Advice from Labib: Planning for Your Estate

Advice from Labib
Planning for Your Estate

It is important to contribute to vehicles such as employer-sponsored retirement plans and individual retirement accounts (IRAs) to help provide a financially secure future for you and your family. However, it is also very important that you designate the appropriate beneficiaries for each account and review them periodically to ensure your loved ones will be left with the right distribution to best meet their financial needs.
For example, if you have a spouse that is retired and may need immediate income, then cash or highly liquid accounts would probably be the most useful type of inheritance for them. If you have younger heirs that are still working, assets that are in tax-deferred accounts may be more beneficial for them as they can continue to grow tax-deferred until they need to access the account.
The following are also some things to consider:
* When designating beneficiaries, be sure to specify the percentage of your assets that each is to receive.
* List secondary or contingent beneficiaries in the event that the primary beneficiaries are deceased or disclaim the assets.
* Periodically review your beneficiaries and make changes as necessary.
* Keep a list of your beneficiaries with your asset documents and tell them where those papers are located.
Your planning could make a significant impact on your heirs' financial futures.

Alfred Labib is an Independent Financial Advisor. "Our Goal Is To Help Investors Grow And Preserve Their Wealth Through Discipline And Process." 301-824-4523, www.labibfinancial.com.