4 ms·

Your definition of wealth, and mine, might be different. I would describe anyone who owns a home, or business, to be wealthy. (If you own both, also risky). Na

Your definition of wealth, and mine, might be different. I would describe anyone who owns a home, or business, to be wealthy. (If you own both, also risky). Navigating these systems takes an education you can get for free, and a few hundred $ a year. Obviously there are lots of people who are not wealthy, for whom there is no risk and hence no need to reduce risk. Getting educated about asset protection is not bad to do before you acquire assets. Just like the legal structures and implications for marriage are best learned before, not after, getting married. You don't need to be wealthy to be educated on the topic. Those that plan to get wealthy might find it beneficial to learn about this before they "lose it all". Lots of people learn how the world works "the hard way". I'd prefer you didn't. Naturally those with unprotected assets are also the juiciest prey for those who thrive on the misfortune of others.

Repulsion9513 3y ago
Ah right so because you can afford your mortgage payment you should also... be able to pay a lawyer and form an LLC and throw a bunch of money at it every year? (Also as I said elsewhere in some states - Texas - they can't seize your home anyway, excepting stuff like mortgages)
- bruce511 3y ago
  It's not as simple as that, and will differ from person to person based on their situation, risk profile, and jurisdiction. Consult your financial advisor to see the best approach for you.
k8svet 3y ago
Maybe I'm just really ignorant but I don't totally understand how to mitigate the "risk" (?) of home ownership? For a few hundred dollars a year? Does this just refer to home owner's insurance, or something more? I have (by my stnadards) a high NW, much of which is non-retirement accounts, but some of that is due to my having virtually zero non-monetary assets to my name. I guess I'm curious what I should be looking out for, if and when I pick a place to settle and purchase something. I guess at the very least, this is something of a reminder that I should be purchasing decent traveler's insurance, especially in lieu of an American rent. BTW, I appreciate you engaging me kindly, when I had somewhat glib replies earlier.
- rblatz 3y ago
  I assume you own your house instead of a trust owning your house. Start there
  - k8svet 3y ago
    (First, thanks for the hint. Looking into trusts in general has been on my todo list, but also) I guess I'll embrace the ignorance fully. What if I have a pile of money and no house, do I need a trust? What amount of money or (future) house do I need to justify a trust? What does the trust even do for me? Or maybe a better question, where's the "oops I have a pile of money, now what" literature I should read?
    - bruce511 3y ago
      It's probably a good idea to talk to a financial advisor. You may need to talk to a few before you find someone who understands your goals and what is on offer. A good one will be able to explain in clear terms what each option accomplishes. For me, the goal is to separate assets from liabilities. I own a business and that business has creditors, some of whom require me to be personally liable. So any asset I own is "at risk". I'm not expecting a problem, but life happens sometimes. If I have a house a creditor can force the business into bankruptcy, and my house can be lost. If the house is not in my name (say its in a trust, or perhaps my spouses name) then it's not "mine to give". In simple terms if I hold liabilities and my wife holds assets, (and we have a suitable marriage contract) then creditors can't take those assets. Obviously making creditors whole is the goal, but that can be done well, or badly, depending on your juciness. Everyone's situation is different. The legal framework is different in different places. Which us why you need an advisor in your country / state to assess your risks, and possible mitigations. Don't just take advice from the Internet, or even your buddies. You need to understand your goals and needs. Trusts can be an important part of the equation, so that's sometimes a good starting point to evaluate advisors. Even if you don't need a trust you want to feel like the advisor understands them etc.
      - chgs 3y ago

Repulsion9513 3y ago

Ah right so because you can afford your mortgage payment you should also... be able to pay a lawyer and form an LLC and throw a bunch of money at it every year? (Also as I said elsewhere in some states - Texas - they can't seize your home anyway, excepting stuff like mortgages)

bruce511 3y ago
It's not as simple as that, and will differ from person to person based on their situation, risk profile, and jurisdiction. Consult your financial advisor to see the best approach for you.

k8svet 3y ago

Maybe I'm just really ignorant but I don't totally understand how to mitigate the "risk" (?) of home ownership? For a few hundred dollars a year? Does this just refer to home owner's insurance, or something more? I have (by my stnadards) a high NW, much of which is non-retirement accounts, but some of that is due to my having virtually zero non-monetary assets to my name. I guess I'm curious what I should be looking out for, if and when I pick a place to settle and purchase something. I guess at the very least, this is something of a reminder that I should be purchasing decent traveler's insurance, especially in lieu of an American rent. BTW, I appreciate you engaging me kindly, when I had somewhat glib replies earlier.

rblatz 3y ago
I assume you own your house instead of a trust owning your house. Start there
- k8svet 3y ago
  (First, thanks for the hint. Looking into trusts in general has been on my todo list, but also) I guess I'll embrace the ignorance fully. What if I have a pile of money and no house, do I need a trust? What amount of money or (future) house do I need to justify a trust? What does the trust even do for me? Or maybe a better question, where's the "oops I have a pile of money, now what" literature I should read?
  - bruce511 3y ago
    It's probably a good idea to talk to a financial advisor. You may need to talk to a few before you find someone who understands your goals and what is on offer. A good one will be able to explain in clear terms what each option accomplishes. For me, the goal is to separate assets from liabilities. I own a business and that business has creditors, some of whom require me to be personally liable. So any asset I own is "at risk". I'm not expecting a problem, but life happens sometimes. If I have a house a creditor can force the business into bankruptcy, and my house can be lost. If the house is not in my name (say its in a trust, or perhaps my spouses name) then it's not "mine to give". In simple terms if I hold liabilities and my wife holds assets, (and we have a suitable marriage contract) then creditors can't take those assets. Obviously making creditors whole is the goal, but that can be done well, or badly, depending on your juciness. Everyone's situation is different. The legal framework is different in different places. Which us why you need an advisor in your country / state to assess your risks, and possible mitigations. Don't just take advice from the Internet, or even your buddies. You need to understand your goals and needs. Trusts can be an important part of the equation, so that's sometimes a good starting point to evaluate advisors. Even if you don't need a trust you want to feel like the advisor understands them etc.
    - chgs 3y ago