Protecting what you have against frivolous lawsuits, unjust judgments, and unlawful seizure would seem to be important. Yet most Americans aren’t interested in asset protection. Why not?

Maybe because over 70% of Americans have no assets and 20% of them are technically insolvent. Only 9% of Americans have an investment net worth of over $100,000. If you are in the top 3% who have more than $500,000 in savings, you are viewed as rich.

In the U.S., “the rich” find themselves increasingly disparaged and under attack to “spread their wealth around.” There are plenty of people, organizations, and government agencies greedily eager to help those who “have” join those who “have not.” Increasingly, protecting what you’ve worked hard to accumulate deserves much more attention. Continue Reading »

We’re pleased to feature a guest post from Tom Simmons, a partner with the Rapid City law firm of Gunderson, Palmer, Nelson & Ashmore, LLP.

A Medicaid Irrevocable Income Only Trust (MIIOT; pronounced “my-ott”) is an irrevocable trust with both advantages for long term care planning as well as asset protection. Basically, a MIIOT provides for the distribution of only the income which is  generated from the assets the grantor contributes to the trust. The trustee distributes the income for lifetime of the grantor.  (The grantor is the person establishing and funding the trust.) Continue Reading »

Asset protection is about protecting what you own against someone else taking it. The most common ways to lose assets are divorce, bankruptcy, and judgments filed against property as the result of a lawsuit.

Putting your assets beyond reach of a judgment resulting from a frivolous lawsuit is the heart of a good asset protection strategy. It includes owning your assets in trusts, LLCs, or corporations that are located in multiple jurisdictions.

Yet when I suggest asset protection strategies to clients, they often respond with ambivalence or reluctance. I’ve begun to realize these reactions may be tied to money scripts.

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Before fighting a war, it’s a good thing to know your enemy.

Our federal government spends almost $2 for every $1 it receives. Our national debt is now over $14 trillion, representing almost 100% of our Gross Domestic Product (national income from all sources). How do we fix this before the country tumbles into economic collapse? To most economists, the obvious solution is some combination of reducing spending (including benefits like Social Security, Medicare, and Medicaid), increasing taxes, and increasing inflation.

To most Americans, cable news shows, and even the President, however, the obvious solution seems to be “tax the rich.” A recent survey found that almost 60% of Americans oppose reducing entitlement programs but would rather raise taxes on “the rich” who need to pay their “fair share.”

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A post by Ann Carrins and Ron Lieber on the New York Times “Bucks” blog references my recent article regarding the fallacy of Dave Ramsey’s assertion that anyone can earn 12% annually by putting all their funds in “good growth mutual funds.”

The Times phoned Ramsey for clarification as to why he maintains this position in light of facts that suggest “it just ain’t so.”  According to the Times, “He did not make himself available to explain. “Dave is currently working on the completion of his new book and unfortunately is not able to add anything to his schedule, at this time,” a Lampo Group public relations assistant said in an e-mail. “He would like to apologize and thank you for requesting an interview.”

I sure hope he corrects his math in his new book. To read the whole article, click here.

Beth Orenstien of MoneyRates.com is looking for a couple who is very conservative in their approach to retirement and has been saving mostly through CDs and savings accounts. At least 50 percent of your investments have to be in CDs and savings. If this is you, she would like to interview you about the strategy and how you were able to accomplish this.

She can identify you by your first names and last initial only so you don’t have to give full names. Her deadline for the piece is May 23, so she would like to do the interview by May 18.

If this sounds like something you would enjoy participating in, you can reach her at bethorenstein@gmail.com.

This post was written by Alan Moore, Financial Planning Analyst with the Kahler Financial Group

Did you know that the average cost of a wedding is $25,000? For those that are financially established, this may not seem like a very daunting price tag, but for a young couple, this amount could hurt their new relationship.

Based on personal experience, most young couples don’t have $25,000 in the bank for pay for their wedding, and some may end up borrowing the money. Continue Reading »

Too often our emotions can get in the way of our financial decisions. Although someone may have worked to create the perfect financial plan, if none of the recommendations are implemented, the time and effort were ill-spent.

Matt Greco recently wrote an article for the Financial Advisor Magazine discussing the Financial Therapy Association (FTA), a new association working to publish empirical research backing what most holistic planners have known for years: many of us can benefit from understanding the emotional aspect of how we make money decisions.  Contrary to economic therory, very few people make rational money decisions in their best interest.  That extends to people who have money!  You can read the entire article here.

Estate planning isn’t a very easy or fun topic to discuss, particularly with your children. It is a talk many of us simply shove aside until it is too late. Communication about your values and wishes for your estate is essential to ensuring that hurt feelings are minimized and surprises eliminated.

I wrote an article for the NAPFA Planning Perspectives newsletter recently and gave four suggestions for making this conversation a little less awkward.

Have you expressed your values and wishes for your estate to your children recently or ever?  Now may be a good time to consider bringing up the topic.  In most cases, children appreciate knowing their parents’ wishes before you pass. This eliminates kids having to make up the story for you after you pass.

Optimism and positive thinking are important assets in a great many areas of life. When it comes to investing, though, a healthy dose of pessimism may be a lot more useful.

This is especially true when it comes to estimating long-term returns and projecting the level of income you can expect in retirement. Any investment advisor who tells you to expect average returns of 10%, 12%, or more is either an unreasonable optimist or an opportunist. The actual numbers for past investment returns over time simply don’t support such high percentages. Continue Reading »