Asset protection strategies and why it matters

Asset protection is the process of safeguarding your wealth from potential risks that could erode it over time — including lawsuits, creditors, divorce, business failures, and other unforeseen financial threats. It involves using legal and financial strategies to ensure that what you’ve built through work, saving, and investment remains secure and accessible for your future needs and your family’s well-being.

Effective asset protection doesn’t mean hiding assets or evading obligations. Instead, it’s about structuring ownership and financial plans in ways that reduce exposure to loss while staying fully compliant with the law. This can include forming trusts, creating business entities such as LLCs or corporations, maintaining appropriate insurance coverage, and carefully titling assets like homes, investment accounts, or retirement funds.

For professionals, business owners, and high-net-worth individuals, asset protection is particularly important. One lawsuit or liability claim can jeopardize decades of savings or even retirement security. Even for those with modest means, thoughtful planning helps ensure that assets are preserved for long-term goals such as funding education, supporting heirs, or maintaining quality of life in retirement.

Steven Podnos discusses the right approach to take when it comes to asset protection.

Steven Podnos, MD, CFP, is a fee-only planner in Texas and Florida. He can be reached at [email protected] and www.wealthcarellc.com.