This article was contributed to Leisure Freak by freelance writer Lizzie Weakley.
While you don’t have a crystal ball that will let you see into the future, you do have more than enough knowledge to realize you need to take every step necessary to preserve your wealth. However, since there are so many different ways you can do this, knowing exactly which ones will be best for your situation can be difficult. If you are ready to move forward and ensure your wealth is protected in the years ahead, here are five ways you can make it happen.
Write Your Will
Perhaps the best way to preserve your wealth, writing a will offers many advantages. Not only does it clearly spell out your final wishes as to how your assets should be distributed upon your death, but it also helps to minimize estate and gift taxes, both of which can be substantial tax liabilities on your loved ones.
Invest Wisely
To gain wealth and preserve it for decades to follow, invest your money wisely. Rather than gambling on a certain stock you hope will grow in value, you may want to consider investing your money in precious metals such as gold, or perhaps even real estate. When trying to make these important decisions, work with a money management firm and financial advisor you know and trust.
Carefully Choose Your Executors
When doing your estate planning, choosing excellent executors for your estate will always be an important step in preserving your wealth. While you may assume this always has to be a family member or trusted friend, it does not. In fact, it is often better if you name an attorney or other professional as your estate’s executor, since they have no biases and can be completely objective when managing your estate.
Gift Your Assets
A way to preserve wealth and reduce tax liability, gifting your assets to family members is a great financial strategy. While the IRS does charge a gift tax on high-value assets like real estate and cars, there is a limit on this tax. If you have assets of lesser value you wish to pass on to others, recipients likely will pay no taxes on the items.
Diversify Your Portfolio
Finally, always have a diverse investment portfolio. To preserve your wealth, it is usually best if you invest in stocks that have performed well year after year, plus such things as bonds, metals, real estate, and other related investment opportunities.
Once you have a better understanding of just how to preserve your wealth, you can consult with your financial advisor and make the best decisions for you and your family. Follow the above ideas to make your wealth stable and long-lasting.
Thank you Lizzie Weakley for sharing this informative article with Leisure Freak.
Author Bio:
Lizzie Weakley is a freelance writer from Columbus, Ohio. In her free time, she enjoys the outdoors and walks in the park with her husky, Snowball.