Guaranteed Asset Protection
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In a flailing economy, few institutions offer guaranteed asset protection. Although recent domestic and foreign economic woes have hit the pockets of most American investors, savvy consumers are still seeking vehicles which shelter funds for future income. Dependency on long-term retirement savings bit the dust after many U.S. corporations folded and the American banking system nearly collapsed in the midst of rampant housing foreclosures and volatile stock markets. But there is still hope for consumers who want to build a more secure financial future. Rather than stuffing money under the mattress, consumers can find places to safely park long-term funds for guaranteed asset protection. While the American dream has always been built from nest egg savings, savvy consumers are considering ways to safeguard assets for the short- and long-term, until the economy stabilizes. Annuities, trusts, Certificates of Deposits, U.S. Treasury Bills, and precious metals are suggested ways to secure long-term savings. Single deposit life insurance policies also offer an excellent vehicle to guarantee that assets are not only protected but also easily accessible.
The drawback to investing in some long-term savings instruments is that depositors risk paying a penalty for early withdrawal. Individual Retirement Accounts (IRAs) require depositors to park funds until the age of 59 and a half or incur a hefty fee. 401ks, Roth IRAs, rollovers, and other bank instruments may fail to provide long-term funds in light of recent bank failures and mergers. High-yield CDs are also suspect in a faltering economy, since yields are largely determined by market fluctuations. Government-backed U.S. Treasury Bills and investments in precious metals such as gold, silver or platinum, may offer investors the safest and best hedge against inflation as guaranteed asset protection. Gold and other precious metals remain rock solid options for anyone seeking to protect liquid assets for the long haul; particularly since gold increases in value as the dollar and other commodities decline.
Individuals seeking guaranteed asset protection may invest in precious metals or mining company stocks. In spite of a woeful economy and declining commodities futures, mining companies may hold steady. Their profitability depends largely on the supply and demand for precious metals. Investors seeking to diversify portfolios or gain assets that won't fade away with the next wind of untimely bank failures, may seriously consider accumulating gold, silver, or platinum coins. As a secure, collectible investment, American Eagles and Buffalos, Canadian Maple Leafs, and South African Kruggerands hold or increase in value, are highly portable, and can be used as currency in a pinch. Gold bullion is also highly collectible currency which provides protection for liquid assets. "In the light of the king's countenance is life; and his favour is as a cloud of the latter rain. How much better is it to get wisdom than gold! and to get understanding rather to be chosen than silver!" (Proverbs 16:15-16).
Some American workers that trusted in corporations to safeguard retirement funds have been left high and dry; and many lack sufficient time to amass monies before reaching the age of 65. Workers who have some savings may consider converting cash into single premium life insurance policies, which provide guaranteed asset protection. Interest-earning single premium policies are purchased with a lump sum payment, which can instantly be valued at twice its initial worth. A typical policy purchased for $200,000 can represent a cash benefit of $400,000 to survivors; monies that will help family members maintain the standard of living to which they are accustomed. Policy holders can choose to accumulate long-term financing for beneficiaries' college funds or use policies as savings vehicles. While funds are not FDIC insured through a bank or lender, underwriters are obligated to pay one hundred percent of the policy's value in the event of the death of the insured. Beneficiaries are also exempt from paying tax on funds, unless monies become part of the insured's estate.
The beauty of single premium life insurance is that monies can be withdrawn in the event of a catastrophic accident or chronic illness. Policy holders can withdraw and utilize funds without worrying about taking out a second mortgage or incurring high-interest credit card debt. People are living longer, healthier and more productive lives; but funds that have traditionally been inaccessible until the insured expires are readily available, with interest. Guaranteed asset protection via single premium life insurance just makes good common sense. Consumers should consult with insurance agents about taking out single premium coverage and the provisions for securing short- and long-term benefits.
Other vehicles for guaranteed asset protection include establishing living trusts, annuities, or formulating family-owned limited liability corporations, or LLCs. Family LLCs can be formed with one member acting as a general partner and others as limited partners, with limited liability. Essentially, the average American family can form a partnership similar to syndication, which allows individual members to share in profits, but protects share assets. Real and personal property becomes part of the corporation; and family members are only liable to the extent of their interest in the corporation. LLCs can purchase real estate, buy and sell stocks, or accumulate wealth that is protected under the U.S. Corporate law. In the event that an individual family member becomes the object of a lawsuit or legal judgment, assets placed within the limited liability corporation cannot be attached.
The best advice for individuals or families seeking guaranteed asset protection is to consult with a financial planner or an attorney that is well versed in corporate law, income tax, and investments. Professional money managers can help individuals that have held onto funds, in spite of a national financial crisis, find out how to make the most of short- and long-term investments and find vehicles for savings. With the right vehicle and a little patience, consumers should be able to ride out the storms of domestic financial woes to realize a brighter fiscal future.
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