You must have the rich use words with like "Debt over personal cash", or "invest with other people's money". The reason why they use these words is because they actually use these money instead of theirs, also you might have noticed that they are not usually taxed against their entire net worth, or when they are charged for a particular offense, it looks like their money is still safe or intact, well it is because they use Asset protection which makes their assets invisible.
Asset protection as the name implies has to do with keeping funds away from the praying eyes of creditors or people who intend to take it all from them. It is like having a camouflage and a bulletproof vest against ones money or hard earned asset against conditions that could leave them and their finance vulnerable. It can be land, investment, equity, business, or anything you have worked hard to create. The goal is to protect and still control the asset.
The more the asset, the more protection is needed to keep it safe. We agree you started a business and you made it an LLC but then after the sheet of paper that shows you are an LLC, you decided to let go of everything without properly maintaining the status of it being a LLC. Do you have basic bye laws, operating agreements, and those little things that you think isn't worth it? Once this is done, you need to find a way bring together things like tax planning, estate planning, and it can just make senses and make the business itself stand alone.
One thing business people do to keep their business safe is implementing a Charging Order Protection Entity (COPE)which would provide a top layer of control on assets. When there is a court order, it allows the owner of the business to own its business and distributions made from the business and not giving the creditor management access to the business. One thing a lot of people do not take seriously but means a lot is a shredder. People go to dumpsites to gather information of people so they can either impersonate them or have access to their information which can be detrimental to both the person and the business but something as simple as a shredder does more help than you think.
When you have a business or a property and you have insured it, it is important that you walk around it regularly and take shots of your property in the case of a damage that requires insurance claim, because insurance companies will not write big checks because you just said it, they always want proof and those picture moments would be proof. When you begin to own some properties, you need to take your name off the public eye and it is at this point that you begin to use PO box addresses, and entity names just to keep yourself safe and protected for rainy days.
Someone would ask why the rich go a long way to do all this? This is because they work so hard to own these assets and they do not want it taken away in one second. They do not want to be liable for any loss personally and want to be able to sort their problems without going to ground zero.
The truth is everyone of us actually want to be rich but we did not yet have the mindset of the rich people. Even though many of us desire it, there are some steps that the rich carried out which distinguished them from others
*One thing business people do to keep their business safe is implementing a Charging Order Protection Entity (COPE)which would provide a top layer of control on assets." Quite the first time I am hearing about this
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