Would you like a checklist of 5 key areas you need to know about to protect your money? Would you like a smarter way to set up your business entities to protect your wealth?
Jim Dew is president of Dew Wealth Management and has been a compliance officer and regional manager for a national financial services company. His experience supervising financial planners motivated him to start his own independent firm in order to provide unbiased, objective advice.
Here’s a glance at what you’ll learn from Jim in this episode:
- A checklist of 5 key areas you need to know about to protect your money
- Jim tells you how to put together a plan so you assets can’t be taken
- A smarter way to set up your business entities to protect your wealth
- Liability Insurance 101: What it is, how much you need and exclusions you need to watch out for
- The difference between revocable living trusts, self-settled trusts, SLA trusts and off-shore trusts
- C_____ I______: A vehicle savvy entrepreneurs use for transferring risk and gaining greater tax advantages
- What every entrepreneur needs to know about lawsuits, claims, creditors, accidents and more
- The benefits and drawbacks of life insurance (and how to use PPLI’s to gain all the benefits without the drawbacks)”
- Asset protection is about protecting your wealth from lawsuits, creditors, and other dangers. It’s essentially a plan so that your assets can’t be taken.
- Are you using entities like corporations in a coordinated manner to get the best protection? An easy idea is having two entities that control your business’s operations and assets separately.
- A family limited partnership is great for estate planning and wealth protection.
- You should have liability coverage over and above your standard coverage. A simple rule of thumb is to go to the next million for additional coverage.
- Read your exclusions page, you don’t want to see punitive or exemplary damages. These kinds of damages can add thousands or millions of dollars to a suit. Your policy should expressly exclude punitive or exemplary damages.
- If you sit on the board of a charity or a bank, make sure you know the directors insurance that covers you and what’s in that policy.
- Know what your state says about your IRA. A captive insurance company is another great tool for protecting your wealth as well as being a tremendous tax vehicle.
- Private placement life insurance is great for people with a higher net worth.
- Life insurance comes with a lot of benefits but can also come with a lot of disadvantages, PPLI comes with all the benefits but with none of the drawbacks. The downside is you need around 15 to 20 million of net worth.
- A self settling asset protection trust allows you to have a co-trustee instead of using a simple family trust which leaves you vulnerable.
- Another option is an offshore asset protection trust, just don’t try to avoid your taxes with it.
- Score yourself on a scale of 1 to 10 on how well your are protected in each area. Total up your score, if you have a score of 40 or higher you’re in a good spot. If you have a score of 20 or lower you are at great risk. Take to a wealth advisor that cares about you and get your plan set up.