Asset Protection by BetterTrades

The first step in accumulating wealth is actually making the money, but the ensuing phase of asset protection may be the most important part of the process. If you can't keep and protect the money you make, there's little sense in making it to begin win. Understanding the concept of asset protection is one of the important concepts taught by BetterTrades.

BetterTrades offers a product known as the Wealth Preservation Kit, which includes 13 DVDs and 5 CDs and is designed to assist traders with legal structuring of their trading business. The kit will help a user determine how legal entities work and which entities work best for traders, understand the "hows" and "whys" of structuring their business, how to fill out forms and understand the filing process, and get the most out of the business structure that is chosen. The purchase of the kit also comes with two tickets to the Asset Protection Academy, a three-day seminar taught by practicing attorneys, who will schedule an individual consultation with you and offer their insight into the process.

Asset protection is important because it helps protect a trader from the three main threats to the security of their assets: lawsuits, taxes and probate. By being legally protected in those three areas, a trader can potentially enjoy the security that comes with proper asset allocation. The key, just like learning how to trade for a profit through a BetterTrades education, is the knowledge of how to get it done.

The proper legal structure will enable a BetterTrades student to learn the concept of ownership, which means to appear personally worthless on paper. The idea is to isolate your assets from each other and from yourself, so a litigious person won't be able to strip your business assets via a personal injury matter. The most common form of asset protection is to use limited liability corporations to shield assets and limit personal liability. Corporations and limited liability corporations (LLCs and LPs) must be established correctly and operated appropriately, which is important to understand when setting up the entities.

The proper asset allocation plan will also enable an individual to learn how to possibly pay less in taxes, since they will be taxed as a business rather than an individual. Businesses are able to take advantage of more favorable tax laws and can take deductions not open to individuals. This is extremely important in the area of trading, since properly structured traders will be able to claim many deductions such as the cost of trading tools, extended trading education, cell phones, cable television and even some parts of a vacation.

The other crucial area of asset protection is to avoid probate by establishing a living trust, a legal entity that operates indefinitely, and continues to operate based on the directions given in the trust agreement, upon death or incapacity.

Retirement planning is critical, as well, as students need to understand the strengths of the various retirement plans, the 401(k), the IRA, and the Roth IRA. Each has its differences and the properly executed plan will employ the best system.