Most people have experienced this problem as birthdays or the holiday season approaches: What can you possibly get as a gift for the man or woman who is financially well off?
“It’s a pretty good problem to have, isn’t it? – Your loved one has achieved a level of financial comfort in life that has enabled him or her to live free, mostly, of financial stress,” says attorney Hillel Presser of the Presser Law Firm, P.A., whose firm specializes in comprehensive domestic and international Asset Protection.
“Of course, the ‘good problem’ comes with an associated risk, because financial comfort and stability means you have something to lose. Surprisingly, most well-off people have taken little to no measures to protect what they’ve worked so hard to attain.”
Nobody is safe from financial threats, which can happen to people when they least expect it. Helping a family member initiate steps to take protective measures may be the best gift they’ve received in years, says Presser, author of “Financial Self Defense”, who explores some of the many benefits of protection.
• You don’t have to be super-rich. Anyone with any assets can benefit from legal protection. The average retiree with a nest egg can lose it all by seemingly frivolous yet successful lawsuits against them and younger people who are starting out in life can get a head-start by safeguarding their future wealth. Lawsuits, divorce, bill collectors and many other financial hazards have the potential to impoverish individuals and their families.
• Asset protection applies to individuals, families and business owners. Homes, cars and bank accounts may be affected in the event of a lawsuit – whether it’s a personal suit or one targeting the business. E-commerce businesses, for example, may need more financial protection than traditional businesses to cover their wealth of intangible assets, including domain names, website content, intellectual property, trademarks and patents.
• Liability insurance often isn’t enough. Liability insurance is a great place to start financial shielding, but it’s not a good end point. Most lawsuits and other financial claims aren’t insured, or you have too little coverage to fully cover claims, or an insurance company may deny coverage on a claim due to some exclusion. Unfortunately, insurance covers few financial catastrophes.
• Allow an investment to ease your mind, for a change. How much would you pay a good investment advisor to help build your wealth? Perhaps 1 to 2 percent a year? That money is paid whether or not money was made or lost on the investments, which tend to be stressful. To ensure protection of your wealth, you’ll pay less, and protection is a one-time investment – not annual. Most families can shelter their net worth for less than they’d pay for a modest vacation.