The Jon Sanchez Show
10/09-Asset protection strategies for the individual and small business owner
You spend your entire life building up your net worth. Then all of a sudden, you get into a bad car accident, or you have a major health issue, your business gets sued or maybe you lose your job and can’t pay your bills. Whatever the scenario is, your assets are at risk. This afternoon on the Jon Sanchez Show at 3pm, we’ll explain some very sound asset protection strategies for both the individual and the small business owner.
- Broadcast on:
- 09 Oct 2024
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- other
At Independent Financial, we know you work hard for your business. That's why we work hard for you. Our local bankers are ready to jump in and support your next vision or venture. And we have the resources to make it happen. Ready to get down to business? Let's talk. Learn more at iFinancial.com Independent Financial, banking for business, banking for life. Member FDIC. Good Wednesday afternoon to you. Welcome to the John Sanchez Show on Newstalk 780K. It's a pleasure to be with you and a pleasure to be with my co-host Mr. Jason Gunnar Sanchez-Wolf Management. Big Jay, how you doing on this fine hump day? I am doing okay. I'm doing okay. Sunshine outside. Looks like it's going to start cooling off. Act a little bit more like fog or fall rather over the next week or two. So this is my favorite time of year. Is it really? Yeah. It's my fall fan. Yeah, I'm sort of in, you know, I dig it, you know, kind of time to throw the vest back on, and feel a little more relaxed for you, you know what I mean? Just an excuse really to wear them, to be honest with you. Exactly. You don't have to iron the shirt, just put the vest on top. Exactly. Honest to you. It saves on the clean bill. Tell you what, it's wrinkled. Is it a wrinkled around the collar? No, I'm good. Yeah. I like it. I like it. Well, definitely a good reason to be in a mood today. Also, as far as the market activity was concerned, a record-setting day for the Dow Jones Industrial Leverage, a record-setting day for the S&P 500. We're going to give you all the details about it, and then we will move into our topic. So think about this for a second, folks. Think about this. You spend your entire life building up your net worth. Then all of a sudden, you get into a bad car accident, or maybe you have a major health issue, or maybe your business gets sued, or maybe you lose your job and you can't pay your bills. Whatever the scenario is, your assets are at risk. They're at risk from creditors, from attorneys, so on and so forth. This afternoon, what Jason and I are going to be doing for you is we're going to explain some very sound asset protection strategies, but we're not going to just limit it to the business owner. We're not going to just limit it to the individual. We're going to do a little bit of both, because obviously, we have both of you listening. We want to help you with this one. We're going to throw in some stories of how these types of strategies have helped some of our clients over the years. Jason, I just had a -- I'm going to give a real quick story before I turn it over to you to give us our market recap. I created the show tease early this morning about 9/9/30. My first client review was at 9/30 this morning with one of our longstanding clients, and I didn't get a chance to tell you about it, so this is going to be all news to you. Long story short, this great couple, been clients for 10 plus years, had a son that unfortunately passed away out of the area. He died and had a business, had a loan on a commercial building, died without a trust, died without any asset protection, and died with an ex-wife and a new wife who are fighting and on top of that, our client is also owners in his house, which the ex-wife and the new wife think that they should be getting. It is an absolute convoluted mess that all of it, and even as our client said today, if he would have only listened to our advice, because thanks to Jason and I, our clients went to one of our referrals of our estate planning attorneys. Their whole life is all taken care of, so they know the value of estate planning. They told their son to do this, unfortunately he passed away, did not do it, and what they said today, Jason, the entire estate is in probate, other than the house that our client and their son owned together under joint tenants rights or survivorship, but everything else is in probate now, and the loans on the business building, the warehouse building, I mean the list goes on and on, it is a convoluted mess, and our poor clients are trying to sort all this out, hopefully I gave them some sound advice of how to move forward with this, but folks, this is the real life situation. This isn't something that is only for the wealthy, I mean we all know maybe you've been a victim of it yourself, you've been sued for no reason, you got into a bad car accident, your insurance company says hey yeah, sorry, we're writing a check for 300,000, but you know that $700,000 difference that you just lost in the lawsuit, you're responsible for that, and then next thing you know here comes the attorneys after your house, after your cars, your bank accounts, the list goes on and on, and again, so much of this, as you will learn this evening or this afternoon, so much of this can be avoided, if you just follow some of these sound strategies that we're going to talk about, we're going to talk about forming different legal