Asset Protection (Risk Mitigation)
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I can tell you that 90%+ advisors do not discuss or help their clients with asset protection. All clients should take steps to have their wealth protected from creditors. Unfortunately, most do not. Asset protection doesn’t have to be difficult or expensive. To learn how exposed your assets are to creditors and how to protect them, please keep reading.
Most people think asset protection is protecting their money in the stock market or having your assets in a (RLT) revocable living trust (which does NOT protect your assets from lawsuits or creditors) and while this is important, this is not asset protection. We are fans of a RLT but we aren't going to get into that now. Some believe asset protection revolves around helping clients who have money protect that money from your “typical” creditor from a negligence suit. A few examples of a typical creditor are: someone injured from someone negligently driving a car, a patient who sues a physician for malpractice, or someone who slips and falls on property and sues the owner. While it is true that clients with money do need to protect themselves from the “typical” creditor, there are many other creditors out there clients need to be protected from. Asset protection can be done domestically or offshore. Domestic asset protection revolves around the use of a Limited Liability Company (LLC) and Family Limited Partnership (FLP). Our definition of "Asset Protection" is protecting clients from all known and unknown creditors. Who are other common creditors clients don’t think of as a “typical” creditor?
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Why Risk Mitigation Is Essential in Financial Planning
Risk mitigation is not just about avoiding losses; it's about being prepared for any eventuality. Whether you're concerned about outliving your savings, protecting your business from potential lawsuits, or ensuring that your family is financially secure if something happens to you, a robust risk mitigation strategy can address these concerns.
A comprehensive risk mitigation plan involves various strategies, including insurance policies, legal protections, and financial planning techniques. For instance, life insurance can provide for your loved ones if you pass away unexpectedly, while disability insurance ensures that you're covered in the event of an illness or injury that prevents you from working. Moreover, liability insurance can protect your assets from claims made by third parties, such as in the case of a car accident or a fall at your office.
A comprehensive risk mitigation plan involves various strategies, including insurance policies, legal protections, and financial planning techniques. For instance, life insurance can provide for your loved ones if you pass away unexpectedly, while disability insurance ensures that you're covered in the event of an illness or injury that prevents you from working. Moreover, liability insurance can protect your assets from claims made by third parties, such as in the case of a car accident or a fall at your office.
If ANY Question Below Is A "YES" - You Need Asset Protection
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Do you own a cell phone and drive a car? (we ALL are guilty of texting and driving)
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