Let me give you a small example:
My client has told that he wants to place a capital part so that the capital brought in the income. Thus from this capital his daughter should receive a certain amount quarterly. She should receive this sum always – regardless of the fact that can happen with the equity holder. But thus the condition of inviolability of the capital that is that his daughter could take away not all capital but only would receive a certain amount.
We have opened to the client the investment program in the insurance company and invested means in funds which dividends also in the separate securities paying dividends (shares) and bonds pay. Further this capital has been transferred in a trust with conditions which have been specified by the equity holder. The basic conditions are that:
Quarterly to transfer from the given account some sum of money into the account of his daughter.
If something occurs to the equity holder, money should be transferred into account of his daughters by equal parts every year.
That is, the equity holder has actually protected the capital from unreasonable use (the daughter doesn’t understand at all investments), at the same time having provided the daughter at any development of a situation.
It is necessary to think of protection always. If the capital small, it is possible to include two-three assets in a portfolio. If the capital is more than 100 thousand dollars, assets should be more.
If to speak about more serious protection (use of the insurance company, trusts) it makes sense to do it when the businessman himself sees in it some necessity. I consider that use of trusts is reasonable at the capital from 500 thousand dollars.
RISKS are the biggest reef. What is the danger of it? Those businessmen very often are mistaken in a risk assessment. Very many consider the most risky investment (in own business) as the most safe investment. Once again I will repeat – investment in any business, whether it is the European company or the American company is always risky. If you with me don’t agree, try to answer a question: – Why presidents of the companies the Coca Cola, Intel, Microsoft and other largest companies of the world don’t hold the capital in shares of the companies? You consider that they might be such silly, investing in other companies and funds instead of investing in the company which they know the best?
No, they aren’t silly, therefore and they don’t hold the capital in one asset.
If to speak about absolute protection that to you will be not given even by the insurance company. It is considered the most protected capital the 80 % of which is invested in the bond with a rating from A to ???, and the others of 20 % – in the share (or in funds of shares) the large world companies (“blue chips”).
The times when governments have been showering people with all types of grants have passed. At least for a while. But that does not imply that one must forget the idea of getting small business grants.
Everything is possible with smart attitude; small business grants including.
Read this blog for more practical tips about grants, how to apply for grants, grant examples, ups and downs of the grants. This information will help you to get small business grants or any other grants easier.