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4 Things You Must know If You’re Planning Your Property Protection

4 Things You Must know If You’re Planning Your Property Protection

Given the high cost of jury verdicts today, many professionals are looking for ways to protect their personal property from malpractice and negligence claims. For example, if you’re a healthcare professional and own a home, a car or a portfolio of stocks, it’s essential to protect your assets against lawsuits. The good news is that sound financial planning can go a long way to keeping your personal net worth from the threat of litigation. A comprehensive wealth management plan can also help you achieve other long-term financial goals, which may include planning a child’s education, ensuring a comfortable retirement for you and your spouse and minimizing property taxes for your heirs. While it’s advisable to seek out professional opinion from professional limited liability companies, like Wyoming, when planning your assets protection, also keep these 4 things in mind.

1. Have An Idea About Property Protection 

Never jump in making decisions, especially when it comes to protecting your assets. Make efforts to know what‘s involved and what it’ll definitely cost you. Note that:

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  • A well-structured financial plan discourages prosecution.
  • Good asset protection should not be expensive.
  • An experienced asset manager can help you take a more integrated approach to achieving your financial goals.

Starting with the basics, there are three levels of asset protection. The first is to invest in assets that are automatically protected against lawsuits in most states, such as your home, qualified retirement accounts, annuities and the cash value of life policies. The second level is the creation of private trusts and companies that remove assets from your personal domain. The third level is the creation of personal property entities in different jurisdictions, making it more difficult for people to place privileges on your assets through a lawsuit.

For many physicians, a good starting point is to simply implement the first level of asset protection – get the most out of your investments in assets that are automatically protected from lawsuits in most states. Many health professionals neglect these simple strategies:

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  • Your house. Part of your equity is generally exempted from prosecution in most states. In Arizona, for example, up to $ 150,000 in equity is exempted from legal action.[1] Texas and Florida offer unlimited coverage for equity at home.[2] Once you have reached the equity ceiling of the protected property in your state of residence, you may want to consider maintaining a mortgage loan for the mortgage. Plaintiffs in a lawsuit will not be interested in your debt-only assets.
  • Qualified retirement accounts. Funds held in ERISA-eligible retirement accounts, such as defined benefit plans or 401 (k) plans, are generally exempt from prosecution, so it is often logical to maximize your annual contributions to these accounts. Not only do you benefit from asset protection, but you will also benefit from tax-efficient savings, helping you to increase your capital. Unskilled pension plans, such as deferred compensation plans, may also have a role to play in helping you achieve your wealth management goals. Unskilled plans offer some protection against lawsuits, as well as unique benefits for highly paid business owners and employees.
  • Deferred annuities. A deferred pension represents the money you set aside today to create future income, usually for retirement. If you have not yet started making distributions of your deferred annuity, the value of your annuity contract is generally exempt from prosecution. In addition to providing asset protection, annuities can help supplement other sources of income in retirement, such as social security or withdrawals from your IRA or 401 (k) accounts.
  • Cash value of life insurance schemes. Once you have held a life insurance policy for more than two years, the cash value of the policy is generally protected from lawsuits in most states. In addition, the cash value of the policy can often be accessed through withdrawals and tax-free loans at retirement, which can be particularly attractive if tax rates increase in the future. In addition, insurance policies can also be a useful way to transfer wealth to future generations.

2. Myths Aren’t Facts

There are often lots of misunderstandings on asset protection, especially between doctors and other health professionals about strategies that offer true peace of mind. Don’t follow someone’s thoughts or what they think is involved or you should do. The best thing to do is seek a professional’s guidance and opinion to help you make the right decision.

3. Explore Advanced Strategies

If you are just starting your career, the first level of protection (investing in assets that are automatically exempt from prosecution) may be all you need right now. As you go further in your career and your personal equity continues to grow, you may want to consider exploring some advanced strategies for asset protection, including the creation of trusts, companies, and LLCs. In addition, you may consider establishing these entities in different jurisdictions, making it more difficult for people to place liens on your personal property. Take note that “protective” trusts, corporations and LLC(s) can be expensive to generate and maintain, so you should explore all options with your team of trusted advisors before pursuing asset protection solutions.

