What is asset protection?
As a stockbroker, I warned clients about “predators and creditors.” Let’s face it. We live in a litigious world. Get in a car wreck, and your assets may be attacked. Homes. Family businesses. Savings. And predators aren’t restricted to collisions on the highway. There’s always the altar.
Is asset protection some kind of euphemism for stiffing banks? No way. It’s more about planning before you borrow the first dollar, about defining what assets are available to lenders if things go bad. Better to work out these details in advance. Negotiations can be one-sided as creditors bear down during duress.
There are wealth tools that protect against predators and creditors.
Asset protection is so important that I referenced a few techniques in my novel. Here’s how Grove O’Rourke, the fictional hero of Top Producer, describes asset protection to one of the budding stockbrokers at his firm:
Prenups, offshore trusts, ways to avoid gold-digging litigation raptors.
But wait. Offshore trusts sound complicated, not to mention expensive. Do I need asset protection if my resources are…well…modest?
“Asset protection for the middle class? You bet!”
Offshore trusts aren’t the only way to protect your assets. This Thursday, Ike Devji will guest blog on Acrimoney. He’s put together a list of ten, no-nonsense actions that every investor, every family should consider. They’re terrific action points, and I encourage you to check back.
For the record, Ike was named among WORTH magazine’s “Leading Wealth and Legal Advisors” and was recognized by the Financial Planning Association of America’s Academy of Financial Services for his educational work in this area. I’m thrilled he will be guest-blogging on Acrimoney.
Ike will field questions this Thursday, so make sure to ask yours.
The New York Times describes my novels as “money porn,” “a red-hot franchise,” and “glittery thrillers about fiscal malfeasance.” Through fiction I explore the dark side of money and the motivations of those who have it, want more, and will steamroll anybody who gets in their way.