I don't understand.
I've never mentioned our financial status to anyone else....There are definitely good reasons for this, most notably - not getting sued.
Why would you get sued?
...I plan to tell no one once we FIRE because I don't want to become a target.
I'd like to think the chances of that happening are small but I don't want to find out the hard way.
Why would you become a target?
Because there are still very bad people in the world. They're not a myth. They can call and lie to the police. They can rob you. They can hire a lawyer under false pretenses. There are even more people who aren't necessarily bad but do justify actions like these by placing you in the "have" category and them in the "have not" category and proceeding with whatever theft or malice they may have.
Also, just because someone is your friend and isn't desperate today, doesn't mean they're going to be your friend and no desperate tomorrow.
Sounds a little paranoid... No one is suggesting you cover yourself in 100 dollar bills walk through the South Side at night.
Please don't think it requires taping 100 dollar bills to yourself and walking through the 'hood to become a target. There are plenty of "opportunists" out there. I used to have a co-worker would would look for sidewalks where they weren't properly maintained during icy conditions in the winter and if he just happened to slip and fall then he felt justified filing suit against whoever's responsibility it was to maintain said sidewalk. I consider it one of those instances of "why even allow that door to exist so that someone could open it?" We've all seen frivolous lawsuits where the plaintiff wins.
Even if he/she doesn't win, it can still cost a bundle and be a headache.
I actually just got done settling a lawsuit. It was related to a car accident over a year ago. Thankfully the individual suing us had no idea what we were worth. They asked for a mere pittance compared to our net worth. It could have been much worse.
Read more about it here: http://www.mrtakoescapes.com/2016/04/18/getting-sued-mental-age/
and the follow-up here: http://www.mrtakoescapes.com/2016/04/29/lawsuit-update-shop-table/
I look at it as a very good warning. The world is sometimes not a nice place.
Hey guys, I just want to drop something in here about the lawsuits. First, I am a Plaintiff's lawyer, which means I file these lawsuits after a car accident or something. I want you to all take a deep breath. With total respect, you are wrong about the lawsuits. This is a manageable risk that really should not take up your headspace.
First, Mr. Tako did you notice it wasn't a problem because your insurance company paid for your attorney? Yeah, that is part of the plan and totally normal. If you have insurance, it includes a "duty to defend" and pay for your attorney.
Second, everyone has liability insurance (Mr. Tako you have up to $50k in insurance). What you don't know is the other person has additional insurance (called Underinsured Motorist Coverage) that covers losses after your insurance is exhausted. Your insurance company will insist on a release of liability when they pay the limit of your insurance and the other attorney will accept so he can go after that second insurance policy.
Third, I have been a plaintiff's attorney for years and know dozens of others. Let me get you in on the secret: Many, many Plaintiff's attorneys have EXCLUSIVELY won insurance money for their entire career. That means your "stealth wealth" is not even an issue. Also, MMM's lawsuits had nothing to do with his money. That is a totally different situation.
Fourth, as for the sheriff showing up with papers and shocking you about something you presumed was over, I always offer to have the defense attorney simply "waive service" (that means, your attorney simply signs papers in his office and calls you to tell you about the filing of the lawsuit). They never accept. I presume it is so you will be scared and angry and, in the best case scenario, write a blog post blasting the litigious nature of our society which spreads the point of view of insurance companies. All of that benefits the insurance companies on a macro-level. As you can imagine, Plaintiff's lawyers and Insurance companies are involved in a long running P.R. battle. I'll hand it to the insurance companies, they are winning and have been for a long time. It seems no one like's Plaintiff's attorneys, until they need one.
Ok, so even if you don't believe anything I said, here is the solution: increase your auto liability limits and get an umbrella policy for a million bucks. It will cost you a pittance and you can sleep at night. Note: the insurance company wins again! You would be buying even more insurance. Although, I admit to owning $1.5 million in auto/umbrella insurance.
Finally, sorry for the derailment. I actually posted because I think this information might reduce some fear (Feel free to PM me Mr. Tako if you want some additional info about your situation). Also, cue the insurance defense attorney to come tell you a horror story. I won't respond, so you'll have to decide for yourself what you think.
