IRA personal liability
Terry, is my IRA protected against personal liability lawsuits? Do I need “Umbrella Insurance” for auto and home?
Terry Says
That all depends on your state of residence. Here’s a link to a listing of states and how their laws protect retirement assets.
Some states do protect IRA assets up to $1 million.
But yes, if you have other assets such as a home or valuables, or your IRA, you might want to purchase umbrella liability. Buy it from the same company as your underlying homeowners/auto insurance. It should cost between $300-$500/year per million, less if you have a multi-policy discount.