One K, Thousand Dollars, Six Hundred Sixty Thousand Dollars discussed on KFMB Programming

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A little you'll see the phone number and hours off their advice is available each week day so over the years I've talked about how insurers use credit scores is a bigger and bigger factor and how they set rates for a variety of insurance products particularly auto and homeowners now I can add to that another factor insurers are using to either stick it to people or reward them is the zip code that you live in there was a study just completed by the consumer federation of America they found an enormous differences from zip code the zip code and this is something of particular interest to me because at one point my wife and I lived in a house it was at a corner where three zip codes mapped I mean in that crazy when the postal service true the zip codes if I step one way I was in the second step code if I stepped another way I was in the third zip code and in my driveway I was in the zip code that was our official one and according to what the consumer federation of America found there can be differences of hundreds and hundreds of dollars typically four hundred dollars for taking that step across per year and what you pay for auto insurance or homeowners insurance but this is a really I shouldn't say that specifically this study was of auto insurance just stepping across the street and not all insurers do things the same way they're not a monolith but insurers routinely will use credit scores as a minor factor or a big factor in setting rates zip code is a small or big factor in setting rates and book because neither of these things have anything to do with your driving record your age male female they have nothing to do with the historical factors of setting rates it means that for the same human being the price differences from insurer to insurer are the widest gaps that have ever existed so now you could be someone who has never had a ticket hand had one in recent years my last ticket ways in nineteen ninety three I'm pretty good street carne without a ticket that I don't want that street to run out and I can't remember the last time I was in an accident there is a long time anyway so those things how I drive you think that would be how will be determined what I'm gonna pay but that credit score is gonna be giant with many insurers and the zip code a little giant so for you shopping around where you already know what kind of driver you are you just need to quote the same level of coverages that you have now and by the way raise that deductible when you go to shop typically do a thousand dollars you may say Hey we're not gonna do I don't have a thousand dollars and something goes wrong well here's the thing you make small claims on auto insurance you now have a mark of shame it makes it difficult for you to shop around and is likely to lead to big increases in the premiums you pay with who you're than stock with so you want to use auto insurance when you got something relatively bigger but you have to deal with not something relatively small because they'll burn you when you make that small claim worse even with homeowners insurance but you raise that deductible and if you have a lot of assets you own your home free and clear which like a third of people do you've got things that are of value don't cheap out on liability coverage when you decide to get quotes make sure you have a decent amount of liability coverage because people see those billboards people see those TV ads people see those signs on the side of buses there you have won the lottery you might not have you don't have to worry about winning the big game of the mega millions you just have to be in an accident the you got somebody you can go see where if a sue happy country I was on the west coast of Florida recently and there was this Billboard this person smiling who'd been injured in an accident and those Billboard the person's talking about how some lawyer got him six hundred sixty thousand dollars and they're smiling ear to ear yeah people out there like that so make sure if you've got stuff you've got enough liability insurance if you got a lot of stuff meaning money and your own stuff free and clear you want to look into an umbrella which sits on top of your regular coverage as additional liability very cheap to buy what you get sold in increments of one million dollars of additional protection for you in the event somebody is able to hold you responsible for something that went wrong and their lives and they don't have to necessarily show that you're at fault they just have to convince the insurance company is not worth their time to defend you and they just start handing out checks Jason joins us on the Clark our show hi Jason Hey cargo area great thank you Jason you've got money hang it out all over the place I I do and I need some help in knowing what to do with it all right let me see you back and help these are good problems to have by the way yes Sir what's that I'm done I've got two different four oh one K. accounts from two different companies I worked for in the past one is currently sitting about eighteen thousand and some change in the other one around seven thousand course on a longer work for them and the company I currently work for does not offer a four one K. so I guess my question is what do I do with this money that sitting would you do have the option of just leaving it and were those big companies small were in between that you were with before okay so the one with eighteen thousand one of most concern with a smaller company and I'm worried if if they go out of business what happens to that money with the money would be okay on the four oh one K. but if it's a small business there's a different issue and that small businesses tend to have very high costs for a one case right so I was good at all that money al quickly and move it to one of the low cost providers and have an irate with one of them the three big low cost providers for having a higher raise our vanguard Charles Schwab and fidelity investments okay and we have them let me tell you something do not call the administrator of each of the four oh one K. and say Hey I want to move this money out into an IRA they'll say great what address you wanna send your check never take a check because what they do is they would subtract thirty six hundred dollars from the Czech they'd send you and send it to the IRS is withholding and you have to make up that thirty six hundred in the next sixty days or you end up paying massive tax for not being able to make that up so what you do with whoever you would go with.

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