Preservation of Your Capital
Capital preservation is the foundation of financial security. Captive insurance offers a powerful, often overlooked method to protect and grow your capital.
What Is Capital Preservation?
Capital preservation means protecting your retained earnings, surplus, and cash value in every way possible: in your savings account, in your business, or in your retirement account. Most people are aware of the traditional methods such as savings and retirement funds. But there are many additional, less common yet significantly more powerful methods, including cash value of life insurance, deferred compensation, surplus of your insurance company, and many more.
Why does this matter? Because those with assets have the ability to make choices. Those without do not. By reserving capital for future events, future cash flows of an individual or business become more consistent. Future events are paid from reserved capital rather than current income or operating company cash. The ups and downs of paying either personal or business expenses become more predictable and stable.
A Principle as Old as Time
Preservation of capital is not unique. Each and every one of our grandparents or great-grandparents, a full generation coming out of the Great Depression, lived and breathed this principle, first out of necessity, then out of choice. Preservation of capital is self-reliance.
Three Important Questions
Preserving capital is working capital. It is working for retirement, a charity or cause of your choosing, education, business expansion, and protection. Capital is insurance for the known as well as the unknown. Here are three important questions to consider:
- How is capital most efficiently created?
- How is capital best maximized or deployed?
- When do I start or restart?
Each important answer is personal and individual, based upon where you are today and where you intend to be tomorrow. There are opportunities available now like never before. Think outside the box. There is a better way.
More Options Than You Think
For high net-worth individuals, entrepreneurs, and business owners, there are more options available than most realize. Consider legal, operational, structural, and strategic options. Are you familiar with ILITs, 831(b)s, CRUTs, QSBS, and other advanced strategies? Many of these options serve multiple purposes, compounding the power and value they each provide. More net income, more basis, more capital allows exponentially more opportunities today and tomorrow.
Call 720-213-0583 to start preserving your capital today.