8 Key Tips For Protecting Your Wealth And Yourself For The Long-Term
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8 Key Tips for Protecting Your Wealth and Yourself for the Long-Term

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As the old saying goes, “more money, more problems.”

Although it might sound cliché, it rings true enough. Wealth comes with a whole slew of responsibilities that many people wouldn’t even think twice about.

From investments to relationships and beyond, it’s totally understandable that you might be looking for a helping hand when it comes to protecting your wealth.

However, taking the steps to keep your money safe ultimately sits on your shoulders. Doing so is easier said than done and ultimately boils down to having your priorities in order.

8 Key Tips for Protecting Your Wealth and Yourself for the Long-Term

To help you better understand what wealth protection looks like, you need to be aware of each and every “what-if” situation that could be a potential setback for your pocketbook. Consider the following eight tips for keeping you and your money safe for years to come.

Executive Security

You might be surprised at just how many people hire executive protection to keep themselves

Doing so might seem extravagant or flashy, but there are certain situations where having your own security detail is a must-do.

For example, let’s say you’re traveling to a country that doesn’t exactly have the same emphasis on safety as the United States. Consider the peace of mind that comes with security when attending or events where you might not feel comfortable being alone.

Whether it’s personal protection for yourself and your family or a team to take care of your building, don’t rule out how third-party security can help you feel safe.

Invest in Insurance

Having insurance is a no-brainerand having a certain degree of wealth affords you the best of the best when it comes to your policies. This rings true for health insurance and fraud protection, but also don’t neglect how you can actually build wealth through insurance via investments such as permanent life insurance policies.

Protecting your wealth likewise means leaving something to pass down to your family even if you consider yourself set for life. That’s why IRAs, 529 accounts and 401ks are cornerstones of building wealth.

Diversify Your Portfolio

You’re probably aware that you shouldn’t but too many eggs in one basket as far as your money goes.

That’s why diversifying your portfolio is so important.

Spreading your wealth around to multiple stocks and mutual funds allows you a sort of safety net in case of an emergency or market catastrophe.

Additionally, it’s always good to know when to pull out of an investment that could cost you big bucks. This is where having trustworthy financial advisors is a game-changer, granted they’re not charging you an arm and a leg for commission fees.

Separate Your Assets

The subject of finances can be a touchy subject when it comes to romantic relationships

That said, separating your assets oftentimes makes the most sense for those with significant wealth.

Prenuptial agreements are something that you should be willing to be upfront about and definitely isn’t a conversation to shy away from. Consider also that even without such an agreement you can operate individual bank accounts or decide on an asset split after you get married.

Mind Your Business Relationships

Speaking of relationships, let’s talk about business partnerships.

It’s no secret that having wealth empowers you to invest in multiple businesses that keep the money rolling in.

That doesn’t mean that you should let others look at you as a cash cow, though.

Before entering into any sort of business opportunity, make sure that you fully trust the person you’re working with that they have the data to back up their big idea. In some cases, it might make sense to have a personal policy of not doing business with friends.

Step Up Your Data Protection

We live in an era where hackers and scammers run amok.

Whether it’s identity theft or avoiding tax scams, protecting your data is essential for both your short-term and long-term wealth. Avoid personal contact with people you don’t know when money’s involved and likewise the third parties that are handling your money or transactions

Trust Your Lawyer

A common thread between many of these tips is the need for some sort of legal counsel. Having a positive, on-call relationship with your lawyer (or lawyers) makes decision-making so much easier. Additionally, your legal counsel can help break down the opportunities and options available for you when it comes to your money.

A little bit of planning goes a long way when it comes to your wealth. And honestly, there’s never a bad time to start thinking about what safety nets and protections you have in place. Hopefully, this checklist served as some much-needed inspiration and motivation for prepping for whatever the future might hold.