When you’re young, it’s difficult to imagine the day will come when “fixed income” takes a stranglehold on your lifestyle. Perhaps you have a few investments—401Ks, IRAs. So that’s great, right? While your financial advisor might agree, they also know that investing can be a fickle activity. If you’re not taking steps toward wealth preservation, you might end up with a lot less than you anticipated.
Do your dreams include leaving a portion of your wealth to family or other recipients? The reality is you may find it drowning in a sea of negative market cycles, tax hits, and other demands lurking in the shadows. Today’s volatile financial market demands that you take steps to preserve your wealth. And remember this. Protecting wealth is not only for the 1% and their complex portfolios. Everyone needs to have wealth preservation as a realistic goal.
5 Key Wealth Preservation Strategies
- Incorporate risk management into your financial plan. Creating a balanced portfolio that includes the right number of low-risk investments is a smart way to soften the blow of major market fluctuations
- Implement an investment strategy that protects your assets. Planning for income from pensions or social security should be balanced by other higher and low-risk investments, insurance, annuities, and other fail-safes suggested by a financial advisor.
- Develop a philanthropic strategy. If you have a substantial amount of assets, risk management, and investment strategies in place, implementing a philanthropic strategy is a good way to avoid taxes while funding causes you to believe. A caution here is appropriate.
Avoid the notion that you have more than you do. Remember, over time wealth can change based on markets and other variables.
- Plan to pass your wealth down to future generations. Putting money into trusts for family members now allows you to avoid substantial estate (inheritance) taxes later. Whether you are in a high or moderate net worth bracket and won’t spend all your wealth in retirement, trusts are a good way to protect wealth from both income and estate taxes. It also ensures the maximum amount set aside for loved ones—children and grandchildren.
- Create a business succession plan. If you’re a business owner, it’s crucial to decide how you want your business wealth passed on when you finish working, sell the company, or pass away. It’s also essential to know how you’ll take your wealth out of the business and how and if the company will pass to another party if something unexpected happens to you.
Is Your Wealth Protected?
If not, there’s no time like the present to get going in the right direction—preserve your wealth now. The Law Offices of Michael K. Lanning, APLC, specializes in financial planning and wealth counseling. We’re committed to helping our clients and can help you build a wealth protection strategy that aligns with your unique needs and objectives for a sound financial future. Contact us at 310-820-1600 or go to our website to learn more and set up a consultation.
We serve West Los Angeles, Santa Monica, Pacific Palisades, Manhattan Beach, and the surrounding Los Angeles communities.
The Law Offices of Michael K. Lanning, APLC
11777 San Vicente Blvd.
Suite 750
Los Angeles, California, 90049
