Comments on: Get An Umbrella Insurance Policy – Your Teenager Is Going To Bankrupt You http://www.financialsamurai.com/2009/10/20/get-an-umbrella-insurance-policy-your-teenager-is-going-to-bankrupt-you/ Slicing Through Money's Mysteries Thu, 29 Jul 2010 19:52:22 +0000 hourly 1 http://wordpress.org/?v=3.0 By: adminhttp://www.financialsamurai.com/2009/10/20/get-an-umbrella-insurance-policy-your-teenager-is-going-to-bankrupt-you/comment-page-1/#comment-1024 admin Fri, 23 Oct 2009 02:48:50 +0000 http://www.financialsamurai.com/?p=1946#comment-1024 Hey Kosmo - Sounds good. More people need to get umbrellas. I just don't think enough people understand what it is, so they don't bother. Umbrella and long term liability are two must haves for everybody! Thnx for your thoughts. FS Hey Kosmo – Sounds good. More people need to get umbrellas. I just don’t think enough people understand what it is, so they don’t bother. Umbrella and long term liability are two must haves for everybody! Thnx for your thoughts. FS

]]> By: kosmo @ The Casual Observerhttp://www.financialsamurai.com/2009/10/20/get-an-umbrella-insurance-policy-your-teenager-is-going-to-bankrupt-you/comment-page-1/#comment-1023 kosmo @ The Casual Observer Fri, 23 Oct 2009 02:25:05 +0000 http://www.financialsamurai.com/?p=1946#comment-1023 We got our million dollar umbrella a month or so ago. The peace of mind is great. It really doesn't take much to rack up a half million or so in liability. You've seen the semis loaded with new cars heading down the highway? Imagine running one of them off the road ... A momentary distraction, a patch of ice, or even just a blind spot. We got our million dollar umbrella a month or so ago. The peace of mind is great.

It really doesn’t take much to rack up a half million or so in liability. You’ve seen the semis loaded with new cars heading down the highway? Imagine running one of them off the road … A momentary distraction, a patch of ice, or even just a blind spot.

]]> By: Larry Lhttp://www.financialsamurai.com/2009/10/20/get-an-umbrella-insurance-policy-your-teenager-is-going-to-bankrupt-you/comment-page-1/#comment-968 Larry L Wed, 21 Oct 2009 11:36:55 +0000 http://www.financialsamurai.com/?p=1946#comment-968 <a href="#comment-962" rel="nofollow">@admin </a> The book also states that while this option is available, it's not the only way but it's the simplest to do but obviously would have massive repercussions. @admin

The book also states that while this option is available, it’s not the only way but it’s the simplest to do but obviously would have massive repercussions.

]]> By: adminhttp://www.financialsamurai.com/2009/10/20/get-an-umbrella-insurance-policy-your-teenager-is-going-to-bankrupt-you/comment-page-1/#comment-962 admin Wed, 21 Oct 2009 02:50:08 +0000 http://www.financialsamurai.com/?p=1946#comment-962 Hey Larry - Thanks a lot for providing this info. VERY useful! Hence, the lesson is, file for bankruptcy protection if you want to protect your retirement plans from getting pilfered from some sue happy person who might or might not have a right. Very useful. BTW, I'll be highlighting your post manana! Best, FS Hey Larry – Thanks a lot for providing this info. VERY useful! Hence, the lesson is, file for bankruptcy protection if you want to protect your retirement plans from getting pilfered from some sue happy person who might or might not have a right.

Very useful. BTW, I’ll be highlighting your post manana! Best, FS

]]> By: adminhttp://www.financialsamurai.com/2009/10/20/get-an-umbrella-insurance-policy-your-teenager-is-going-to-bankrupt-you/comment-page-1/#comment-960 admin Wed, 21 Oct 2009 02:48:01 +0000 http://www.financialsamurai.com/?p=1946#comment-960 Nice Greg! Ok, I will kick his A&&! :) Seriously, for $100-300/yr, you can get a $1-2 million umbrella policy. Seems like a no brainer to me! Nice Greg! Ok, I will kick his A&&! :) Seriously, for $100-300/yr, you can get a $1-2 million umbrella policy. Seems like a no brainer to me!

]]> By: Charliehttp://www.financialsamurai.com/2009/10/20/get-an-umbrella-insurance-policy-your-teenager-is-going-to-bankrupt-you/comment-page-1/#comment-958 Charlie Wed, 21 Oct 2009 02:44:53 +0000 http://www.financialsamurai.com/?p=1946#comment-958 very good to know!! Thanks for explaining this. I don't have any kids now but my sympathies go out to those with teens. I can't imagine how stressful that must be. It's nice people don't sue as much in England as the US. It's too easy for people to sue in the US and protection is key. very good to know!! Thanks for explaining this. I don’t have any kids now but my sympathies go out to those with teens. I can’t imagine how stressful that must be. It’s nice people don’t sue as much in England as the US. It’s too easy for people to sue in the US and protection is key.

