Perhaps these two celebrities are not the most popular out there as far as role model status, but they do have some valuable lessons for asset protection planning. Asset protection is an essential goal that every person should have, regardless of whether their estate is in the 7 figures or not. Unfortunately, exposures to risk are something faced by everyone, even if the type and severity of those risks can vary.
Retirement accounts are a key focus for both of the above-mentioned individuals. Even though the tax deferral advantages of traditional IRAs and 401(k) plans are well documented, there are asset protection benefits to using these tools, too. In the event that you face a legal liability or personal bankruptcy, some retirement assets can stay out of the hands of creditors.
Right now, personal retirement assets housed in an employer-sponsored plan like a 401(k) are shielded from creditors. Even if a party leaves the position where this plan started, rolling it over to the new employer provides the same level of asset protection.
Of course, the specifics of how to protect your assets is something you should discuss with your estate planning and asset protection planning specialist. Making sure you get an appointment on the calendar could go a long way towards preventing attacks against your assets in the future. Contact us at info@lawesq.net.
How true. It is unfortunate that most individuals do not understand the value of 401k plans when it comes to asset protection just like most business owners do not appear to know the value provided by captive insurance companies. Thanks for writing this. OJ and Lance are prime examples why individuals, wealthy or not, should think about risk management and risk planning.