29 Apr It is Human Nature to Protect

By: David Harris 2/27/17

Anyone that has grown up in Utah knows that your 15^th birthday is a critical milestone. At this delicate age, my sweet daughter is now able start her training to attain her driver’s license. As her father, I am so happy to teach her all about the operation and management of a motor vehicle. This past weekend we embarked on our first training exercise. All I could think of was how grateful I was for all the safety features in place to protect us! And how thankful I was that we have insurance! We put on our seat belts, said a quick prayer and slowly made our way home. We both experienced a bit of stress but we made it to our destination safely.

SAFETY IS ESSENTIAL- IN CARS AND IN MONEY

Over the past 30 years, technology and the demand for safety have caused auto manufactures to make cars as safe as possible. Most cars now have advanced seatbelt systems, anti-lock brakes, airbags on every side, proximity detection, etc. We, as consumers, rely heavily on these safety measures to keep us safe, alive and enjoying life for as long as possible. We love to drive in comfort and with confidence that we are protected as we seek out our next destination.

In the financial Planning and Advising world we see the same trend and have many of the same goals. It is interesting to see how different people (such as business owners, retirees, young families and the independently wealthy) view safety and protection so differently. One might think that the independently wealthy would need very little protection, because of their significant financial resources. On the other-hand it may seem logical that a brand-new family wouldn’t need much protection, given that they don’t have much to lose. The truth is both groups want and need protection/safety but in very different areas.

WE ALL VIEW SAFETY DIFFERENTLY

A young professional with specific skills and strong earning potential would protect his life, his ability to work, and his family’s health. The Independently wealthy would protect against taxation, lawsuits, loss of assets, and the transfer of wealth.  The business owner (young or old) would protect against business liability, lawsuit, his or her ability to run the company, taxation, and protection of those employed. Many business owners spend a great deal of money to protect the very tools or machinery they use to keep their business running. The retiree may or may not need protection against death but may want to protect against the cost of health care, the loss of portfolio assets, and loss of consistent income.

Most protection is accomplished through some type of insurance contract, Legal agreement or strategy. The most common insurance contracts are Life, Disability, Health, Annuity, Long term Care and Property and Casualty insurances. The question is, do you have what you need? Is it possible you have too much, too little, or the wrong kind? What are you paying to have that protection?

Drive with confidence to the next destination.  Ensure you have the proper balance in your safety and protection.

^{Investment advisory services are offered through Trek Financial, LLC., an SEC Registered Investment Adviser.}

^{Information presented is for educational purposes only. It should not be considered specific investment advice, does not take into consideration your specific situation, and does not intend to make an offer or solicitation for the sale or purchase of any securities or investment strategies. Investments involve risk and are not guaranteed, and past performance is no guarantee of future results. For specific tax advice on any strategy, consult with a qualified tax professional before implementing any strategy discussed herein. Trek 17-433}