As more people are aware of asset protection, there is a lot of people who are not for the idea. Asset protection is also a sensitive field where many people have lost their hard-earned cash making it understandable why people would fear. It is essential to consult a captive insurance company before you decide to hop on the asset protection formation bandwagon. Take your time to understand what the process is like and what you should expect. Here are some myths that have been going around on asset protection:
Myth #1: You can have better asset protection if you ‘hide.’
In the present day, technology is a big part of humans’ daily lives, and it is impractically possible to hide. All one needs to find about a particular business is an internet connection to browse the internet. You may focus on finding from strangers, but how do you hide from clients, business partners, and the government? The online presence is critical for business operations, and thus you will be seen by other people.
Myth #2: An insurance policy covers all
Insurance policies for individuals and businesses are a thing that many people have embraced. However, in the vent of misfortune, the insurance company needs to send an adjuster your way to determine if you deserve compensation. While the odds are that you may get compensation, it is advisable to get appropriate asset protection plans. Your assets are worthy additions, and you can never get to a point where you overprotect the assets.
Myth #3: Asset protection is ideal when you live in specific states
A majority of people think that setting and operating businesses in some states will grant them tax savings. Your tax payments should be to the tax authorities in the state your business is situated. Why would you want to operate businesses in other states and increase your operational costs? Set up a company in your state of choice and obey the state laws in your business operations. Asset protection works for business owners regardless of the states they live in.
Myth #4: Asset protection is for the rich
There is no standard measure of wealth that you must meet before obtaining asset protection. Your assets could be your home, rental property, money in account or equity in a business. Whatever your wealth is, it is hard-earned and deserves protecting. Come up with a structure which will protect your assets. As you acquire other assets in the future, you can slowly incorporate them into your asset protection plans.
Myth #5: Asset protection involves protecting all you have
There are no rules to what you must include in asset protection plans. You get to choose which assets go into the plan, and you can add more assets as you keep growing. It is, however, advisable that you protect all your assets as you may never know when disaster may strike.
Failing to consult a captive insurance company for the right formation of your asset protection plans could end up being a costly mistake. Therefore, do not take any chances with your highly-valued assets. Seek professional asset planning services to help you make informed financial decisions. That way you will not lose your money to any scam. You will be steering your family’s wealth in the right direction.