For many people starting on the path to building wealth, the ultimate goal is usually financial independence. As you work towards having enough investment assets to support yourself without needing to work, we recommend you follow five simple steps to protect your material net worth.
The first step is to build up a cash reserve of short-term liquid savings that you can tap into for emergencies or extenuating circumstances. Because your most valuable asset is your ability to work and earn money, long-term disability and term life insurance are essential as well. You can then start to build a diversified investment portfolio with long-term growth goals. Once you start to accumulate assets such as homes, savings, and investments, you’ll want to protect it with a general excess liability insurance policy of sufficient size to cover your net worth.