You’ve probably heard the saying, “Buy term life insurance and invest the difference.” The “difference” in this recommendation is the difference between what you would pay for whole life insurance versus term life insurance. That difference is substantial. Whole life insurance is generally many times more expensive than term life insurance.
On investment sites, we often talk about how to grow your assets. But there’s a different side to this topic — protecting and preserving your assets — that doesn’t get as much coverage. There are different ways to do this, including proper asset diversification, but not all of the risks to your wealth are market-related. The biggest ones, in fact, often happen outside the financial markets entirely.
You might think estate plans and trusts are something mostly for “rich people“. But think again. There are two reasons to create a trust to protect your assets, and they’re factors that can affect everyone, regardless of how much money they have.