases. Typically, you are also able to designate the percentage that goes to each beneficiary. 

Another important thing is to make sure you're updating your accounts at least annually.  This is important because things change, people change, life happens. Should your beneficiary predecease you, you get married, you get a divorce,  you have a baby, you change your mind for whatever reason,  or something else, revisiting your beneficiary's designations every so often will allow your accounts to keep up with the changes in your life and still allow your assets to end up in the hands of who you choose.

How do I Add Beneficiaries to my account?

The how will vary, depending on the type of account. If you have access to an online account, that's a great place to start. You could check the account settings, do a search of the site's help documents, or contact customer service for assistance.  If it's a work account, it may require contacting the HR department. Additionally, you may be able to update beneficiaries by calling or visiting your local bank branch or other financial institution. You'll typically need information about each beneficiary such as name, address, social, date of birth, etc. Again, this varies, but you'll get that information once you get logged in or contact customer service. 

I realize that this topic was kind of heavy, but I only share because I care! 🤗

✨Managing Money Like a Boss is about having control of what you work so hard for. One way to do that is by adding beneficiaries to your accounts. Today I encourage you to add or update your account beneficiaries!  ✨