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Ways to Protect Your Wealth Because Your Money Matters

Ways to Protect Your Wealth Because Your Money Matters

Jenius Bank Team
Updated 5/5/2025
• Originally Published 6/12/2023
Financial WellnessLifestyle
Illustrated stack of bills with a shield protecting it.
Don’t risk your hard-earned money; protect your wealth today.If you’re earning money and working toward long-term financial goals, you’re helping to build wealth. And protecting it is an important part of your financial wellness plan.Remember, helping to achieve true financial wellness means looking beyond near-term goals of earning and growing your money. It requires setting long-term financial goals and finding ways to preserve and grow the money you earn each month. To preserve your wealth, you may need to be more proactive than you expect. Here are a few wealth protection tips to help you get started.This information is not tax or investment advice. You should consult with a tax advisor and/or a qualified investment professional for advice specific to your particular circumstances.

Key Takeaways

  • Protecting wealth is for everyone. Your hard-earned money deserves to be protected.
  • Looking ahead and planning for the unexpected is vital to protecting your financial security.
  • Steps you take today may help preserve your wealth for years to come.

Recognize That Almost Everyone Has Wealth to Protect

Every bit of wealth you have deserves to be protected. But what exactly does wealth look like? It’s the collection of all your financial assets. This could include:
  • Cash in the bank.
  • Investments like stocks and bonds.
  • Retirement account balances in 401(k) accounts or IRAs.
  • Your home and any other property you own.
  • Your business if you own or co-own one.
Anything you own and any money you have, even if it’s not immediately accessible, contributes to your overall wealth.

Diversify Your Investments

Spreading your investments across different asset types—or diversifying your investments—could help you manage financial risks both in the short and long term. By diversifying your investments, you spread your risk over multiple investment types and risk categories. That means if one performs poorly, other investments may reduce the negative impact that performance has on your overall wealth.The way you diversify your investments is largely up to you. You could invest in real estate, stocks, bonds, cash savings, and retirement accounts, just to name a few. Be sure to work with a financial or investment advisor to determine the best investment strategy for your situation.

Monitor Your Investments

Regularly monitoring your investments is crucial to helping maintain an effective diversification and growth strategy. Review your portfolio on a regular basis to see how it’s performing and make adjustments as needed.1These adjustments could include rebalancing your 401(k) investments or making sales or trades to better diversify your personal investment portfolio. As we said, it’s always a good idea to work with a financial professional when reviewing your investments. That professional is able to assess the performance of your accounts and recommend adjustments based on your personal risk tolerance.

Invest in Insurance

We insure our homes, our cars, and even our pets, but too few of us insure ourselves. And that leaves your loved ones vulnerable to unexpected expenses if something happens to you. So, what kinds of insurance do you need? There are several types of insurance that you could use to protect yourself, including:2
  • Life insurance: These policies provide your chosen beneficiaries with a payout if you pass away unexpectedly.
  • Disability insurance: Disability insurance provides you with a portion of your income if you’re disabled and unable to work. Some employers offer this coverage, but you may be able to purchase short-term disability or long-term disability coverage based on your needs.
  • Critical illness insurance: This coverage provides you with funds if you’re diagnosed with a severe or debilitating illness like cancer or a stroke. It may also provide assistance if you suffer a medical emergency like a heart attack.3
Remember, health insurance may not be enough to cover your full expenses. Adding coverage could help better protect against unexpected costs.

Create an Estate Plan

One of the easiest ways to help protect your loved ones is by creating an estate plan. This plan outlines what happens to your assets, details who receives what, and gives you a chance to outline your final wishes so nothing is left up to chance. Anyone with any amount of assets may benefit from creating an estate plan. Every estate plan is unique, but here are a few features you may want to include.4

A Will

Your Will ensures that your assets are distributed according to your wishes, whether that means passing your wealth on to your family or donating it to a cause you care about. You may also use your Will to provide details about how you want your funeral conducted. Making your intentions clear may help remove the need for those left behind to make difficult decisions and help spare your loved ones the stress of having to sort through your estate.

A Trust

A trust establishes a third party to oversee property or assets for a designated beneficiary. There are many types of trusts to choose from, so consider speaking with an estate planning attorney before you make your choice. This way, you’re able to choose the type of trust that best serves your needs and long-term goals.

Be Tax Savvy

No one likes to think about paying taxes, but with proper planning, you may be able to lower your tax liability both now and in the future. For example, you may be able to use a tax-advantaged account to reduce what you owe. These accounts include IRAs, 401(k) retirement accounts, and even certain education savings accounts.Work with a tax professional to maximize your tax savings and work with a financial advisor to identify ways to reduce tax liability with your investments.

Take Care of Your Business

If you’re a business owner or partner, succession planning could help protect the wealth you have tied up in the business. Succession planning may involve choosing someone to buy out your share when you’re ready to exit the business or leaving your shares to a family member who can take over your ownership.[5] If you choose to sell your ownership stake, doing so could provide an income stream during retirement.

Final Thoughts

Everyone has a different opinion of what it means to be “wealthy.” For some it means buying your dream home or sending your kids to college. For others, it may mean leaving a lasting legacy that gives back to the community.However you define it, you’ve worked hard to earn your money, and you want to protect it just as fiercely. Use these tips to help preserve your wealth. If you’re just starting to grow your wealth, consider opening a high-yield savings account. Learn more about how these savings accounts work to help you make the right choice for your goals.