What’s your asset protection strategy?
Separating Business and Personal Finances is something you need to look at!
Everyone loves when the ultra rich go bankrupt. The headlines go crazy, everyone talks about it on Twitter and Facebook.
- Robert Kyosaki
- Donald Trump
- Walt Disney
All have gone bankrupt before, and some several times.
How can these multi millionaires go bankrupt so many times and still continue to be worth millions of dollars.
The secrets comes from how these people set up their finances. We aren’t going to get into the details of bankruptcy filing but these individuals bankruptcies should provide a valuable lesson on wealth protection.
Robert Kiyosaki, Donald Trump and Walt Disney have a combined personal net worth in the billions of dollars.
It is crucial to note that they did not file for personal bankruptcy, their corporations are the ones that went bankrupt.
It is the companies of these individuals and not themselves personally that have gone bankrupt.
What that means is if a business that they have established gets sued and the amount they are sued for is worth more than the business itself the company may go bankrupt. When set up correctly this does not affect the personal finances of these individuals.
Donald Trump makes 20 million dollars personally from his Trump Construction Corporation over a five year period. This corporation gets sued at the end of 5 years for 30 million dollars. If the construction company only has 5 million dollars in assets and cash, Trump construction can go bankrupt and Donald still walks away with his 20 million dollars.
This is a simplified example but it is important to note that it’s all in the way that you structure and protect your finances
It appears that these individuals know the famous saying “Success Breeds Litigation” meaning the more successful you are the more likely that people are going to sue you.
The reason these business men are able to continue to succeed moving forward is their ability to protect their finances and plan for these instances.
Don’t just think that you need to be as profitable as these three to be the target of a lawsuit.
No matter how much money you make or how much wealth you’ve accumulated, there is always going to be someone out there who has less than you, and wants to take it from you.
That’s why it is crucial to educate yourself and work with the right people when dealing with your finances.
You want to work with a team of attorney’s, accountants and financial advisors like we do at Safe Pacific to protect yourself and your assets from the unexpected surprises that happen in life; things like lawsuits, accidents, death and divorce.
Asset protection isn’t just for the rich it is important to set up your own Personal Asset Protection Plan.
If you don’t have an asset protection strategy in place, you need to get one in place soon … especially if you are running a business or thinking of starting a business.
But as you’ll find out, it’s not just businesses that need asset protection. You do, too.
This is a specialized field so it is crucial that you get a team of professionals together that can help you in this area.
This is an area where Safe Pacific can help.