What’s just as important as creating wealth? Protecting it. Here are 6 ways to protect your wealth that are commonly overlooked:
1. Estate Planning
It’s a shame to see someone build incredible wealth during their lifetime only to see it diminish when they die due to poor estate planning. The hits to a person’s wealth can come from many different directions: estate taxes, probate fees, attorney fees and assets not being passed how they were intended (just to name a few).
The good news here is that basic estate planning can add a great level of protection to one’s wealth.
When you hire an attorney, you usually sign a letter agreeing to certain terms. Or, if you have a partnership, you probably have a partnership agreement with your partner.
These agreements protect your wealth if your relationship goes south. The most important time to have your agreements in place is before things go bad; if you wait until things go bad, your wealth is not protected.
Think about the people you interact with in your business or investing. What types of agreements do you have with them? Are expectations clear on both sides?
I find most people are investing and running their businesses with the proper agreements in place.
3. Team Members
5. A Tax Strategy
6. A Wealth Strategy
Many people are anxious to start building their wealth right away – so much so that they rush out and jump right into an investment. I love this enthusiasm. I like to redirect that enthusiasm into creating a wealth strategy first. A properly built foundation can save years and years when it comes to building wealth.
– Tom Wheelwright
Rich Dad Advisor
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