While I know a decent amount about how to save money in your day to day life, I will admit that I am clueless about things such as protecting your assets, which is why I'm always glad to have a contribution like this from someone more knowledgeable than myself.
While people have different priorities in life, and we all have our own version of what’s important and what’s not, none can argue the fact that the money is right up there in terms of importance. In fact, it might just be the most relevant of all the other things like family, having a good boss, getting married, and so on. The assets you own as you grow older are how you ensure your financial security, and more importantly that of your family. Sure, health is integral and finding love is fulfilling, but without funds, you will not be able to enjoy any of those things. This is why financial management is important to protect your assets over the years. Here’s how you can do that.
Separate the personal from the professional
This is one of the most crucial steps you could ever take to protect your assets in the long run. A mistake a lot of business owners do is keep their company and personal finances intertwined, which can be disastrous. Why is that? If your business gets hit with a lawsuit, your personal finances will not be protected and you could lose all your money because you didn’t keep them separate. This is why it’s best that you start your business as a limited liability company (LLC), which protects your own assets from any problems the business might encounter in the future. Thankfully it’s easy to form one on your own or simply hire an online business formation service.
Move your assets to other entities
That is another smart move you can do to protect your assets. You need to relinquish ownership of your assets, but retain control over everything. This helps you avoid any problems that might threaten your financial security in the future. You can do that by transferring your assets to other LLCs, limited partnerships, and trusts.
Estate planning
Estate planning is something that any person with assets should do as soon as possible. Contrary to popular belief, it’s not just preparing for your inevitable demise, but it also helps you manage your assets while you’re alive. As you can see if you click here, there are several angles to estate planning, including asset protection, trusts, probate, wills, and others. It is imperative that you get yourself a decent lawyer who can handle this entire process for you because this is how you ensure that you and your family are going to be secure, now and in the future –– and even after you’re no longer alive.
Insurance
Getting insurance is always a good practice, and it can save you a lot of heartache, and more importantly money. There are dozens of different types out there, and you need to get yourself insurance policies based on your current assets as well as predictions of any problems that might arise in the future. For instance, if you work in a field that attracts lawsuits like moths to flames, then you need to get yourself insurance to cover you should the worst happen. You’ll also need homeowner, worker’s compensation, auto, and several types of insurance. This is why you need to consult with an experienced lawyer, as they will guide you to what policies you should get, and what you can ignore.
Stick to the rules
You’d be surprised just how easy it can be to get sued, and it will mostly be your own fault. As a person who stands to lose much, you need to be very careful with how you approach any dealings. Always deal in good faith, yes, but never do anything unless it is put down in a written contract. You need sound leasing agreements for rentals, contracts for every project you take on, and documentation of any business deal really –– and no, emails aren’t written contracts. You need signatures. It might all seem like a bit much, but these details will save you a lot of trouble in the long run.
Don’t put all your eggs in one basket
When it comes to assets and how to handle them, that means putting down some of your assets in your spouse’s name. This can be a very clever move, especially for people whose professions are liable to multiple lawsuits. This is because a creditor cannot tap into your spouse’s finances because their assets are protected under law.
You definitely need to think this through from many angles. Your assets are everything you’ve worked hard for, and how you plan on protecting their needs careful consideration. Always get help and consult with professionals during this step, because their insight is extremely valuable and can save you a lot of money. Remember to separate business and personal finances, and get insurance whenever possible.
Separate the personal from the professional
This is one of the most crucial steps you could ever take to protect your assets in the long run. A mistake a lot of business owners do is keep their company and personal finances intertwined, which can be disastrous. Why is that? If your business gets hit with a lawsuit, your personal finances will not be protected and you could lose all your money because you didn’t keep them separate. This is why it’s best that you start your business as a limited liability company (LLC), which protects your own assets from any problems the business might encounter in the future. Thankfully it’s easy to form one on your own or simply hire an online business formation service.
Move your assets to other entities
That is another smart move you can do to protect your assets. You need to relinquish ownership of your assets, but retain control over everything. This helps you avoid any problems that might threaten your financial security in the future. You can do that by transferring your assets to other LLCs, limited partnerships, and trusts.
Estate planning
Estate planning is something that any person with assets should do as soon as possible. Contrary to popular belief, it’s not just preparing for your inevitable demise, but it also helps you manage your assets while you’re alive. As you can see if you click here, there are several angles to estate planning, including asset protection, trusts, probate, wills, and others. It is imperative that you get yourself a decent lawyer who can handle this entire process for you because this is how you ensure that you and your family are going to be secure, now and in the future –– and even after you’re no longer alive.
Insurance
Getting insurance is always a good practice, and it can save you a lot of heartache, and more importantly money. There are dozens of different types out there, and you need to get yourself insurance policies based on your current assets as well as predictions of any problems that might arise in the future. For instance, if you work in a field that attracts lawsuits like moths to flames, then you need to get yourself insurance to cover you should the worst happen. You’ll also need homeowner, worker’s compensation, auto, and several types of insurance. This is why you need to consult with an experienced lawyer, as they will guide you to what policies you should get, and what you can ignore.
Stick to the rules
You’d be surprised just how easy it can be to get sued, and it will mostly be your own fault. As a person who stands to lose much, you need to be very careful with how you approach any dealings. Always deal in good faith, yes, but never do anything unless it is put down in a written contract. You need sound leasing agreements for rentals, contracts for every project you take on, and documentation of any business deal really –– and no, emails aren’t written contracts. You need signatures. It might all seem like a bit much, but these details will save you a lot of trouble in the long run.
Don’t put all your eggs in one basket
When it comes to assets and how to handle them, that means putting down some of your assets in your spouse’s name. This can be a very clever move, especially for people whose professions are liable to multiple lawsuits. This is because a creditor cannot tap into your spouse’s finances because their assets are protected under law.
You definitely need to think this through from many angles. Your assets are everything you’ve worked hard for, and how you plan on protecting their needs careful consideration. Always get help and consult with professionals during this step, because their insight is extremely valuable and can save you a lot of money. Remember to separate business and personal finances, and get insurance whenever possible.