If you have a growing portfolio of valuable holdings, you’ll want to have peace of mind knowing it is secure. Explore the best ways you can protect your assets for advice on how you can ensure a healthy financial future.
Umbrella insurance is a policy to get on top of any existing policies you might have; it shouldn’t be looked at as a replacement for your primary policy but rather a blanket of protection. The approach is unique because it covers both personal and business policies. It will protect against injuries, property damage, certain lawsuits, and personal liability situations. However, it does not cover fraudulent activity or anything in excess of $2 million. The typical umbrella insurance policy is around $1 to $2 million with an annual cost between $300 and $500.
Place a Percentage of Assets in Spouse’s Name
One of the best ways you can protect your assets is by not keeping it all in your name. If all the assets are stored together, they are more liable to all being lost at once. Multiple scenarios could make grouping your assets detrimental such as if someone sues, you need to declare bankruptcy, or your account gets hacked.
That’s why many people will sign part of their worth over to the most trusted person in their life: their spouse. You should be aware, though, that you are forfeiting the right to your assets by signing them over. So, if you ever get divorced, you’ll lose the rights to those properties. Also, a prenup does not protect assets that are no longer in your name.
Separate Business From Personal
All your business and personal assets should be kept separate. If your business gets sued, you want to have your private holding protected from seizure. By keeping them separate, you won’t open yourself up to unintended liability.
Hire a Business Manager
If your assets are growing exponentially, or if you already have an extensive portfolio built, you’ll need someone dedicated to handle your finances. Between work and family, it can be hard to keep your hand in every cookie jar, and you’ll want a trusted person who can handle the daily maintenance of your finances. That way, you don’t have to be a constant custodian of your fortune, but instead, you can enjoy it.
Set Up a Will and Trust
If you don’t already have a will set up, you should do so. Your assets don’t disappear when you pass, and if you want to have the final say on what happens to it, you’ll want a will. Then you can decide how your assets get divided up, and you can pick an executor who will execute your final wishes. You might also want a lawyer about elder law. Unlike estate planning, elder law protects you when you are too sick to protect yourself by setting up a financial plan for your later years.