Analyze Your Own Risk
The first step in any asset protection strategy is knowing the threats to your assets in the first place. Not every protection option can defend your wealth against every threat, so if full protection is your aim, you need to know who could potentially be targeting you. Business ownership certainly brings with it unique risks you need to be primed to handle if you want to be truly protected. Belonging to any profession that includes the threat of a malpractice lawsuit is another issue that strongly needs to be considered and addressed during the process of protecting your assets. Regardless of your occupation or status, everyone can benefit from analyzing risks and threats to their wealth and other assets. The best way to be prepared is to know your own weaknesses.
Begin Your Protection Strategy
Once you understand your risks it is time to start your strategy. Asset protection is one thing you cannot begin once the wolves are already closing in, so steps to protect yourself must happen long before any potential creditors are on your tail. Your unique strategy will depend almost entirely on what type of assets you need to protect as well as from whom you need to protect them from. Your ultimate goal will be to reposition your nonexempt assets and turn them into exempt assets. There are a variety of options available during your journey to make your assets practically judgment-proof and out of reach of creditors but you will need to determine which is best for your specific situation.
Seek Out A Financial Advisor
A financial advisor who is well aware of your financial and estate planning goals is an essential person to have on your team while working on asset protection. He or she, along with an attorney who specializes in protecting assets may be invaluable if you do not have the knowledge or experience to pursue your options yourself. The key advantage here is their awareness of laws and rules regarding the various options which can help you avoid making a costly mistake.
Tackling your strategy alone can leave gaps in your protection that you only discover when it is too late. Whether you already have a financial advisor or are looking to use the services of one in the near future, don’t neglect this important step in managing your financial goals.
Asset protection is worth planning and executing now, as the longer you wait the more risk there is of potential creditors targeting your assets too soon for you to take action. For more information on financial planning and strategies to keep your assets secure, contact BD Financial Concepts for a consultation today.