What is the difference between asset protection and asset management?

Asset protection and asset management are two terms that are easily confused. Asset protection is the legal process of protecting an individual’s assets from creditors, lawsuits, and other financial risks. Asset protection involves strategies to legally limit an individual’s exposure to financial liability, such as forming an LLC, creating trusts, and transferring assets. Asset management, on the other hand, is the process of organizing, maintaining, and maximizing a person’s financial assets. Asset management involves setting financial goals, developing and implementing a financial plan, making investment decisions, and monitoring the performance of investments. Asset management focuses on building wealth over time, rather than limiting risk. Asset protection and asset management are closely related, but they are two separate strategies. Asset protection is focused on reducing financial risk from creditors and lawsuits, while asset management is focused on long-term wealth creation. In Michigan, asset protection strategies such as LLCs, trusts, and asset transfers are legally available to individuals looking to reduce financial liability and protect their family’s financial future.

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What is the difference between asset protection and asset management?

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