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4. Create an Air-Tight plan

The most effective asset protection strategies start with sound financial planning.[3] If a judge or court determines that you’re trying to “conceal” assets to creditors, they can remove the exempt status of those assets. For example, if you buy an important life insurance policy shortly before bankruptcy, a court can determine that any assets involved in “last-minute” transactions are still being litigated. The best protection for your assets is to show that you have legitimate reasons for structuring your assets with many other benefits in the way that makes the most sense to you and your family in the long run. In a court of law, your intention is the key. Your intention to set up accounts cannot be to avoid situations of liability. Instead, your intention should be associated with responsible and ethical financial planning, (planning a comfortable retirement or the smooth transfer of your estate to your heirs).

The approaches mentioned here are simply “conversation starters” to have with your wealth manager, lawyer and tax professional. Each physician has unique needs and goals, so your personal asset management and asset protection plan will need to be tailored to your specific situation. In addition, asset protection laws may vary considerably among states. The key to creating an effective asset protection plan starts now before you need it. By creating a team of trusted professionals, discussing your goals and reviewing your plan on a regular interval, you can generate a wealth management plan that can fully covered you from unforeseen circumstances – a plan that helps you feel more confident about your financial future.

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Featured photo credit: WonHo Sung via unsplash.com

Reference

[1] Arizona State Senate Issue Brief: Arizona’s Homestead Exemption
[2] Robinson, Tigue, Sponcil & Associates: Protecting Your Assets from Malpractice and Negligence Suits
[3] Public Deposits: 6 Characteristics of a Sound Financial Plan

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Last Updated on October 13, 2020

How to Get Promoted When You Feel Stuck in Your Current Position

How to Get Promoted When You Feel Stuck in Your Current Position

Have you been stuck in the same position for too long and don’t really know how to get promoted and advance your career?

Feeling stuck could be caused by a variety of things:

  • Taking a job for the money
  • Staying with an employer that no longer aligns with your values
  • Realizing that you landed yourself in the wrong career
  • Not feeling valued or feeling underutilized
  • Taking a position without a full understanding of the role

There are many other reasons why you may be feeling this way, but let’s focus instead on learning what to do now in order to get unstuck and get promoted

One of the best ways to get promoted is by showing how you add value to your organization. Did you make money, save money, improve a process, or do some other amazing thing? How else might you demonstrate added value?

Let’s dive right in to how to get promoted when you feel stuck in your current position.

1. Be a Mentor

When I supervised students, I used to warm them — tongue in cheek, of course — about getting really good at their job.

“Be careful not to get too good at this, or you’ll never get to do anything else.”

This was my way of pestering them to take on additional challenges or think outside the box, but there is definitely some truth in doing something so well that your manager doesn’t trust anyone else to do it.

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This can get you stuck.

Jo Miller of Be Leaderly shares this insight on when your boss thinks you’re too valuable in your current job:

“Think back to a time when you really enjoyed your current role…You became known for doing your job so well that you built up some strong ‘personal brand’ equity, and people know you as the go-to-person for this particular job. That’s what we call ‘a good problem to have’: you did a really good job of building a positive perception about your suitability for the role, but you may have done ‘too’ good of a job!”[1]

With this in mind, how do you prove to your employer that you can add value by being promoted?

From Miller’s insight, she talks about building your personal brand and becoming known for doing a particular job well. So how can you link that work with a position or project that will earn you a promotion?

Consider leveraging your strengths and skills.

Let’s say that the project you do so well is hiring and training new entry-level employees. You have to post the job listing, read and review resumes, schedule interviews, make hiring decisions, and create the training schedules. These tasks require skills such as employee relations, onboarding, human resources software, performance management, teamwork, collaboration, customer service, and project management. That’s a serious amount of skills!