entities, account segregation, offshore trust, insurance, the amount of insurance you need, some homestead exemptions, all kinds of things, are we not my friend? Yeah, it's a long list, it probably is more than one show, but I like the equity stripping, and I'm excited to hear about that one, but yeah, it's as you said, I mean in most cases we talk about trust etc, just to streamline the process once you pass away, right, to keep things out of probate, the more simplistic aspects of estate planning, but these are more the, you know, it's the emergency parts of estate planning that people don't spend enough time thinking about, right, it's always nice to plan for the worst and expect the best, and I think it's certainly a good topic to cover, not only like you said for business owners, but also for, you know, everybody to know what's out there and then how it may apply to them. Indeed, and again, folks, if you think you're immune to it, again, the odds are, at some point in your life, if you already haven't had a situation that would challenge you as far as, you know, protecting your assets, you probably will, it's just a society that we live in, so hopefully our advice this afternoon will prevent some of that from happening and not dwindle your net worth through some frivolous lawsuit or some other things that may occur. So, yeah, great topic, lots to talk about. So let's jump right into the market, Jay. Yeah, well, today was, again, I think just more of that chase, right, where you've got folks who are expecting the worst and having to chase after the best as you've, you know, sort of gotten that case of cut exposure. This is typically the time of the year, as we mentioned, you know, late September into early October can be times when markets tend to underperform and I would argue the markets are doing quite the contrary, right? We broke out to new highs and, I mean, you look at the chart today, which I know you are watching, it was just mechanical that you could see the algo's kick in and be like, buying the breakout and it was very, I would say, very few humans involved in sort of how the market reacted late in the day. We got to the other side of the FOMC minutes, which I know we can touch on, not a whole heck of a lot in there that anyone would be surprised by, but I, you did hear some nuances of the risk of inflation being bandied around, I would say even more so than Fed Chair Powell eluded to. We were, you know, fairly mixed as far as 25 basis points versus 50 basis points in terms of the last meeting, but all of them are, it seemed color wise that to see another, another 50 over the next two meetings is probably a low probability unless inflation really comes in or the economy really starts to crumble and obviously we're going to get CPI and PPI over the next couple days and I would expect that we're not going to get super low numbers that freak everybody out could be, could be shocked, but I don't think that's the case. Yeah. Yeah. And the 10 year, right, sitting as we talked about that, that four or five level I felt like was sort of as stretched as it was going to get near term, but the bond market is definitely calling out the Fed right there saying, look, you know, you're trying to cut rare the low in rates over the last three months was the day that the Fed cut rates have literally gone the opposite direction and that's the interesting part which we try to stress as much as possible is that the market prices this in before it happens. So once it happens, you know, the horse left the barn months and months and months ago, you want to be early rather than late as you plan with folks to be buying those 5% CDs. The short end hasn't moved as much, but yeah, that 10 years started to lift and if we can see a an okay number tomorrow, if it comes in in line, PP in line, I bet rates potentially do go a bit lower, but we'll see. You know, I was looking back at the performance of the market and if my notes are accurate, which I think they are, that was when we had the CPI number released the previous last month for the previous month's data, that's when we had that big sell off. That's where the Dow plants 700 points because the market didn't get what it wanted on the CPI side of things. So kind of watching that a little bit closer, you know, to see, again, we got a 2/10 of a percent increase, again, the last report, I wonder, you know, if we get 2/10 tomorrow, what's going to be the market reaction? So I, you know, if I was a betting man right now, I think that the market probably has more probability of dropping a bit tomorrow after today's big run up, record setting day for the Dow, for the S&P, if that number, you know, just comes in in line, you know, I think they could be a good excuse, I mean, be completely wrong, but I think it could be a good excuse to take a little bit of money off the table. So, you know, anything can happen on CPIA, you know, it's like a Fed interest rate decision day. It's just you never know what the, how the market's going to absorb or digest the information. So, you know, could be interested on that one. Let's, I want to go back to your point. You brought this up and kind of went over it fast, and I think it's a very important point you brought up about the bond market doing opposite of what the Fed wants to do. Welcome to everyone, which are mean by, you know, 10-year yield at 406, obviously we all know it climbs, and we say it every single day here, but why is the bond market dropping in the yields climbing to your