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Protecting Your Financial Gains

The task of fully understanding asset protection is not nearly as complicated as it might seem. There are many informative books and websites to guide you through what appears at first to be a labyrinth of choices and decisions.

The first decision in understanding asset protection is to determine if you fall into a category that would be at risk financially by various environmental conditions. Once you establish the necessity of asset protection you will want to know how you can legally maximize the security of your assets and minimize risk to your current or future net worth.

There are many established companies out there willing and able to help you with advice and/or services once you have decided asset protection is necessary for your personal or business endeavors. There are many venues and various criteria, each with their own purpose, to determine your specific need for and level of such asset protection.

People who need asset protection include anyone in a high-risk profession, regardless of their current wealth. Asset protection would also be recommended for anyone with at least $500,000 in liquidity or a net worth of at least $750,000. This prerequisite for the need to be protected clearly speaks for itself. No one wishes to have assets accumulated through hard work diminished when it can be protected quite simply by a solid asset protection plan.

Asset planning would also be beneficial if you are expecting an inheritance, or starting a business where a strong growth phase is expected in the first formative years. Creating and incorporating a business in itself can be a huge undertaking. The assignment of partnership can be frustrating, but to work so hard to create the platform for a pliable business is nothing compared to the realization there were simple and legal ways to protect your prior and future earnings from being attacked once your business has taken off and grown in leaps and bounds.

If you expect to be involved in future litigation that would involve your personal or business assets you need an asset protection plan. This must be in the earliest stages of completion at least one year in advance of the litigation. It should be noted that the objective of asset protection planning is not to keep any legitimate creditors from receiving what is due to them. Good asset planning assures all debts will be paid. A main goal of asset planning is to insulate and segregate liabilities away from valuable assets. In essence, the goal is to protect them.

Offshore planning involves assets being set into accounts outside the United States. There are many factors to consider before you delve into this protection but it should not be ruled out just because of the myths surrounding this type of asset planning. To dispel any myths of legality regarding offshore planning, carefully research the subject and discuss it with the professional assisting with your asset protection plan.

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