]]> By: Greghttp://www.financialsamurai.com/2009/10/20/get-an-umbrella-insurance-policy-your-teenager-is-going-to-bankrupt-you/comment-page-1/#comment-959 Greg Wed, 21 Oct 2009 02:44:33 +0000 http://www.financialsamurai.com/?p=1946#comment-959 Great reminder.... I have my oldest turning 13 this month. We've talked about an umbrella in the past. Now I think we need to do something about it! btw... if it is my kid that flips you off, you have my permission to kick his... Great reminder…. I have my oldest turning 13 this month. We’ve talked about an umbrella in the past. Now I think we need to do something about it!

btw… if it is my kid that flips you off, you have my permission to kick his…

]]> By: Larry Lhttp://www.financialsamurai.com/2009/10/20/get-an-umbrella-insurance-policy-your-teenager-is-going-to-bankrupt-you/comment-page-1/#comment-956 Larry L Wed, 21 Oct 2009 00:56:15 +0000 http://www.financialsamurai.com/?p=1946#comment-956 Ok here is an excerpt from the book. "The two signifcant asset classes that the federal law protects are qualified retirement plans (QRPs) and IRAs. ... including profit shared plans, money purchase plans, 401(k)s, or 403(b)s. ... federal protection only applies if you are in a bankruptcy situation. If you were simply sued and a creditor was trying to take the funds in your pension or IRA, bankruptcy protection would not apply. You would have to ak the step of filing for bankruptcy to shield the asset." This makes sense when you hear people in the news losing a civil suit and then declaring bankruptcy, now you know why. The book then goes on to discuss state exempt assets, which of course depends on your state. they are: " 1. Qualified retirement plans and individual retirement accounts. 2. Primary residence (or homestead). 3. Life insurance. 4. Annuities. " Ok here is an excerpt from the book.

“The two signifcant asset classes that the federal law protects are qualified retirement plans (QRPs) and IRAs. … including profit shared plans, money purchase plans, 401(k)s, or 403(b)s. … federal protection only applies if you are in a bankruptcy situation. If you were simply sued and a creditor was trying to take the funds in your pension or IRA, bankruptcy protection would not apply. You would have to ak the step of filing for bankruptcy to shield the asset.”

This makes sense when you hear people in the news losing a civil suit and then declaring bankruptcy, now you know why.

The book then goes on to discuss state exempt assets, which of course depends on your state.

they are:
”
1. Qualified retirement plans and individual retirement accounts.
2. Primary residence (or homestead).
3. Life insurance.
4. Annuities.
“

]]> By: Larry L, New Yorkhttp://www.financialsamurai.com/2009/10/20/get-an-umbrella-insurance-policy-your-teenager-is-going-to-bankrupt-you/comment-page-1/#comment-953 Larry L, New York Tue, 20 Oct 2009 16:25:52 +0000 http://www.financialsamurai.com/?p=1946#comment-953 <a href="#comment-952" rel="nofollow">@admin </a> Some of it may depend upon the state you live in also. I have this book: http://www.amazon.com/Wealth-Secrets-Affluent-Building-Protection/dp/047013979X/ref=sr_1_1?ie=UTF8&s=books&qid=1256056072&sr=8-1 Which I know touched on it. @admin

Some of it may depend upon the state you live in also. I have this book:

http://www.amazon.com/Wealth-Secrets-Affluent-Building-Protection/dp/047013979X/ref=sr_1_1?ie=UTF8&s=books&qid=1256056072&sr=8-1

Which I know touched on it.

]]> By: adminhttp://www.financialsamurai.com/2009/10/20/get-an-umbrella-insurance-policy-your-teenager-is-going-to-bankrupt-you/comment-page-1/#comment-952 admin Tue, 20 Oct 2009 15:58:35 +0000 http://www.financialsamurai.com/?p=1946#comment-952 Larry - Good observation and question! I'm not sure, so let me know what you find out. Instead of "retirement fund", I should have written "assets". It's just a catch all phrase for all the things you have that will provide for you. You bring up a very intersting point, so if you find out before me, do let us know! Thnx Larry – Good observation and question! I’m not sure, so let me know what you find out. Instead of “retirement fund”, I should have written “assets”. It’s just a catch all phrase for all the things you have that will provide for you. You bring up a very intersting point, so if you find out before me, do let us know! Thnx

