Top Five Ways to Protect Your Assets
Posted on January 27, 2017
Building wealth is only one side of the coin of getting rich; the other side is keeping what you have. And there are a number of ways you can do that, but you have to think smart. Here are a few ways to protect your assets from misfortune and bad decisions.
- Make a will. Even if you don’t think you have a lot to leave behind, a will helps protect your wishes and prevents fighting among your survivors. That, potentially more than any money or property, is a huge gift to your family.
- Obtain health insurance. Health insurance — whether you get it through work or an individual plan — is the best way to protect yourself from having to take out a second mortgage or run up credit-card balances to pay for your medical care.
- Don’t leave all your money under a mattress — or in a savings account. Our economy continues to recover from the recent recession, but we’re not out of the woods yet. Many people want to save while the paychecks are regular, but savings accounts are offering little in the way of interest. That’s why you should consider diversifying your investments to hedge against inflation. If you don’t, the money you’ve managed to squirrel away will be worth a few acorns less year after year.
- Talk to your partner about money (often). If you’re married or have joint bank accounts with your significant other, their financial decisions can affect not just how much you have in the bank but your credit score, too. Have regular — monthly, at least — check-ins to make sure you’re on the same page and on track to meet your goals.
- Buy life insurance. A good policy will do more for your family than your nest egg will, most likely. A good rule of thumb: Get a term policy that’s worth, at minimum, what you owe on your mortgage and any other financial responsibilities you have, like college tuition for your kids.