Protect your assets

Asset protection

Asset protection

 Asset protection is a part of financial planning that helps you keep your assets safe from creditors. Various investment accounts, such as Individual Retirement Accounts (IRAs), have a certain amount of asset protection in favor of equity.

Do You Need An Asset Protection Plan? - Legacy Planning Law Group

Ways to protect your assets from lawsuits and creditors

There are Six ways to protect your assets from lawsuits and creditors

  1. Insurance against potentially large losses – Buy insurance for large financial risks that could reduce your savings or future earnings.

  2. Consider Life Insurance – If you have dependents who would suffer financially if you die, buy life insurance. Another good candidate for life insurance is a young person with no dependents whose parents cosigned private student loans that are not forgiven in the event of death.

  3. Real and Personal Property Protection – Purchase property insurance with a replacement cost rider on personal property to replace items at the current cost up to the policy limit.

  4. Build Relationships – Build an ongoing relationship with one or more insurance professionals who can provide a periodic review of coverage and information about available cost-saving options.
  5. Avoiding Coverage Gaps – Maintain coverage between jobs (for example, after leaving active military service) to avoid the risk of out-of-pocket costs.
  6. Lower Insurance Costs – Consider using one or more of the following strategies to lower the cost of insurance premiums:
  • Choose higher deductibles for auto and health insurance.
  •  Compare at least three competing insurance companies before purchasing insurance.
  •  Inquire about discounts available on the policy, such as good driver and non-smoker discounts.
  •  Pay premiums annually instead of monthly or quarterly, or set up automatic payments.
  •  Buy multiple insurance policies from the same insurance company (also known as “bundling”)
  • Opt for longer exclusion periods for disability and long-term care.

Why protect assets is important for us?

Finally, asset protection is an essential part of financial planning. This includes purchasing insurance to protect against risks such as property damage, liability, and disability. It also includes estate planning, such as creating wills and creating trusts to protect assets and provide for heirs.

Why is Financial Planning so Important?

  • Benefits of asset protection

1. Potential Savings:

By contesting your property taxes, you can save a significant amount on your property tax bill over time.

2. Fairness:

You feel your property is overvalued or your taxes are unfairly high compared to similar properties in the area.

3. Learning Opportunity:

The process of appealing your property taxes can be a valuable learning experience. Through this process, you may better understand how property values ​​are assessed and how taxes are calculated.

4. Preserve property value:

If you are successful in reducing your property tax bill, you can reinvest the savings into your property, which can help preserve or even increase its value.

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