When is the last time you reviewed your beneficiaries on your retirement accounts? Now is a great time to check your beneficiaries! There are certain things one should do annually, such as a wellness check-up with your primary care physician, a change of batteries in your smoke detectors and checking your beneficiaries.
Why should you review your beneficiaries annually? Your named beneficiary remains in place until you change it. So, if you get married, you may want to name your spouse as primary beneficiary. If you have a child or an additional child, you will likely want to add that child as contingent beneficiary. If you divorce, you will want to amend your beneficiary(s) accordingly. In general, you will want to make sure your beneficiary(s) match your changing life circumstances.
Qualified retirement plans (including 401(k) plans and IRA accounts) allow you to leave the money in the account to your named beneficiary(s) upon your death. This is a nice feature because the money goes directly to the beneficiary(s) without having to go through your estate. Most plans and accounts allow you to name primary and contingent beneficiary(s). You can usually name multiple beneficiaries at both the primary and contingent level assigning a percentage of the account to each. The way it works is the account will first be distributed to the primary beneficiary(s) according to desired percentages. If none of the primary beneficiaries are living, the account will be distributed to the contingent beneficiary(s) according to the stated percentages.
Most plans allow you to name individuals, trusts, the estate or an entity as beneficiary. In Louisiana, if you are married, your spouse must be your primary beneficiary unless your spouse signs off allowing you to name another primary beneficiary. If you are not married, you may name any of the types of beneficiary listed above.
A regularly planned review will help ensure that you leave your retirement plan money to the correct person upon you reaching the end of retirement.
https://thirtynorth.com/wp-content/uploads/2017/04/LOGO-ThirtyNorth-Rev2017-1.png00Fritz Gomilahttps://thirtynorth.com/wp-content/uploads/2017/04/LOGO-ThirtyNorth-Rev2017-1.pngFritz Gomila2020-06-08 17:06:322020-06-09 09:18:50Thin(k) About Your 401(k) Plan: Don’t Drop The Ball At The End of Retirement
Officially, a “recession” is defined as two consecutive quarters of negative Gross Domestic Product (GDP). GDP attempts to measure consumer spending, business investment, government spending, and net exports. Usually, we think of strong GDP as passing through to strong stock market conditions, but GDP and the equity market don’t always move in the same direction. In a few weeks, we will get official numbers on a massive quarter-over-quarter GDP drop; however, the U.S. stock market is looking past the current situation in anticipation of higher economic output in the second half of the year and beyond.
Do you feel like your grocery bill is increasing? Your inflation intuition is correct. The Consumer Price Index (CPI-U) is the measurement of prices on a “cart” of general goods that most people use in their daily lives – think the cost of milk, meat, gas, and rent. While the price of this overall cart has not changed much in the last 12 months, the low percentage change is mainly because of the price dip in the energy portion of the metric. The price of food, on the other hand, has increased more than the 2% we expect in a normal year. As you hear more about inflation in the next few months, keep an ear out for the phrase “core inflation” as it excludes these more volatile food and energy prices.
https://thirtynorth.com/wp-content/uploads/2017/04/LOGO-ThirtyNorth-Rev2017-1.png00Sarah Bomhoff, CFA, CIPMhttps://thirtynorth.com/wp-content/uploads/2017/04/LOGO-ThirtyNorth-Rev2017-1.pngSarah Bomhoff, CFA, CIPM2020-05-29 10:35:272020-05-29 10:35:49Thoughts in Charts: The Price of Food
The universe of funds that are significantly influenced by environmental, social, and/or governance themes has accelerated over the last 5 years. These “sustainable funds” are also accumulating a track record, allowing us to evaluate the ability of managers to bring together money and meaning without sacrificing returns.
Not all segments of the market are created equal. The Russell 3000 Index, which represents most of the investible equity market in the United States, is down over 10% since mid-February; however, dissecting this larger index into smaller segments illustrates a much wider range of returns. As we navigate market allocation for our clients, the index returns in these catty-corner style boxes demonstrate the importance of evaluating style tilts within our portfolios.
