Best Ways To Preserve Your Wealth

Manage Your Money Well

This one is so obvious. Think about it, how can you preserve your wealth if your money management skills are non-existent. Being great at managing your cash does more than just allow you to build wealth.

Boost Your Income

I know you’re wondering what does increasing my income have to do with preserving it? Well, an increased income means you won’t be eating into your net worth by tapping into your savings, going into debt or disposing of some assets.

Invest Wisely

Investing wisely is also a great way to preserve your wealth. When you invest money wisely, you grow your wealth. If you start it at point b smart investments will take you to point c.

Diversify

Are you familiar with the story of Patricia Cluj? If not, research it. What’s the moral of the story? You need to invest in different things instead of investing everything into one opportunity.

Hire a Good CPA

Another great way to preserve wealth is by being ahead of the good old tax man. What better way to do that than by having a good accountant and tax advisor.

Get Insured

You might not have given it much thought but insuring your assets is actually an excellent way to preserve your wealth. This is especially useful as climate change intensifies.

Seek Good Legal Advice

Rich people are in court every day. That thing about being lonely at the top is indeed often true. But what they probably didn’t tell you as much was that there’s a lot of litigation at the top.

Have an Estate Plan

You want a reason to create an estate plan. Estate planning will offer asset protection. Develop a plan for continuing your legacy after you’re gone.

Pick Executors and Trustees Wisely

Another way to preserve your wealth also boils down to the person you choose to be an executor or trustee for your estate. Sure you might want to go with a family member because you feel like you know them.

Sign a Prenup

That’s right. Signing a prenup is another way to preserve your wealth. Not to be grim about anything but while a relationship might start with all butterflies and rainbows, it could end up in the mud with some name-calling, and going for each other’s throats or at least property.

Prepare a Will

Look nobody likes thinking about death but it’s inevitable and writing a will is a must. Aside from allowing you to distribute your assets upon your death as per your wishes, a will enables you to specify your debts.

Keep Tabs on Your Assets

The last thing you want is your assets to slip away from you just because you don’t have up-to-date documents or know how they’re doing. and no, this is not about doing the extraordinary.

Have an Emergency Fund

To preserve your wealth, you need to build an emergency fund to cover three to six months of your family’s expenses in case you lose your job or are unable to work.

Avoid Naming Your Estate as the Beneficiary for Life Insurance

let me elaborate on this one. The name of the nominee on your life insurance plan plays a vital role in its taxability. If you name an individual as the beneficiary, the insurance money will often not accrue taxes.

Be Charitable

How does donating your wealth help you to preserve it? Giving it away is a little counterintuitive right? Well not exactly, and let me tell you why gifting your wealth to family and others allows you to preserve money.

Instill Financial Responsibility in Your Children

If you want your wealth to last across multiple generations, you must pass down the financial lessons and knowledge you’ve learned to your children.

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Bernard Okoth

Bernard Okoth

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