Most want to leave a legacy for their families so that their upcoming generations can live with dignity. A common fact true across different parts of the world is that family wealth lasts for three generations or less. Hence for estate planning various aspects such as individual aspirations, tax efficiency etc. should be taken into account.
Estate planning can help you manage your family wealth last for generations with the right approach. It ensures that an individual’s assets are properly transferred to the next generations in the event of their incapacitation or death. Planning and arranging your generational wealth is essential because it gives confidence and comfort to your kids and their kids.
Estate planning is the preparation and process of wealth management for future generations through the proper anticipation and planning. It includes the transfer of assets and responsibilities to the right heirs and people when you are not available to raise your voice or concerns. It also involves the process of the settlement of estate taxes and bills to avoid any legal battles in the future. But the problem here is that in estate planning, which is a legal document, there is no mention of generational intent, and that is where the concept of generational wealth gets a setback.
To deal with this situation, you need to define your estate planning with the right strategies and anticipations through the right legal approaches. The concept of generational wealth needs to be built around “Keep the money together” – the last words of Cornelius Vanderbilt. For this, you can plan your estate planning with the following approach to transfer your assets to the generations to come.
Make a generational plan
When you desire to leave a legacy for generations to come, it’s better to equip your future generations with the written strategies to let them know about your generational plans. It will help your future generations to understand your intentions. You can leave it with your estate planning documents to keep everything together in the right direction.
Set the right mindset
You should be very thoughtful about whom do you want to transfer your legacy, assets, and responsibilities so that your family sticks together after your death. You need to define the right heirs and caretakers in order to keep your legacy together without any legal problems. It is not easy to define future possibilities and outcomes, but you have to plan everything during the process to leave wealth for generations.
Discuss openly with your family
It is important to discuss openly about your estate planning and what your intentions are with your family. It will give them the right impression about your asset planning and wealth management. You need to win everyone’s trust while working on the concept of generational wealth to avoid any future misunderstanding and legal troubles. While making a generational plan, you should communicate properly with your family members and define everyone’s roles and responsibilities to perpetuate the legacy for the upcoming generations.
The concept of generational wealth is not just about leaving your assets for your family members or charities that you care about but also about making strategies to keep Your Estate’s Assets Growing. For this, you can invest in the right investment and insurance plans for guaranteed benefits and access to cash. You also need to make a proper legal document with the help of professional investment planners and attorneys to encode your vision for future generations.
We at New Age Insurance Brokers can help you with solutions that can ensure that your intentions are translated to reality.
Children as young as 4, can begin to understand how money works, including how essential it is to save. And, by the age of 8, most kids form their basic money habits. If your children are spenders or unaware of the importance of money, teaching them about the proper use of money is not that challenging.
It’s all about teaching your kids the basics and continuing to encourage financially prudent decisions every day. Here are some steps that can help you achieve these goals.
- Set an Example
As parents, you should have a savings account and pay your bills on time to set a good example for your kids. When your child asks questions about the bills or why you go to work, share the importance of these things. Open the conversation about money whenever necessary. Some topics that you can discuss with your children include:
- The significance of saving
- How to save money
- How to make an informed decision when buying something
- Importance to give to those in need
- How to make money
- Open a Piggy Bank
For young kids, it is essential to create a visual way of saving money. Such as using a piggy bank. You can divide it into three jars – one for savings, one for spending, and one for charity. When you give your child money or if they receive it from someone, help them separate those funds into each piggy bank. Motivate them to save for a specific item, so they know the value of money.
- Provide an Allowance
Don’t provide your kids with an allowance just for the sake of spending. Instead, set up allowance-based specific tasks. Choose age-appropriate tasks or chores for your child to complete each day. At the end of the day or week, give them the money they deserved for performing those activities. It is crucial to keep their savings visuals so they can learn how their money comes and goes.
- Praise for Every Penny They Save
Positive feedbacks have a long-lasting impact and go a long way. Every time your child controls their desire to buy somethings and instead chooses to put money on their saving piggy bank, be sure to praise their decision. Express your pride in your child’s effort to save for the future rather than splurge in the present.
- Encourage Even if They Spend
Kids are kids, and despite your best advice, they may spend on something other than what they were saving for. They may have regrets later, and that’s where you should step in. Your role is to motivate them to start saving again.
We understand that for some parents teaching children how to save money can be an uphill task. However, it is necessary to prepare them for financial responsibilities and secure their future. Remember, kids are good at imitating, and they copy everything that they see. So, lead by example.
Besides, do not forget to encourage and praise your child when they do well in budgeting and saving their money.
Ransomware attacks and online frauds have become common crimes that target businesses’ data and networks. Among businesses, SMEs are the most common victims of such cybercrimes. Cyber attackers often view SMEs as an easy target because such companies have fewer resources to fight cyber-attacks. They are also more exposed because their network is monitored less during weekends and holidays which allows intruders to easily install malicious software. Also, a proliferation of cloud-based apps and software makes it much easier for hackers to exploit loopholes in networks.
According to the 2017 Norton Cyber Security Insights Report, more than half of the millennials (58%) in the UAE experienced some sort of cybercrime. The report also revealed that a total of 3.72 million UAE consumers lost nearly Dh 4 billion to cybercrime.
Yet only a few have protected themselves with a cyber risk insurance policy.
The COVID-19 Pandemic Fueled Already Increasing Cyber Crimes
During the COVID-19 pandemic, the number of cyber-attacks has skyrocketed. Social engineering campaigns that preyed on the fear of the virus have fueled these crimes more than ever. Malicious elements posed themselves as trusted organizations (banks and merchants) or individuals (co-workers, managers, and IT administrators) to steal sensitive data or funds so that they can infiltrate organizations and compromise information systems, especially corporate payment systems.
