Wealth Management
The Most Critical First Step You May Have Missed

What does wealth management mean to you? Depending on your financial background and the size of your investment portfolio, the thoughts that may come immediately to mind could be diversification, rate of return on your stocks, bonds etc.

But did you know that the very first step involves asset protection? Let me tell you why. Let's say someone gets injured on your property and decides to sue you for an obscene amount of money. Suppose that person had a better lawyer than you had and the court awarded this individual this ungodly sum of money.

If as a result of this lawsuit, you had to sell everything you owned. I mean everything. Is there any more wealth left to manage? You can't manage what you don't protect. I hope you see my point. Protecting your assets is an absolutely critical first step. It may be a step you might have failed to take until now.

If you're like most, your home is your biggest asset and accounts for the better part of your wealth. Protecting this real estate is of utmost importance.

You should know how to protect it from foreclosure if you run into financial jam as well as all the possible frivolous lawsuits that may arise in your lifetime. It's also a good idea to be in the know when it comes to what happens after foreclosure.

Yet, believe it or not, even the foreclosure process remains a mystery to many homeowners.

Even worse, as one of the biggest investments in the average person's wealth portfolio, real estate remains an open book for the world to see. Anyone can walk down the county courthouse and see everything about this asset because it is public record.

Whether your retirement is near or several years away, if you own a home, your first priority is to get your name off public records. You should make it as difficult as possible for anyone to find out about your ssets.

The one instrument that affords you this financial privacy for your home is a Living Trust. When you put your home in a Trust, your asset is no longer readily apparent to the public. Just like investors enjoy privacy about the stocks, mutual funds, bonds they own, you should have that same privacy about your personal real estate.

There's an additional benefit to having your home in a Trust. Your heirs don't have to suffer the stress, the expense and long delays associated with probate. You are able to transfer your assets to your beneficiaries without probate.

As you can see, the first step in wealth management does not always start with your financial advisor. It starts with a competent attorney who is well versed in Living Trusts.

Once your assets are under lock and key with a good asset protection plan, you and your financial advisor can put your heads together to start growing your portfolio. Remember, protect and manage.

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