re: Umbrella Policy Advice

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Make sure you actually have wealth that you are protecting for the policy to make sense. If you don't have wealth for them to go after, then the policy just gives a lawyer an excuse to make you a target unnecessarily. It's a bit twisted / perverse, but the incentives work out that way.

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This is horrible advice considering lawyers also target future earnings if they can get away with it. If you have 0 in the bank and have any solid future earnings potential and you hit someone with your car, you can bet your arse they will garnish your future wages to pay that person off for their damages. There’s a lady I work with who is not wealthy at all that could not retire when she wanted to because she did not have an umbrella policy and she was at fault in an accident where the dude lawyered up. So they garnished her wages and it’s forced her to work longer than she wanted.

The real answer to this question is “buy what you can afford.” Just because someone else has 1 mil doesn’t mean that is smart for you. It’s a relatively cheap coverage all things considered and it will really help you sleep at night knowing all the craziness that is out there in our world. If you have kids who are close to driving age or at driving age you really need some limits on there.