You have worked very hard for your money and built a successful, even spectacular career and brand. How would you survive if a tragedy beyond your control brought all of your achievements crashing down around you? I am not talking about a physical illness or death of a key partner; I am referring to an accident or malpractice suit involving you, your family, one of your co-workers, employees or partners. Stop reading if you dare, but it happens every day locally in Dallas and Ft. Worth as well as somewhere in America and to baby boomers, generation x -ers and millenials just like yourself. Forget about your retirement plans and future income; you’re worried about surviving your worst nightmare. Consider that…
Nationally there are twice as many [law school] graduates as there are jobs. The Bureau of Labor Statistics estimates that the economy will provide 21,880 new jobs for lawyers annually between 2010 and 2020; law schools since 2010, however, have produced more than 44,000 graduates each year. Yet schools continue to enroll more students than the market demands and to raise tuition faster than inflation. The result is exploding debt loads for current students and graduates whose employment prospects are appalling.
And most of these debt laden, newbie sharks are hungry and in dire need of making some cash; unfortunately at the cost of your demise. This is no “chicken little” sky is falling scare tactic. The threat is real and becoming almost inevitable to successful practitioners, physicians, business people and entrepreneurs.
Why do these folks get sued most of the time?
Because they have assets and cash flow.
Even a “loved one” could initiate a financial threat. Facts are that one-in-two marriages will end in divorce and three-out-of-four second marriages will follow in the divorce court (that’s a 75% failure rate). I can give you hundreds of court cases where even the tightest of prenuptial agreements failed to provide the protection intended.
Why wouldn’t one want to insure against these financially catastrophic events?
Look, people change as they mature and their feelings, misguided by emotions along with the help and advice of greedy lawyers, could take away everything you worked to build your entire life. Divorce, children and second families, careers and the boredom of middle age create the perfect storm of doom for the successful person.
Divorce could be your ex’s best investment.
Bizarrely expensive trust that are difficult to maintain without “commingling” become the albatross around ones neck; instead of providing the asset protection one mistakenly thought they had secured. Recently a woman sued her 50-pound, eight-year-old nephew for hugging her “too tightly” made headlines in the Washington Post.
We all know frivolous lawsuits abound today but they still must be defended and there is always the risk of losing the case or forced to settle with large sums to make the case go away. Check out one of those crazy liability lawsuits here:
Even our own local Texas Governor, Greg Abbott sued a wealthy homeowner and won $6 million back in 1984. Gov. Abbott went for a jog just after a thunderstorm had passed; and in the post storm, windy conditions, a tree limb snapped and fell on top of him, paralyzing him from the waist down.
You can get 100% indemnity and complete asset protection from frivolous lawsuits and those with actual merit in Texas with an extremely simple plan.
The infamous Ken Lay, former Chairman of Enron, used this simple secret strategy to protect and insulate his fortune and nest egg. You can read about it here on Mother Jones…
Just two years before the Enron fraud was revealed, Lay transferred his personal assets into simple annuity contracts, that after seven years provided him and his heirs with $900,000 per year in lifetime income. This was his best annuity move ever! In Texas, where the Lays live – annuities and other “insurance based” investments, provide the maximum degree of, leaving them virtually impervious to attack by creditors. Even if one files for bankruptcy, assets are fully insulated from creditors. Texas governor Ann Richards signed this into Law back in 1993.
Not only is the owner of the assets completely exempt from liability or attachments, the heirs of the owner are afforded the same 100% impervious protection of seizure. Under Texas law, the annuities used to shelter Lay’s family assets are untouchable unless those suing him could prove fraud or fraudulent intent. And proving fraud my friend, is a tough row to hoe for those who might sue you. Utilizing this type of simple, inexpensive and readily available life insurance and annuity secret strategy is a no-brainer for the wealthy. Better yet, there is a variation on our secret strategy that will provide you with a totally income tax free retirement and lifetime tax free income!
Secret Tip: Even ones Individual Retirement Account (IRA) offers the same level of excellent asset protection and insulation.
Charlie Sheen hopefully had the wise advice and help that guided his assets into this simple protection plan; as he will definitely be sued for not disclosing his HIV virus. Decisions made in life often will come back to bite us, even when our best intentions were followed. In Sheen’s case, it’s tough to see any redeeming exception about his deception and health status omission.
More extensive strategies abound today by establishing ones own “insurance company” with nearly limitless risk avoidance and asset protection. These closely held or “Captive Insurances Companies” are ideal but also cost much more and require specific expertise in establishing them and maintaining them. Basically, this plan allows one to set aside money, tax-free, in a special account that can be invested and will grow tax-free, to provide coverage in case a particular risk is incurred.
If that risk never materializes (and in most cases it rarely does), the funds may be then withdrawn in the future and used for ones retirement. For the most recent update on Captive Insurance Companies, click here:
Michael Ham and My Money track will help you and provide excellent local advice and guidance. Ham will “quarterback” your efforts to insure your and your family’s wealth will remain with your family. One may have the best financial advisor and the best investment plan but it could all go down the drain unless the money is fully protected from liabilities, bankruptcies, creditors and predators. Generation X would benefit greatly with our advice on tax free retirement strategies. Simply email or call us at 972-490-9400. Do not wait until your Titanic hits the iceberg to organize your evacuation plan. Even if you do not reside locally in Dallas or Ft. Worth, Michael Ham will travel to meet with you in other Texas cities. The first step is easy and it’s totally free.