Many people say that Monopoly gives kids the experience of handling finances, and while it’s definitely a good starting point, the real world is still much more complex. For starters, Monopoly operates on a simple buy and trade scheme. The game eliminates concepts such as asset protection and advanced planning as more difficult strategies.
This is actually a good thing, as most players would drop the game if it got too complex. But, knowing about such measures can only help people with real life finances in ways they’ve always wanted. Wealth enhancement is one of the best examples, because it allows people to mitigate taxes, resulting in greater wealth creation.
Anyone can use these strategies to make the most of their earnings either for savings or investments. The only reason everybody’s not doing any of it is because they either don’t know such measures exist, or they don’t know how they work. In the case of wealth enhancement, charities and trusts are the simplest tools available. But, there are also options like private placement life insurance and private placement variable annuities.
Money is a finite commodity, though, and when someone has more, someone else has less. The latter will use the very same strategies to take the resources of the former, making asset protection the next important tactic people should learn. Getting to the top of the mountain isn’t the hard part, staying there is.
Asset protection can mean many things, depending on the kinds of resources specific people decided to invest their money in. The most common example is real estate, but there are also people who prefer to lock the value of their money in offshore accounts, or pieces of art.
Each asset type has a different mode of protection, and it’s always to have a specialist around to guide people on how best to guard the value of their possessions against possible threats. Think of them as the tutorial guide in the Monopoly booklet when you’re first learning how to play the game.
Handling real life finances may be scary, but it’s also exciting as most of the rewards outweigh the risk of loss – if done right.