Wealth Preservation Strategies

You have spent most of your life building wealth to share with your family and other loved ones. Just as you drew on your talents and the help of an advisor to create your wealth your assets, you must put plans in place to preserve it.

Asset protection is the foundation for an effective estate plan. These forms of estate plans are created to deal with inheritance taxes as well as ensuring your wishes are carried out or simply to ensure the assets are used to be enjoyed.

Unless you plan ahead the main forces that could undermine your assets such as tax, inflation and investment costs can seriously impact asset value. Your circumstances will have unique requirements, so working closely with your advisor to find the most suitable wealth preservation strategy is important.

What assets should I consider protecting?

Your plans should include any asset you own, including investments, property, family heirlooms, automobiles and collectables. If you are a business owner, it may be prudent to transfer assets into a trust to protect personal assets from potential creditors.

General wealth preservation strategies?

Trusts are commonly used to mitigate inheritance tax liabilities and can be very effective tools to achieve inheritance tax mitigation. They also have less common but extremely valuable uses for example assets held in trust are protected from creditors and assets held through a trust can be protected from marital breakdown.

Another common use for trusts can be the gifting of assets to minors who are to young to control the assets themselves, this method is usually used for school and university education fees.

What about inflation?

Inflation can be corrosive often going unnoticed but over time inflationary pressures can have grave impacts on low returning assets such as cash deposits.

A well-structured and though out investment portfolio providing growth potential over the long term can alleviate inflationary pressures, a wealth preservation strategy should be extremely well diversified throughout global economies and through a range of asset classes.

What is a fair price?

Cost is about the only constant in the wealth preservation strategies and comes down to what is deemed fair and of value, driving down the cost on investments is a very effective method of ensuring you obtain value for money when you consider the average fund manager under performs markets why pay over the odds for under performance?

Getting Advice.

Tax, inflation and costs are but only three areas that can impact your wealth and finding an effective solution to mitigate the individual risks your estate faces can be problematic if not assisted with professionals who can deliver such strategies. Spectrum Wealth Management have extensive and comprehensive experience delivering wealth preservation strategies in a range of circumstances so please contact us to discuss your individual needs.

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