Wealth and Asset Protection: All You Need to Know

Wealth and asset protection is a financial planning strategy designed to safeguard your wealth and keep it secure from any potential risk. Such a strategy ensures that your financial goals stay on track and do not get sidelined due to any untoward event. A complete wealth and asset protection plan puts focus on areas where there may be a significant financial impact. Some of these could be property loss, theft, creditor claims, health care costs, accidents, premature death, among others.

Such a plan is necessary not just for you but for your family as well, especially if they are financially dependent on you. If you have allocated assets for your family members in your will, an asset and wealth protection plan can ensure that they are passed on to the members as per your wishes.

Wealth Protection Strategies

One of the foremost ways of protecting your wealth as well as assets can be to incorporate strategies which keep them safe from legal claims and other unexpected risks.

There are different types of strategies that you can explore. Some of them are mentioned below:

Business Entities with Limited Liability

If you own a business, you can protect your personal assets by separating them from your business through a Limited Liability Company (LLC). LLCs ensure that the owner of a business is not personally liable for any claims against the business. If you do not do so, you can end up losing your personal assets too, in case any legal dispute against your company takes place.

Insurance

Investing in an efficient and well-thought-out insurance portfolio can be beneficial for you and your beneficiaries in the long run. It is also one of the common ways through which you can protect your personal assets. You can check out insurance policies such as health insurance, income protection insurance, and trauma insurance that can help safeguard you and your wealth from unexpected circumstances. Some of these insurance policies can also offer wealth and asset protection from legal challenges.

Manage Your Wealth Cautiously

Keeping track of your wealth is important, especially if your assets are spread globally. If you run on a busy schedule, managing your investment portfolio and tailoring it as per the latest economic developments and market trends may get challenging. To avoid missing out on any investment opportunities and cut down on any potential risks, you can opt to engage the services of a wealth management firm. Such firms usually assign a dedicated team of experts in the field of finance, investments, legalities, etc. that will guide you in your financial journey. With the expertise of a wealth management firm, you can steer clear of situations that can push you towards major losses and may also protect you from financial fraud, legal adversity, and so on.

Retirement Funds

Working or staying employed till one crosses the retirement age may not be possible for many people. Retirement planning can offer a host of benefits that individuals can enjoy during that stage of life. You can rely on employer-sponsored retirement plans or you can create your own plan by consulting a wealth advisor and legal advisor.

Unexpected events or situations that you cannot control can occur without any forewarning. Such events may not only affect your wealth but also compromise your assets. To keep your wealth and assets safe from such situations, incorporating wealth preservation strategies in your overall wealth management plan can be helpful. You can select a strategy from the ones listed above, or you may do your research and opt for one that aligns with your financial goals the most. Once you chart out your strategy, you can discuss it with a wealth advisor or your legal advisor. By taking professional advice and assistance, you will be able to not just protect your wealth and assets but also make the most out of the strategy and plan.

Frequently Asked Questions

Why is wealth preservation important?

Wealth preservation is important to ensure the safety of your wealth, so if any unfortunate situation happens later, you and your family will be financially secured. You can check out different wealth preservation strategies to execute the same.

How can we preserve wealth?

You can preserve wealth by following several strategies. Some of them are given below:

• Business Entities with LLCs
• Insurance
• Asset Protection Trusts
• Irrevocable Trusts
• Retirement Funds

How to protect your wealth and personal assets?

You can protect your family’s wealth and personal assets by

• Writing a will
• Opting for necessary insurance policies
• Creating a Lasting Power of Attorney (LPA)
• Appointing a Central Provident Fund (CPF) nominee