A well-outlined asset protection plan is a powerful deterrent against lawsuits. Asset protection planning involves a comprehensive and integrated estate planning strategy that includes short- and long-term financial objectives. When planning, your focus should be to devise a plan that addresses and supports both your professional and personal goals. Unfortunately, we live in a society where creditors and individuals can be predatory against people with substantial assets, and knowing that the average person never wants to go to court often force people to settle frivolous lawsuits as their game of choice.
Asset protection plans differ depending on the kinds of assets owned. High-risk assets include tools, business equipment, rental properties, and vehicles. Safe assets include stocks, bonds, and bank accounts.
If you own a business, your primary objective is to separate personal assets from your business assets to prevent any parties from going after your assets. Corporations like LLCs, S, and C Corps are going to be some of the traditional ways to initiate that protection whereas sole proprietorship, DBA, or general partnership offer limited or no protection against these types of predators. Trust and offshore accounts also limit the risk of exposing your assets.
Asset protection is priority 1 for those individuals who want to secure themselves from lawsuits however there is no single way to protect your assets as everyone’s needs adherently differ. A qualified asset protection professional will analyze your personal and professional risks, exposure, and possessions along with your goals for you, your beneficiaries, and business so your asset protection plan is specifically catered to your needs.
To discuss your financial planning objectives I am available upon request and can be reached at my website JeffreyLevine.Solutions for inquiries and appointments.
Establishing clear financial goals is the first and most important thing you should do when you’re doing a financial checkup. These goals will help you decide which “path” to take in your financial future.
Your financial health is just as important as your physical health so incorporating a regular wellness check on your personal finances is required in order to maintain the most accurate state of affairs. Consistent financial checkups enable you to determine what adjustments are required in order to stay in line with or exceed your economic goals.
A simple assessment reviews the following:
Subtracting your assets from your liabilities calculates your net worth. This assessment allows you to be clear about exactly what you currently own as opposed to what you currently owe. Thorough evaluation of your net worth will allow you to see how much debt to decrease and what assets to accumulate to offset any deficiency.
Calculating your debt to income ratio by dividing your debt payments into your monthly income. A favorable debt to income ratio is around 30% or lower, with 20% being ideal. Anything higher than 30% needs to be rectified as a higher ratio will adversely affect your credit scores and buying power by lowering your opportunities for credit and tradelines.
Setting clear short- and long-term financial goals can be challenging so here are a few steps I suggest you should consider to get your financial affairs in order.
*Create and follow a concise budget
*Take on side gigs to offset income
*Lower your mortgage and utility expenses
Your primary objective should be to increase your net worth by 5% to 7% or more, have a substantial emergency fund and ultimately build wealth so as to retire comfortably.
I am available to consult with you and your family about your financial planning and budgeting needs.
A balance sheet is a document that businesses can use to summarize their company’s financials which investors can then use to determine the value of a company. The sheet details a company’s assets and liabilities, along with the value of its stock. A balance sheet is also used in conjunction with other financial documents, like an income statement or a cash flow statement. Combining the insights of all three of these documents can help you determine whether your company is growing financially or experiencing a deficit.
A company releases its balance sheet to show its assets, liabilities, shareholder equity, as its financial information on a monthly or annual basis reflecting past, present, and future operations. Potential investors rely on the accuracy of these documents to consider if your company is viable to divest their funds. Balance sheets reflect at any given time how many assets the company owns, how much liability the company owes, and how much shareholder equity is available once liabilities are deducted from assets.
Assets include cash, investments, other tangible assets like intellectual property and are classified under current assets and tangible assets. Current assets include anything that can be converted into cash within one year, may involve cash, stocks, bonds, prepaid expenses, or physical inventory. Long term or fixed assets are utilized long term by the entity and may include property, buildings, furniture, vehicles, equipment, and machinery.
