Ask any ordinary person what the Global Financial Crisis meant to them personally, and you are likely to hear that the value of their superannuation decreased significantly. In many countries and some parts of Australia, property values decreased also. As you work to grow your investment portfolio, whether superannuation, property, or other financial products, it’s important that you have a plan to protect your investment.

Protecting your investments comes under the general heading of ‘asset protection’. ‘Asset protection’ refers to the methods available to protect your assets from liabilities arising elsewhere. For example, if you have a mortgage, your home backs the money you have borrowed and, therefore, your home could be liable to be repossessed if you were unable to continue your repayments, due, for example, to being unable to work for an extended period. In this case, protecting your asset might mean SMSF Investment Strategies taking out income protection insurance, so you can continue to pay your mortgage.

Very few assets are shielded from creditors. This means that if you get into financial difficulties, the person or organisation to whom you owe money may be legally entitled to seize your assets. You should always understand your legal position in any situation where you owe money. This includes understanding the nature of the various creditors and their policies for protecting their money.

Insurance is one of the key methods of protecting physical assets. Home (building and contents), car, health and income insurance give you peace of mind that these high-value items that are critical to maintaining your way of life are covered. Life insurance of the main income earner also offers a financial cushion in case of death or permanent disability.

If part of your investment is in the financial markets and various financial products, you need to have a strategy to minimise your losses and even make money when these markets fall. Unless you have a strategy for a falling as well as a rising market, you leave your financial investment assets vulnerable.

This is a complex business and takes considerable expertise to understand. Grand Capital Finance Group has developed protection tools to help safeguard your investments. These include Stop Loss techniques and counter- cyclical strategies. Many financial planners offer advice that works only in a rising market, but the market fluctuates constantly. The most successful investors can minimise their losses and make money regardless of whether the general market is trending up or down.

Grand Capital Finance Group, which was established as a mortgage broking company, offers financial advice, superannuation and wealth protection services. It has a strong history of experience in the finance and property sector and takes a holistic approach to its clients’ financial needs. Go to our Asset Protection page for more information about Grand Capital Finance Group and asset protection.

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Dorian Traill is the current Director of Grand Capital Finance Group and Fountain Property Group. He specialize in home loans for people as well as helping them build wealth through quality investment properties that ultimately lead to long term financial freedom.

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