It’s been over 10 years since I ran the Chicago Marathon, but I vividly remember mile-marker 13. Because of the feeling in that exact moment, I’ve run almost a dozen half-marathons, but never another marathon. I wasn’t close enough to the end to see the finish; in fact, I wasn’t even half-way. Despite having run 13 miles, I felt like absolutely nothing had been accomplished. That mile-marker has been on my mind a lot the last few days – reminding me of the mental strength of the marathon.
The thing is, before you run a marathon, you plan out the route. It really matters where you are in the race. Where do you refuel? Where are the hills? Where are the water stations? Where are the moments that you know you’ll need a little extra mental toughness? This plan helps carry you through, and so yesterday, I sat down and mapped out this COVID-19 marathon with the events of the last few months and the types of things that I think lie ahead.
As I filled in the items that have already happened in dark red and green, it became clear why mile 13 has been on my mind. Life has been shifted, disrupted, and stressed. Despite expending a ton of energy, it feels like very little has been gained. The green, the good news, has been pretty minimal while the bad news has been overwhelming. It’s mile 13 of the toughest race I’ve ever run. It feels defeating because, frankly, I can’t see the end.
As I continue graphing, I remember exactly why I needed to lay out the rest of the race. There are some remaining bright red challenges – huge and painful challenges that we will have to endure. When these events arrive, I’ll remind myself that “this is the hill you knew was coming.” I will stick with the plan I made before I was exhausted. I may tweak my pace, but I won’t change course.
Slowly there will begin to be more bright green moments than bright red – more good news than bad. Schools will re-open, science will catch up with the virus, government stimulus will deliver support, markets will stabilize, sporting events will restart. I’ll sit in my favorite restaurant, drinking my favorite cocktail after hugging my best friend.
There is one other moment from the marathon that stands out just as vividly as mile 13. A bit further into the race, a spectator yelled out “just a few more miles and you will be a marathoner.” I had never considered that I would be a “marathoner.” Of course, it had been my goal to finish the race, but it never occurred to me that this victory would add to my identity. This stranger brought things sharply into focus. I was a lot closer to the end than when I started. I had already overcome more than I realized. If I followed my plan and kept putting one foot in front of the other, I would finish this race – forever changed for the better.
https://thirtynorth.com/wp-content/uploads/2017/04/LOGO-ThirtyNorth-Rev2017-1.png00Sarah Bomhoff, CFA, CIPMhttps://thirtynorth.com/wp-content/uploads/2017/04/LOGO-ThirtyNorth-Rev2017-1.pngSarah Bomhoff, CFA, CIPM2020-03-31 08:58:082020-05-15 09:36:05Today's Marathon: What a Marathon Taught me about a Pandemic
Thin(k) About Your 401(k) Plan: Don’t Drop The Ball At The End of Retirement
When is the last time you reviewed your beneficiaries on your retirement accounts? Now is a great time to check your beneficiaries! There are certain things one should do annually, such as a wellness check-up with your primary care physician, a change of batteries in your smoke detectors and checking your beneficiaries.
Why should you review your beneficiaries annually? Your named beneficiary remains in place until you change it. So, if you get married, you may want to name your spouse as primary beneficiary. If you have a child or an additional child, you will likely want to add that child as contingent beneficiary. If you divorce, you will want to amend your beneficiary(s) accordingly. In general, you will want to make sure your beneficiary(s) match your changing life circumstances.
Qualified retirement plans (including 401(k) plans and IRA accounts) allow you to leave the money in the account to your named beneficiary(s) upon your death. This is a nice feature because the money goes directly to the beneficiary(s) without having to go through your estate. Most plans and accounts allow you to name primary and contingent beneficiary(s). You can usually name multiple beneficiaries at both the primary and contingent level assigning a percentage of the account to each. The way it works is the account will first be distributed to the primary beneficiary(s) according to desired percentages. If none of the primary beneficiaries are living, the account will be distributed to the contingent beneficiary(s) according to the stated percentages.
Most plans allow you to name individuals, trusts, the estate or an entity as beneficiary. In Louisiana, if you are married, your spouse must be your primary beneficiary unless your spouse signs off allowing you to name another primary beneficiary. If you are not married, you may name any of the types of beneficiary listed above.
A regularly planned review will help ensure that you leave your retirement plan money to the correct person upon you reaching the end of retirement.
For disclosures, please click here.
