<p>We converted to Roths years ago. My parents did it in 2009 and although they payed a hefty sum in taxes, they are thrilled with the results. Their income now consists of investment income mostly taxed at long term capital gains rates and social security. Back when they had to take distributions from their IRA’s it made their taxable income much higher. </p>
<p>Another option might be to convert only enough each year that it doesn’t bump your income into a higher tax bracket.</p>
<p>Well the Banker suggested for us to own some gold. </p>
<p>As the price are dropping, I am doing some research on buying gold bullions. Places such as JM Bullion or APMEX seem legit. Has anyone done deals with these websites? </p>
<p>Also, why some bullion has a higher premium? Is there any way that one could set a price like the limit order on stock? There is just no way that one would have the time to follow the spot price the whole day.</p>
<p>Wait, aren’t you dirt poor? Those folks can’t usually afford gold bullion.</p>
<p>BTW, check laws for your state. In SC you can freeze your credit for free at all reporting agencies. You are provided with a code to use if you need to unfreeze it for specific purpose (apt, loan, new job, etc). Well versed in this since SC dept of revenue was hacked and</p>
<p>One would think one would ONLY be considering buying gold bullion if they have discretionary funds to invest. If one is living from pay check to pay check…this should be off the table, in my opinion.</p>
<p>Maybe they are recommending fool’s gold :rolleyes:</p>
<p>I’d like to get somebody to persuade me why the umbrella insurance is a good idea. If it’s cheap, that means that the risk it covers is very unlikely to happen. Does anybody know somebody who actually collected on umbrella insurance? I don’t think I know anybody who would have benefited from having it.</p>
<p>I had clients who were very badly injured (serious paralysis and brain injury) who were made while by umbrella policies so we didn’t have to get personal assets to compensate for the severe permanent injuries.</p>
<p>I’m glad to hear the advice was against, not for, the long term care insurance. Too many ways to lose money or not get what you think you paid for et al. Do put aside the money you could be spending on it aside in an account that makes money. I also hope she didn’t try to sell you too many investment products. Sometimes the fees paid make them more expensive than they are worth. Laws also change- nothing quite like owing taxes retroactively when the government disallows the tax shelter reasons you made the investment!</p>
<p>Something to consider- life insurance needs as the nest empties and (hopefully) the nest egg grows. Ages and stages. Back in the day, when son was young, universal life insurance was touted. Now it is not. Kid stands to get a huge chunk of change when we redid those policies in the best financial way several years ago.</p>
<p>We got umbrella insurance because we have enough money to become at risk for liability lawsuits against us- big pockets. It’s a cost/benefit thing. Car accident or injury in our home- someone out there (and their lawyers) will try to get what they can.</p>
<p>Both retired now. It is strange to not be earning and setting aside money for later but instead to be spending it. Sometimes have to remind myself that is why we didn’t spend it all as we earned it- and to remind H we can afford to buy things (can’t take it with you and son, with his own income, has that huge insurance policy from money we had set aside and weren’t counting on for us). Regrets- that I didn’t borrow/spend more in school eons ago- too bad I couldn’t know I’d be financially solvent now.</p>
<p>So glad we have good plans done. Fidelity was one of the helpful companies for us. Thankfully H had/has the interest and ability to do a lot of our investing since I hate the field.</p>
<p>Per LTC insurance, much of the coverage turns out to often be used for in home care… to keep folks out nursing homes.</p>
<p>
The umbrella policy protects current assets in addition to future earnings, which may be garnished in the event of a large judgement against you. In our area personal injury lawyers advertise heavily on TV and bill boards, so the lawsuits are not uncommon. Large judgements are extremely rare, but we routinely drive the freeways of Southern California where anything can happen. Even frivolous lawsuits can generate substantial court costs if they drag on long enough. If I can pay someone else to worry about that, it’s worth it.</p>
<p>When Skylab was falling down, they were selling insurance to cover the damage if it fell on you. I didn’t buy that, because I thought the likelihood was trivial–even though the damage could have been enormous. This is my problem with umbrella insurance–the damage (losing your assets) is big, but what’s the risk, really? How much is it worth paying to protect against it?</p>
<p>You buy it for the peace of mind. It doesn’t cost much. If in the future people feel less litiigious or lawyers become busy with real lawsuits, it will become lesss attractive. It is a symptom of oversupplied attornies IMO. Insurance is always more expensive than what we get out of it in terms of monetary compensation but it helps you sleep at night.</p>
<p>
Flood insurance if you’re not in a flood zone is also cheap, because the odds of needing it are not great. Ask some of the victims of Hurricane Sandy (outside the flood zone) or Hurricane Irene in Vermont if they regret not having it.</p>
<p>
But does this mean that everyone should buy flood insurance, no matter where they live? My issue is that I don’t have any way to evaluate the actual risk of a catastrophic loss–except for the fact that the insurance is pretty cheap. That means the risk is low. But how low?</p>
<p>Most umbrella policies require that the underlying policies (auto, homeowners) have limits of $250k or $300k, so the umbrella kicks in after that. It doesn’t take much of an injury these days for someone to seek damages in excess of $300k. If you are at fault for a multi car accident the claims against you by several people could easily exceed the per accident limit of your auto policy. Unless you have absolutely no assets it is worth spending a few hundred a year for umbrella coverage.</p>
<p>Some umbrella policies also provide coverage for things the underlying policy does not, such as for libel and slander.</p>