Hey guys.
In this video, I'm going to share with you
four key strategies I think you should consider implementing right now
in case of an economic collapse within the next six months to a year.
Okay, let's get started.
Now, listen, I've been through this
two times in my business career where the economy has tanked.
And I can tell you, I helped out thousands of people,
preserved their assets, even though we went through a huge economic downturn.
And I also saw other individuals who didn't have this advice,
this information didn't follow these strategies
that unfortunately went through a ton of stress.
Some of them even were bankrupted as a result of bad decision making.
Well, here's the thing.
When it comes to planning for an economic crash,
you need to look at four aspects of your personal life
to ensure that those assets cannot be taken by a creditor.
So what am I thinking of right now?
First thing, you need to be concerned about your savings account.
So your savings slash stock account.
So if you have a brokerage account or a savings account that's in your name,
what I want you to do is get it out of your name
and put it into an entity to ensure that if you get sued personally
now you're wondering, why would I be sued personally?
Well, come on, let's just think about it.
Someone could sue you
because you've entered into
a lease agreement that you no longer need and you want to walk away
from because your business is experiencing problems.
Or maybe it's a situation where you have a loan that
that you've taken out that's now readjusting because it was an arm
when you first applied for that note several years ago.
Now you're looking at that interest.
You think, I can't pay that?
So you try to walk away from the property so the bank comes after you
or you're just involved in a car accident.
You actually run into someone
who is unemployed and they look at you as, Hey, I'm going to be able
to get some money off of this person or what happened recently.
One of my clients is involved in a lawsuit right now because the person they sold
the house to didn't do a good enough job on the home inspection
and now is coming back against them saying that my client
owes them money because of things that their inspector missed.
It doesn't matter.
But the point is this
you don't want to keep your savings account
or your brokerage account, personal brokerage account in your own name.
Because if somebody gets a judgment against you,
all they have to do is garnish that account.
They must go to the lender or the bank, go to your broker,
serve them with the notice of judgment against you,
and then those financial institutions will hold those assets for your creditor.
So here's what we do.
We take those assets there and we move those into a limited liability company.
I like to use Wyoming.
I set up an LLC in Wyoming because this LLC here has strong
charging order protections.
That's what you should be looking for, because the risk that we're most concerned
about here with the savings in stock is what we call outside risk.
Right outside, that is, you're going to be sued personally
in the event of an economic downturn.
Things go wrong.
They come after you.
I don't want them to take your savings account or your investment account.
I want to get it away from your creditors.
The best way you do that is you get it out of your name.
All right. What is the second thing we want to protect?
That's going to be our personal residence.
We want to protect our personal residence.
And the thing about why do I say that?
Because unless you live in a state
such as Florida or Texas that has an unlimited homestead exemption,
if somebody gets a judgment against you, maybe they can't collect here.
So instead, they're going to collect here by filing that judgment
in the county in which your house resides.
Now, here's the thing that most people miss
when it comes to judgments against their personal residents.
Judgments against you only stick to assets that are held in your name.
So if you have a personal residence, don't keep it in your name.
We want to get it out of your name and put it into an entity
that still gives you all the benefits of being a homeowner.
That is 121 capital gain exclusion, being able to write off
your your property taxes.
So we have to make sure that we have an entity set up for that.
But at the same time, doesn't it doesn't appear under our name.
So what do we do there?
So the personal residence,
what I want to do is I want to set up a land trust, okay?
Or what I what I call a personal residence trust.
Okay. So they're very similar in nature.
And the reason I use land trust is because most people are familiar with that.
But the residents trust is very similar.
You want to set up this this trust here and get the property
out of your name and put your residence into this residence.
Trust.
Right now by doing that, if somebody were to sue you and a judgment
is entered against you
and they record the judgment in the county where they think you're living,
it's not going to touch this property because your name is no longer on it.
The property is going to be held in the trust name
and you don't have to set this up with the state.
It's a private document.
You come up with any name you want for it.
We call it the Red Bird one trust.
Really simple fact you could make this LLC here
if you wanted the trustee of that trust.
So your name is not associated with that property now.
Does it change anything with your lender?
It will not affect your personal the loan on your personal residence,
your mortgage, your home, or it's all that stays intact,
all the tax benefits of home ownership stays intact as well.
But what we're doing is we're getting the property out of your name.
Now, the third issue that I see in an economic
downturn, this has to do with people who are business owners.
All right. So you got to reduce
business assets.
All right.
Reduce business assets if you have an active business.
So there's a situation I saw a number of years ago.
