Protecting our family’s financial risk can be done through a variety of risk management techniques.
Also called “Continuity Planning” our goal it to reduce any long-term risk for our businesses and family investments. Businesses should also consider business succession plans (what happens if the unthinkable happens) or simply planning for retirement as well.
My goal as your advisor is to make sure any potential risks are minimized. Many of my clients have never heard of an umbrella policy, let alone a business succession plan. If this sounds like you or your family, keep reading.
When the pandemic hit, many businesses and families were unprepared for an economic downturn or loss of resources.
We can all use some easy ways to reduce our risk of loss and plan for our futures:
- Create asset protection strategies for your income producing property and businesses such as transferring rental property to an LLC or another entity.
- Develop Trusts or other gifting techniques to transfer property to another therefore transferring the potential financial losses to another person, entity or to an irrevocable trust.
- Creating contingency plans for both personal assets and your business.
- Figuring out your family’s needs and dynamics to plan for short and long term scenarios.
- Obtaining an “umbrella policy.” Many car insurers do not offer enough coverage to protect you against liability claims. Unfortunately, a bad accident with multiple injuries can wipe out your bank accounts. An umbrella policy provides extra coverage (potentially a million extra for just a couple of hundred a year!) Check with your car insurer to see if they offer an umbrella policy for you.
With the Pandemic in its second year of pandemonium, we can all use another look to make sure we have ourselves, our family and our businesses protected.