Economic Ups and Downs
The economic downturn that hit 2007 left no country untouched, creating a global financial crisis that left everyone tightening belts and considering the benefits of proper financial planning. The positive consequence is that plenty of people are now protecting themselves in the event of future economic downturns. How can you keep yourself and your assets safe in the event that the world economy (or even the national or local economy) takes another dive? Here are a few good options to explore.
Having a Nest Egg
Most experts agree that having six months' worth of money on hand to pay bills is a necessity, and many recommend setting aside up to a year of salary to ensure that you can weather layoffs and a poor job market. In the event that your income level drops and you have to dip into savings to pay for ongoing living expenses, a nest egg will help you keep your head above water. Having cash on hand to continue paying bills could help to keep the electricity on and save you from foreclosure should you be affected by an economic downturn.
Having an Asset Protection plan in place
When the stock market tanks and the housing and job markets follow suit, you're going to want to make sure creditors and other claimants can't come after the assets your family relies on. The best form of asset protection is to set up family trusts that take assets out of your name and hold them in trust for family members (a spouse, children, or others). When this is done correctly (as opposed to when creditors are already knocking down your door), it is an excellent means of protecting wealth and holdings in order to keep them safe for your family.
Separating Professional and Personal Assets
When an economic downturn occurs, both businesses and individuals can be hit hard. This is especially true for small, family-owned businesses. If you happen to own and operate such an entity, you need to make sure your personal and professional assets are legally separated so that if your business fails, professional creditors can't come after your family's personal assets. At the very least, you should set up a family home trust so that you don't find yourself out on the street as claimants seize your main asset for repayment of debt. You might also want to place other valuable assets in family trusts, as well as think about creating some kind of corporate structure to take on the liabilities that come with a business, thereby protecting your personal holdings.
So why not learn more and register with TrustUs today.
After all, it's in your hands.