Thoughts in Charts: Recession Vs. Returns
Officially, a “recession” is defined as two consecutive quarters of negative Gross Domestic Product (GDP). GDP attempts to measure consumer spending, business investment, government spending, and net exports. Usually, we think of strong GDP as passing through to strong stock market conditions, but GDP and the equity market don’t always move in the same direction. In a few weeks, we will get official numbers on a massive quarter-over-quarter GDP drop; however, the U.S. stock market is looking past the current situation in anticipation of higher economic output in the second half of the year and beyond.
For disclosures, please click here.
Thoughts in Charts: The Price of Food
Do you feel like your grocery bill is increasing? Your inflation intuition is correct. The Consumer Price Index (CPI-U) is the measurement of prices on a “cart” of general goods that most people use in their daily lives – think the cost of milk, meat, gas, and rent. While the price of this overall cart has not changed much in the last 12 months, the low percentage change is mainly because of the price dip in the energy portion of the metric. The price of food, on the other hand, has increased more than the 2% we expect in a normal year. As you hear more about inflation in the next few months, keep an ear out for the phrase “core inflation” as it excludes these more volatile food and energy prices.
For disclosures, please click here.
Thoughts in Charts: A Growing ESG Universe
The universe of funds that are significantly influenced by environmental, social, and/or governance themes has accelerated over the last 5 years. These “sustainable funds” are also accumulating a track record, allowing us to evaluate the ability of managers to bring together money and meaning without sacrificing returns.
For disclosures, please click here.
Thoughts in Charts: What’s Your Style?
Not all segments of the market are created equal. The Russell 3000 Index, which represents most of the investible equity market in the United States, is down over 10% since mid-February; however, dissecting this larger index into smaller segments illustrates a much wider range of returns. As we navigate market allocation for our clients, the index returns in these catty-corner style boxes demonstrate the importance of evaluating style tilts within our portfolios.
For disclosures, please click here.
Today’s Marathon: What a Marathon Taught me about a Pandemic
It’s been over 10 years since I ran the Chicago Marathon, but I vividly remember mile-marker 13. Because of the feeling in that exact moment, I’ve run almost a dozen half-marathons, but never another marathon. I wasn’t close enough to the end to see the finish; in fact, I wasn’t even half-way. Despite having run 13 miles, I felt like absolutely nothing had been accomplished. That mile-marker has been on my mind a lot the last few days – reminding me of the mental strength of the marathon.
The thing is, before you run a marathon, you plan out the route. It really matters where you are in the race. Where do you refuel? Where are the hills? Where are the water stations? Where are the moments that you know you’ll need a little extra mental toughness? This plan helps carry you through, and so yesterday, I sat down and mapped out this COVID-19 marathon with the events of the last few months and the types of things that I think lie ahead.
As I filled in the items that have already happened in dark red and green, it became clear why mile 13 has been on my mind. Life has been shifted, disrupted, and stressed. Despite expending a ton of energy, it feels like very little has been gained. The green, the good news, has been pretty minimal while the bad news has been overwhelming. It’s mile 13 of the toughest race I’ve ever run. It feels defeating because, frankly, I can’t see the end.
As I continue graphing, I remember exactly why I needed to lay out the rest of the race. There are some remaining bright red challenges – huge and painful challenges that we will have to endure. When these events arrive, I’ll remind myself that “this is the hill you knew was coming.” I will stick with the plan I made before I was exhausted. I may tweak my pace, but I won’t change course.
Slowly there will begin to be more bright green moments than bright red – more good news than bad. Schools will re-open, science will catch up with the virus, government stimulus will deliver support, markets will stabilize, sporting events will restart. I’ll sit in my favorite restaurant, drinking my favorite cocktail after hugging my best friend.
There is one other moment from the marathon that stands out just as vividly as mile 13. A bit further into the race, a spectator yelled out “just a few more miles and you will be a marathoner.” I had never considered that I would be a “marathoner.” Of course, it had been my goal to finish the race, but it never occurred to me that this victory would add to my identity. This stranger brought things sharply into focus. I was a lot closer to the end than when I started. I had already overcome more than I realized. If I followed my plan and kept putting one foot in front of the other, I would finish this race – forever changed for the better.