updating your portfolio annually

Why You Should Always Keep Your Beneficiaries up to Date

Now that tax season is done for the most part and everyone who could and wanted to contributed to their IRA’s for 2014 have completed that I would like to really focus on a piece that many of us overlook. Many of us are just so busy we forget to do the little things like make sure our beneficiaries are up to date. This is a big issue and can dramatically effect what your “plans” may have been or even cause additional tax issues for someone without knowing.

Just to give you a real example I had a colleague go through:

Mr. Smith (not his real name) had an old 401k that he left behind at his old employer (I never recommend this, for many reasons, I can go in to details at a later time). At the time, Mr. Smith was married Mary (not her real name) . Well eventually Mr. Smith and Mary get divorced. Mr. Smith remarries and marries a lady name Beth (not her real name). Mr. Smith died and when Beth went to claim his old 401k, to her surprise Mary was still named as beneficiary. Mr. Smith had even gone as far as having a Trust and Will so Beth thought there would be no issue. Here is where the problem arises. 401k are monitored by ERISA which has federal oversight. The clients trust and Will are drafted and valid in the state of residence for the most part. Federal law trumps State and local laws. As you can see, Beth was very disappointed and this was not the intention of Mr. Smith.

Let me help you review your portfolios but also make sure your beneficiaries are correct and up to date.

If you want to setup a consultation with Richard London CFP® or if you want more information on beneficiaries and portfolios, please call (702) 318-1376 today!

Advice on IRA Contribution for Las Vegas Residents

Richard London’s Quick Reminder About IRA Contributions

Just a reminder, this is IRA season and below are some key numbers to pay attention to.

For 2014, here is the max contribution limits:

Traditional IRA – $5,500 ($6,500 if you are 50 and older)

Roth IRA – $5,500 ($6,500 if you are 50 and older)

SEP IRA – $52,000 (is up to 25% of your total income or 20% of adjusted income, up to a maximum of $260,000 in income)

For some other information, max income for 2014 for social security wage base is $117,000.

There is some stipulations on whether or not your Traditional IRA contribution for 2014 is deductible. Please contact me to find out if you are able to contribute to your IRA by April 15th for a 2014 tax deduction. I can speak to your CPA to make sure your contribution makes sense.

For a consultation with Richard London CFP® or for more information on IRA contributions, please call (702) 318-1376 today!