Revealed – This is The Biggest Wealth Killer in Louisiana

(KMDL-FM) How much money would you have to have to feel rich? The financial planning and advisory group Charles Schwab says that figure, according to most Americans, is $2.3 milliion. If you want to "be comfortable," then your required financial position would be closer to $839,000.

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Of course, all of that "wealth" is relative. A person with a million dollars in the bank might feel a lot more financially solid in Louisiana than they might in California, where the cost of living is considerably higher. But no matter how much money you have, there is one common enemy that can take that away from you in what seems like a moment's notice.

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"Wealth Killer" on the Loose in Louisiana - What Is It?

What's even more surprising about this "wealth killer" is that very few people have preventative measures in place to stop it. This "wealth killer" can strike in good times and in bad, and even for those with the most money in the bank, it can decimate those accounts in a period of months.

Granted, this is a problem that is usually associated with the very wealthy, but it can take the home, the car, the livelihood of an average American with average wealth just as quickly, and it all boils down to one simple word. The biggest wealth stealer in Louisiana is liability.

Isn't Liability Covered in a Homeowner's Insurance Policy?

Most of us have insurance on our homes. We are pretty good about making sure that if something happened to our house, we could afford to replace it. But do you have the means in place if something happened at your house? A person slipped on your patio, one of your teenage drivers got into a crash, or you had a former employee file a suit against your business.

Most homeowners' insurance policies only cover so much. Unfortunately, in many liability lawsuits, that amount only covers a tip of the iceberg. Do you have a babysitter who watches your kids? Maybe they pick them up from school? Do you have protection in place against employee-related lawsuits? You probably don't, but if the unthinkable happens, you'll wish you did.

Can Board Members Be Held Liable in Lawsuits?

If you serve on the board of a non-profit, can you be liable for lawsuits against that organization? You could? I am guessing you're going to check the bylaws of your board membership right about now, aren't you? Without proper protection, your personal assets could be included in any lawsuit against that organization if you don't have proper safeguards in place.

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You might want to ask about an umbrella policy, just as the name implies, it covers a lot of things and offers protection from incidents involving car crashes, pets, slips and falls, damage to property and automobiles, defamation and libel claims, and injuries suffered on your property. You need to talk to your agent about what is covered and what isn't.

Insurance can be good, but the right insurance is a lot better. Do some snooping and find out what is best for your situation. Even if you "aren't wealthy," you still want to protect what's yours.