November 12, 2013 • Page 3 shop online at www.missourivalleyshopper.com Dave Says Get more When Do I Need Umbrella Insurance? BY DAVE RAMSEY Dear Dave, At what level of net worth should someone consider umbrella insurance? — Matt Dave Dear Matt, I think it’s something you should consider if you have a net worth of $500,000 or greater. But first you should be clear on what net worth really means. Net worth is what you own minus what you owe. So the fact that you make a million dollars a year is not the determining factor in whether or not you’re a millionaire. The only people who use that definition are the financially uninformed and politicians who twist things around and throw out catch phrases designed to further their own agendas. That being said, I would get umbrella insurance, which is extra liability insurance, when you reach the half-million mark in net worth. Prior to that I’d suggest carrying $500,000 worth of liability on your homeowner’s, car insurance and any other policies that have liability attached to them. Once you reach and cross that $500,000 threshold in net worth, however, I’d advise picking up another $1 million in liability insurance, called an umbrella policy, that attaches to the top of that and covers everything for an additional $1 million. It’s a great buy, Matt. You can get it for about $200 a year in most states. — Dave RAMSEY DEBT SNOWBALL AND RENTAL PROPERTY MUSCLE for your money with a classified ad! SHOPPER MISSOURI VALLEY Dear Dave, Should rental property debt be included in the debt snowball? — Matthew Dear Matthew, No, it should not. The debt snowball is Baby Step 2 in my plan, where you stop saving and pay off all debt except for your home— and I would include rental properties in there—from smallest to largest. Prior to this, you should start with Baby Step 1, which is saving up a starter emergency fund of $1,000. As a reminder, Baby Step 3 is going back and fully funding your emergency fund with three to six months of expenses. Notice that I said expenses, not income. After that, Baby Step 4 is investing 15 percent of your household income in Roth IRAs and other pre-tax retirement plans, and Baby Step 5 means setting aside college money for the kids. Baby Step 6 is where you pay off your home, and Baby Step 7 is when you relax, build wealth, and give. Again, Baby Step 6 would include any rental properties that weren’t bought and paid for with cash. My advice would be to pay off your home before taking care of the rental properties, and that’s simply a risk management perspective. Now, if you owe just $30,000 on your rental properties but still have a $3 million mortgage hanging over your head, you might go ahead and knock out the rental properties first. Think about it this way, Matthew. Which would you rather lose in a worst-case scenario: your home or your rental properties? If they’re in the same general range of debt, I’m going to pay off the home first and the rental properties last. — Dave Wondering where to buy or sell a horse? In the classifieds, of course! There is only one place where you can find a show horse, a work horse or a race horse – CLASSIFIED! There is only one place where you can sell your old gray mare, a black stallion or a horse of a different color – CLASSIFIED! SHOPPER Equal Housing Opportunity Equal Housing Opportunity Comfy Footwear Ally Smart Lease CNH Capital ©2006 CNH America LLC. All rights reserved. Case IH is a registered trademark of CNH America LLC. CNH Capital is a trademark of CNH America LLC. www.caseih.com from Boston 3rd • Yankton • to Boots Shoes 665-9092 312 W. BRADY CHRISTMAS TREE FARM OPENING — SATURDAY, NOV. 16 • 9 AM TH Regular Hours: Weekdays 1-5:30, Sat. & Sun. 9-5:30 Choose and Cut Your Tree • Balsam and Fraser Fir • Black Hills & Colorado Spruce • Scotch & White Pine 605-665-4726 LOCATED 4 MILES EAST OF YANKTON, SD ON HIGHWAY 50 TURN SOUTH AT OUR SIGN We