Asset protection

Have a question about your personal investments? No matter how simple or complex, you can ask it here.
Post Reply
Topic Author
coffeeblack
Posts: 122
Joined: Wed Jun 19, 2019 10:20 am

Asset protection

Post by coffeeblack » Thu Nov 14, 2019 8:35 pm

For those with 2 million plus in assets. What do you do for asset protection?

User avatar
JoeRetire
Posts: 3913
Joined: Tue Jan 16, 2018 2:44 pm

Re: Asset protection

Post by JoeRetire » Thu Nov 14, 2019 8:39 pm

coffeeblack wrote:
Thu Nov 14, 2019 8:35 pm
For those with 2 million plus in assets. What do you do for asset protection?
I invest according to my asset allocation plan.

What do you mean by "asset protection" in this context? What is your goal? Protection from what? I'm guessing your desire for "protection" differs from mine.

You'll probably need to expand on your question a bit to get meaningful answers.
Last edited by JoeRetire on Thu Nov 14, 2019 9:50 pm, edited 1 time in total.
Don't be a lemming.

stan1
Posts: 7720
Joined: Mon Oct 08, 2007 4:35 pm

Re: Asset protection

Post by stan1 » Thu Nov 14, 2019 8:50 pm

Umbrella policy

Do not own a liability trap such as a swimming pool, trampoline, ATV, boat, horse, etc. that could cause injury to another party

Homestead exemption (varies by state)

Lower risk career that is less likely to incur litigation

LLC for rental property

lakpr
Posts: 3076
Joined: Fri Mar 18, 2011 9:59 am

Re: Asset protection

Post by lakpr » Thu Nov 14, 2019 9:44 pm

Maximize the workplace retirement plan contributions (401k). Where possible, do not rollover to IRA

Maximize 529 plan contributions -- these are assets in your name but designated as college funds for a beneficiary, so not available to creditors ordinarily

User avatar
Steelersfan
Posts: 3745
Joined: Thu Jun 19, 2008 8:47 pm

Re: Asset protection

Post by Steelersfan » Thu Nov 14, 2019 10:05 pm

Umbrella policy, don't do dumb things to expose myself to unnecessary risks.

lakpr
Posts: 3076
Joined: Fri Mar 18, 2011 9:59 am

Re: Asset protection

Post by lakpr » Thu Nov 14, 2019 10:09 pm

stan1 wrote:
Thu Nov 14, 2019 8:50 pm
Do not own a liability trap such as a swimming pool, trampoline, ATV, boat, horse, etc. that could cause injury to another party
I would also include owning "dangerous" breeds of dogs in this category (great danes, pit bulls, rottweilers...)
Last edited by lakpr on Thu Nov 14, 2019 10:18 pm, edited 1 time in total.

NewMoneyMustBeSmart
Posts: 134
Joined: Sat Jun 01, 2019 10:28 pm

Re: Asset protection

Post by NewMoneyMustBeSmart » Thu Nov 14, 2019 10:16 pm

coffeeblack wrote:
Thu Nov 14, 2019 8:35 pm
For those with 2 million plus in assets. What do you do for asset protection?
Umbrella Insurance is a good way to protect your assets from claims or judgments for liability issues.

Having insurance in the first place is another version of this.

There are many legal elaborate ways to shelter assets. Many of these involve irrevocable trusts. I don't endorse this link, but it's somewhat relevant: https://www.assetprotectionplanners.com ... ble-trust/

Ultimately the approach of irrevocable trust asset protection as I understand involves giving away the asset and control (so you no longer control it) but making it be used for your benefit. So you could create an irrevocable trust, put some money in it, and hire a corporate trustee to use it for your benefit. That's one approach that may work for some and not for others.

There's a neat book called "How to be Invisible" by JJ Luna that talks about some other ways to do asset protection. Generally it involves putting assets into businesses, and keeping a low profile. I don't know how viable this is anymore, but with the increasing laws about tracking money, you would likely want to talk w/ a professional and attorney before doing any of those.

J295
Posts: 2173
Joined: Sun Jan 01, 2012 11:40 pm

Re: Asset protection

Post by J295 » Thu Nov 14, 2019 10:27 pm

401k — totally protected from creditors under state and federal law

Strong insurance plan, including umbrella (and in my case as a retired professional there is tail insurance)

Most non-retirement assets owned individually by each spouse

If investment real estate were owned, it would be in an LLC

averagedude
Posts: 767
Joined: Sun May 13, 2018 3:41 pm

Re: Asset protection

Post by averagedude » Thu Nov 14, 2019 10:42 pm

Umbrella policy, maximizing 401k plans, defensive driving, and not flaunting my assets.

Post Reply