Prosperous Retirement Planning – Asset Protection

 A reference to assets implies referring to a person's home, car, furniture, savings, investments and business. The threat to your property and assets may come from taxation, litigation, creditors, claimants, business failures, family or matrimonial problems, or miserable annuity rates that destroy your pension fund, or some other problem.

 Asset protection planning involves a process by which one organizes his/her financial affairs in a manner that safeguards assets from the risk of exposure.

The process of asset protection involves transfer of assets from an unprotected form of ownership to a protected form of ownership. The unprotected form typically applies to property that is held directly in an individual’s name or the name of a revocable living trust. Assets can be protected through limited partnerships, corporations, certain kinds of trusts, limited liability companies and other such entities.

 Protection of assets can also be a process of transferring them into exempt assets to the extent permitted by the individual states. Estate planning and investing in retirement plans is also good way to protect your assets. Investment in life insurance plans and certain trusts can further prevent creditor attack while the assets are outside the hands of the beneficiary.

 It is wise to start asset protection planning early because it cannot be started when a judgment creditor is already involved in a dispute. There are laws that offer protection to a judgment creditor against people who transfer their assets out of their names with the intent to hinder, delay, or defraud the creditor. In such situations, a court will see right through these "fraudulent" transfers and simply order that the transfers be reversed and the assets turned over to pay off the creditor. This is why asset protection planning must be started long before there is any sign of a lawsuit.

 Besides this, in order to put together a comprehensive asset protection plan you also need to integrate two important goals: 

·        Your short term and long term financial goals

·        Your estate planning goals

 While examining your short term and long term financial goals, you can also check and make note of your current and future sources of income, how much money you may need during retirement, and how much will be left over to pass on to your heirs through your estate plan after your death. A good knowledge and analysis of such needs helps you to prepare a detailed financial plan.

 Once you have formulated a financial plan, you will get an idea about your current net worth and how much wealth you can expect to accumulate in the future. From this information you can create a comprehensive estate plan. This plan addresses issues such as who will take care of you and your assets if you become mentally incapacitated, who will take care of your minor children if you die unexpectedly, and who will manage your assets and take care of your spouse or other family members after your death. 

When you retire rich, you retire happy and for this it is important to have an asset protection plan in place. 

If you wish to retire rich and retire happy, contact a reliable Retirement Planning Coach  at: