Is it permissible to take risks and avoid earthquake insurance?

Dear Liz: I live in Southern California, and my home insurance is up for renewal at the end of August. Should I consider buying earthquake insurance?

Answer: Insurance is intended to protect against catastrophic losses that we cannot easily pay out of our own pockets.

If you don't have a lot of equity in your home, or are willing to give up the equity you do have, you can forgo earthquake insurance. Otherwise, you need coverage.

The same applies to flood insurance, which is also not covered by a typical homeowners policy.

I need new wheels. What is the best way to pay for them?

Dear Liz: Is it better to buy a car with your savings or finance the $25,000 you need? In my case, I will have to sell my stocks. This might be a good time to do that because things seem to be taking a turn in the stock market.

Answer: Borrowing money may make sense when the assets you’re buying are likely to increase in value. For example, a mortgage may allow you to buy a home that will appreciate in value over time, and a student loan may help increase your earning power.

Borrowing money doesn’t make sense when you’re buying something that’s bound to lose value, like a car. Many people don’t have enough cash to pay for a reliable car, so financing is the best option for them. But if you have a choice, cash is the best option.

Selling stocks can help you raise money, of course, but it will likely result in a tax bill. Also, stocks are meant to be a long-term investment, and you can’t really time the market. Yes, your stocks may go down, but they can also go up, and this has happened historically over time.

If you don't have cash savings but have stocks that aren't earmarked for another cause, like retirement, you might consider selling enough stocks to pay for the car and tax bills. But for your next car, consider saving for the purchase in a high-yield savings account.

Is one credit card better than two?

Dear Liz: I have an old credit card with a national bank. Because I travel a lot, I just opened a travel rewards card with the same issuer. I would rather keep the new card and close the old one, rather than have two active cards with the same issuer. I understand from reading your articles that this could (temporarily?) lower my credit score. Is there any other downside?

Answer: It's difficult to predict how closing an account will affect credit scores or how long the impact will last. The impact is likely to be greatest for people with few credit accounts and short credit histories. You may be able to mitigate some of the damage by requesting a credit limit transfer from your old card to your new card.

But before you do, think about why you’re reluctant to have two cards from the same issuer. The old card may have benefits that the new one doesn’t, and it can be a useful backup in case your new card is lost or compromised. The argument for keeping the old card is even stronger if the annual fee is low or nonexistent. Just remember to use the old card occasionally to reduce the chances that the issuer will close it on you.

Speaking of credit cards, what if one spouse has a balance when they die?

Dear Liz: When one spouse dies, is the surviving spouse responsible for credit card debts owed from a card issued solely in the deceased's name?

Answer: In states that have community property — including Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin — debts incurred during a marriage are usually considered to be owed by both spouses, even if only one spouse is named on the account. In other states, debts may be considered separate, but creditors are usually paid out of the deceased person's estate before any remaining assets pass to the heirs.

Liz Weston, CFP, is a personal finance columnist. Questions can be sent to her at 3940 Laurel Canyon, No. 238, Studio City, CA 91604, or by using the “Contact” form at asklizweston.com.

What Are The Main Benefits Of Comparing Car Insurance Quotes Online

LOS ANGELES, CA / ACCESSWIRE / June 24, 2020, / Compare-autoinsurance.Org has launched a new blog post that presents the main benefits of comparing multiple car insurance quotes. For more info and free online quotes, please visit https://compare-autoinsurance.Org/the-advantages-of-comparing-prices-with-car-insurance-quotes-online/ The modern society has numerous technological advantages. One important advantage is the speed at which information is sent and received. With the help of the internet, the shopping habits of many persons have drastically changed. The car insurance industry hasn't remained untouched by these changes. On the internet, drivers can compare insurance prices and find out which sellers have the best offers. View photos The advantages of comparing online car insurance quotes are the following: Online quotes can be obtained from anywhere and at any time. Unlike physical insurance agencies, websites don't have a specific schedule and they are available at any time. Drivers that have busy working schedules, can compare quotes from anywhere and at any time, even at midnight. Multiple choices. Almost all insurance providers, no matter if they are well-known brands or just local insurers, have an online presence. Online quotes will allow policyholders the chance to discover multiple insurance companies and check their prices. Drivers are no longer required to get quotes from just a few known insurance companies. Also, local and regional insurers can provide lower insurance rates for the same services. Accurate insurance estimates. Online quotes can only be accurate if the customers provide accurate and real info about their car models and driving history. Lying about past driving incidents can make the price estimates to be lower, but when dealing with an insurance company lying to them is useless. Usually, insurance companies will do research about a potential customer before granting him coverage. Online quotes can be sorted easily. Although drivers are recommended to not choose a policy just based on its price, drivers can easily sort quotes by insurance price. Using brokerage websites will allow drivers to get quotes from multiple insurers, thus making the comparison faster and easier. For additional info, money-saving tips, and free car insurance quotes, visit https://compare-autoinsurance.Org/ Compare-autoinsurance.Org is an online provider of life, home, health, and auto insurance quotes. This website is unique because it does not simply stick to one kind of insurance provider, but brings the clients the best deals from many different online insurance carriers. In this way, clients have access to offers from multiple carriers all in one place: this website. On this site, customers have access to quotes for insurance plans from various agencies, such as local or nationwide agencies, brand names insurance companies, etc. "Online quotes can easily help drivers obtain better car insurance deals. All they have to do is to complete an online form with accurate and real info, then compare prices", said Russell Rabichev, Marketing Director of Internet Marketing Company. CONTACT: Company Name: Internet Marketing CompanyPerson for contact Name: Gurgu CPhone Number: (818) 359-3898Email: [email protected]: https://compare-autoinsurance.Org/ SOURCE: Compare-autoinsurance.Org View source version on accesswire.Com:https://www.Accesswire.Com/595055/What-Are-The-Main-Benefits-Of-Comparing-Car-Insurance-Quotes-Online View photos