point? Yeah, well, really, I mean, initially the market had overshot thinking that, oh my gosh, now the Fed's going to cut 50 dips now, and 50 dips the next time, and 50, you know, this market always is, I don't know, I'll find an analogy, but so, you know, over expects in both directions, right, where everything's terrible and then everything's too good within a day, and, you know, as soon as the thoughts exactly, and the market had priced in another 100, at least 100 basis points of cuts this year, right, prior to the Fed doing what they're doing and saying what they're saying, and then we got that great jobs number about a week or so ago, and, you know, the Fed controls the short end of the curve, right, they controlled the overnight rate. They do not control the two year, the five year, the ten year, any of that, the market controls that, so much like anyone, if you went to your lender, and I'm not trying to say that people are freaking out about U.S. debt levels directly, but if you went to your lender, even though, you know, the piece of paper may say three and a half percent, when you go to really get the loan, your lender may look at your credit and be like, maybe four seems like the right level for you versus somebody else, and I think that's a bit of what's going on is, you know, the market A is pulling back some of those hikes that it thought, or rather cuts that it thought it was going to get, because inflation was really coming down and you were starting to see jobs numbers tick the wrong way, and people were starting to get marginally concerned of a recession, and then all of a sudden we got an incredibly good jobs number, and then we've gotten data, ISM, et cetera, that seems to get better and better and better, and now it's like, oh no, the Fed cut 50 bips, they were potentially too much early, and now we're starting to worry about inflation again, and it's just that fickle beast that creates the long end of the curve moving and how it is, so I don't think it's anything ephemeral, but I just, you know, maybe people got over anxious on how deep these cuts were going to be in the timeframe, I still think there's another 125 to 150 basis points of cuts over the next year and a half, merely because of the restrictive level of rates now, even at four and three quarters, which is where they are, CPIs at, you know, two and a half, so they've got room even and still being restrictive, even if inflation goes back to three, so perfect, perfect, great explanation. Alright, let's begin with explanations, turn it over to Kristin Snow, she's in the right now at Shuffick Center, hey Kristin, welcome back to the John Sanchez Show on his talk 780K OH with Jason Ghan, we finished with, like I said earlier, with a record close of the Dow and the S&P, Dow rose 432 points, 1.03% to 42,512, the NASDAQ 109 point increase, 0.60%, closing at 18,291, then the S&P 500, it finished with a gain of 41.71% to 5,792. Well for the day, down a half a percent, 73, 33, a barrel, goal gave up $9.40, closed at 26, 26 per ounce, and as Jason mentioned, a three basis point increase on the 10-year yield at 4.06%. So I just went back, Jason, just real quickly, during the break, I wanted to make sure my numbers were accurate, went back to that previous, in September, the CPI report, so that was on September the 11th, and that was the day, the Dow dropped 743 points at its lowest, but finished the day up 124, so it brought a little volatility that day, let's hope we don't experience that again, but you never know, like I said, and I mean, Vix, I think still closed above 21 today, right, so, yeah, 20.86, so close, right around, yeah, but it definitely stays elevated, so, you know, it shows me that, right, there's a lot of things on the horizon, clearly the election, that are priced into forward vol, right, that implied volatility is saying that there's some things coming up that we're, if you're a market maker and providing liquidity to protective instruments, you don't want to get run over, and so if things are coming up that you don't know the answer to, you're going to make the cost of that insurance more costly, right, because it costs you more to hedge, movement in the market is greater in order for you to stay hedge, so it could cost you even more money, and so that's really what implied vol is telling you, and it's fairly obvious, CPI, PPI, and then, you know, PCE later, but also the election is something that is on the horizon, but the market is very much, you know, knows that could be a volatile time, I keep telling folks that, again, barring some unknown thing happening, being hyperbolic, Kamala Harris, getting elected and saying, I'm going to, you know, take down all the border walls and everyone gets to come in, or Trump, you know, doing something completely incendiary on the other side of he won, that would be out of expectation, right, but either of them winning, again, I'm hoping, this will be a strategy this time, that the election ends up getting solved within a day or two or three, if those things occur, the mechanics of the need to remove those hedges will create buying in the market, right, if all those market makers who went out and bought, you know, or had short positions because they had sold protection to folks, and something terrible doesn't happen, so the need to have those hedges now start to come off the board, then it creates buying in the market, which tends to be why you see a rally after the election and into the end of the year, same thing