Small investments that protect your big investments (every little one helps!)

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Estimates suggest that people with a net worth of more than $ 25 million spend around $ 1 million a year protecting their hatching eggs. They do things like small investments to make sure they can keep their money for the future and that no one else gets their dirty little gloves for it.

From a personal safety point of view, you can understand this. Being very rich makes other people jealous and makes you a target of crime.

However, knowing how to protect your money isn’t always easy. Sure, you should be doing the obvious things. However, there are also some non-obvious things. For many, this is a difficult balance. On the one hand, you try to prevent your money from falling into the wrong hands. On the other hand, you want to enjoy life without worrying about people taking your property all the time.

In this post, we will look at some small investments that will take care of your big investments. These are small items that you should spend money on in order to protect your finances for many years. As you read below, you will notice that some of these small investments are not necessarily financial in nature. However, they still eat up your resources in some way, whether it’s your time, emotions, or relationships.

Keep it to yourself

If you are not a celebrity and are not in the public eye, you should work to keep the true value of your assets a secret. Don’t post your net worth on Wikipedia or Facebook. Avoid contact with the media that are trying to publish you on rich lists. Don’t talk at parties about homes, cars, and investments you own.

Instead, enjoy regular company and keep the balance to yourself. Even if you have tens of millions in stocks and shares, avoid having to talk about it. Act discreetly so that you can enjoy your money without incurring some of the social costs that often come with having a lot of wealth.

Insure yourself against loss

Photo: Juan Marin on Unsplash

When you have a lot of property, insurance becomes much more important. Losses can reach tens of millions from a single event, depending on how diverse you are.

Therefore, you should insure yourself against losses as much as you can. Look for insurers to protect you in the event of a disaster and prevent you from losing your investment.

Getting real estate insurance is relatively easy these days. Most insurers reimburse property owners for damage or destruction to their homes through homeowner insurance.

You will also want to protect yourself against the loss of vehicles and even key people in the businesses you own. These forms of insurance help you diversify your insurance by protecting you from “black swan” events while keeping your property maintenance costs to a minimum.

Training people in their companies in the field of cybersecurity

Cybersecurity issues bring more small businesses on their knees each year. Companies just don’t understand how to defend themselves against the threats that exist, and many of them are actually very vulnerable.

With SaaS companies, the problem isn’t usually the network. Cloud providers provide sufficient protection and breaches are rare. (Also, even if they do occur, it’s the vendor’s problem, not yours.)

However, the human factor is usually what accelerates the crisis. Employees in your companies can make mistakes that provide hackers with the information they need to break into your systems.

Therefore, more and more leaders are investing in cybersecurity awareness training. This allows employees to learn about phishing threats and other trust-based techniques designed to compromise systems. For example, it tells them not to reply to emails asking for a password or to download links from emails from unknown sources. He asks them to double-check the e-mail addresses of all messages they receive to make sure that they are exactly the same as the official e-mail addresses of real senders. Small differences may be difficult to spot.

Vet your inner circle

Wealthy people have an inner circle of people they rely on to manage their finances for them. In the case of the ultra-rich, it can be a family office. For those in lower wealth levels, this could include accountants, brokers, insurance partners and wealth managers.

You’ll want to fully verify your inner circle and make sure you’re building real trust with them. Ideally, you should remain in personal direct control of your finances at all times, with other people providing additional services. Make sure you work with independent lawyers and auditors and ask one member of your team to monitor the work of another. In this way, everyone can watch everyone else, reducing the risk of foul play.

Choose a quality broker

While there are investment brokers who are budget friendly, the quality of their services varies. There may be a lack of security and support, which is fine if you trade several thousand cryptocurrencies. However, it’s not okay if you’re dealing with hundreds of thousands or millions of dollars.

High-quality platforms tend to charge high fees. This is because they know customers want maximum support when their wealth exceeds a certain level. The quarterly $ 50 bonus is nothing for someone looking to protect a $ 5 million portfolio.

Choose a broker that offers a full range of services. This way, you will have access to trading tools, advice, 24/7 telephone support, educational materials and so on.

Learn the basic principles of investing

Learning to invest is an investment in itself. People who do this discover that they are soon able to come up with long-term plans that build their wealth endlessly in the future.

However, the rules for investing are not always simple. In fact, they can be quite technical and difficult to understand, even on an intuitive level. Moreover, many financial experts and money managers do not understand them. Their insights remain fairly basic compared to the deep knowledge needed to manage a large sum of money.

Because of this, you will have to go out and educate yourself or learn from the best. Read books, take courses and diversify your own knowledge of the investment landscape. Find out what works in the long term and learn how to use that information to help you succeed.

Remember, building wealth is a very long game. It takes decades for most people. It won’t happen overnight.

Protect your valuable documents

For many wealthy people, documents – not bars of gold – are their greatest assets. So it pays to keep things like title deeds and share certificates in a safe and locked place. If you can, share the responsibility between yourself and the professional service providers you work with. For example, ask your attorney to keep a copy of all your titles in case you lose yours.

Learn the tax code

Knowing the tax code is just as important as understanding the rules of investing. Taxes have a huge impact on wealth in the long run. Once you understand how they work, you’ll be in a much better position to make maximize your wealth and use your earnings.

Start straight. Explore the available investment account options and look for ways to reduce your taxable income. If possible, consider putting the money in a tax-free account. Look for options that will help you keep as much of your invested capital as possible so you can take advantage of long-term increases in market rates.

Find out how to move money quickly

Lastly, you’ll want to learn how to move your money quickly in response to global events. You should be able to exit any investment in less than a month, and ideally on the same day as the new information becomes available. Transferring between assets is one way the elite remains wealthy.

Post Small investments that protect your big investments (every little one helps!) first appeared Business House Warehouse.

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