What does “asset protection” aim to achieve?

Asset protection is focused on safeguarding a client's wealth from potential threats such as creditors, lawsuits, and unexpected financial liabilities. This concept involves implementing strategies and structures that help ensure a client's assets remain secure and can be preserved for their intended purposes, such as retirement, inheritance, or other long-term goals.

By prioritizing the safety of assets, individuals can mitigate the risk of losing wealth due to unforeseen circumstances, such as legal judgments or bankruptcy. This aspect of wealth management is crucial, as it allows clients to maintain control over their assets and ensures their financial security even in the face of adverse situations.

The other options, although important in their own right, do not encapsulate the primary goal of asset protection. For example, maximizing investment returns focuses on growing wealth rather than protecting it, reducing tax liabilities pertains to minimizing tax obligations rather than safeguarding assets, and improving liquidity is concerned with how quickly assets can be converted to cash, which does not inherently protect the assets from loss.