18 Mar 5 MOST POWERFUL ACTIONS I CAN DO TODAY TO PROTECT MY WEALTH
Wealth is paramount in life, because no one wants not to be wealthy. Whilst everyone aspires to have their children attend schools, colleges, and universities; obtain a degree, look for job, get married, have a family, and have a quality of life; others are making it through investments and gradually building their means to a wealthy living. It’s important to know that in whatever way success comes to your life, wealth is a good thing and it needs to be protected to avoid reduced wealth in the future. In this article, we’re going to look at 5 most powerful actions I can do today to protect my wealth.
- Review My Estate Plans
An estate plan is critical to ensure that your wealth continues on to future generations seamlessly; therefore, a comprehensive review on all of your estate plans will prove to be a good step towards protecting your wealth. For example, establishing a disability or a testamentary trust can have significant asset protection, social security, family law and taxation benefits. In addition, if you have estate plans in place, you need to carefully and regularly review and examine the qualities of these plans to reflect any changes to your circumstances. Another example is checking to see if your superannuation fund offers a non-lapsing legally binding nomination. If you found out that certain things are not going in the right direction, we can help you make re-adjustments in order to get your estate plans in order. Reviewing your estate plans to protect your wealth now and into the future for future generations is critical to protecting your family’s wealth.
- Consider Personal and Business Insurance
Insurance is an important means of providing us with the opportunity to ensure that our wealth is not adversely impacted in the event of a serious illness, injury or even death. Purchasing the appropriate insurance such as life insurance, critical illness insurance, home insurance, income insurance, health insurance etc. can give you the ability to protect your wealth and addresses adverse circumstances in a financial sense. However, it is important to know that owning different assets may require different types of insurance; therefore, it is important to evaluate your personal and business insurance in order to get them insured and keep your wealth healthy.
- Prudent Investment Management
Prudent investment management means having a careful observation and assessment of your investments, and then adopting ways at which you can provide appropriate management and care of those investments so that they can thrive sustainably. For example, if you have different assets invested differently, you will need to carefully observe how well they are performing so that you can manage any identified negative effect before it poses a threat to your wealth building.
- Use Appropriate Investment Structures like Trusts
If you have investments opportunities, you can consider using an investment structure like “trusts” so that you can enjoy the benefits of tax planning and asset protection. Investment structures can come in many forms, and using the investment structures like “trusts” can help you direct who benefits from the income of the trust and any capital gains incurred by the trust can be streamed to the beneficiary who has lower levels of taxable income.
- Always Spend Less Than Your Income
One of the behaviors we can do to avoid reduced wealth is to try and spend less than our income. When you spend more than your income, chances are you will struggle to save or invest in life and this will have a detrimental impact to your wealth over time. Therefore, we will need to learn how to control our spending, so that we will have meaningful investments that can help build your sustainable wealth that can benefit you now and into the future.