People are driving around right now who don't think they need car insurance. Instead, they drive recklessly on the roads while the rest of us try to protect our assets by getting insurance. Because of how careless these people are, the rest of us have to pay more for our insurance because of them. Even though most of us may think that these people are complete idiots, the truth is that many of us are also idiots for thinking that we can protect our investment portfolios by throwing caution to the wind.
Let's be honest: not too long ago, when we heard the phrase "asset protection," we might have thought of big Rottweilers or a fireproof safe hidden in the back of a closet. But today, when millions of people in the U.S. and around the world try to improve their financial futures by investing in the stock market, these "low-tech" ways to protect your assets just aren't enough.
Some of us, like me, might not really know what asset protection is or how it can help us. I liked the idea of having a big Rottweiler watch over my money, but it turns out that Fido may not be able to give me or you the kind of protection we really need for our investments. Simply put, asset protection is not much more than insurance for your mutual funds. Brokers may offer this type of insurance, but most insurance companies do as well.
Asset protection is an easy and safe way to make sure your investment gives you a good return. Most of the time, asset protection covers your initial investment AND gives you a rate of return of between 4 and 6 percent per year. Now, if you know a lot about the stock market, that rate of return might not impress you very much.
Since the Great Depression ended at the start of World War II, investors have made an average of 11% on the stock market. Since this is the case, a return of 4-6 percent that is guaranteed doesn't seem like much, does it? But before you decide that this is a waste of your time and money, here are a few reasons why protecting your assets is so important for your financial future and that of your family.
First of all, the annual premium for asset protection is between 0.1 and 0.5 percent of what you invested in the first place. Some companies do charge a minimum transaction fee on top of the interest, but the rate is still very fair. Asset protection pays out if your mutual fund loses money and you die. It is calculated as a part of your life insurance policy. This protection is just another way to show your loved ones how much you care about their well-being, and it makes sure they get a good return on the mutual funds you buy for them.
So, who should really think about protecting their assets? Most likely to benefit from asset protection are older investors, especially those who got into mutual funds later in life. Also, risk-takers who like to roll the dice on their financial future with risky investments should definitely look for ways to protect their assets. After all, it's a good idea to gamble and try to make more money, but putting your retirement and very financial survival at risk is just as dangerous as driving without insurance. Not only do you make sure you won't lose money, but you also make sure you'll still get a small return on your investments, no matter how badly you chose them. It works out well for everyone.
So put the Rottweiler out of your mind! Hey, when you add up the costs of food, vet care, toys, and furniture, it's not the best way to protect your assets. Asset protection gives you the peace of mind you need to enjoy life. It does this by giving people a safety net for their investments at a very low cost. Get asset protection for your mutual funds today to give your loved ones peace of mind and make sure they never have to worry about the portfolio losing money.