happens with the Santa Claus rally because of fewer days and implied volatility being higher than what ends up being realized, so there's mechanics into post-election and into the end of the year that are favorable as long as something bad doesn't happen again, something bad happens, it doesn't matter, right, but if the normal happens, even though everyone's freaked out, it's back to our Christmas analogy, right, typically the expectation of madness ends up being far greater than the actual realized madness once the election happens. Absolutely, and when Jason's talking about a market maker, this is on the NASDAQ side of things, they look at them like the auctioneer, like the old days, well at least they'll have the specialists on the New York Stock Exchange, but they're the middleman, right, they're the ones providing the liquidity for buyers and sellers, so. For options, stocks, you name it, but yeah, anybody who makes a market in a specific security option, so on and so forth, that's what, no, no thank you. Yeah, I mean when I was in Susquehanna, that's what they did, they were options ETFs, etc, I mean it was a Star Wars bar, the people who did this stuff, they look at you, like you got three heads there, very interesting place, and you know what I'm saying, you know, when you think of Star Wars, that would have borrowed all the crazy, yeah, incredibly brilliant, but you know, probably not someone you want to have a conversation. Go outside from once, they can't talk to somebody, they don't know how to deal with human beings, exactly, so very intelligent folks, but it's, I'd rather be on this side and just, there you go, all right, when we come back, we're going to help you with some asset protection strategy, you know, asset protection strategies again, these are not for the rich, right, every single one of you, no matter what your net worth is, you need to understand what these are, what's out there, we're going to help you with these on both the personal and the business asset side of things, we're going to try to protect you in the event of lawsuits or other liabilities, and again, we're going to talk to both of you, both sides of it here, like I said, one more time, the individual and the business side of things, we're going to come back with a kind of towards the business side on our first point, forming legal entities, how do you do that and what's the advantage of doing so, and then we'll hustle through as many points as we possibly can, like Jason said, may have to continue this on until Friday or something, but a great topic, so let's turn it over to Greg Nuff, he's got news, he's got traffic, he's got a weather, hey Greg, welcome back to the John Sanchez Show and his talk 780KOH, with Jason Gotten, we finished up 432 on the Dow to a record close of 42,512, Maszak rose 109, S&P, a record finished there at 5792, up 41 points for the day. Well, as I said earlier, you spend your life building up your net worth and all it takes is something to happen to you, a lawsuit, not able to pay your bills, a job loss, a business closure, whatever it is, and there goes your assets, there goes your net worth, your life's work. Well, some of the strategies we're going to lay out for you tonight will help prevent that if you follow the rules, so listen closely, again, we're going to be be bopping back and forth between small business asset protection strategies and individual ones, all right. Jason, I'll take the first point, forming the legal entities, now, we all know, of course, the old days that you'd set up a corporation right and you'd protect yourself, you have the corporate barrier around your assets compared to the personal and the business side, a lot of businesses, frankly, don't do corporations anymore, the smaller ones, I should say, sub assets are starting to get a little bit more popular, but the most common that many of you know about, of course, is a LLC, limited liability company, it's what Jason and I are. So what we're doing with an LLC, a limited liability corporation or companies, is we're separating our personal assets from the business assets, and we do this, of course, to protect ourselves in the event of a lawsuit. So if the business gets sued, they go after the business assets, not your personal property. Now, that's easier said than done. It is very easy, again, to pierce the corporate veil if you don't follow the correct rules, which we'll talk about in a moment with with Jason with the in regards to the asset segregation side of things, but setting up an LLC is very simple. Our state is one of the greatest states in the world for asset protection strategies. The LLC being one of those, Renjia, what is it, Jay, 800 bucks, I think, seven, seven, fifty, 800 runs are the filing, et cetera. Yep. Yep. And about 350 bucks a year to maintain it. Really simple. Again, you don't have to be in Nevada resident to open an Nevada LLC, but it is a must these days, folks. I don't care, you know, unless you're in a business where there's no chance of you ever being sued, you need at least an LLC or something similar, like I said, sub S and there's other variations, but they're really simple and the easiest way is I describe them to clients is draw a big circle that or visualize a big circle right now in your life, right? If you are a business owner, inside that circle, you have two forms of assets. You have your personal and you have your business. Let's say you get sued on the business. Well, guess what? It's all within that big circle. So