We went through the last economic downturn, whereas dealing with a business
owner had his LLC set up here, taxes and SE Corp and this individual
was sitting on $1,000,000 in cash, was sitting inside of that business.
And you know what happened? His business got sued.
Why did his business get sued?
Well, why do businesses get sued?
Because you have ex employees
that you have to let go because your business has gone down.
So what do they do when they can't find another job?
They go
after someone they know that has money and that's usually sue your business.
They bring claims against it.
Now, whether or not those claims have merit,
that's still put at risk what you've built up inside of here.
So if you think you're being smart by stockpiling cash
because of an economic downturn inside of your business to get you through
the tough times, you're not you're being actually stupid by doing that.
Here's what you should be doing.
You should be drawing down that cash, putting it into this LLC
that we've already set up to protect our personal savings account.
You put all your cash in here or a lot of it.
So in this case, I would probably draw this down, leave 100,000 in there,
put 900 K down here and we'll show you a magic trick.
Now, what you can do to
to get that money back into your company but puts you in a better position.
So what we do is we put that 900,000 into our LLC that we own and control,
and then when our business needs the money, we turn around
and we loan the money back to our business.
So quit contributing assets to your business.
That's the mistake that I see with business owners
when they go through an economic downturn, they throw cash into the counter,
they move money into the business from their personal account.
You don't want to do that.
You want to loan the money to the business and preferably loan it from a Wyoming
limited liability company.
And then when you loan it to the business,
I mean, you could loan that 900,000 the very next day.
That is, transfer back in with a loan agreement.
But then you want to file a, you see C one financing
statement against that business that you own.
What does that do that ensures that all the cash in here,
it secures it for this company right here.
So if your business were to get sued,
creditor comes up and say, well, this business we got a judgment against it
for $700,000, we're going to take $700,000 in cash out of your account.
Whoa. You got to step back here.
There's someone standing in front of you, what we call a secured creditor.
That is this Wyoming LLC, and it's owed $900,000.
In fact,
when we pay off that Wyoming LLC, there's nothing left for you and your client.
Simple strategy that so many people miss or they try to put this in place
when it's too late, when they're already under threat of litigation.
So if you're a business owner, draw down your assets, re contribute them
and use a UCC one financing statement to protect your assets.
Now, the fourth thing that I would tell you
has to do with your rental property, okay?
If you have rental property in, it's still in your name.
Get it out.
All right. Get that rental property out of your name.
Get that property moved over here and some limited
liability companies for asset protection purposes.
Because if anything goes wrong with those properties, you know,
I'm not talking about the property burning down or somebody getting hurt.
Typically what's going to happen is you have tenants
and maybe a tenant loses a job because of an economic downturn.
And then you go in and of course, what are you going to have to do?
You're going to bring in unlawful detainer action to evict that tenant.
Well, no one wants to get evicted because they don't have any money.
They have nowhere to go.
So what's the best way to forestall an eviction process?
Turn around and sue the landlord.
What kind of claims they can make?
Oh, simple one is discrimination.
I would start with that. Or harassment.
They'll just load it up.
There are plenty attorneys out there. They have preprinted
forms that they
use, complaints that they just serve against landlords,
listing out all types of damages that their client
has sustained as a result of either your action or your inaction.
Why did they do that?
Because it stops foreclosure and they say you owe their client now money.
So you want to be in a position where your own in that real estate
and you're having to fight that claim personally, because if they are lucky
and they do hit the jackpot, then that judgment is going to hit you.
Better to be in a situation where that properties in an LLC
so it goes against the LLC just like my client realize now
who's being sued on a piece of property that they sold to these
unfortunately two attorneys. I mean, I should put number five here.
Don't sell property to attorneys because they got nothing better
to do than Sue you. But here's the thing.
Sold the property to two attorneys out of an LLC.
Now the attorneys are suing the LLC,
alleging some some some claims which are all BS.
But here's the funny thing about it.
My client, she's going, do I have any liability?
Said No, the LLC sold them the property.
What does the LLC own?
Nothing.
In fact, the LLC was dissolved about six months after the sale.
But the attorneys are so lazy it's just a shakedown lawsuit.
They don't even know the LLC is dissolved because they didn't do their homework.
See, that's what happens.
Typically in an economic downturn.
People start throwing lawsuits all over and if you've got assets in your own
name, it's probably going to stick to something.
Take these simple steps, get those assets out of your name and protect yourself.
Hey, if you want help doing that,
sign up for a free strategy session with Anderson.
Check out the show notes. I got a link in there.
We all have do is click on the link and schedule that out.
We'll be able to sit down with you and walk
you through how to set it up to make sure your assets are protected.
If we have another economic downturn.