The Importance of Wealth Protection in Retirement Mercer Advisors, Epstein and White

You’ve worked for your entire career to set up the life that you’ve always wanted, but that doesn’t always mean that the money and assets you’ve gained over the years will last. A part of retirement planning that people often overlook is wealth protection planning. Without a proper wealth protection plan in place, your savings may dwindle as you move into retirement, and there will be less available for your beneficiaries to inherit.

The definition of wealth protection is “the adoption of strategies to guard one’s wealth.”[1] Essentially this means that you are taking a proactive role in trying to maintain your assets and wealth. If you’re worried about the erosion of your wealth over the years, we have some suggestions that might help.

  • Diversify: This is one of the more common suggestions when it comes to portfolio design. People often recommend diversifying the ways that you invest your money–so consider stocks, bonds, real estate, etc.[2] The idea is that exposure to multiple markets may help protect your money from a failure in one part of the economy.[2]
  • Avoid Estate Planning Mistakes: You may have a good idea of how to manage your finances, but do your kids? Estate planning may be a huge part of maintaining your wealth and ensuring that your family can benefit from your hard work for years to come.[2]
  • Consider Long-Term Care Expenses: Long-term care costs can add up fast and put a serious dent in your wealth, so it may be a good idea to have a plan in place should the need arise.[2]
  • Utilize the Laws Around Gifting: There are laws and tools that may allow you to make a charitable contribution with untaxed money or to gift money or assets to a beneficiary tax-free.[2] Depending on the situation, it is sometimes possible to use tax-free gifts as a way to limit the effect of taxes on your estate, which is especially helpful in the wealth transfer process.[2]
  • Work with a Financial Professional: When it comes to wealth protection and estate and legacy planning, a financial professional may be an invaluable resource. They can help you turn your goals into a comprehensive financial strategy that includes wealth protection.[2]

Your money isn’t going to protect itself. Many people approach wealth on autopilot and assume that if they are wealthy now, they will be wealthy in the future. But without a plan in place, anything could happen.

Consider this: If you were having a house built, would you want your building inspector to assume that everything was fine? Would you want your contractor to assume all the measurements were correct?

If you want to take an active role in your wealth preservation, Click HERE to reach out to one of our professionals at Mercer Advisors, Formerly Epstein & White today.

 

This information is provided as general information and is not intended to be specific financial guidance.  Before you make any decisions regarding your personal financial situation, you should consult a financial or tax professional to discuss your individual circumstances and objectives.
Epstein & White is a tradename. All services provided by Epstein & White investment professionals are provided in their individual capacities as investment adviser representatives of Mercer Global Advisors Inc. (“Mercer Advisors”), an SEC registered investment adviser principally located in Denver, Colorado, with various branch offices throughout the United States doing business under different tradenames, including Epstein & White. Information contained herein is for informational and illustrative purposes only and general in nature. It should not be considered investment advice or a recommendation to buy or sell any type of securities or insurance products and no investment decision should be made based solely on any information provided herein. Investing involves risk, including the possible loss of principal. Diversification and asset allocation does not ensure a profit or guarantee against loss. We provide this information with the understanding that we are not engaged in rendering legal, accounting, or tax services. We recommend that all investors seek out the services of competent professionals in any of the aforementioned areas.