What is my Real Monetary Risk?
Everything in life involves a certain level of risk every day we wake up. There is always the risk of accident, injury, illness, financial loss, or even legal assault and yet we have options to mitigate or not against such risks.
Why do we buy car insurance for $2000 a year to protect a car worth only $40,000? Or fire insurance to protect our homes? Or life insurance to protect our families? ANSWER: To protect against severe financial loss.
How many of us have a solid plan to protect ALL OF OUR ASSETS from a legal attack that could take everything from us with one court decision? We rarely think of the future value of everything we own in terms of loss potential. The time to assess such risk is NOW!
STS Opportunity
Cost Calculator
Our interactive risk calculator helps you to predict your Expected Total Opportunity Cost of NOT having an asset protection program in place to protect you against a successful lawsuit. In the event of such an outcome, courts commonly award up to 90% of your current assets and garnishee up to 80% of your annual after tax earnings in order to satisfy a judgement. Thus, not only will you lose the purchasing power of your annual lost earnings but you will also lose the future value of the asset growth you could have had but were forced to give up in settlement of a lawsuit.
As with car insurance, you should be willing to pay a value or risk premium of up to 5% of the expected loss value to "insure" or mitigate against such a rare but catastrophic outcome.
(e.g. 1.5% or $74,514 in this example.)
Usage Instructions: Simply click on and change the various parameters shown in red to see how various assumptions effect the calculated Expected Total Opportunity Loss figure. This amount indicates the true opportunity cost of running your life without the legal protection benefits of Financial Kevlar™. This presumes that you become the victim of a catastrophic lawsuit which results in the garnishment of your income and assets for up to your remaining life expectancy. Logically, you should be willing to spend up to this amount for adequate legal protection in the form of a Trust. As with insurance, a small risk premium can be applied to determine how much you should spend in advance to insure against a loss.
