Get Asset Protection Before It’s Too Late

 

Case Managers Mike Groseclose and Kevin Stansbury, WEHO Mayor Lindsey Horvath, Glen Lerner, Hank Scott (WEHO Magazine), Keith Kaplan and Owen Ward
Source: Flickr
You know, there are actually people out there on the road, at this very minute, who do not believe they need car insurance. Instead, they drive on the roads and toss caution to the wind while the rest of us try to protect our assets by insuring them. These same people actually cause the rest of us to pay more for our insurance as a result of their irresponsibility. And yes, while these same people may appear to be complete fools to most of us, the fact is that many of us are fools ourselves for believing that we, too, can throw caution to the wind when it comes to protecting our investment portfolios.

Let’s be very honest here: not so terribly long ago the idea of asset protection” may have conjured up ideas of large Rottweilers or a fireproof safe tucked away in the back of our closet. But today, as millions of Americans and investors around the globe try to enhance their financial futures by investing in the stock market, such “low-tech”asset protection strategies simply are not enough to protect your hard-earned assets.

Now some of us, like myself, may not really know what asset protection is and how it can benefit us. I honestly liked the idea of big Rottweiler guarding my money but, as it turns out, Fido may not offer me or you the type of protection we really need for our investments. Simply stated, asset protection is little more than insurance for your mutual funds that is sometimes offered by brokers but is certainly available through most insurance companies.

Asset protection is a simple and safe way to make absolute certain that your investment yields you a decent return. Typically speaking, asset protection insures your initial investment PLUS an annual rate of return that can range from 4-6%. Now if you are particularly savvy about the stock market, you may not be very impressed with that rate of return.

Since the end of the Great Depression at the start of World War II, the stock market has earned an average return of 11% for investors. Now that being the case, a guaranteed return of 4-6% doesn’t seem too impressive, does it? But before you think this truly is a waste of your time and money, here are a few reasons why this asset protection is so critical to you, and your family’s, financial future.

To start with, the annual premium for asset protection ranges from .1-.5 percent of your initial investment. Now some companies do require a minimum transaction fee plus the interest, but the rate remains very reasonable. The asset protection pays out in the event of your death should your mutual fund lose money and it is calculated as part of your life insurance policy. This protection is merely one more way for you show your loved ones how much you care about their well-being and ensures them a solid return on your mutual fund purchases.

So, who should really consider asset protection? Older investors, particularly those who entered into the mutual fund market later on in life, are those most likely to benefit from asset protection. Also, those thrill-seekers that love to let the dice on their financial future ride upon risky investments…well, they are definitely encouraged to seek asset protection. After all, gambling and trying to make a larger return is a great idea, but risking your retirement and very financial survival is…just as dangerous as driving without insurance! Not only do you guarantee that you will not lose money, you are also making certain that you are still receiving a modest return on your money no matter how poorly you chose your investments. It’s a win-win situation!

So forget about the Rottweiler! Hey, if you add up all the costs of feeding, veterinary care, toys, furniture…well, it really is not the best way to go where protecting your assets are concerned. By providing people with a safety net for their investments at a very reasonable fee, asset protection grants you the peace of mind you need to enjoy living. Ensure that your loved ones never have to worry about the portfolio losing money and give them financial security by getting asset protection for your mutual funds today!