Whether or not we realize it, we all have various assets that increase both in number and complexity as we progress through life. We’re talking:
- insurance policies
- retirement funds
- real estate
- digital goods
Тhe list goes on for a while.
20 years ago – did you think trading stuff like video game items would be a thing? Yeah, neither did we. Regardless, nowadays some video game items cost thousands of dollars.
So what’s the first step towards asset security
Given the immense diversity of assets a person can hold today, the first step towards securing your assets is understanding the fundamental differences between each asset type and the care they require.
For instance – holding a collector’s baseball card might require a suitable container with the right temperature and no direct sunlight or moisture, but real estate is a completely different level of effort (taxes, maintenance, repairs, etc.).
Just as a saving’s account might require little effort to hold, given the evolution and digitization of banks, but successfully holding a stock portfolio with items from several industries is significantly more complex.
Another very important differentiation we must make is between business and personal assets. We shouldn’t only differentiate based on asset type and industry, but also in what capacity (and with which goals in mind) we’re holding each asset.
In order for us to protect our assets, we must first be very clear on the fundamentally different level of care each asset type requires.
Changing our perception about asset security
Once we know the care our various assets require, we must embrace a dynamic approach towards maintaining them and their security. In other words, an asset remains an asset only if we continue to perceive it as one. There’s rarely a possession that asks for static actions (buy & forget) – a constant level of attention is usually required.
If we create a stock portfolio, we must constantly monitor the market rhythms and trends of those relevant industries. That ensures we’d be able to quickly free resources from one place and enhance our presence in another if needed. It also ensures our investments don’t plummet.
The sooner we realize successfully holding and ensuring the security of various assets requires constant attention and effort, the better.
Choosing the right partners
This varies from one industry to another, but we’re often required to choose between intermediaries that are authorized to perform certain actions. Extensively researching before we make those choices is crucial for our asset security. The market is often flooded with options in this regard, but it all comes down to the fine print – and finding the partner that best fits our specific needs.
Even if the industry doesn’t legally require someone to perform a given action on our behalf, it’s always of benefit for your asset security to enlist the help of a professional in making sure you stay on point with your investments. Just as it’s always a great idea to consult with a lawyer to make sure your investment plan stands on a solid legal foundation.
Having the right partner ensures you’re not only drawing on additional expertise, but are using the best tools available to help with the difficult task of having solid asset security.
Using different asset security methods simultaneously
In today’s modern world, there is no single protection method to help us secure our assets. Only a powerful combination of several tools brings us closer to achieving this.
For instance – regardless of the assets you hold, it’s never a bad idea to insure them. We can’t predict the future and what positive or negative events it holds and this is precisely why insurance companies exist. While this also varies with the different types of assets and industries, insurance fees are usually very affordable and those policies cover a very wide range of events.
The same goes for backup. Digital assets are definitely gaining more popularity, especially during the past few years. While insurance companies might have not completely caught up with all current trends in digital assets, always make sure to do regular backups. This goes for all assets types with whatever information makes sense to store on them. A popular example of an asset protection tool most of us are using almost on a daily basis are password managers (including browser built-in ones).
Think of the future of your assets
Knowing what care your different assets require and ensuring it is paramount. But what’s equally important, if not more, is putting the right mechanisms in place that ensure if something unforeseen happens to you, your hard work doesn’t go to waste. We often get carried away in building better and bigger portfolios, striking better and more profitable deals, expanding our knowledge and wealth; but we tend to forget we’re only human.
It’s how we’re built, we all do that at some point and to some extent. Having the peace of mind that if something were to happen to us our loved ones would inherit our assets is of utmost importance. And that’s where we at DGLegacy come in – our mission of helping people protect their assets and loved ones stems from core values, deeply embedded in who we are and what we stand for.