Wealth Planning -
Wealth protection strategies
Three of the most common wealth protection strategies and our advice on how to safeguard your wealth for generations to come.
Three wealth protection strategies to help you plan for the future
When you have worked hard and invested wisely to build your wealth, you want to preserve it. That is why choosing a wealth protection strategy that aligns with your lifestyle and future goals is essential.
Protection comes in many forms - insurance, income protection, trust, or investment, among others. Ideally, a combination approach tailored to your needs is the best way to safeguard your wealth. Below, we cover three of the most effective methods.
What is a wealth protection strategy?
Wealth protection is simply a way to protect the assets you have accrued throughout your life. In the event of any unforeseen circumstances, it enables you to maintain your lifestyle and financial stability as the future unfolds.
Having a protection strategy in place gives you a level of control over your wealth that could benefit you and future generations. It can help you avoid unnecessary stress and financial pressure if a loved one dies, or you become ill and are unable to work. It also safeguards your assets for the future, so your family can enjoy the security and care you want for them.
How wealth protection benefits you
- Identifies who might be impacted by unforeseen circumstances
- Safeguards you and your family against unpredictable events
- Protects beneficiaries
- Transfers wealth easily
- Enables tax efficient transfer of wealthy from one generation to the next
- Brings the advice and insight of an independent trustee
- Gives a greater level of control over your wealth.
Three wealth protection strategies
1. Life insurance
No one likes to think of the worst, but insurance is one of the most widely used ways to protect wealth and help your beneficiaries cope in the event of your sudden death. It can also be used to ensure that you leave a legacy to charities or other causes that are important to you.
2. Critical illness cover
An unexpected illness or injury can lead to a lot of stress or anxiety, but the right cover can help to reduce the stress so you can focus on what matters. Critical illness cover is a safety net that provides solid financial support if you are diagnosed with or have surgery for a specified and potentially life-threatening illness; for the most part it is also tax-free. Unlike income protection, which provides a percentage of your salary for a certain amount of time, critical illness cover provides a one-off lump sum.
3. Trusts
Trusts are one of the most effective ways to protect your wealth. Placing your assets in the hands of competent trustees can benefit you and your loved ones for generations. Setting up a trust can be a complex process, but with the help of a knowledgeable financial planner, you can ensure your wishes are laid out clearly, the details align with your objectives, and that your family can avoid lengthy probate proceedings in the event of your death.
Paul Clifton, Director, Wealth Planning at Arbuthnot Latham said: “The best wealth protection strategies are tailored to the specific needs and goals of the individual.”
“It is important to have a clear idea of your own aspirations, as well as any circumstantial factors unique to you, that might affect the decisions you make.”
“We work with our clients to map out a plan that is aligned to their goals and where success can be measured.”
Choosing the ideal wealth protection strategy depends on several factors, like your lifestyle, stage of life, aspirations, and number of beneficiaries. While a combination approach is ideal for putting a safety net in place, it is important to speak to a wealth planner to help you achieve your goals. A tailored strategy that considers your ambitions, circumstances, and plans will benefit you now and, in the future.
Further reading about Wealth Planning
Control over your wealth
Wealth management strategy explained. Discover how to protect and grow your assets, and what a successful wealth management strategy looks like.
Succession Planning & Wealth Management for Business Owners
Many businesses don’t have a succession plan in place and starting the process can be daunting. Find out how to take the first step with Arbuthnot Latham.
Wealth Transfer Strategy
Regardless of the assets you plan to pass on, such as cash, property, or other valuables, you will need professional financial and legal support to help you establish the best strategy for your lifestyle and goals.
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