Wealth protection – how do I mitigate threats?
You’ve worked hard to build up your personal wealth and assets, the last thing you’d want is to leave it vulnerable. So what are the risks to your wealth and how do you mitigate them?
What are the ticking time bomb threats?
There are 5 main ways your wealth can be attacked.
- Litigation
- Incapacity
- Bankruptcy
- Death
- Family law
Each of these can pose a threat to both individuals, families, and business owners or directors. But the people who are most at risk are business owners, directors, and those who are part of blended families.
The term ‘wealth protection’ refers to wealth management strategies, tools, and structures that help people protect their assets. This is important in the case of unforeseen circumstances. For example, if a leading member of a family passes away and has no intergenerational wealth transfer strategies in place, this can lead to family law claims or large tax payouts. Similarly, if a business owner becomes incapacitated, what provisions have been made for transfer of ownership or assets?
What can I do to safeguard my wealth?
Putting a plan in place today can reduce your risk and protect your wealth for future generations. But it can be difficult to even know where to start.
It’s important you talk to a financial planner to get a robust and personalised plan in place. Here are some of the things you should be considering:
- Insurance – secure your income in the event of incapacity of death. This is important for both individuals and business owners
For a more detailed look into what types of insurance are needed for protecting wealth, check out our blog post called: Don’t Put Off Getting Insurance Any Longer
- Intergenerational estate planning – guarantee the legacy of your family, minimise tax, and pass on assets the way you want.
Read more about the ins and outs of estate planning at this blog: Why You Should Consider Estate Planning
- Structuring – find the most effective way to structure the ownership of your assets for the success of business and family
Not sure if structuring is relevant for your situation? Check out this blog post: What is structuring and why does it matter?
Wealth protection is often overlooked because many people think it is harder than it really is. It’s a vital part of anyone’s financial strategy.
To find out how you can start safeguarding your own assets, book a complimentary discovery session.