the attorney that's suing you from the from the business aspect says, Oh, look at here. We have a bunch of equity in our home and we've got bank accounts on the personal that we've got all this. And when they do their asset search and discovery documents, et cetera, you have to disclose everything. Well, guess what? You just opened up an entire world of assets to this attorney, right? Conversely, if you have the LLC or sub S or some other form of corporate entity, you don't have one big circle. You got two circles. One circle has your personal assets. The other circle has the business assets. Now, LLC does not mean you're not going to lose the lawsuit, but if you do, all they can get if you have followed the rules correctly are what the assets are inside that LLC or sub S circle. Right? So that's a real simple way of understanding it. That's why it's so important to do that. You can get into limited partnerships, family limited partnerships, et cetera, but you get the idea of formal legal entity and follow the rules and that will be one of your best lines of defense against losing assets and protecting what you've worked so hard for. Now, Jason, we go to the second step, which is the asset segregation side of things. Let's explain that one. Yeah. And sort of as you talked about with having the LLC, if you, and again, not everybody is the same. This is just more sort of general conversation. So certainly speak to a lawyer or legal person as you're setting these up. But to have, if you have multiple rental properties, right, and rental property A, someone falls down the stairs, you don't want it to be easy for someone to not only get rental property A, but B, C, D, and your personal assets. So by having these separate LLCs and all the cash flows that take place, and as you mentioned rules, you want to make sure that the way that the cash is moving inside of the LLC and then potentially, you know, income coming from it to you doesn't go from A to C and C to D and so on and so forth that there is that corporate veil where they're commingling assets to some sense. You're essentially creating two to three to four different people, right? That's how I try to imagine trusts or LLC. It's just another person yet doesn't breathe per se, but they can't sue my brother for something that happened to me if done correctly. That's sort of how the LLC is involved is that you're creating a separate pool of assets that, you know, they can go after that if there's an issue, but they are able to come directly to you. And that's why we say rental properties or any sort of businesses where there could be a potential liability of some kind, or even on the flip side, something happens to you. You know, your business isn't going to crash a car into someone, but you could write and then same thing. You've got these assets spread spread into other entities that may provide protection to them around something that you as an individual created drunk driving or something along those lines. A child. Yes. This with clients. So in less than 18 lives in your household. Guess what? They screw up. They're coming after you. So parents just got put into federal prison because their child got ahold of a gun and committed a murder. I've had a situation with a client where his, you know, minor son got drunk at a, you know, teenage party, which just about every kid in years truly has done. And I didn't drive though. And this kid decided to leave the party with a girl. They crashed into a tree about a block away from the party. So it says, oh, I'm fine. Well, guess what? About a week later, here comes the lawsuit against the parent, not against the minor. Of course, can't sue a minor, but came against the parent. And thank God, Jason. I know I've shared the story a million times with you. Thank God I had told him to buy, he just retired, I think I, you know, thank God I told him to buy umbrella insurance which will cover and the umbrella insurance cover the whole thing. The lawsuit went away and he was able to keep all of his assets. So it does happen. One point I want to mention on the asset aggregation point also you're mentioning a great point about the rental side of things. I want to remind everybody also, one great thing about being in Nevada is we have what's called a series LLC. It's another type of LLC that you can create. Not much more expensive, a little bit more than just your, I'll call it standard LLC. But what it does is exactly as Jason was mentioning, if you have multiple assets or let's just use rental properties as an example. So let's say you own five rentals, prior to the creation of the series LLC, which they haven't been around that long, 10, 15 years, something like that, you would have to open one LLC for each of those properties. Nevada said, you know, that's not real fair, you're paying, you know, 10 different creation fees, 10 different maintenance fees, et cetera. Let's just do one but give the owner the same asset protection as if they owned the 10 separate LLC. So you can create a series LLC, own multiple assets and still get that, you know, those circles like we were just talking about each one of those properties or in its own LLC, even though it's one series LLC. So very powerful strategy, again, our great state, again, looking to save you a little bit of money there on that side of it. All right, let's go to another one. Now, I have not, I don't know about you, Jason, I don't think you have experience on these and nor do I. So I don't want to claim to say