Planning on dropping Health Insurance. Change my mind.

[goeduck]

Does anyone else carry an umbrella adder on their homeowners policy? I have 3 vacant properties that I wanted coverage on and it was surprisingly cheap to get a $1M umbrella for them.

 

[Travelover]

Yes but depreciation is a temporary avoidance of paying taxes, whereas a deduction is a permanent one.

When you sell that investment property, you have to financially cough back up all that depreciation you took along the years .....

Unless it is inherited, then appreciation is canceled out to the heir.

 

[Jstpssng]

I have not updated for a couple of years... did not want to get carried away.

I took a huge hit back in 2009-12... down maybe 60% although nothing changed in my day to day life...

401k plan was hit but Real Estate Owned was down as much as 80%... but INCOME was up because rents were rising...

One thing I always know is what I owe...

Everything that I owe is on a spreadsheet, including the interest; Also all of my income and all of my payments for the next 4 months. I don't and won't do automatic payments or allow anybody to otherwise automatically take money out of my account. I learned that lesson the hard way a long time ago... it took me 4 years and a lawsuit to recover my money which they had interest free for that time.

 

[plowhog]

So his girls were thinking of college and he offered a proposition... he had boxes of unprocessed insurance claims and rejected claims... he told his 13 and 14 year old daughters those boxes are your college fund...

To their credit... these teens jumped in feet first... I would see them at the Hospital every weekend with a mountain of papers... they were submitting claims, resubmitting, etc... it took maybe 3 months to get the first check... they were ecstatic...it was for $383... which covered how much they were in the hole for postage and printer cartridges...

They literally mined their college money and old Dad could not have been prouder... plus learned a valuable skills along the way...

That is a GREAT story.

 

[plowhog]

Unless it is inherited, then appreciation is canceled out to the heir.

That is a "stepped up basis" to market value.

 

[plowhog]

Does anyone else carry an umbrella adder on their homeowners policy? I have 3 vacant properties that I wanted coverage on and it was surprisingly cheap to get a $1M umbrella for them.

Yes that is a very smart way to go.

 

[ultrarunner]

Simple for me in that my only debt is mortgage... each month the balance remaining is on the statement.

My Grandmother made me promise to never go into debt... it was not a casual thing to her as she knew many that lost everything because of debt... business, farm, homes... it was not a choice or strategic default like a lot I know the last crash... they were people that had no where else to go...

 

[goeduck]

Everything that I owe is on a spreadsheet, including the interest; Also all of my income and all of my payments for the next 4 months. I don't and won't do automatic payments or allow anybody to otherwise automatically take money out of my account. I learned that lesson the hard way a long time ago... it took me 4 years and a lawsuit to recover my money which they had interest free for that time.

Can you elaborate on what happened? I pay my property taxes on an auto withdrawal.

 

[Jstpssng]

I was self employed and hired a company to do my taxes , giving them permission to do monthly withdrawals. They ended up getting driven out of business because of their half a$$ed practices.
If you're doing business with people that you know and trust it's handy to not have to worry about those monthly payments. I just prefer to have more control. Also, I tried automatic payments for my pickup loan; but didn't like waiting until the due date before seeing it was paid.

 

[ultrarunner]

I don't like them either but my mortgage is with the Credit Union and I do have auto pay from my Credit Union Account... no issues.

But, I figure if there is finger pointing... all fingers point to them...