Is your wealth protected? Steps to safeguard your assets and identity

Most people spend decades building wealth. They work hard, save consistently, invest wisely and make sacrifices to provide financial security for themselves and their families.

Unfortunately, many spend far less time thinking about how to protect what they have built.

One of the questions we frequently receive from clients is not how to grow their wealth, but how to protect it. While no plan can eliminate every risk, there are a number of practical steps individuals can take to reduce the likelihood of becoming a victim of fraud, identity theft, financial exploitation or unnecessary legal complications.

Freeze Your Credit

One of the simplest and most effective steps you can take is placing a security freeze on your credit reports with the three major credit bureaus.

A credit freeze prevents new lenders from accessing your credit file, making it much more difficult for someone to open fraudulent credit cards or loans in your name.

The freeze does not affect your existing credit cards or your credit score, and it can be temporarily lifted whenever you apply for new credit.

For most individuals, this is one of the easiest ways to reduce the risk of identity theft.

Strengthen Your Online Security

Financial accounts have become increasingly digital, making cybersecurity more important than ever.

Strong, unique passwords should be used for every financial institution, email account and investment platform. Reusing passwords across multiple websites significantly increases the risk that one data breach could compromise several accounts.

Whenever available, enable multi-factor authentication. This extra layer of security often requires a code sent to your phone or generated through an authentication app before someone can access your account.

It is also wise to regularly review your financial accounts for unfamiliar transactions and immediately report anything suspicious.

Be Skeptical of Unexpected Communications

Scammers have become remarkably sophisticated.

Fraudulent emails, text messages and phone calls often appear to come from banks, investment firms, government agencies or even family members.

If you receive an unexpected request involving money, passwords or personal information, pause before responding.

Rather than clicking a link or returning a phone call using the information provided in the message, contact the institution directly using a phone number or website you know is legitimate.

A few extra minutes of caution can prevent significant financial loss.

Protect Against Financial Exploitation

Unfortunately, financial exploitation has become increasingly common, particularly among older adults.

Having a trusted family member or advisor involved in your financial life can provide another layer of protection.

Many financial institutions now allow clients to designate a trusted contact person who may be contacted if suspicious activity or cognitive concerns arise.

This individual does not have authority over your accounts but can serve as an important safeguard.

Maintain Appropriate Insurance Coverage

Asset protection also involves protecting against risks that could threaten your financial future.

Periodically review your:

- Homeowners insurance

- Automobile insurance

- Umbrella liability insurance

- Disability insurance

- Long-term care planning

- Life insurance

As your wealth grows, your insurance needs often change as well.

An umbrella liability policy is one of the most overlooked forms of protection and may provide valuable additional coverage beyond your homeowners and automobile policies.

Organize Your Financial Life

One of the greatest gifts you can leave your family is organization.

Maintain a secure record of:

- Financial accounts

- Insurance policies

- Estate planning documents

- Tax returns

- Important professional contacts

- Password management instructions.

This information should be stored securely while remaining accessible to those you trust if something unexpected happens.

Final Thoughts

Building wealth requires years of discipline, patience and thoughtful decision making. Protecting that wealth deserves the same level of attention.

Many of the most effective safeguards are surprisingly simple. Freezing your credit, strengthening online security, carrying appropriate insurance and organizing your financial affairs can significantly reduce risk.

While no one can eliminate every threat, taking proactive steps today can help protect both your assets and your family for years to come.

In many cases, protecting wealth is not about making one major decision. It is about consistently making many small, thoughtful decisions that work together to safeguard everything you have spent a lifetime building.

Reid Schwartz is a columnist for The Item and Co-Founder of Creech Schwartz Wealth Management in Sumter, SC, where he works as a financial advisor helping individuals, families, businesses, and nonprofits plan for long-term financial success.

*Tax and accountancy services are not available through or provided by Creech Schwartz Wealth Management or &Partners, LLC.

This article is for educational purposes only and not to be interpreted as tax or legal advice. Any tax planning strategies discussed by Creech Schwartz Wealth Management will be in conjunction with your tax/legal professional.

Securities and investment advisory services offered through &Partners, LLC, a broker-dealer and investment adviser registered with the U.S. Securities and Exchange Commission and member FINRA, SIPC.