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The Often-Neglected Part of Your Plan

With so much happening in our lives these days, it can be easy to lose track of the things that we normally let cruise on auto-pilot.  Of course, when it comes to our finances, that auto-pilot feature can be great: it allows us to save in our 401(k) plans, it makes sure that our bills are automatically paid on time, and it keeps us from over-thinking things, which we’ve shown can be dangerous to our portfolio’s health.

Sometimes, though, it’s necessary to revisit those parts of our financial plan that normally don’t get much attention.  From our experience, beneficiary designations are some of the most often-forgotten aspects.  We assign a beneficiary to things like a life insurance plan, securities accounts, retirement accounts, and a whole range of other assets, and for many, it’s just a set-it-and-forget-it kind of approach.  But circumstances over a period of years almost always change, and when they do, it’s important that you review your plan to make sure that everything is still lined up to meet your changing goals.

In this week’s episode of Lucia Capital Group Weekly, another one of our veteran financial planners, Tim Shea, CFP®, joins Ray Lucia Jr., chairman and CEO of Lucia Capital Group, to talk about the who, where, when and why of beneficiary designations. They’ll also give you some really important reasons for making changes when it becomes necessary.  You may not be thinking about these things on a daily basis, but your financial advisor should be.  Watch our video and find out more from Tim and Ray!

Important Information

The information provided should not be considered specific tax, legal, or investment advice and is not specific to any individual’s personal circumstances. To the extent that this material concerns tax matters, it is not intended or written to be used, and cannot be used, by a taxpayer for the purpose of avoiding penalties that may be imposed by law. Each taxpayer should seek independent advice from a tax professional based on his or her individual circumstances. This material was gathered from sources believed to be reliable, however, its accuracy cannot be guaranteed.

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You should always seek counsel of the appropriate advisor prior to making any investment decision. All investments are subject to risk including the loss of principal. This material was gathered from sources believed to be reliable, however, its accuracy cannot be guaranteed.

These materials are provided for general information and educational purposes based upon publicly available information from sources believed to be reliable—we cannot assure the accuracy or completeness of these materials. The information in these materials may change at any time and without notice.

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Roth IRA distributions of principal from a Roth IRA are tax-free; however, any earnings will be taxed at ordinary income rates and a 10% penalty tax will apply if withdrawn prior to age 59½ or within five years of the date the Roth IRA was established, whichever is longer.

Insurance product guarantees are subject to the claims-paying ability of the issuing insurance company and are subject to their terms and conditions. Insurance products offered through Lucia Securities, LLC (CA Insurance Lic. #0H40817). Lucia Securities is licensed to offer such insurance products as life, disability, long-term care, and annuities.

Raymond J. Lucia Jr. is chairman of Lucia Capital Group (LCG), a registered investment advisor and CEO of its affiliated broker-dealer, Lucia Securities, LLC (LSL), member FINRA/SIPC. Tim Shea and Janean Stripe are a registered representative of LSL and offer advisory services through LCG. Registration with the SEC does not imply a certain level of skill or training.

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