By Kelley Muhsemann
Marketing Manager
As a high-income earner, protecting and preserving your financial resources requires a comprehensive approach. Your strategy might encompass various legal, financial, and personal considerations, as well as both proactive strategies and reactive precautions. Outlined below are several key actions and practical steps that must be taken so you can safeguard your assets.
- Portfolio Diversification. Diversify your portfolio by spreading your investments across various asset classes such as stocks, bonds, real estate, and alternative investments, so you can minimize the risk of losing a substantial portion of your wealth in a single event. Diversification also helps protect against market volatility and economic downturns.
- Establish an Asset Protection Plan. Consider partnering with qualified professionals, such as attorneys and fee-only financial advisors, to create a tailored asset protection plan. Your plan should consider factors like your unique goals, risk tolerance, and potential legal liabilities. You may also need to create legal entities like trusts or limited liability companies (LLCs) to help shield your assets.
- Estate Planning: A wrong, or non-existent estate plan can mean leaving your loved ones with a complicated mess and potentially owing Uncle Sam a lot more than you intended. Having a comprehensive estate plan in place is critical for protecting your assets, your loved ones, and your future generations. Contact an estate planning attorney to establish wills, trusts, and powers of attorney, and be sure to review your plan regularly to accommodate changes in your financial life, family structure, or estate planning laws. You can download our free guide “New Regulations Open 6 Estate Planning Wormholes,” and our Financial and Estate Planning Organizer to get started.
- Privacy and Identity Protection: Although scams and identity theft can happen to anyone, high net worth individuals particularly tend to attract unwanted attention. Remember to separate business and personal assets, employ robust cybersecurity measures to safeguard your digital assets, and consider theft protection software, such as LifeLock, to keep you apprised of any potential threats.
- Family Security and Succession Planning: A succession plan can ensure a smooth transfer of wealth to your next generation, as well as the security and well-being of your family. Create a formalized plan in place that addresses things like wealth transfer, business continuity, and governance, and be sure to engage in ongoing open and honest communication with your loved ones.
- Philanthropic Endeavors: As a high-income earner, a philanthropic strategy can serve both as a means of giving back to causes that are close to your heart, and as a valuable asset protection tool. Creating charitable trusts or foundations can help shield assets, reduce tax liabilities, and solidify your family’s legacy while making a positive impact on the causes you support. Download our free “Charitable Giving Strategy Checklist” to discover your philanthropic motivations and goals, cash flow, asset selection, charitable giving vehicles, and tax planning matters.
If you have questions about protecting your wealth and achieving financial freedom, please contact us today for a complimentary discovery call at 631.218.0077 or info@rwroge.com or click here.
R.W. Rogé & Company, Inc. is an independent, fee-only financial planning and investment management firm serving clients locally and virtually across the country, with Long Island, New York, Beverly, Massachusetts, and Naples, Florida office locations. R.W. Rogé & Company, Inc. was founded on a “client first” culture and proudly commits to acting in your best interest as a fiduciary, since 1986. We help clients Plan, Achieve, and Live® the life they want since 1986. To learn more about how we do this, click here.
