Now you have accumulated a solid portfolio, borrowing and investing as you work, using the returns and capital to develop your empire. However, there are a few dark clouds on the rise, including an increasingly debatable society. The issue for many investors these days is not building wealth and financial independence, but holding on to the wealth that they accrue.
Fortunately, there are several ways for you to protect your prized portfolio and retain your wealth. As many seasoned property investors are already aware, investing in property is as much about financial management as it is about finding ideal properties. You should make sure that you can access the funds that your require to maintain your portfolio as well as allow it to grow. It is important to develop solid wealth-building skills to enhance your ability to manage your finances to allow your portfolio to continue to provide the wealth to which you have become so accustom.
Income Protection Insurance
A permanent employee or wage earner is able to take advantage of medium to short-term stability, whereas a self-employed or contract worker does not have the same salary advantage.
A proven strategy for risk-management in order to maintain income stability is to obtain income protection insurance. This guarantees that you will persistently receive a certain income should you experience a decrease in income or become unable to work. Income protection insurance protects you against instances such as disability and illness. Imagine the horror of the portfolio you have built so spectacularly failing because you are unable to pay off loans due to severe illness.
A Win-Win
Income protection insurance can protect your valuable assets as well as the successful property portfolio that you have worked so hard to build. In addition, the premium that you pay for income protection insurance is tax deductible. This is what we call a win-win situation.
Eventually, you want your portfolio to be strong enough to support you, but until that day comes, you need to make sure that you are able to support and protect your portfolio.
Property Options Australia
Property Options Blog © 2006 – 2009
Wealth building is a very interesting job. everyone want to have some financial freedom.`~`
Hi Sean,
I think income protection insurance is a great idea. You just never know when something will go wrong that will change your ability to earn an income. Your life can be changed forever in moments and having this insurance will give you peace of mind.
I think a mentor is the ideal person to help you learn wealth building skills for the long term.
Being self employed it is essential to have income insurance. You need to insure the bread winner or , worst case scenario, the bread disappears. Thanks for bringing this back to my attention.