Most of our clients are the financially savvy type. You keep up with current economic news, you research stocks before diving in, and you understand risk versus reward. High income earners don’t usually become high income earners by accident!
On the other hand, that financial savvy can lead to one significant pitfall: Focused as you are on the stock market, intricate calculations of compounding interest, and the Big Picture, it can be easy to overlook the potential for catastrophes that you might assume could never befall you.
The following are just a few of the “surprises” that often cause significant losses for wealthier individuals:
- Accidents in your home, resulting in court settlements and legal fees
- Accidents on your business property, involving employees or clients
- Liability due to employee actions
- Job loss (yes, it can happen to anyone)
- Divorce (just imagine splitting all your assets in half, then paying legal fees on top of that)
- Sudden stock market losses
- Changes to the income tax code
- Family emergencies
All of these fall into the category of “bad things that happen to other people”… Until they happen to us!
In medicine, they say that an ounce of prevention is worth a pound of cure. And that same principle applies to legal and financial matters as well. Various forms of insurance can protect against the unknown, while the proper legal and financial maneuvers can help you hedge against losses due to events in your personal life. But as with medical problems, it is much easier to prevent these circumstances (or at least plan for a quicker remedy) than it is to “cure” them after they have happened.
This is why, no matter how financially savvy you are, it is worth your time and effort to cultivate a team of professionals who can help you safeguard your wealth. Along with estate planning attorneys and tax professionals, we can work closely with you to provide experienced financial planning expertise. Together we can analyze risks you might never have considered, and make a plan to protect you from losses.