What does the term “wealth preservation” refer to?

Wealth preservation refers to strategies that are designed to protect an individual’s wealth from loss or depletion. This concept emphasizes the importance of safeguarding assets from various risks, such as market volatility, inflation, and unnecessary taxation. Wealth preservation is crucial for individuals who have accumulated wealth and want to ensure that it remains intact for their future needs and the benefit of their heirs.

This involves a variety of strategies, such as diversifying investments, utilizing insurance products, estate planning, and incorporating legal structures like trusts to shield assets from creditors and taxes. By focusing on preserving wealth, individuals can maintain their financial stability and security over the long term.

The other options, although related to financial management, do not accurately reflect the essence of wealth preservation. Increasing income or rapidly accumulating wealth might involve taking risks that could jeopardize existing assets. Similarly, strategies for tax evasion are illegal and do not align with the ethical approach associated with wealth preservation. Thus, the emphasis on protecting wealth is what makes the correct answer distinct and relevant.