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CD's..Bonds...or other investments....Are they safe?


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Are CD's or other types of investments safe from judgements?

Are there any types of investments you can start saveing money that are safe from potential judgements or CA's?(meaning not after me yet but you never know when or if)

I want to start saveing so I have security if something happens or maybe in 4 or 5 years buy a house. I have a few debts that are still in SOL and will be till late 2006. I dont want some surprise judgement to leave me high and dry.

Hope I explained that well enough...its early xcoffx

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Retirement accounts are off-limits to judgments. That includes 401k and IRA accounts. Certificates of deposit and bonds held personally are assets no different than cash.

Most retirement accounts allow you to make loans against the vested balance in the account. You have to pay it back just like any other loan, but the interest paid goes into your retirement account, not a creditor's pocket. Programs vary but most will let you pay the loan back, if used for a home purchase, over a 5 to 10 year period.

Any permanent withdrawls (not loans) from a retirement account, however, are subject to a stiff early withdrawl tax penalty and should be avoided.

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You might want to check out the book "Asset Protection made easy" by Arnold S. Goldstein. It is a very easy to understand book on assests and there protection from creditors. This is NOT some crazy anti goverment rant book about "natural law" and "sovreighnty". The author is a nationaly known tax and assest protection attorney and proffessor. The book is about $15 and really explains the whole game to you. Get the latest edition because the bankruptcy laws have changed. I found it to be a great peice of mind. It gives specifics for each state. He tells you what creditors can attach judgements to and legal strategies to prevent thm form doing so.

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