There is no doubt that being wealthy comes with its perks, but it also comes with responsibilities. One such responsibility is protecting their wealth.
Wealthy people know that protecting their assets is crucial to guarantee that their financial future is safeguarded against any unforeseen risks. If they do it....why aren’t we?
I will be sharing four protective measures people like your CEO take to protect their wealth and why you should start doing it too!
1. Insurance: Wealthy people understand the importance of insurance. They have the means to acquire insurance policies that can cover various types of unforeseen risks. Such types of insurance could range from health insurance, property insurance, and liability insurance. Insurance does not guarantee that no loss will occur, but it provides the necessary safety net in times of crisis. If something unexpected happens, they can fall back on their insurance policies to ease the financial burden on their investments.
2. Wills: Creating a will is not just for the wealthy. However, for them, a will is imperative. A will offers absolute control over how assets are passed down to the next generation or to any trust. Wealthy people consult with estate planners and lawyers to draw up a will that ensures their assets are transferred according to their wishes. It is also essential to update a will periodically, especially when there are significant life changes, such as divorce, marriage, or the birth of a new child.
3. Postnups and Prenups: We all know that those from affluent backgrounds have various ways of protecting themselves and their wealth when it comes to marital issues. Prenuptial agreements are signed before marriage, and postnuptial agreements are signed after a marriage already exists. Postnups and prenups detail how assets will be split in the event of a divorce. It also highlights the terms for property ownership during the marriage and can help avoid legal battles if the couple decides to end their marriage. Wealthy individuals also use these agreements to safeguard their wealth if their partners have significant debt.
4. Estate Planning: Estate planning is crucial for wealthy individuals. They plan out their estates, identifying their heirs and choosing how their assets will be distributed. Estate planning includes everything from listing beneficiaries, drafting trusts, creating an inheritance tax plan, and choosing an executor with a will. Wealthy individuals prefer to work with professionals when it comes to estate planning to take advantage of specialized knowledge in this field.
Wealthy people know that they need to protect their assets to ensure a financially secure future for themselves and their loved ones. These four tools, insurance, wills, postnups and prenups, and estate planning, provide wealthy people with a comprehensive strategy to protect their investments. They ensure that their heirs can inherit their assets with minimal legal issues, safeguard against unforeseen risks, and provide a safety net for any unexpected events. These tools are available to anyone so why not use them too? If we look to the wealthy for their fashion tips and sense of style, why don’t we copy their financial techniques too.
Let’s discuss all the ways you can protect your wealth! Visit www.sylviaho.ca to book an appointment.
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