Are there any team members who can perform these skills? Try delegating and training some of your staff or colleagues to learn your job. There are a number of reasons why this is a good idea:

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  1. Cross-training helps in any situation in the event that there’s an extended illness and the main performer of a certain task is out for a while.
  2. As a mentor to a supervisee or colleague, you empower them to increase their job skills.
  3. You are already beginning to demonstrate that added value to your employer by encouraging your team or peers to learn your job and creating team players.

Now that you’ve trained others to do that work for which you have been so valued, you can see about re-requesting that promotion. Explain how you have saved the company money, encouraged employees to increase their skills, or reinvented that project of yours.

2. Work on Your Mindset

Another reason you may feel stuck in a position is explained through this quote:

“If you feel stuck at a job you used to love, it’s normally you—not the job—who needs to change. The position you got hired for is probably the exact same one you have now. But if you start to dread the work routine, you’re going to focus on the negatives.”[2]

In this situation, you should pursue a conversation with your supervisor and share your thoughts and feelings to help you learn how to get promoted. You can probably get some advice on how to rediscover the aspects of that job you enjoyed, and negotiate either some additional duties or a chance to move up.

Don’t express frustration. Express a desire for more.

Present your case and show your boss or supervisor that you want to be challenged, and you want to move up. You want more responsibility in order to continue moving the company forward. Focus on how you can do that with the skills you have and the positive mindset you’ve cultivated.

3. Improve Your Soft Skills

When was the last time you put focus and effort into upping your game with those soft skills? I’m talking about those seemingly intangible things that make you the experienced professional in your specific job skills[3].

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Use soft skills when learning how to get promoted.

    According to research, improving soft skills can boost productivity and retention 12 percent and deliver a 250 percent return on investment based on higher productivity and retention[4]. Those are only some of the benefits for both you and your employer when you want to learn how to get promoted.

    You can hone these skills and increase your chances of promotion into a leadership role by taking courses or seminars.

    Furthermore, you don’t necessarily need to request funding from your supervisor. There are dozens of online courses being presented by entrepreneurs and authors about these very subjects. Udemy and Creative Live both feature online courses at very reasonable prices. And some come with completion certificates for your portfolio!

    Another way to improve your soft skills is by connecting with an employee at your organization who has a position similar to the one you want.

    Express your desire to move up in the organization, and ask to shadow that person or see if you can sit in on some of their meetings. Offer to take that individual out for coffee and ask what their secret is! Take copious notes, and then immerse yourself in the learning.

    The key here is not to copy your new mentor. Rather, you want to observe, learn, and then adapt according to your strengths.

    4. Develop Your Strategy

    Do you even know specifically why you want to learn how to get promoted? Do you see a future at this company? Do you have a one-year, five-year, or ten-year plan for your career path? How often do you consider your “why” and insure that it aligns with your “what”?

    Sit down and make an old-fashioned pro and con list.

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    Write down every positive aspect of your current job and then every negative one. Which list is longer? Are there any themes present?

    Look at your lists and choose the most exciting pros and the most frustrating cons. Do those two pros make the cons worth it? If you can’t answer that question with a “yes,” then getting promoted at your current organization may not be what you really want[5].

    The two most important days in your life are the day you are born and the day you find out why. —Mark Twain

    Here are some questions to ask yourself:

    • Why do you do what you do?
    • What thrills you about your current job role or career?
    • What does a great day look like?
    • What does success look and feel like beyond the paycheck?
    • How do you want to feel about your impact on the world when you retire?

    Define success to get promoted

      These questions would be great to reflect on in a journal or with your supervisor in your next one-on-one meeting. Or, bring it up with one of your work friends over coffee.

      Final Thoughts

      After considering all of these points and doing your best to learn how to get promoted, what you might find is that being stuck is your choice. Then, you can set yourself on the path of moving up where you are, or moving on to something different.

      Because sometimes the real promotion is finding your life’s purpose.

      More Tips on How to Get Promoted

      Featured photo credit: Razvan Chisu via unsplash.com

      Reference

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