Two financial advisors warn that 401(k)s often have outdated beneficiary designations, like ex-spouses still listed. Once your balance hits $500,000 to $1 million, they say you should get professional help managing the account's growing complexity.
I can't tell you how often we run into an investor and we do a check on their 401(k) account to check who their beneficiaries are. There's a certain point where investors get to where the numbers get big enough, the sophistication is needed, the situation gets complex enough where you want to bring in a professional. And you don't want to miss that, you know, kind of that time. Now it's at a time somewhere between $500,000 and $1 million is somewhere is the switch-off. Right. And then another one related to that one is beneficiary designations. I can't tell you how often we run into an investor and we do a check on their 401(k) account to check who their beneficiaries are. And you'll be amazed, sometimes you see some crazy things. Some person has been divorced. But they haven't changed their beneficiary, you know, to the new beneficiary. Some cases we've seen executives not have any beneficiary at all, or in some cases, what, on what some cases is their largest asset.
So you have to be really careful. Like you said, beneficiary designations, you know, making sure that your wishes are carried out when you, when you pass and things along those lines. Those are the things that You know, we're going to make sure that we cross all those, cross all those T's and dot all those I's for you as advisors.
