Your Financial Road Map
Asset Protection
Asset protection in financial planning involves implementing strategies and measures to safeguard one's wealth and possessions from potential risks, such as lawsuits, creditors (like Uncle Sam), and financial downturns.
Accumulating assets for retirement can be futile if situations or actions, legal or otherwise, threaten to strip them away.
Asset protection planning, often misunderstood, is crucial in safeguarding against lawsuits, particularly negligence suits arising from issues like....
...distracted driving due to cell phone use - 6 times more dangerous than drunk driving¹. - Let that sink in!!
Ownership of property and certain professions, such as doctors, lawyers, business owners, or entrepreneurs, introduces liability concerns that demand attention.
To shield assets from creditors, creating a strategy that may include Limited Liability Companies (LLCs), insurances and/or trusts may be instrumental, provided they are structured correctly in a creditor-friendly state, following proper formation procedures by a qualified professional.
Assets like brokerage accounts, rental properties, vacation homes, and IRAs are apt for protection, possibly through LLCs. Crucially, separating liability assets from non-liability assets within LLCs is paramount to help mitigate risks.
Check out "Business Owners" for ideas to structure your business for protection and tax efficient planning.
In a comprehensive strategy, it's vital to address diverse liabilities and potential creditors for robust asset protection, ensuring a secure financial future.
Registered Representatives of Equity Services, Inc. do not offer tax or legal advice. For advice concerning your own situation, please consult with your appropriate professional advisor.
¹National Highway Traffic Safety Administration