I've got experience like I do with LLCs and other forms of entities. But I've seen these used before and these are called domestic asset protection trust or daps as they like to be referred to. So that is like the leading state in the country to have them. You've got Delaware, South Dakota, they're also pretty popular. But what a DAP essentially does is it's designed for those who want protection from creditors and who want to keep their assets here in the state. So what happened is the state drafted and established a statue which allows for self-settled spend, a spend thrift trust. That's what we used to use that provide some really strong barriers against creditors. And so with the NAP, and enables you, the client, to create a trust and fund it with your own assets, then you can also be a beneficiary of the trust. So long as the legal requirements are met, which is way beyond today's discussion, as long as those legal requirements are met, the assets inside the trust are safe from confiscation when you get sued. So it's a very powerful, it's a complicated type of trust. Any good estate planning attorney can create these or business attorneys can create them. But once again, it's a really, really powerful trust. And Nevada, like I said, leads the country in these. So like I said, we could do multiple hours of discussion on this. But if you find yourself in the legal and again, you usually want to create these well before you get sued. This is one thing. There's a two-year look back on those, et cetera. There's a lot of rules you got to follow. You want to get these created well before you get your assets shield. Talk a little bit about offshore, offshore trust. Yeah. And I think these probably fit in a similar world. Most folks that are listening aren't setting up offshore trust accounts. But it is just another way, talk about Cayman or Cook Islands or Nevis or something along those lines, where you can get stronger protection than what's done here domestically. But it's just another place that people open up trust offshore with different rules so they can park assets in them and they're sort of immune to some of the U.S. laws. But it's something people do but don't often recommend it to my day-to-day. Yeah. And I noticed, you know, whatever you mentioned, offshore trust, everyone goes, "Oh my God. These are only for drug dealers and people doing illegal things." That's not the case whatsoever. They are used by very, very legitimate businesses and so on and so forth. They just kind of have that negative tone to them. Right. But if you are a drug dealer, you should probably use a offshore trust. Just so you know. Right. A lot of interests. A lot of interests. Kind of tell the U.S. about it. All right. Let's go to our next one, the insurance side of things. Now, on the insurance side, first and foremost, please sit down with your insurance professional and make sure he or she fully understands what all of your assets are, your business, your personal, et cetera. Way too many people are underinsured or just using the house an example, "Oh yeah. You know, I insured my house and I don't have the type of policy that increases as the house increases." So, yeah. I told the insurance agent when I bought the house, the house is worth $500,000 but now it's worth a million and you find yourself with a big gap there if something happens. But on the liability side of things, same thing. You may have told your insurance agent when you bought your liability policy or general liability policy. These are my assets. Over the years, your assets have grown. Again, you're underinsured. So make sure, just like we preach to our clients, talk to us at least once a year. Let us know or in the meantime, let us know if there's any major changes in your life from a financial or personal standpoint, right? So number one, have plenty of liability insurance by as much as you possibly can. And again, a good insurance broker, and if you need one, I've got a phenomenal one. I'll refer to you. Every industry is different. The type that you need, the amount of coverage, et cetera. So make sure you have plenty of liability insurance. Secondly, on the personal side, one of my favorite forms of insurance, as I was just referring to, the umbrella policy. So the umbrella policy gives you excess liability protection above and beyond your auto and your home. Quick example, I always tell clients when I tell them to get the umbrella, let's say you're a real nice guy and you and your wife are going to the pepper mill and you decide you want to open the door and let that little old lady who's scooting behind you in your hand slips in the door closes and she crashes in the door, falls to the concrete, cracks her head open, dies, gets permanently injured, whatever. Guess what? She's going to sue you. Probably sue the pepper mill. The pepper mill is no liability. But they're going to sue you. Would your auto policy cover that? Nope. Would your homeowners cover that? Nope. Your umbrella would. So it's crazy things that happen in your life other than intentional acts or DUI. Generally the umbrella insurance is going to cover you. If you're up skiing and you cross, you know, you slip and fall and you cross somebody into a tree, a sunny bono type of accident, guess what? That's where umbrella comes in. So crazy things that go on. But also if you, most of you probably only have $300,000 worth of liability protection on your normal insurance policy, guess what? You get sued for a million. You're on