Wealth Watch: 28 Assets’ Biggest Enemies

Continuation of Part 3

José Santiago Worldwide Asset Protection Specialist

José Santiago
Worldwide Asset Protection Specialist

By José Santiago

Did you know that the assets you have today you may not have it tomorrow, if you don’t take care of it today?

Answers you must have ready for your children and spouse.

Have a check? You have worked extremely hard to get where you are now and after tears and sweat you have accumulate what you have now as assets.

These could be: house, business, car, boat, land, reputation, good health, skill, competence, etc. now, as anything in life there are risks and enemies knocking on the door of any good thing. So, learn below the 28 biggest risks to your assets, being them tangible or intangible. Knowing about them will allow you to prepare yourself and waving off these risks.

When considering these risks some of them are purely depending on you, some are external to you. The latter is more difficult because external factors play its part on the development or not of them. Below are the remainder 14 risks to your assets.

15. Terrorism – acts of terrorism can have a very negative effect on your assets directly or even indirectly by affecting the market driving down the market value of your assets.

16. Economic conditions – economic cycle is also a major factor in the value of your assets especially in downturn or market crash. Some assets are more vulnerable to market volatility than others, nevertheless when the market is receding all assets are affected.

!7. Bad management – if you run your family fortune or have a business a proper strategic plan for family or business is a way of protecting your assets. Lack of it may mean bad decisions not being accountable for which may leave your assets open to claims or devaluation.

18. Dishonesty – happen if your assets are being managed by third parties.

19. Health – poor health may mean you not being able to manage and drive your asset growth as before; if the asset is not growing or maintaining its value depreciation is a fact.

20. Skills set available – within your family skills and care must be combined to protect your assets and if there is a lack of it and if you are not able to buy in these skills you become vulnerable and open to negative consequences.

21. Competitors – bad faith competition or malicious one can again drain your assets value.

22. Branding – whether you are an individual or business but more business than individuals bad publicity can damage your branding and again drive down your value. This can become hard to recover.

23. Malicious damage – relates to dishonesty where damages are caused deliberately to the assets. Collateral damages can be huge.

24. Rate of return – this is related to the inflation and if your return on assets is lower than the rate of inflation then the real value will reduce in the proportional rate of the difference. This is more evident in countries where hyperinflation is a fact.

25. Products – as the market is cyclical some market sectors could be positively or negatively affected, so what happens is if the base of your assets is on the wrong side of the market it is obvious that your assets will suffer.

26. Legal framework – the country or local law may change by introducing new compliance requirement or even new taxes to certain types of assets and the immediate effect is devaluation of the concerned asset.

27. Career – if your career is over supplied in the market obviously the value of your retention reduces in proportional or even greater rate of supply. This could mean you draining your savings or sell assets to fulfill your commitments.

28. Poor planning – if you do not plan and organise your assets you will never know what do you have currently and what you would need in the future. Lack of planning means acting reactively which could be you having to sell off your assets at a short notice getting lesser value to your assets.

These are what I consider to be the biggest risks. What do you think? In your opinion are more risks there? Either way lets know…

Want to know more? Just ask! Email: editor@zambianeye.com

To be continued…. 5 ways to protect your assets