Should I be listing my brokerage firm as a primary beneficiary?

My broker had me designate his firm as the primary beneficiary to my variable annuity account. I was told that upon death, a payment would be made to an IRA account that my spouse is the primary beneficiary of, as opposed to a direct payment to her. The firm is claiming that this is necessary because they are the custodians of my account. Everything I have read says to never list your brokerage house as the primary beneficiary for anything. Is my broker correct and is this a normal practice? Or should I be looking for another broker?

Estate Planning, Annuities, IRAs
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July 2017
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OMG RUN this is a huge red flag!!!!!!!!   You should be leaving your broker- look a for a Fidiciary Fee-Only Certified Financial Planner to avoid obvious conflict of interest.


To put this in perspective I was the advisor and partial beneficiary on one of my parents accounts.   They had to sign several additional forms, and disclosure. AND we had to get special approval and oversight by my firm and the investment firm where the account was held.  


Live for Today, Plan For Tomorrow.


-David Rae, CFP

President Founder DRM Wealth Management

July 2017
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