Why Asset Protection Alone Isn’t Enough

safeTo protect your wealth you might think all you need to sleep well at night is a few corporate structures, some offshore investments, and a crackerjack lawyer to dance past anybody who tries to sue you.

Hell, even the SOUND of it all makes me feel all “cool” and secure.

It’s easy to think that just having all your T’s crossed and I’s dotted will let you walk away scot-free from any cash-hungry bastard who tries to drag you into court.

But you know what? You’d be wrong. Dead wrong.

I’ve been there. And lemme tell you… this whole thing lawyers wrap up and sell as “asset protection” is only made to sound like the easy way out. And if you’ve had any success in business (of course you have, you’re a subscriber to my newsletter aren’t you?) you know that anything that seems “too easy” is often a trap in disguise.

If you rely solely on a fortress of paper separating you from your property, the result will often be the judge awarding a default judgment against you in favor of the guy suing you. This is something that will never go away, and something that will taint your good record like red wine on your best white shirt.

One of the biggest myths out there is that asset protection plans will somehow protect you from frivolous lawsuits. Sure, they may make it harder to get at your goods, but they’re not going to prevent any suit from actually being filed.

Some people falsely believe hiding behind a Nevada corporation or some other kind of legal entity will protect them from judgments. Often, this is just a case of some crummy attorney who likes to call himself an “asset protection specialist” enriching himself with fees for his sham service.

Here in the United States, there’s a bit in the Constitution called “Full Faith and Credit.” And part of what it breaks down to is other states must honor the judgments of others. That means your creditor in California can and will hassle your Nevada corporation till doomsday… and he has every right to do so.

Also, even after all these years there’s still a cloud of smoke and mirrors surrounding Nevada. I’ll write more about this in greater detail in future posts to The Legal Secrets Report, but for now just understand that years of legislation and court decision have eroded away most of what made Nevada so attractive to many in the first place.

When you live abroad, you’re not weighed down by the “Full Faith and Credit” hitch that goes on in the United States. In most cases, a default judgment in the states can’t touch you, because they’re rarely acknowledged by foreign authorities – they don’t think it’s fair!

And, well, come to think of it… neither do I.

But you don’t need to afford a jet-set lifestyle to accomplish the same basic protection. In How To Outswim The Sharks, I show you exactly what to say and how to set up the right protection mechanisms – ones that will grow “old and cold” and won’t land you in hot water with the authorities.

Bottom line is this: Asset protection loopholes are not a substitute for insurance and a good defense strategy. If you rely on clever maneuvering alone to save your butt in a legal battle, you’re in for a rude awakening.

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