What Is Wealth Protection?
Most people don’t seem to think of wealth protection as a priority. Perhaps, currently you are already enjoying the lifestyle that you desire, or perhaps you are still trying to get there, and wealth protection seems to be secondary.
So, while it is not a deliberate act of disregard, it is frequently not a priority.
It takes a long time for you to become wealthy. You have put in a lot of effort to get to where you are now; you gained your success through determination, perseverance, and a keen sense of business. You are now enjoying the benefits of your position. However, because the future is uncertain, it is critical to take steps to protect your assets and preserve them for the decades to come.
Calculating how much financial protection you require is a vital first step in your wealth planning journey. You must ensure that you have covered all your bases in case life throws you problems, especially with the living demands here in Singapore.
A sound wealth protection plan should cover various areas from life insurance, general insurance, family income plans, health, and medical insurance. In short, it protects your wealth in the event of an unexpected life event and shields your wealth and future earning capacity.
There are many various wealth protection strategies one can explore, and one should always seek a complete evaluation of various financially detrimental concerns such as premature death, disability, critical illnesses, medical costs, accidents, personal property, and other unforeseen events.
Here are some wealth protection strategies will include but are not limited to:
While most people keep a close eye on the wealth creation side of things and regularly review how their assets are performing, wealth protection is often neglected. Protecting your wealth should always be a fundamental part of your financial planning, and that is why you should take some time to consider this.
Just as how you should continue accumulating wealth throughout your lifetime, it is also of vital importance to focus on safeguarding your financial assets.
Instead of simply focusing on growing your wealth, having an adequate wealth protection plan gives you a peace of mind, and a financial safety net for both you and your loved one’s well being. With this peace of mind, you can then be in a better position to make investment decisions.
The views and opinions expressed in this article are solely that of the author and do not reflect the opinion of Professional Investment Advisory Services Pte Ltd. The information contained in this article is for general information only and does not constitute the provision of financial advisory services. The precise terms, conditions and exclusions of any services or products mentioned are specified in their respective policy contracts. For customised advice to suit your specific needs, consult an Apex Financial Advisor Representative.
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1Bubb, J. (2019, September 19). What is Wealth Protection? Infinity Financial Solutions. Retrieved February 17, 2022, from https://www.infinitysolutions.com/blog/insurance/neglecting-wealth-protection/
2Cua, G. (2021, May 23). Why holistic wealth planning is a must. The Straits Times. Retrieved February 17, 2022, from https://www.straitstimes.com/business/invest/why-holistic-wealth-planning-is-a-must
3HSBC Singapore. (n.d.). How much financial protection do you need? – HSBC SG. HSBC Singapore. Retrieved February 17, 2022, from https://www.hsbc.com.sg/insurance/how-much-financial-protection-do-you-need/
4Jingting. (2021, April 16). 3 Wealth Protection Strategies in Singapore . Collin Seow. Retrieved February 17, 2022, from https://www.collinseow.com/financial-freedom-wealth-protection/
5Prudential. (n.d.). How much financial protection do you need? Prudential Singapore. Retrieved February 17, 2022, from https://www.prudential.com.sg/products/promotions/makingwealthprotectionrewarding
6Smith, Z. S. (2021, February 16). Fewer Americans Now Want To Prioritize Racial Issues And Poverty Than In 2021, Study Finds. Forbes. https://www.forbes.com/sites/zacharysmith/2022/02/16/fewer-americans-now-want-to-prioritize-racial-issues-and-poverty-than-in-2021-study-finds/?sh=4f7dd2525cae
7WEALTH CREATION & WEALTH PROTECTION: WHY INVESTORS NEED TO SUCCESSFULLY TACKLE BOTH CHALLENGES. (n.d.). AIA Group Limited. Retrieved February 17, 2022, from https://www.aia.com.sg/en/life-matters/money/investing-101-wealth-creation-protection.html