A valued client recently decided to purchase personal liability umbrella insurance coverage.
In general, the amount of coverage you have should at least equal the total of your assets.
The idea being: you’re insurance coverage will protect you from losing the things you’ve worked so hard for. Typically umbrella insurance coverage ranges from $1,000,000 to $5,000,000.
He asked if his retirement accounts could be accessed if sued.
What a great question!
Regarding retirement plans, most plans that fall under ERISA act (Employee Retirement Income Security Act) cannot be touched by a creditor if you’re sued. Most 401k plans fall under ERISA.
IRA’s, on the other hand, are typically not ERISA plans, and can be lost if sued.