Wealth is one piece of the pie once you’ve achieved your monetary goals. However, there’s still more work to be done in order to sustain your wealth. The wealthy elite not only find ways to grow their wealth, but they also devise clever ways to keep it out of other people’s hands.
There’s one thing that the wealthy elite understand in terms of wealth protection, and it’s passive ownership. While you may have a large amount of wealth, it should not all actively be under your name. So while Donald Trump has filed for bankruptcy with his companies a few times, it doesn’t mean all of his actual assets were included in the picture. That’s the benefit of this wonderful concept known as wealth protection.
To this day no one truly knows the net worth of the Rockefellers. Why is that? It’s because the majority of their wealth is tied up in complex trusts and foundations that aren’t obligated to be reported to the public. These trusts are so complex that the Rockefellers enlisted a specialized team of lawyers to solely manage and protect their wealth. Hidden History reports:
The Rockefellers began hiding their wealth from the public and the tax collector -in trusts and foundations. As reported in the Washington Post: For two generations, the great fortune passed down by John D. has been fractionated and made more complex by increasing layers of trusts and closely held companies, where no public reports are required, none volunteered, and all inquiries politely rebuffed.
The Rockefellers invented a scheme, used by the super rich today, whereby the more money you appear to give away, the richer and more powerful you become. Through the help of captive politicians, guided by some bright boys in the family law offices, legislation was written and passed which would protect the Rockefellers and other elite super-rich from the repressive taxation they have foisted on everyone else. The key to this system is giving up ownership but retaining control. For example, most people don’t believe they really own something unless they retain title to it in their own name. The Rockefellers know this is a big mistake. Often it is better to have your assets owned by a trust or a foundation-which you control-than to have them in your own name.
As you can see, the wealthy elite take the concept of wealth protection extremely seriously. Once you make significant strides in your wealth journey, it’s time to consider a wealth protection strategy.
When is it time to protect my wealth?
Whenever you have enough wealth that you want to shield your wealth away from outsiders, it’s time. If you’re worried about an ex-spouse, clients, creditors, or someone undesirable coming from out of nowhere to claim a stake in your wealth, then you must take action to protect yourself. Remember, one lawsuit or unforeseen emergency could put a majority of your wealth at risk. As you climb the wealth ladder, the more exposed you will become.
Four Methods to Protect Your Wealth:
1. Companies & Trusts: Restructure your wealth under legal entities that you control but aren’t personally liable for should something occur. The wealthy use trusts to seal their assets off to the world. They use their limited liability companies to purchase homes, assets, and investments.
2. Diversification: It’s absolutely wise to never put all of your eggs in one basket. All of your income shouldn’t come from one source nor should you store all of your wealth in one place. As your wealth grows, it should be stored in multiple limited liability corporations, foundations, trusts, and banks.
3. Offshore Banking: While we don’t recommend this method, we share it because it is indeed a method used by corporations and the wealthy elite alike. Offshore banks are utilized by the wealthy because these banks charge zero to minimal taxes and don’t report their client’s accounts. There are many big banks and politicians that are alleged to have offshore accounts including Bank of America and Dick Cheney. However, we’ll never know for sure unless regulation is passed to expose it because the information remains sealed shut.
4. Help: Seek an advisor’s help. If you’re not familiar with wealth protection, then you must educate yourself and/or find a wealth protection advisor. Laws are constantly changing, and you want to ensure that your wealth is truly protected against worst-case scenarios.
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