Dad Cents

By law there is a minimum liability limit on your car insurance.

If your golf clubs are stolen from your car, your car insurance covers the loss.

An umbrella liability policy protects for damages over and above your car and house insurance.

If your disability insurance is tax deductible, your benefit, if disabled, would be tax-free to you.

If you are disabled and have a group policy, your benefit could be lowered if you receive Social Security Disability Insurance.

If you leave your place of employment, COBRA will allow you to continue your health insurance indefinitely.

Social Security is a good retirement plan.

If you have a will, your family members will not have to deal with going to probate court.

Term life insurance is intended to last forever.

The death benefit of life insurance is tax-free.

Interest received on savings accounts is tax-free.

Certificates of Deposit are very risky.

Tax deferred and tax deductible are the same.

The interest on your home mortgage is tax-deferred.

Money you place in your 401k is tax-deferred.

Roth IRAs are tax-free if the money is withdrawn after 59½.

Money in an IRA is very liquid.

The tax penalty for withdrawing money from an IRA before 59 ½ is 15%.

If you own a bond you are acting as a lender to the issuing institution.

If you own stock in a company you own a part of that company.