I encourage the majority of people I communicate with to implement a asset protection plan… but I also advise them not to overdo asset protection. <\/p>
What I mean by this is that you must make sure that after your plan is complete, that you still have plenty of assets in an unprotected environment to pay your reasonably anticipated bills.<\/p>
I also advise that asset protection is not for personal residences. Normally, you leave personal residences outside of the protected environment. Many clients ask about reducing or eliminating insurance once proper asset protection is implemented.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t
This is almost always bad idea because insurance is:<\/p>
Insurance policies normally provide a good defense. Remember, asset protection can keep your money safe; it cannot keep you from being sued and perhaps being eaten up by the costs of defense. Also, a plan is for long-term savings and should never be settled with assets necessary for day-to- day (or even month-to-month) expenses.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t
Today, I take on a simple rule. It’s a little bit funny but it really matters. What is it? Pigs get eaten. I put it here, it’s a little shorthand phrase I use but it helps people remember it. It stands for the following precepts. Asset protection is for a portion of your net worth. It is designed to put enough money aside so that if your world falls apart, if you really get in trouble, you’ll be able to emerge on the other side of this dark tunnel with enough assets protected that you can start over again.<\/p>\n