the hook for 700,000, right? Your insurance company's going to write the check for 300. They're going to come after you for the difference. Not with umbrella. You ensure for a million, one million dollar increments, you can go, you know, kind of skies in the limit, but two, three, four millions, a very common amount and it's cheap. Generally, you know what, what are we seeing, Jay, $200,000, $500,000 a year per million. Yeah, exactly. It's nothing. And so it's excess liability protection to, to again, protect you for all these crazy things that go on. And then of course, lastly, asset specific insurance, you know, for certain types of things, you know, real estate, so on and so forth, the boats, et cetera, there's a lot of things you can get that for. Just make sure you have enough insurance and don't think your insurance professional knows what's going on in your life. You need to disclose everything you have and what your risk are. And quickly too, you've always pointed out, which I think is dynamite with the umbrella insurance. Guess what? If your insurance company has a two, three million dollar umbrella policy and someone comes trying to sue you, they don't want to give away three million bucks. They're going to send their lawyers, right? Because they're going to try to fight it. You're basically getting a lawyer in your back pocket as well. Exactly. Thank you for bringing that up. You're absolutely right. All right. We'll come back with Homestead Exemptions at a moment. Let's wrap it up with Kristin Snow in the right now, traffic center, Kristin. Welcome back to the John Sanchez show on his talk. It's a 180K OH with Jason Gunn. Once again, we've finished up 431 or 432 on the Dow. The NASDAQ higher by 109 and the S&P gaining a 41. All right. We've been helping you out with some asset protection strategies, both for the business owner and of course, for you as an individual. As you've learned, there are tons of them and again, we're not going to be able to finish our list. But let's continue on something that probably most of you have and that is a retirement account. Take it away, Mr. Gaunt. Yeah. So 401Ks, some IRAs, predominantly 401Ks, they do offer protection from creditors, right? So if there's an issue as far as you having a credit issue and they're coming after your assets, 401Ks oftentimes are not involved in any sort of litigious action that your retirement assets are protected. And that leads into some other items, homesteading certain assets too. So Nevada has a declaration of Homestead where you can protect the equity in your home up to $605,000, I think it is now, from general creditor claims. This is medical bills, bankruptcy, charge cards, accidents, et cetera. But it doesn't preclude a seizure over that $605,000 of equity. And if you've sort of pledged your asset, your home as a leanable item or pledged it in some other loan, it doesn't prevent them from coming after it. But in most cases, for most of us who aren't pledging our house for a bunch of loans all over the place, make sure you look into homesteading, et cetera, it's something that John's talked about quite a bit. Yeah. And they're so simple, folks. You can go, if you're in Washoe County, let's go to the Washoe County Recorder's website. Get the form. I think it's a $35 filing fee, but they are lifesavers and people are amazed. Also, a little real life example here, most attorneys, good attorneys, will file that homestead exemption for you when you get your living trust created. For some reason, I'm seeing a lot of them forgetting to do that. So please make sure that if you get a living trust created, you file the homestead exemption. Also, if you refinance your property, you lose the homestead exemption when you get the new loan, you have to refile again. So just follow the rules. Yeah, it's a really common problem that I'm seeing going on. And let's see, the last one, the gifting of the assets, yeah. You can get into annual lifetime gifting and so on and so forth, pre-Neptial and post-Neptial agreements and just think about it, put your team together, get a great attorney. They will protect you. Hope you enjoyed it. Pick up our podcast. We got a lot more great shows like this. We'll see you tomorrow. This program was sponsored by Sanchez Wealth Management. The material in this program was intended as general information only and should not be taken as specific investment tax or legal advice. None of the information on this broadcast was intended to be a solicitation for the purchase or sale of any security. Further information is available by contacting john@sanchezwealthmanagement.com or 775-800-1801. John Sanchez offers securities and advisory services through independent financial group LLC, a registered broker, dealer and investment advisor. Member FINRA SIPC, securities offered only in states John Sanchez is registered in. Sanchez Wealth Management LLC and independent financial group LLC are unaffiliated entities. We wear our work day by day, stitch by stitch. At Dickies, we believe work is what we're made of. So whether you're gearing up for a new project or looking to add some tried and true workware to your collection, remember that Dickies has been standing the test of time for a reason. The workware isn't just about looking good. It's about performing under pressure and lasting through the toughest jobs. Head over to dickies.com and use the promo code Workware20 at checkout to save 20% on your purchase. 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