Sometimes safeguarding one’s wealth tends to not be a major priority. The common theme of a disaster is that people convince themselves that the worst-case scenario will never happen to them. Economist Ted Bauman is an editor for Banyan Hill Publishing who specializes in asset protection. After a relative of his passed away, he was inspired to write an article about protecting one’s assets in the event of a major disaster. This could include a burglary, fire, natural disaster or a financial or economic crisis. One of his big tips to his readers was to keep a small portion of their wealth outside the financial institutions. Most people in our modern era have digital wealth, so the advice of keeping valuables at home may seem a little absurd and unsafe. However, keeping some cash and precious metals outside the banking systems is a form of wealth insurance and a great way to diversify one’s holdings.
Ted Bauman advises that investors have a water and fireproof lockbox at their home. In his article, he pointed out how his relative had stashed away a lot of cash and valuables in their home but failed to properly secure their assets. He mentioned how a fire had almost burned down his relative’s house, and how a robber could have easily broken in and stolen his relatives’ wealth. Ted Bauman did feel that his relative was prudent for keeping some of his wealth outside a bank. In a financial crisis, this could potentially be a very important thing to do, which is why it is good to keep a little bit of wealth at home.
Investors uncomfortable with the safety of their home may opt to have a safe deposit box in a bank. Most of the time this is safer than storing cash at home. However, Ted Bauman brings up the recent financial crisis that took place in Greece. Investors who stored anything in safe deposit boxes at a bank had their wealth taken from them by the government. Therefore, a foreign or domestic vault with a private company may be the safest option. The downside is that an investor is going to need to have a lot of money to have access to a private vault. Here’s How the Bull Market Dies