In this episode of Wealthyist, host Greg Batiansila sits down with Tom Parks, Director of Retirement Plan Services at Annex Wealth Management. Tom leads Annex’s 401(k) advisory team and brings over 25 years of experience helping business owners optimize their retirement plans.

The conversation challenges the common view of 401(k) plans as just another compliance checkbox or “fine for now” employee benefit. Instead, Tom reframes them as a strategic tool that can reduce employee financial stress, improve company culture, boost productivity, aid retention, and even support long-term business value.

Key points discussed include:

• What Annex’s 401(k) team actually does: They act as advisors and consultants (not recordkeepers). They work with both business owners/plan fiduciaries and employees to make plans more effective.
• The shift in employee expectations: Today’s workforce looks at total compensation — including benefits and financial wellness — not just salary. An effective 401(k) is now part of what attracts and keeps talent.
• Common problems Tom sees when reviewing existing plans: Outdated investment lineups, high or inefficient fees, low participation rates, lack of automatic enrollment features, and employees who don’t even know who their plan advisor is.
• Modern solutions: Greater use of lower-cost Collective Investment Trusts (CITs), automatic enrollment, and better plan design — changes that many advisors are (or should be) recommending.
• The bigger picture — financial wellness: Annex goes beyond investments by providing ongoing education through videos, webinars, one-on-one meetings, and creative communications. This helps reduce the real financial stress employees feel (a major driver of burnout and lost productivity).
• Impact on business owners: While there isn’t always a direct line item on a balance sheet, improving a 401(k) plan can positively affect company culture, employee engagement, and even the intrinsic value of the business over time.
• Practical next steps: Business owners don’t always need to move their entire plan. Often, the first step is simply having Annex review the current plan to see what can be improved where it already sits.

Tom emphasizes that a well-run 401(k) isn’t just good for employees — it’s good for the business owner who wants a more focused, less financially stressed, and more aligned team.

Overall takeaway: If your 401(k) plan was set up years ago and hasn’t been reviewed since, you’re likely leaving both money and morale on the table. A thoughtful, well-communicated retirement plan can become a genuine competitive advantage.

In this episode of Wealthyist, hosts Tom Berkholtz (CFP®, EA, ECA) and Eric Strom (CFP®, EA) break down the critical difference between tax preparation and tax planning — and why the distinction matters more than ever for high-net-worth individuals in 2026.

Tax preparation is the annual filing process: gathering documents, accurately completing your return, and avoiding penalties. Tax planning, by contrast, is proactive, year-round, and lifetime-focused — zooming out to minimize taxes over decades, especially since taxes are often the largest single expense in retirement for affluent clients.

Key Trends Discussed:

• Integration is the new standard: Top firms are combining tax preparation, year-round tax planning, investment management, and comprehensive financial planning under one roof for seamless, better outcomes.
• Team of specialists matters: Complex needs (equity compensation, real estate, international tax, AMT, K-1s, IRS representation) require experts like Enrolled Agents (who have unlimited representation rights before the IRS) and niche credentials.
• Technology revolution: Client portals, advanced modeling, and AI are transforming tax prep (making basic returns more commoditized), but sophisticated planning still demands human expertise.
• Major pain points for the wealthy: Fragmented accounts, multiple custodians, missed opportunities from new legislation (like the One Big Beautiful Bill Act), SALT deduction phaseouts, Alternative Minimum Tax (AMT) creeping back, and the risk of future tax increases due to national debt.
• Actionable advice: Consolidate assets for visibility and better planning, get projected “mock” tax returns (especially after law changes), use extensions strategically, and ensure your advisor actively reviews your actual tax returns and handles IRS notices.

The episode emphasizes that in today’s complex environment, settling for a once-a-year preparer separate from your advisor often leaves significant money on the table. The hosts encourage listeners to seek firms offering true 360-degree tax and wealth integration.

Are Beneficiary Designations Undermining Your Estate Plan?

Beneficiary designations are contractual instructions you give to financial institutions about who receives assets in accounts like:

• IRAs, Roth IRAs, 401(k)s
• Checking and savings accounts (often called Payable on Death - POD or Transfer on Death - TOD)

These are legally binding contracts between you and the financial institution. They generally override whatever is written in your will or trust.

Why They Matter So Much

Even a perfectly drafted estate plan can fail if beneficiary designations don’t match it. The episode highlights numerous real-world “horror stories” where:

• Assets went to ex-spouses, disowned children, or unintended relatives because designations were never updated.
• A child predeceased the parent, causing their share to go through the deceased child’s estate instead of directly to grandchildren or the surviving child.
• Someone opened a new account after creating their estate plan and never added beneficiaries, triggering unnecessary probate.

What Happens If You Don’t Name Beneficiaries?

It depends on the financial institution’s default rules (some default to spouse → children; others send everything to probate). This can force assets through court-supervised probate even if the rest of the estate plan avoids it, creating extra costs, delays, and complexity.

Key Risks & Common Mistakes

• Failure to update — Life changes (divorce, remarriage, death of a beneficiary, reconciled relationships, disowning someone) require updates.
• New accounts / account rollovers — Beneficiary designations often don’t automatically transfer.
• Inconsistent planning — Will says “everything to kids,” but beneficiary form still says “nieces and nephews.”
• Not funding the trust — Signing a trust document is not enough; assets must actually be titled to it or properly designated.

When to Name a Trust as Beneficiary

Especially relevant for pre-tax retirement accounts (traditional IRAs, 401(k)s):

• Direct to individuals is usually simpler (better tax treatment and easier administration) if the beneficiary is responsible and has no major risks.
• Name the trust when you need:
  • Asset protection (divorce, lawsuits, creditors)
  • Spendthrift protection
  • Professional management for beneficiaries who can’t handle money well

This decision is highly personal and should be coordinated with an attorney.

Disclaiming (Refusing) an Inheritance

You can disclaim a beneficiary designation, but you lose control. It treats you as if you predeceased the account owner, so the asset follows the next default beneficiary (often not where you want it to go). In the episode’s example, this created major complications in a step-family situation.

Best Practices

• Ensure beneficiary designations are consistent with your overall estate plan.
• Review designations annually or every other year (more frequently than the full estate plan).
• Check every new account and every rollover.
• Work with your advisor — many wealth firms (like Annex) will help review and align everything.
• Ultra-high-net-worth individuals may use family offices to handle this administratively.

Bottom Line

Brian and Alec emphasize that there is no shortcut. You must go account-by-account to set and maintain proper designations. Signing estate documents is only the first step — proper execution and ongoing maintenance are what actually make the plan work.

The episode stresses that this issue affects everyone regardless of wealth level, but the consequences (and potential costs of mistakes) grow with larger account balances.