As much as we would like them to, assets don't just sit around and appreciate; they have to be maintained in order to grow. While this is common knowledge to most investors, the reality is there are many factors that can detract from the viability of your portfolio. Listed below are some of the dangers that you need to protect your property from.
Federal Seizure is a Clear and Present Danger
This is a big one that most people know about. The IRS is more than willing to seize assets, block accounts and perform any other actions deemed necessary to stop crimes, even when they only suspect investors of committing them.
The hidden danger here is that although federal agencies must act in compliance with the law, regulations can change at the drop of a hat. As soon as some congressperson slips a rider into a bill, you'll find that you're doing something illegal without even trying.
Even if you aren't planning on committing any big fiscal offenses, it still pays to be wise about your investment strategies. Certain financial structures, such as managed trusts and estates, are harder for the feds to take control of because they aren't in your name. Depending on the jurisdiction where you invested, these financial products may even enjoy complete immunity.
The Market Changes
Markets are apt to swing, and while you can predict these fluctuations with advanced mathematical analysis and statistical trend-tracking skills, few people really have the time for all that. Unfortunately, these changes can result in major losses, especially when markets aren't all that stable to begin with.
Federal legislators are willing to go to extreme measures to engage in political brinksmanship. Although they're mostly concerned about winning primaries and maintaining their power bases, their actions have huge negative effects on global market confidence. As the most recent government shutdown demonstrated, the world isn't as enthralled with the U.S. economy as it once was.
While the U.S. dollar is far from going belly up, it's wise to spread one's investments. Good asset protection attorneys take this into account by helping investors choose portfolio options that are more likely to be profitable in the long run. This, in turn, ensures that their money isn't subject to the random side-effects of political whimsy.
Playing the Long Game
Assets have to be maintained if you actually want to be able to use them later. While there are many different methods for maintaining control over your personal and business property, these myriad investment strategies aren't all equivalent.
Routine short-term changes in the way the U.S. economy works make it essential to adopt a forward-thinking approach. To learn more about investing for the future with the assistance of an asset protection lawyer, visit Nagel Law online.
IRS Circular 230 Notice: The Statements contained herein are not intended to and do not constitute an opinion as to any tax or other matter. They are not intended or written to be used, and may not be relied upon, by you or any other person for the purpose of avoiding penalties that may be imposed under any U.S. Federal tax laws or otherwise.