Sell The World’s Greatest Tree Stand 1,500 189/mo* Yankton, SD • 605-665-4540 • Toll Free: 1-800-526-8095 Wagner, SD • 605-384-3681 • Toll Free: 1-800-693-1990 Web site: www.marksinc.com Financing provided by Liquor Specials 39 MPG EPA HIGHWAY RATING FACTORY REBATE $ places tend more toward Smithfield and Riverbank and Oakdale and Cottage Grove. At eight years old, the world’s horizon is Thompson Ridge, rather than the Pacific Ocean. But that doesn’t make the world any less fascinating. Those little boys knew that, after lunch, those people would get back on that bus (they even have a restroom on the bus, you know) and they would go out of town in a diesel rush and cross the bridge on Lewis Creek and then disappear. But they know that bus will be going right past their grandparents’ house in about two hours. They asked and they know. The people on that bus might be able to look out and see Grandpa’s dog, Sadie, as the bus goes by. I wonder what Sadie’s doing right now? If I were on that bus right now, I could get off there and see. And someday I will. Someday I’ll get on and ride and I’ll know what’s out there. I’ll know… ----------Don’t miss out on children’s laughter. Call now for a free hearing test from BELTONE, at 1-866-867-8700. TWO LOCATIONS TO SERVE YOU 319 Walnut St., Yankton 605-665-5884 $ -Onstar-Cruise Control-AM/FM/XM CD- 605-665-5884 MISSOURI VALLEY www.missourivalleyshopper.com Town Square Town Square I & II o 505 507 W. Apartments 505-507 W. Main St. Vermillion, SD Ve ermillion, 57069. 1 BR apartments for anyone 55 years of age older, or older, or persons with disabilities. Please call 605-624-5218 or visit www.oakleafpm.com. www.oakleafpm.com. Utilities are included and friendly. we are pet friendly. Rental assistance available to those who qualify. qualify. There were two little boys down at the Doughnut Hole Café the other day, standing outside, just waiting. They didn’t have long to wait. The Greyhound bus pulls up just about one each afternoon, give or take a little. When the bus pulled up and parked and the brakes went whoosh, those two little boys had eyes like saucers. They took in everything, from the mud on the tires to the snow clinging to the mud flaps. The driver stepped down and helped her passengers out, proudly wearing the Greyhound uniform. She had pride in her eyes, too, as we all know how that mountain can get when it’s snowing. It’s always been that way. There have always been little guys watching and wondering as the people get off for their lunch stop. Where are these people from? What was it like up on the mountain? I wonder if I could drive the bus someday when I’m grown. When we’re small, our world and our view of it tends to be smaller as well. The exotic places of the world – to an eight-year-old – aren’t Singapore or Nairobi or Calcutta. The exotic 319 Walnut St., Yankton, SD 109 W. 3rd St. in Downtown Yankton www.yanktonr exall.com 2014 CHEVROLET CRUZE ECO -1.4L 4 Cylinder-6 Spd Automatic-Aluminum Wheels- OR 15.69 $ ** * Waive first month payment & security deposit, 39 mo/12,000 mi/yr, $2,000 cash down at signing, subject fo Ally approval, see dealer for details. **After Rebate. Ancient Age View Entire Inventory Online At www.rasmussenmotors.com Rasmussen Motors 209 W. Cherry • Vermillion, SD • 605-624-4438 • 800-568-5004 MON-FRI 7:30AM-5:30PM SAT 8AM-3PM OPEN NIGHTS BY APPOINTMENT Gary Rasmussen Ric Rasmussen Randy Rasmussen 624-9612 624-5204 624-1098 1.75 mL 30pks 19,875 $ Windsor Old Millwaukee 1.75 mL 18.99 $ 1299 $ Burnetts Vodka 1.75 mL 12.99 $ FREE Customer Parking 605-665-7865 Hours Monday-Friday 8:30-6:00 Saturday 9:00-4:30 Price Effective Nov. 12th - 18th, 2013 Check Our Website for SPECIAL COUPONS in our Toy and Gift Departments MV Shopper CLASSIFIEDS M I S S O U R I VA L L E Y IN PRINT and ONLINE To place your ad call... 605.665.5884 or drop by at 319 Walnut St. www.missourivalleyshopper.com