There are a lot of people all over the country who know and understand the importance of getting their retirement plan in place early so that they can enjoy life after work instead of worrying about their finances. If you're like these people, then you probably contributed heavily to your 401K or established a Roth IRA. You probably also have life insurance policies in place and a will as well.
But do you have a plan for where these funds will go if the unthinkable happens? If you're like a lot of people, you probably named a beneficiary when you established the account or policy. But have things changed since then? Are you still with the spouse you named or are you divorced? Are all the people mentioned in your will still living? Do you even still want them to receive part of your estate when you pass?
Even though establishing a good retirement plan is oftentimes the key to maintaining financial security throughout the remainder of your life, you also need to consider your beneficiaries as well, which is where your estate plan becomes another important part of preparing for retirement.
Major life events like a divorce, death or marriage can easily change who you'd like your accounts and insurance policies to go to upon your death. But if you forget to update them, the holder of the account or policy oftentimes has no choice but to go with the person named as your beneficiary.
Keeping in touch will a skilled estate planning attorney, such as though found here at Frese Hansen, can ensure that your estate plan and retirement plan are in sync and that if any changes are needed, they are done before you're unable to make that decision.
Source: Consumer Affairs, "Estate planning taking a backseat to retirement planning," Mark Huffman, April 10, 2015