Broker Check

5 Important Financial Protection Strategies

December 20, 2019

Warren Buffett once said, "Rule no. 1: never lose money. Rule no. 2: never forget rule no. 1." As financial professionals, we spend much of our time discussing how to manage your money. However, another critical aspect of our financial strategy is following Warren Buffett’s rules and protecting the wealth you have already amassed.

The more complicated your financial life, the more sophisticated the strategies you can use to manage your finances. We may have already discussed some or all of these, but as your financial goals and circumstances evolve, it can be helpful to reassess your strategies.

  1. Positioning Assets: Would it be appropriate for you to hold certain investments or assets in legal entities, such as a limited liability company (LLC)? Remember that LLC laws vary by state, so it’s critical to understand the rules that affect you.

  2. Personal Insurance: If your net worth exceeds the limits of your homeowners or auto liability insurance policy, you might want to consider buying additional personal liability protection. If you were to lose a lawsuit for a sum greater than what your existing insurance will pay, you may put other assets at risk.

  3. Risk Management: Were you comfortable during last year’s market volatility? Do you believe your portfolio reflects your goals, time horizon, and risk tolerance? While financial markets can be unpredictable, it’s critical that you don't lose sight of your investment targets.

  4. Estate Strategies: When was the last time you updated your estate documents? If it’s been more than a few years, it may be time to take a fresh look. Do your documents reflect any new children or grandchildren? Any marriages or divorces? Having updated documents may be one of the best gifts you give your beneficiaries.

  5. Philanthropic Activities: Do you feel like you want to "step up" your philanthropic activities? Do you want to do more than write a check to your favorite charities? It may be time to consider expanding your overall giving approach.


As financial professionals, we can work with you and coordinate with other professionals, including your accountant, attorney, and insurance agent, to help ensure your overall approach is tailored to your specific needs.

If you would like to learn more about these or other financial protection strategies, please contact us, and we can have an introductory conversation to see if we're a good fit. We hope to hear from you.