Retirement Plan Update, Q4 2024

Market Recap:

The end of 2024 was marked by continued market uncertainty, with investors closely watching inflation trends, interest rate decisions, and global geopolitical developments.  The year ended favoring many of the same large stocks that have been in the headlines over the last year.  The high concentration of those companies at the top of the S&P 500 has helped many investors enjoy those gains, though the difference between them and many other companies and sectors still bears watching.  Bonds had a less exuberant conclusion to the year due to the risk of persistent inflation.  As we look ahead at 2025, there is significant speculation, with a wide range of opinions on how great or terrible the economy will likely be at this time next year and all eyes will be focused on the Federal Reserve and inflation.  We don’t have a crystal ball, but the answer is likely somewhere in the middle. 

Beneficiary Update

A beneficiary on a retirement account (IRA, Simple IRA, 401K, 403b) is the person or entity that you designate to inherit the funds in your retirement account after your death.  You can designate both primary and contingent beneficiaries.  The beneficiary designation for a retirement account is important because it overrides a will or other estate planning you may have.  If there’s a conflict between your will and your retirement plan beneficiary designation, the beneficiary on the retirement account takes precedence regardless of what your will states.  In addition, having a beneficiary designated helps your heirs avoid probate, saving time and money.  It is important to review your beneficiary designation periodically and to update it with any change in circumstances such as marriage, divorce, or the birth of children.  Keeping your beneficiaries up to date ensures that your retirement plan assets go to the right individuals without delay.  So check your beneficiaries today!