]]> By: Leehttp://www.financialsamurai.com/2009/10/20/get-an-umbrella-insurance-policy-your-teenager-is-going-to-bankrupt-you/comment-page-1/#comment-949 Lee Tue, 20 Oct 2009 15:21:16 +0000 http://www.financialsamurai.com/?p=1946#comment-949 <a href="#comment-939" rel="nofollow">@admin </a> Scary business. At least your hamster isn't likely to get you in trouble, Samurai. :) Courts here are unlikely to award a payout on the basis of what you may earn in the future. You equally may not earn such sums, so it doesn't enter into it. Sensible! @admin
Scary business. At least your hamster isn’t likely to get you in trouble, Samurai. :) Courts here are unlikely to award a payout on the basis of what you may earn in the future. You equally may not earn such sums, so it doesn’t enter into it.

Sensible!

]]> By: SeeJaneGetRich.comhttp://www.financialsamurai.com/2009/10/20/get-an-umbrella-insurance-policy-your-teenager-is-going-to-bankrupt-you/comment-page-1/#comment-947 SeeJaneGetRich.com Tue, 20 Oct 2009 14:53:08 +0000 http://www.financialsamurai.com/?p=1946#comment-947 After a year of studying torts and reading cases where things unexpectedly and utterly go wrong for people my advise to my friends is: "(1) if anything can go wrong then it will go wrong, (2) you will be sued and (3) there will be a judgment + legal fees in the millions." Excess Liability Insurance is a very good idea especially for those with risky "assets" like teenagers! After a year of studying torts and reading cases where things unexpectedly and utterly go wrong for people my advise to my friends is: “(1) if anything can go wrong then it will go wrong, (2) you will be sued and (3) there will be a judgment + legal fees in the millions.” Excess Liability Insurance is a very good idea especially for those with risky “assets” like teenagers!

]]> By: Larry L, New Yorkhttp://www.financialsamurai.com/2009/10/20/get-an-umbrella-insurance-policy-your-teenager-is-going-to-bankrupt-you/comment-page-1/#comment-945 Larry L, New York Tue, 20 Oct 2009 14:30:21 +0000 http://www.financialsamurai.com/?p=1946#comment-945 FS you say "If you’ve spent your entire life building your retirement fund, you owe it to yourself to protect all your assets with an umbrella policy." I'm not an expert in this but, aren't retirement funds (401k, 403b and IRA) protected from getting sued and bankruptcy? It's the non retirement assets you should be worried about no? FS you say “If you’ve spent your entire life building your retirement fund, you owe it to yourself to protect all your assets with an umbrella policy.” I’m not an expert in this but, aren’t retirement funds (401k, 403b and IRA) protected from getting sued and bankruptcy? It’s the non retirement assets you should be worried about no?

]]> By: John DeFlumeri Jrhttp://www.financialsamurai.com/2009/10/20/get-an-umbrella-insurance-policy-your-teenager-is-going-to-bankrupt-you/comment-page-1/#comment-944 John DeFlumeri Jr Tue, 20 Oct 2009 12:15:52 +0000 http://www.financialsamurai.com/?p=1946#comment-944 It's a definite thing to have. Don't be foolish without one. It’s a definite thing to have. Don’t be foolish without one.

]]> By: adminhttp://www.financialsamurai.com/2009/10/20/get-an-umbrella-insurance-policy-your-teenager-is-going-to-bankrupt-you/comment-page-1/#comment-943 admin Tue, 20 Oct 2009 11:59:11 +0000 http://www.financialsamurai.com/?p=1946#comment-943 <a href="#comment-942" rel="nofollow">@Gen Y Investor </a> Cool, no problem. Yeah, good point on the pets. I think there is a serious misconception that 1) An umbrella is only for the rich (it rains on the poor too), and 2) It's expensive. Untrue on both counts. We're talking $100-300 a YEAR for a $1million umbrella. You don't want to get sued for $1 million, even if you only have 5 dollars to your name, b/c your aggressor may garnish your future wages for life. It's scary stuff. FS @Gen Y Investor
Cool, no problem. Yeah, good point on the pets. I think there is a serious misconception that 1) An umbrella is only for the rich (it rains on the poor too), and 2) It’s expensive. Untrue on both counts.

We’re talking $100-300 a YEAR for a $1million umbrella. You don’t want to get sued for $1 million, even if you only have 5 dollars to your name, b/c your aggressor may garnish your future wages for life. It’s scary stuff.

FS

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