Retirement Today Newsletter

<sub>1. Policy Form series GFUA-398, a group fixed unallocated annuity issued by The Variable Annuity Life Insurance Company, Houston, Texas.

2. Guided Portfolio Services (GPS) is an optional service that offers two approaches to help you achieve your retirement goals. One approach is for do-it-yourselfers. The other is great for those who prefer to have someone else do it for them. Both approaches deliver objective advice from independent financial expert, Morningstar Investment Management LLC, including how much to save, which investments to choose and how much to invest in each. GPS is offered through VALIC Financial Advisors, Inc. and is available for an additional fee. For more information, contact your local financial professional</sub>

When it comes to planning for your financial future and that of your loved ones, two important roles often come up: trusted contacts and beneficiaries. Both play distinct roles, and understanding the difference between the two is essential for effective financial planning and wealth transfer.

More about trusted contacts

A trusted contact is a person you select who can be contacted on your behalf should a situation about your welfare arise. This person must be at least 18 years old and is typically a family member, significant other, close friend or personal attorney. Importantly, this person does not have Power of Attorney, a legal document that gives them the authority to act on behalf of another person. Trusted contacts simply serve as a point of contact to help your financial institution ensure your account remains secure, should you be unreachable.

Key points to consider:  

• Trusted contacts are intended to help protect an accountholder’s interests. For instance, if the accountholder is unreachable or unable to make informed decisions about their account, the trusted contact can verify the situation.
  
  
• Trusted contacts don’t have access to your funds or account. They cannot make changes or initiate transactions.
  
  
• If a financial institution suspects fraudulent activity or has concerns about the accountholder’s mental capacity, they can reach out to the trusted contact. This is especially helpful in cases where the accountholder may be unable to manage their finances independently. 
  
  
• Typically, a trusted contact is someone the accountholder trusts completely, like a close family member or friend, but they don’t necessarily have to be a beneficiary. 

More about beneficiaries

A beneficiary is an individual or entity designated to receive assets or benefits from an account or insurance policy when the account holder passes away. Beneficiaries are often assigned to life insurance policies and retirement accounts and help facilitate a smooth transfer of assets upon the accountholder’s death.

Key points to consider:

• Beneficiaries inherit the actual assets or financial benefits (e.g., cash, investment accounts, life insurance payout) from the account after the accountholder’s death.
  
  
• Accountholders can name multiple beneficiaries, each with a specific percentage of the total assets, so they know who will receive what portion of their estate.
  
  
• Beneficiaries have a legal right to the designated assets upon the accountholder’s death, provided there are no other overriding legal obligations (like debts).
  
  
• There are two main types of beneficiaries—primary and contingent. The primary beneficiary is the first in line to receive assets. If the primary beneficiary is unable to receive them (due to their own passing, for example), the contingent beneficiary is next in line.

Learn more about the importance of beneficiary designations.

Take action today

If you haven’t selected a trusted contact for your retirement and other financial accounts, now is a good time to do so. The same goes for selecting a beneficiary or beneficiaries. Most financial institutions allow you to name both trusted contacts and beneficiaries online or via paper forms. It’s wise to review these designations periodically to ensure they align with your current wishes and personal relationships.

Register for online account access or log in to your retirement plan account to designate your beneficiaries and select your trusted contacts. 

If better financial planning has been a long-term goal for you, you’ve probably run into some common issues along the way: deciding how much you need to save for retirement, balancing debt and long-term goals and simply covering day-to-day expenses are all common challenges most Americans face.

Even if your goal is just saving more money, a seasoned financial professional can help you get there. Here’s how asking for the right kind of input from a professional can help you define your goals and map your financial path to success.

Challenge #1: You’ve got competing goals, and you need to prioritize them.

Perhaps you already know exactly what you want from life over the long term, but you’re not sure where to start. For example, should you save for a home before paying off your student debt? Or should you build a larger emergency savings before you start investing?

It’s all about finding an approach that allows you to hit your fiscal stride sooner rather than later. In this quest, the outside perspective and hard-won experience of a financial professional can often prove invaluable as you work to answer common overarching questions we all face, such as “Where do I begin?” and “What can—and can’t—wait?”

A financial professional can help cut through the fog and chart a course to establish financial security that can sustain those goals.

Challenge #2: You want to invest but need guidance.

There are many interlocking parts to consider when it comes to building the right comprehensive plan. For example, how much money can you really afford to put aside for investments? Keeping your risk tolerance level and time horizon in mind, what is the best allocation of funds between stocks, bonds and other investments? Do you have a long-term investment plan that will make it easier for you to stay the course and keep your cool even amidst a volatile market?

A financial professional can help you answer these questions and get that much closer to realizing the true potential of your personal portfolio. They can also help you stay on track so that your careful planning and persistence pay off.

Challenge #3: You’re trying to make sense of your savings options.

There’s more to money management than putting money in an account and watching it grow. (Although that does sound great, doesn’t it?) There are other savings plans you may want to explore, including a 529 college savings plan for a new baby, a small business retirement plan for a sole proprietor, or a Roth IRA as a catch-all for future spending needs—say, college tuition, the purchase of a home or even retirement income.

A financial professional can help you determine which vehicles could be best suited for your financial needs and goals—and then show you the steps to take to set your newly honed savings plan(s) into motion.

Your Corebridge financial professional team is here for you

You have a team of dedicated Corebridge financial professionals who are available to meet with you in person, over the phone or virtually, all at no added cost to you. They can assist you with anything from account management, like helping you designate retirement account beneficiaries, to more complex retirement planning needs like completing a retirement income analysis and managing your strategy.

Simply go to the Advisor Connection section of this newsletter to reach out directly to a financial professional or schedule a one-on-one appointment.