Cyber Risk Insurance to Protect Your Company Against Online Frauds and Ransomware Attacks
With a sharp increase in ransomware and online attacks aimed at employees working from home, the need for cyber risk insurance in 2021 has increased even more. Of course, training, and technical safeguards are critical to cyber-security; but, protecting your company from online frauds and ransomware attacks through cyber insurance is still a necessary measure that every company, be it small, medium, or large, should implement in its strategies and policies.
Unfortunately, there is a false sense of security among most businesses that if they haven’t been a victim of cybercrime yet, they believe that they are invincible and protected against such crimes.
A 2020 study conducted by NORDVPN reported that “cyberattacks are up 400% a day compared to pre-COVID-19 levels”.
Such astonishing findings of cybercrime call for a bigger change in the viewpoint of businesses as well as individuals.
Businesses with cyber risk insurance are protected when data breaches, malware, or ransomware attack their systems and cause losses. Besides, cyber insurance also provides businesses with access to cyber-security experts when they need it the most. Therefore, it makes buying a cyber risk insurance policy a viable solution for SMEs.
All the top concerns of SMEs are often aligned with the typical inclusions in a Cyber Insurance policy. Besides, cyber insurers and brokers can help close the education gap between cyber exposure and cyber protection to get more meaningful and wider coverages that meet the specific cyber security-related needs of businesses.
In today’s economy which relies heavily on trade, both local and international, issues such as protracted default and insolvent buyers are ubiquitous. Unfamiliarity with new markets can discourage sellers from extending the credit needed to conduct domestic and international business.
In addition, the risk of non-payments and defaults from suppliers is emerging as a noticeable risk across the globe. A default or non-payment can happen due to several reasons:
- Insolvency of the buyer
- Global economic developments
- Change in domestic trade, trade policies.
- Changes in foreign government regulations
- Political instability
- Willful defaults
Thus, it is essential for businesses to consider credit insurance. A trade credit insurance policy protects a business from a substantial loss. It is possible that one big client defaulting can sink your entire business. Therefore, you need to understand how this insurance works and assess its suitability for your situation.
How Trade Credit Insurance Works?
Trade credit insurance mainly works by safeguarding a business’s cash flow if a debtor defaults on a payment. As mentioned above, there could be many reasons for defaulting.
Unfortunately, these situations can occur from time to time. Credit insurance gives your business a peace of mind so that your cash flow is protected in the event of a non-payment. Without it, you may have to borrow or sell assets to fill the resulting cash shortfall. This situation is quite common, but it is preventable by taking advantage of an insurance policy ahead of time.
Why Should You Consider Trade Credit Insurance?
For a business that takes payment upfront, credit insurance is of no use for them. If your company offers customers with terms of credit, you should consider this coverage as an option.
Although you may not have the scale or need for it immediately, it is better to consider it so you can enjoy peace of mind as you continue to grow. It can even be used by those businesses that trade with international customers. As a risk management tool, credit insurance is an excellent way to protect against risk factors that lie outside of your control. Keep in mind that no business can escape from bad debt.
More than Just Protecting Your Cash Flow:
If you want to operate your business successfully, you need to have confidence in everything you do. Credit and risk management often gets ignored until it’s too late. Most people realize the significance of protecting physical assets, such as property or major equipment, but don’t consider their debtor ledger. By applying for trade insurance, you can gain assurance in your credit management practices.
The Bottom Line
Trade credit insurance is an essential tool that can help cover your company’s receivables and maximize profits over the long-term.
Unlike other insurance policies, this policy can change throughout the policy period, making the relationship between you and the broker quite dynamic.
To know more about trade credit insurance, consult an experienced and well-known insurance broker in the United Arab Emirates.
As a business owner, you would want to preserve your company’s bottom line. For that, you will need insurance, which provides coverage against any damage such as natural calamities, thefts, employees’ sickness, income loss, death, or injuries, any judicial proceedings, and sabotage.
Business insurance is a complicated matter. Corporate insurance brokers work for the company’s benefit and help its employees inform key decisions related to insurance needs. The broker advises you about the risks that your business can face in the future. The insurance covers provided by Insurance companies in Dubai emphasize your company’s security and safety. By applying their knowledge and experience, they can make the insurance procedure and deals effortlessly for your company.
Therefore, you should be very careful when deciding who your broker should be. In order to get the best out of your business, you need to search for a reliable and established corporate insurance broker. Here are a few vital points that you need to target to get the perfect match.
- Ties With Other Companies (Reputation)
Your broker should have a good reputation within the business world. If an insurance broker is growing significantly, getting a positive review, and being approached by big businesses, you should consider that broker.
- Area of Expertise
Today, the business world is more specialized than ever. Different businesses can have distinctive needs. Because an insurance broker is a partner in your business and risk management, they should very well understand your industry.
If you are consulting with an expert who doesn’t specialize in your particular field of business, you may not get top quality advice. Thus, it is crucial to ensure that you know who you are dealing with. Broker’s expertise is required to get you the best insurance coverage at a competitive rate.
Remember, not every broker is an expert at every risk. So make sure your broker is well aware of your business.
- Technologically Forward-Thinking
Work with a broker who is aware of and agreeable with technology solutions. By looking into the broker’s application process, you can get an idea about the broker.
- Availability of Your Broker
A corporate insurance broker has a very tough job on his shoulders, as any company can have significant setbacks that require immediate consultation. So, make sure that the broker is available when you need them.
As a business owner, ensure that you get the right corporate insurance policies. However, you may face many roadblocks when reviewing and selecting insurance policies. When you search for an established insurance company on your own, you may end up becoming a victim of illicit insurance firms.
Therefore, the best thing to do is to hire corporate insurance brokers. They can find corporate insurance policies that provide good coverage with affordable premiums as per your requirements.