Liabilities reflect money that the company owes including taxes, loans, salaries, utilities, rent, or supplies. Liabilities are itemized as current liabilities and long-term liabilities on a balance sheet. Again, current liabilities include short term debts like accounts or notes payable. Long -Term liabilities reflects outstanding debts that are stretched out for periods longer than one year and can include amortization of bonds payable employee pensions, and other deferred compensations.
Shareholder equity simply reflects a clear picture of the company’s net income, net worth, and overall valuation. Positive shareholder equity numbers mean your company is retaining its earnings and will have something to offer an investor or equity partner in the form of returns.
A balance sheet can also be used to measure working capital, debt to equity, and liquidity ratios determining that the company has enough in cash and cash equivalents to pay its obligations and cover its operations.
If you are looking to get your company’s balance sheets in order, I am available to discuss your needs. Schedule an appointment at JeffreyLevine.Solutions today and follow me on Instagram @wealthbuilder_solutions.
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Good recordkeeping may be the most important task you can do to prevent you from incurring tax issues on your business. Records allow you to prove that you are eligible and entitled to listed deductions and expenses. There is no way to avoid proper recordkeeping
Canceled checks, daily receipts, and petty cash transactions make up the contents of a well-organized accounting ledger that has chronological journal entries and reflects every business-related transaction. Each original document should be saved to a hard drive to prevent confusion allowing for complete transparency. All the financial statements issued by any online bank should be printed and filed as original reference documents, as well as all employee payroll expenses.
Financial records should be kept for no less than 4 years and employee records for no less than 7 years. If any property is involved, keep all records even after you sell the property as often times there can be post-sale occurrences that render a property owner to reference related documents.
If you have not already been keeping accurate records, start today. The IRS and your state demand that any business pays their fair share of taxes, however business owners are entitled to certain deductions and refunds so correct and accurate records are essential to claim the benefits you are owed.
If you think you need assistance organizing your books I am happy to provide a 20-minute free consultation to discuss your recordkeeping financial planning, wealth management, and exit strategy requirements.
Schedule your consultation at JeffreyLevine.Solutions and follow me on Instagram @Wealthbuilder_solutions for more insights and motivational mantras related to wealth-building strategies.
Estate Planning is a very sensitive topic that most families avoid discussing until it is almost too late. This subject is critical if you have any intentions on leaving your assets to your loved ones. Having an established estate plan ensures a smooth distribution of your assets and eliminates confusion among benefactors
There are four primary elements of an estate plan include a will or living will, a healthcare power of attorney, a financial power of attorney, and a trust.
Last Will and Testament
If you do not have a will then your assets go to probate and the state in which you reside distribute your assets based on the state’s law. A will identifies who receives your assets upon passing. It is important to discuss the objectives of your will with your heirs to reduce confusion. It is also imperative if you have significant life changes like a divorce, guardianship issues, or a change in assets to change the contents of the will in a timely matter.
Healthcare Power of Attorney and Living Will
An (HPOA) healthcare power of attorney is a signed legal document naming a trusted individual to make decisions on behalf of you if you can’t make decisions for yourself in a health-related emergency like incapacitation or terminal illness. The living will or advanced medical directive outlines your choices regarding life support and medical interventions. These documents should accompany the last will and testament.
Financial Power of Attorney
A financial power of attorney defines who you prefer to make financial decisions on your behalf should you become incapacitated. This document allows the designee to handle your financial affairs like paying your bills or handling your investment matters. This document should also accompany your will.
A trust is a legal entity that can own your assets (while living or dead) controlled based on your stipulations and determinations. There are several advantages to having a trust as you ultimately will still control the management of your assets well after your death ensuring the proper usage in consideration of applicable circumstances. Trusts can be set up at any time of your life and should be updated regularly to account for additional assets and beneficiary requirements.
Estate Planning Is Essential Business
There are many other elements that encompass an estate plan and these are just 4 basic but essential components. If your estate planning is not in order, now would be the time to start taking this subject seriously. I am of service to help you with financial planning or wealth management decisions and look forward to speaking to you regarding your unique requirements. Set an appointment at JeffreyLevine.Solutions today for your free 20-minute consultation.