Some of the scariest financial surprises aren’t the ones you see coming. They’re the ones you’ve been putting off dealing with.
We all have that closet. The one where things get pushed to the back, forgotten about, or left for another day. Our finances can work the same way.
Maybe you haven’t checked your retirement contributions in years. Maybe there’s an old retirement account from a former employer still floating out there somewhere. Or maybe the beneficiaries on your accounts haven’t been updated since you first opened them.
None of this means something is wrong. It just means there are a few things worth a closer look.
So, in the spirit of Halloween, let’s open that financial closet and shine some light on four things worth checking.
Skeleton #1: How Much Are You Actually Saving?
When you started your job, you probably enrolled in your employer’s retirement plan, picked a contribution percentage, and moved on with life.
Which makes sense. There was probably a lot going on.
But your income has likely changed. Your expenses have probably shifted. Your financial priorities today may look nothing like they did five or ten years ago.
So, is your retirement contribution keeping up?
You don’t need to overhaul anything today. Start by just checking what you’re currently contributing and asking yourself whether that number still fits where you are now, and where you’re headed.
Maybe it does. Maybe a small bump makes sense. Or maybe other financial priorities deserve your attention first. The important thing is not letting an old decision just run quietly in the background forever.
Skeleton #2: Which Retirement Bucket Are You Using?
Saving for retirement is important, but where you’re saving can matter just as much.
Think about it like trick-or-treating (stay with me here). You’ve got your candy bucket, you go house to house, and you come home with a full haul. But then a parent reaches in and takes their share before you can touch any of it.
That’s kind of how a Traditional retirement account works. Your money goes in, no one bothers it while it grows, but when you finally reach into that bucket in retirement? Taxes take their cut first.
A Roth account flips it. The parent takes their candy before you even leave the house. It stings a little in the moment. But when you come home on the other side? That bucket is completely yours.
Neither bucket is wrong. It really comes down to a simple question: do you want to pay taxes now, or pay taxes later?
Note that direct Roth IRA contributions are subject to income eligibility limits that change annually. Your advisor can help you determine which options are available based on your situation.
Some people use both. Some people only have access to one through their employer’s plan. Either way, you need to know which bucket you’re currently using. Check your pay stub or your account statement and find out. That’s your starting point.
Skeleton #3: Where Did That Old Retirement Account Go?
Changing jobs is a completely normal part of life. Keeping track of every retirement account along the way? A little less so. It’s easy to leave one company, start a new chapter, and let that old account just… sit there.
If that sounds familiar, start simple. Make a list of old employers where you may have had a retirement plan. Dig through old statements if you have them. You can also reach out to the former employer directly. They may be able to point you in the right direction.
Once you’ve tracked down an old account, understand what your options are. Depending on your plan and your situation, you may be able to leave it where it is, move it to another retirement account, or take it out entirely.
Each path can carry different tax consequences, fees, and considerations, and some distributions may result in penalties (a nasty “trick” rather than a yummy “treat”).
What you do with an old retirement account depends on your options, your tax situation, and your future goals. So this isn’t advice about what to do with it. It’s simply this: the one thing you shouldn’t do is forget about it.
Skeleton #4: Who Actually Gets Your Money?
This one might be the most important skeleton in the closet.
When you first opened a retirement account, you probably filled out a beneficiary form. You named someone. And then, probably, you never thought about it again.
When was the last time you actually looked at your beneficiary designations?
A lot changes over the years. You may have gotten married, divorced, had children, or lost someone you loved.
And here’s the thing that makes this one scary: the form wins. It doesn’t matter what your will says. It doesn’t matter what your wishes are. Whoever is listed on that form is who gets the money.
One small disclaimer: specifics can vary depending on your account type, marital status, and state of residence. If you’re married, your plan may require your spouse’s consent to name someone else as beneficiary. It’s always worth verifying the rules for your specific accounts.
The action here is a simple one: find out who you have listed. Log in, pull up your account, and look at the name. Is it still the right person? Great. Now you know. Is it someone who shouldn’t be there anymore? That’s worth a conversation.
You Don’t Have to Clean Out the Entire Closet Today
When you’re facing skeletons in your closet, it’s easy to feel overwhelmed (or scared!). Remember that you probably don’t need a major overhaul. Sometimes the most valuable thing you can do is identify one area that needs attention and take a small step toward addressing it.
Check your contribution percentage. Track down that old account. Review your beneficiaries. Or just take a fresh look at whether your current savings strategy still fits the life you’re living now. Even one small thing can help you to make sure important decisions aren’t quietly gathering dust just because life got busy.
And if opening that financial closet leaves you with more questions than answers, you don’t have to sort through it alone. The Shadowridge team is here to help you get a clearer picture, think through your options, and feel more confident about the road ahead.
Ready to tackle a few skeletons? Reach out and let’s start the conversation.
This article is for general educational and informational purposes only and should not be considered individualized investment, tax, or legal advice. Retirement account rules, tax treatment, distribution options, and beneficiary designations vary based on individual circumstances and applicable laws. Consult your financial, tax, or legal professionals before making decisions about your accounts.
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