These two keys are absolutely essential, yet many people are reluctant to
deal with them because doing so makes them uncomfortable. No one likes to
think about dying, and no one likes to think about getting sued.
Yet the first one is unavoidable – we all will die, sooner or later. And
when that happens, hopefully very far into the future, you'll want to make
sure your assets will go to the people or causes of your choice, not the
court's choice. And the second issue, getting sued or losing assets due to
situations beyond your control, is actually more likely to happen than you
might think.
1. Get Your Estate in Order
Do you have a will? You really need to have one. You'll also need to set
up durable powers of attorney and health care directives. I realize that
this might be an uncomfortable topic, but do it anyway.
If you don't, the courts will determine what to do with your assets. Do
you really want them to decide who should get your stuff? I didn't think so.
And if you have significant assets, you will want to look at revocable
living trusts and other entities as well to ensure that your heirs will
actually be able to benefit from the fruits of your hard work.
2. Protect Your Assets
Asset protection is another topic we'd rather not think about. But the
fact is, that there are many risks that could endanger your wealth:
premature death or disability, taxes, inflation, adverse economic
conditions, lawsuits and more.
Unless you want to risk losing it all, you must take the necessary
precautions to protect any assets you have accumulated. You can do that by
using the appropriate asset protection tools such state and federal
statutes, legal structures, and insurance.
This can be as simple or as complicated as you choose, depending on the
level of protection you desire. The more assets you have, the more important
it is to protect them from as many risks as possible.
Since getting sued is a big risk in this current society, here's a very
cool additional benefit of proper asset protection: It may be much more
difficult or even impossible for the other party to collect a judgment if a
lawsuit doesn't go your way. And that prevents you from looking like a
desirable target. Most attorneys work on a contingency basis, and if they're
unlikely to collect, they may refuse to get involved.
And regarding insurance, can you survive without your spouse or business
partner? Do you have enough cash to cover the bills if you can't work? Have
you reviewed all of the risks you're currently taking to determine if you
want to accept that risk or transfer it to someone else? These are very
important questions that need to be answered if you really want to protect
your assets.
How you choose to structure your estate and business activities will have
a significant impact on your overall financial success. The better you plan
and execute, the more you will be able to enjoy the benefits of your work.
About the Author:
After 15-plus years of being a financial planner, Christopher Music
decided there had to be a better way. Witnessing financial debacles of big
industry and government-driven economies caused Christopher to take action,
developing an instrument that measures the success of any financial plan.
The Financial Security AnalysisTM (FSA) is the back bone of Music’s firm,
Wealth Advisory Associates (WAA). WAA is a financial planning firm focused
on helping private-practice physical therapists understand and implement the
most effective strategies to achieving financial success and security. Visit
www.wealthadvisoryassociates.com
