TRASH or TREASURE - Profitably Divesting Problem Assets
“Solve one problem, and you keep a hundred others away” is a Chinese proverb.
We think it's prudent wealth management.
Many of our proprietary strategies were originally designed to help solve problem and distressed assets of commercial banks. Now you too may profitably sell or dispose of problem assets.
Any asset can become a problem if it loses value and diminishes your wealth. Including:
· Real estate,
· Stocks and bonds,
· Even private businesses.
For example, it was recently reported that nearly 1,000,000 used yachts were for sale. It suggests there are countless problem marine assets. We empathize with anyone trying to sell yachts now when current market values leave any of them "under water" – so to speak.
Many sellers simply can't afford to sell at market values as their loan payoffs are higher than the offers or they simply refuse to take such large losses on the sale. And every day they keep the boat, only costs more in depreciation, maintenance, and lost opportunity costs.
Consider that one recent sale of a $2.5 million yacht required 4 years on the market before finally closing.
But it’s not just yachts. It can be almost any bad or problem asset or underperforming investment.
The problems with real estate, horses, art, and many other assets are well documented.
Yet regardless of the asset, much of the risk of financial loss from these problem assets seems to be largely ignored by many asset managers and advisers.
Unfortunately, too frequently "advisors", seem much better at helping their clients make money than they are at keeping it!
Extreme examples are assets at risk of repossession by lenders or seizure by the IRS for unpaid taxes. How can CPAs, asset managers, and other financial advisers allow such?
Maybe the client ignores the advisor’s advice. Maybe the advisors don’t have solutions because the problems are beyond their specific areas of expertise. Perhaps some advisors are just simply too transaction oriented - concerned about “assets under management” and their compensation.
Regardless, it seems that too few “advis0rs” are sincerely concerned for the client’s long total net worth and certainly not their prosperity.
It’s common to expend substantial effort and resources to make more money – often only to pay more taxes and invest in depreciating assets or assets subject to market whims.
That’s like trying to fill a bucket with holes in it.
What value is there in earning $500,000 in the stock market if you lose $500,000 on the sale of your boat, horse, real estate, or other asset, or overpay your taxes?
The only people getting wealthy in those scenarios are the transaction brokers and advis0rs.
To maximize your prosperity, it seems prudent to first plug the holes in your net worth bucket. Eliminating problem assets is a good first step!
It’s not just about how much you make, but how much you keep, and can pass along to your family.
As economic advisors with an integrated comprehensive multidiscipline approach to prosperity, our interests are intertwined with our clients’ long term growth of their net worth.
Unlike other advisors that are limited to one discipline or asset class, anything adversely affecting our client’s net worth- is our problem too.
If our clients have a financial problem with their yacht or horses – so do we. Thus we strive to assure our clients don’t needlessly lose money on problem assets when we have profitable alternative strategies available.
As economic advisers, we don’t replace other advisors; but help them give better advice by providing better information on which to base decisions. We act much like our clients’ own “private prophet” by providing an information advantage.
Of course, our goal is to provide an information advantage to prevent having problem assets in the first place.
But we’re not perfect. Sometimes our advice is over looked. In that case, we do the next best thing. If we can’t prevent our clients from making bad decisions, we try to mitigate them.
So for qualified clients, we have special strategies to help assure the profitable sale or disposal of otherwise problem assets.
Therefore, if you have any of the above assets or other problem assets or desire to prevent future problem assets, have some other difficult economic or financial challenges, or would like to learn more about how having your own information advantage can produce greater prosperity, please contact us or the referring agent for a confidential assessment and review.
The curse of the LORD is on the house of the
wicked, But He blesses the dwelling of the