No matter what side of the political spectrum you agree with, there are some signs that we Americans (and others,) should be paying attention to when it comes to our money. Two weeks ago, I wrote an article about the importance of hedging your bets when it comes to protecting your legacy. Most any good advisor who’s done his/her homework will tell you that diversifying assets is a smart thing to do to ensure “not all your eggs are in one basket.” We recommended purchasing hard assets like precious metals, pre-developed land in the path of rapid and projected growth by experts, and repositioning assets into vehicles that help compress unnecessary taxation, as well as offer growth without potential loss. (Contrary to conventional thinking, the latter is truly possible when you are working with an expert in tax laws and efficient value discount planning.)
Today, I was submitting a case for a client to purchase some pre-1933 silver coins. (There are several reasons these are a solid choice, the least of which is they tend to bring a higher price. You need to learn more about these specific coins if you are considering diversifying.) While I was working on her purchasing paperwork, she called and said that she wanted to increase her purchase amount as she has been paying close attention to the Afghanistan crisis and the Taliban’s seizing of cities – and watching the chaos in Kabul. Keep in mind, she has no expertise in finance; she is an average hardworking citizen, who happens to own her own business, and reads a lot. What she understands is that when foreign factors influence our economy, it’s important to be protected. This is smart thinking. We have no idea what the outcome of this historic moment in Afghanistan will be, but I suspect in will have a huge financial price tag.
The challenges our country currently faces that will likely impact many if not most US workers and families include:
· Rising inflation
· Shortages of products and resources
· Unwillingness to go back to work post Covid – you can make more by staying home
· Loss of crucial jobs related to energy independence –relying on foreign imports for energy
· Consumer fears and insecurity
· Increasing debt
It seems like a recipe for disaster. There are some legal structures in place right now that can be taken advantage of if you are working with an expert in the subject matter. Fortunately, for some who’ve already taken the proactive approach to educate themselves, they are now positioned to withstand most any future legislative changes to what the best Estate Planners and CPAs already know: the laws are presently in favor for valuation discount planning, but they ARE going to change. The 64-million-dollar question is: when? As it stands today, it is extremely likely to happen and go into effect on Jan. 1, 2022. It’s already in drafted form. I’m encouraging everyone I know to get another set of eyes and ears alongside your preferred advisor to consult and ensure that you are protected. Speaking as a reformed procrastinator who leaned some valuable lessons, I now whole-heartedly embrace proactive, thoughtful, researched actions. ‘Do nothing’ is not in my vocabulary, and I hope it’s not in yours.
Visit us at www.mvplwrc.com to request a free consultation with your Advisor, Estate Planner, and/or CPA joining with you in the conversation.