Asset Management

Showing posts with label Law. Show all posts

Asset Protection - Why Do You Need It?

People reach their forties, many have a growing family and responsibilities. Many already own a house and quite a few other valuable assets. This is the phase of life where they focus on their career in order to provide for their families, and to pay for the bills and mortgages etc. They also focus more on investments for better financial security for their family and a comfortable nest egg.

With your growing financial portfolio and asset, it is imperative that you take steps to protect your assets. A practical solution for creating an additional umbrella of security for your family is to take advantage of asset protection that minimize the risk of losing your assets or being taxed heavily.

The three vital steps toward asset protection planning

To set up an effective asset protection, you have to:

* Be clear about your goals and objectives

* Plan early

* Plan safe

You are more than painfully aware that it took much effort to build up your assets. But you need to know that it takes even harder work to protect them. Beware that you do not start asset protection planning too late or you are only inviting trouble and headache for your family. Upon your death, there is nothing more gut wrenching than your family having to fend off greedy money suckers trying to lay claim on your family assets that should rightfully belong to your family. Even worse is fighting amongst your own family members for a bigger share of the family asset. If you do not want to put your loved ones through this, then for their sake, initiate the asset protection planning right now.

If you are a truly practical person, asset protection should be a part of your asset-building plan from day ONE.

Be Focused About Your Objectives

You must be sure of your goals and objectives in order to be able to draw up a well thought up asset protection strategy and plan. There can be no universal process to asset protection as every individual has different needs; you have to tailor it according to your future plans and objectives.

Follow The Law When Protecting Your Assets

Never ignore the legal aspects while dealing with asset protection. Of course you can divide your assets according to your own wish, but at the same time you have to abide by the restrictions put forward by law in this regard. A legalized deal will help you avoid all sorts of discrepancies later.

Whether you decide to set up offshore asset protection or asset protection trust, taking a little trouble to protecting your assets will benefit your family greatly, and they in turn will be grateful for your foresight and generosity.

Article Source:
http://www.bestmanagementarticles.com
http://asset-management.bestmanagementarticles.com

About the Author:
Protect your family assets with good Asset Protection at Asset-Protection-Group.info.

Top Asset Protection Strategies

Sphere: Related Content

Are you someone who has made a considerable amount of fortune in recent times?
Or are you a person who is self employed or in a white collar profession?
Are you in the medical profession?
Does your job require you to deal with people everyday?
Do you own rental income properties and earn income from them?
Or are you the owner or boss of a company?

If you happen to fall under any of the above mentioned categories, you need to consider planning for asset protection right away.

If you are not sure what asset protection is, asset protection is a type of advanced financial planning technique that helps protect your assets from any type of legal liabilities now and in the future.

Contrary to popular beliefs, asset protection does not mean hiding assets, and is not a trick to evade authority. Asset protection also does not involve deceptive agreements or fraudulent transfers. It is simply smart and safe financial planning. It uses the cunning of business and tools of financial planning to safe guard your assets from being extracted by outsiders who do not have any right to or claim on your hard earned money.

In a nutshell, asset protection is the simplest and most inexpensive way of safe guarding your assets in case the situation arises where there is a threat to your assets. These are simple strategies that will make it unnecessary for you to hire the services of attorneys and other experts if the situation suddenly turns against you.

When it comes to protection of your assets, there is no one-size-fits-all asset protection plan or strategy. Defining your goals and needs, and using common sense will ultimately help you to work out the best plan for protecting your wealth against unscrupulous people and endeavors. Below are some useful asset protection strategies:

* The first tip is to keep a low profile by resisting the temptation to show off your wealth and being extravagant. Do not own all your assets directly under your own name.

* If you have more than one asset, then register the names of each asset as separate legal entities.

* Stay away from any types of ventures involving general partnership or handshake agreements. Partners are more likely to drag you into all sorts of legal troubles where you and your assets become directly liable.

* The liability laws differ from state to state. Some states follow more stringent rules while laws in other states are comparatively more flexible.

* Do not trust your financial advisor fully. Before trusting somebody with your money, just remind yourself of all the scams that routinely appear in the front pages of the leading newspapers.

Even if you have worked out a foolproof asset protection plan, you should keep a liability insurance, so that if something unfortunate were to happen, the insurance will strengthen your defense.