How to Protect your Wealth from Financial Predators

Key Takeaways

  • Research shows that wealth protection (including protection from financial predators) is one of the five biggest concerns of successful investors.
  • Trust documents ensure that your assets are properly transferred to your children, grandchildren or other loved ones—and shielded from financial predators.
  • A secure home is even more important to stopping identity theft than a secure computer.

A few years ago, one of my close family members was involved in a protracted lawsuit that resulted from a car accident. Fortunately, my relatives had good trust documents in place. Their assets and IRAs were titled appropriately, so the party trying to sue them got very little money when the case was finally resolved.

As we discussed in our Intentional Wealth Transfer blog post, research shows that protecting one’s wealth is one of the five biggest concerns of successful investors.

Protecting yourself from financial predators

When it comes to protection from financial predators, there are four major worries we need to address:

  1. Protecting ourselves and our loved ones.
  2. Protecting our financial assets.
  3. Protecting our property.
  4. Protecting our confidential information.

When it comes to your property, a comprehensive umbrella liability policy (typically $2 million to $5 million) will cover your autos and your home, including injuries that occur on your property. Check with your property and casualty agent to ensure that you have sufficient coverage.

When it comes to your assets, make sure your trust documents are up to date and specify how your assets will be transferred during your lifetime to your children, grandchildren or other loved ones. Also, make sure the assets you have in your own name are protected from financial predators, including litigious divorcing spouses. Trust documents should be drafted appropriately and updated as needed.

When it comes to financial assets, make sure your IRAs are titled correctly and afforded the same protection as qualified retirement plans. Many states, including Illinois, provide $1 million of protection on regularly titled IRAs. Again, make sure your IRAs are titled correctly so they can’t be taken in lawsuits.

Finally, there’s identity theft. You might be surprised to learn that more identity theft occurs from unauthorized access to people’s home than from unauthorized access to people’s computers. Certainly, you want to protect and update your passwords frequently, but home break-ins are a much larger cause of identity theft than Internet hacking.


On June 10 and 16, we will be holding a seminar, Taking Charge of Your Wealth at Wildfire Restaurant in Glenview and Lincolnshire respectively. We’re going to cover the five major concerns of successful investors. Feel free to bring a friend or relative with you.

Until next time, enjoy. Gary

Taking Charge of Your Wealth
For Those Who’ve Retired or Are About to Retire
800-480-7913 |

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