Seniors: Carefully Preserving Assets and Limiting Liabilities

Oct 21st, 2009 | By Dr Jerry D Elrod | Category: Senior Moments Blog

Between now and the next dozen years, one of the most critical evaluations and disciplines to be made  with aggravating regularity includes creating an economic portfolio that will preserve assets and limit liabilities. 

Goal one is to keep debt at an absolute minimum.  What that really means is to avoid it altogether.  Having limited liability means you are in control.  If you charge anything, pay for it within the credit card time line to avoid any interest charges.  Trust me, they want your business, and your use of the credit card makes them look good.  Just don’t slip up. 

Do not purchase any large items that cannot be paid for within the period allowed without interest added.  Use their money, but only carefully.

Assets are to be protected with jealous intensity.  Commit nothing to risk adventures.  Given how precarious investments are at the moment, unless you have the Warren Buffet syndrome, and even he has taken losses, or you know everything that no one else knows, then leave speculative investing to others.

Be sure your estate is in a good place.  Stop proscratinating.  Protect your inheritance values from as much taxation as possible.  Don’t be shy or assume you will sound stupid by asking questions.  It’s your money so it is in your interest to be able to have an estate plan that is secure and well organized.

Don’t overlook early gifting to your children or others within your orbit.  Allow them to absorb some of your wealth now, but build in protections for them and you.

Avoid spending sprees just because you have money.  Most of this column is pure common sense.  Exercise it.

Goal two is to keep apprised of your portfolio, its health or lack of it.  If it starts going south, have a Plan B. 

Goal 3 is to be sure you have reviewed your situation with trustworthy professionals.  Before taking any action, consult someone objective who can assure you of the wisdom of your choices.   

Goal 4 is to avoid panic.  Sure things are not presently very rosy.  They can be less so.  Stay within boundaries with which you are comfortable. 

Goal 5 is to stay in touch and aware of trends.  Those trends, however, are very much like a barometer.  Know the difference between an impending thunderstorm and a tornado. 

Carefully preserving assets and limiting liabilities is very much like having a health check up.  Preserve the disciplines that keep you healthy and avoid the things that contribute to bad financial health.



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