Assembling Financial Safeguards
Protection for your money and sense of balance
For most people, building wealth is no easy feat or overnight process. It is, rather, the result of carefully and meticulously calculated decisions over a lifetime. And if those decisions are calculated just right, the outcome can mean anything from early retirement to complete financial security for you and your loved ones. But without a contingency plan in place, one wrong move could threaten to upend everything you’ve painstakingly built.
That is why assembling adequate financial safeguards is essential to any financial wellness plan.
The main purpose of financial safeguards is to reduce or eliminate potential threats to your assets and income. But if assembled optimally, they can also create greater opportunity for you to reach your financial goals.
Safeguards Help Create Freedom
Think of your long-term outlook like air travel. Flying is one of the safest, most reliable modes of transportation. This, despite the fact that it essentially entails sitting on a highly combustible engine for hours at a time, thousands of kilometers above ground. But even with all the possible risks that come with flying, we do it anyway. Why? Because we are confident in the network of safeguards that are put in place by the FAA to ensure our safety. Those safeguards allow us to enjoy the true benefits of flying — discovering new places, traveling long distances in a relatively short time frame.
Much like air travel, financial safeguards also help create freedom and flexibility. You have the freedom to use your resources in ways that are impactful, knowing that your safeguards are there to protect you from potential risks.
Of course, no one intends for accidents to happen. But sometimes they do. And when they do, they can have very dire consequences such as:
- a disability that could significantly impair or remove earning ability.
- a lawsuit that threatens to take away the financial security you’ve worked so hard to build.
- The destruction of important assets like your home or your car.
An asset protection plan can protect both your business and personal assets from claims that might arise from creditors or judgments in the event of legal proceedings against you. It can also act as a shield for the assets intended for your children or beneficiaries, and ensure that they will be provided for. And in the event of a disaster, your family can be confident that anything lost can be replaced.
You also have the freedom to choose how you want to use your resources. Take, for instance, a life insurance policy. The long-term financial goal for most people is to save enough for retirement. Making sure that loved ones are provided for is also a foremost financial concern for most. The right life insurance policy can provide financial protection to your family, as well as help you to build a nest egg for retirement by allowing you to draw on your policy’s tax-sheltered cash value.
Preparation for the Unexpected
Warren Buffet once said that “it is only when the tide goes out that we discover who’s been swimming naked.” If we can learn anything from the past two years, it is that disaster can strike at any time. In those situations you want the ability to respond strategically and not just react. At the end of 2019, a global pandemic that would topple industries and cripple entire economies was as likely as being beamed up to space. Yet that is precisely what happened, leaving entire families’ livelihoods wiped out.
The truth is that we can’t always anticipate the wrench in the wheel. But we can give ourselves the best chances to respond to it. Achieving Optimal Financial Wellness means always having safeguards in place for even the most unlikely of scenarios. While we can’t anticipate every blow, we can do our best to protect and preserve the financial security most of us spend our entire lives building. It also means having a better ability to insulate against the unexpected forces that can threaten to take it away in an instant.
The bottom line is, having the proper safeguards in place will not only protect your money. They can also provide you with confidence in your investments as you navigate your finances, knowing your money will always end up exactly where it needs to be.
Watch this video to learn more about the next two principles of Optimal Financial Wellness.
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Scott Foster | www.jscottfoster.com | scott_foster@pacificadvisors.com
Registered Representative and Financial Advisor of Park Avenue Securities LLC (PAS). OSJ: 333 N INDIAN HILL BLVD, CLAREMONT CA, 91711, 909–3991100. Securities products and advisory services offered through PAS, member FINRA, SIPC. Financial Representative of The Guardian Life Insurance Company of America® (Guardian), New York, NY. PAS is a wholly owned subsidiary of Guardian. Pacific Advisors is not an affiliate or subsidiary of PAS or Guardian. Pacific Advisors is not registered in any state or with the U.S. Securities and Exchange Commission as a Registered Investment Advisor. Insurance products offered through One Pacific Financial & Insurance Solutions LLC, DBA of Pacific Advisors LLC. Pacific Advisors LLC is not registered in any state or with the U.S. Securities and Exchange Commission as a Registered Investment Advisor. CA Insurance License Number — 0605098.
2022–135927 exp 03/2024
