Life Home Security Plan Building Blocks

Nash Law Firm

"LHSP" Building Blocks

LHSP Preferred Sponsors

AFM7, LLC
Your Loan Mitigation Expert
763.862.6100
keyes@afm7.com

Liberty Title
We work from start to finish!
763.494.0304
jeff@libertytitleinc.us

Nash & Lodge, PLLP
Combining Real Estate Knowledge With Real Estate Experience
763.862.6100
nash@nashandlodge.com

The Life Home Security Plan revolves around the simple idea that our homes are central to our lives and, therefore, we should do everything we can to make sure that it is not at risk. Many people are in trouble today because they treated their home as an investment with no protection. Investment always involves a certain amount of risk but certain investments are subject to more risk than others and many things can be done to manage the risk being taken. While a house is an investment, everything should be done to minimize the risk of losing on that investment because of the far reaching effect its loss will have on your family.

Base Level

We look at the Life Home Security Building Blocks as a pyramid. The foundation of the pyramid are the "Base Level" blocks. This is where you look for basic protection and security for your family. Housing, Estate Planning and Insurance are the main areas that need to be addressed. These building blocks may increase your families wealth over time but the primary focus is security, protection and the avoidance of risk.

Savings Level

Once the Base Level blocks are in place, the next level of blocks make up the "Savings Level". The Savings Level is designed to increase your wealth with low risk/liquid options. By increasing your wealth through the various Savings Level blocks, you are also helping protect your Base Level by creating wealth that you can access in times of need. An example of this would be where someone loses their job. If there are no savings, it is difficult, if not impossible, to save your home. If there are savings that can be accessed, there is a source of money that you can make the mortgage payments while you are looking for a new job.

Risk Level
The final level of the pyramid, is the "Risk Level". The blocks the make up the Risk Level involve higher risk investments that have potentially a high rate of return. While this level can greatly increase your wealth, you also have a greater potential of loss and, many of these investments are not liquid. In other words, you cannot easily convert the investment to cash in order to fund your basic level in times of need.

Unfortunately, many people today have found themselves in a position where they do not have a secure Basic Level, they have little or nothing at the Savings Level but quite a bit at the Risk Level. They also, often, treated their home as Risk Level real estate instead of as Basic Level real estate. As the value of their Risk Level investments dropped, their home was exposed as an unprotected investment. When they bought their home, they did so in a way that left them vulnerable (buying a home they couldn't afford, with no equity) and had very little in the Savings Level that could help save their home. What is worse, the assets they still hold at the Risk Level not only are losing value but are extremely difficult to sell at any price.

Ultimately, we believe that everyone has to go back to the basics and have a plan to build a sold Base Level, a solid Savings Level before moving aggressively into the Rick Level investments. In order to create and execute such a plan - what we cal l the Life Home Security Plan - you need a team of professionals that can come up with a balanced plan and create the protection that you need.

The chart below is intended to illustrate each level of the pyramid. The first column indicates each level. The second column sets out the professionals that tend to be involved in the over-all plan of that level. The red boxes below specific block indicate a specific professional that deals with that specific block but not necessarily with the other blocks at that level.

LIFE HOME SECURITY PLAN

BUILDING BLOCKS

Nash & Lodge, PLLP * 763.862.6100 * nash@nashandlodge.com * www.nashandlodge.com

RISK
LEVEL

Attorney

Financial Planner

Tax Accountant

Red Hand Pointing Right

STOCK

REAL ESTATE
Non Homestead

SECURITIES

BONDS
Government
Corporate
Municipal

GREATER RETURN
HIGHER RISK

Red Glass Hand Pointing Up

Title Company

Real Estate Agent

Loan Officer

SAVINGS
LEVEL

Financial Planner

Tax Accountant

Red Hand Pointing Right

INTEREST SAVINGS
Lower Rates
Improve Credit Rating

TAX SAVINGS
Tax Free
Tax Deferred
Tax Deductible

SAVINGS
Bank
Credit Union

MONEY MARKET FUNDS

CD'S

Savings Bonds

INCREASE WEALTH
LOW RISK

Red Glass Hand Pointing Up

Credit Repair

BASE
LEVEL

Attorney

Financial Planner

Tax Accountant

Red Hand Pointing Right

ESTATE PLANNING
Will
Trusts
Power of Attorneys
Health Care Directives

TRANSPORTATION
FOOD
CLOTHING

YOUR HOME

Without Equity

With Equity

INSURANCE
Auto
Medical
Liability
Disability

PROTECTION
RISK MANAGEMENT

Red Glass Hand Pointing Up

Real Estate Agent

Title Company

Loan Officer

Insurance Agent

Copyright 2009
Nash & Lodge, PLLP

Enter supporting content here

NOTICE:

The foregoing is not intended to constitute legal advice for any specific circumstance, but is intended to reflect broadly applicable principles, under Minnesota law, relevant to a typical situation. Each set of facts and each contract is, or can be unique; the unique facts and specific language of the contract may require a different legal analysis and may result in a different outcome. Before proceeding in reliance upon this or any other general description of law, consult with an attorney competent in the field of practice relevant to your situation.

Copyright 2010 Nash Law Firm

This Bankruptcy Law Firm is a federally designated DEBT RELIEF AGENCY as defined in the 2005 amendments to the US Bankruptcy Code. This law firm provides legal advice regarding the pros and cons of filing bankruptcy and represents people and small businesses in filing for bankruptcy relief under the US Bankruptcy Code. Debt Relief Agency Notice

Nash Law Firm- 2705 Bunker Lake Blvd., Suite 107, Andover, MN 55304 - 763.862.6100