Episode 345 – Just having a will is not enough. You need to get the details right. Here are 6 big mistakes we see people making when they structure their wills.

Hello this is Bill Rainaldi, with another edition of Security Mutual’s SML Planning Minute. In today’s episode, we take a look back at one of our favorite previous episodes, six big mistakes people make with their wills.  Here they are in order.

1. Doing Nothing

Pablo Picasso has been quoted as saying, “Only put off until tomorrow what you are willing to die having left undone.” The biggest mistake you can make with your will is not having one at all, and procrastination is enemy #1.

If you have any assets at all, they are worth protecting. And the last thing you want to do is die “intestate,” that is, without a will. Dying intestate means that the disposition of your assets will not be decided by you or your family, but by state law. Is that the best arrangement?

2. Not Reviewing and Updating

Let’s get real: having a will is the most important step. But it’s not enough. Tax laws and asset values change. As time passes, you might change your mind about who gets what in your family, or you may have a falling out with your favorite charity or even a family member. Even your choice of executor may need to be updated.

One common benchmark is to make sure your will is updated at least once every 5 to 10 years, or whenever there is a major tax law change. Another time to re-evaluate your will occurs  whenever a change occurs in your family’s make-up, for example, a marriage, a divorce, a death or even a birth.

3. Picking the Wrong Beneficiary

This is one hazard that can easily undo most, if not all, of your planning. IRAs, 401(k)s and life insurance policies are generally administered outside your will. The obvious potential problem here—and one we’ve discussed before—is divorce. It’s doubtful you would still want your ex to be the beneficiary of your IRA or life insurance policy, but simply changing your will won’t help with that. You need to change the beneficiary of these non-probate assets..

And what happens if one of your beneficiaries dies before you do? Often with a life insurance policy, there is a contingent beneficiary. If the primary beneficiary dies before  the insured, then the death benefit would be paid to the contingent beneficiary.

If there are no contingent beneficiaries, then the death benefit will usually be paid directly into your estate. This means that the amount of the death benefit will go through probate, where it is subject to public scrutiny and vulnerable to the claims of creditors.

4. Lack of Flexibility

People make estate planning decisions based on their current financial situation, but that is likely to change before you die. Let’s say you have a $3 million dollar estate. You want to leave $1 million to your favorite charity and the rest to your two kids. But what happens if, over time, the total value of your assets drops to $2 million. Are you comfortable with your kids absorbing all of that loss in value?

This is why you need flexibility. Your will needs to be structured to avoid unintended consequences.

5. Leaving Cash in the Wrong Hands

For obvious reasons, there are issues with a minor child getting a significant amount of cash. In many states, a court can appoint a conservator for the benefit of a minor who inherits a sum of money.  The conservator manages and controls the assets until the minor reaches adulthood.

But it’s not just young children you need to worry about. There are also adults who are simply irresponsible, as well as others who face difficulties that make it unwise to provide them with a large sum of cash.

Rather than leaving a mess behind them, many people prefer to set up a trust in their will that will take effect at their death.

And finally…

6. Not Communicating Properly

Perhaps not surprisingly, money can bring out an ugly side in some people. There’s a good chance that whatever you decide, someone is going to feel shortchanged, whether the feeling is justified or not.

How do you deal with something like this? One way is to recognize that information is critical. Conflicts can flare up when one or more parties are surprised by what the will says. So you need to talk things over, and it’s best to do so before you sign the will. This could give you a chance to head off any ill feelings before it’s too late.

Life Insurance Can Help

A properly structured life insurance policy can go a long way to help your heirs feel more loved and respected. It also may help provide the funds needed to pay the costs associated with probate and to help meet your financial objectives.

Unsure of where to begin? Your Security Mutual life insurance advisor can help.  Contact your Security Mutual life insurance advisor today to review your goals and objectives for yourself, your family, or for your business. Your Security Mutual life insurance advisor will work closely with your tax and legal advisors to create a plan that best fits your goals and objectives.

This podcast is brought to you by Security Mutual Life Insurance Company of New York, The Company That Cares®. The content provided is intended for educational and informational purposes only. Information is provided in good faith. However, the company makes no representation or warranty of any kind regarding the accuracy, reliability, or completeness of the information. 

The information presented is designed to provide general information regarding the subject matter covered. It is not to serve at legal, tax or other financial advice related to individual situations, because each person’s legal, tax and financial situation is different. Specific advice needs to be tailored to your situation. Therefore, please consult with your own attorney, tax professional and/or other advisors regarding your specific situation.

To help reach your goals, you need a skilled professional by your side. Contact your local Security Mutual life insurance advisor today. As part of the planning process, he or she will coordinate with your other advisors as needed to help you achieve your financial goals and objectives. For more information, visit us at SMLNY.com/SMLPodcast. If you’ve enjoyed this podcast, tell your friends about it. And be sure to give us a five-star review. And check us out on LinkedIn, YouTube and X (formally Twitter). Thanks for listening, and we’ll talk to you next time.

Tax laws are complex and subject to change. The information presented is based on current interpretation of the laws. Neither Security Mutual nor its agents are permitted to provide tax or legal advice.

The applicability of any strategy discussed is dependent upon the particular facts and circumstances. Results may vary, and products and services discussed may not appropriate for all situations. Each person’s needs, objectives and financial circumstances are different, and must be reviewed and analyzed independently. We encourage individuals to seek personalized advice from a qualified Security Mutual life insurance advisor regarding their personal needs, objectives, and financial circumstances. Insurance products are issued by Security Mutual Life Insurance Company of New York, Binghamton, New York. Product availability and features may vary by state. 

Episode 344 – The One Big Beautiful Bill, or OBBB, is now law. The OBBB extended many provisions created in the Tax Cuts and Jobs Act of 2017, or TCJA. We’ll review and summarize some of the key aspects of the OBBB as it pertains to extended TCJA provisions impacting individuals, families and businesses.

This podcast is brought to you by Security Mutual Life Insurance Company of New York, The Company That Cares®. The content provided is intended for educational and informational purposes only. Information is provided in good faith. However, the company makes no representation or warranty of any kind regarding the accuracy, reliability, or completeness of the information. 

The information presented is designed to provide general information regarding the subject matter covered. It is not to serve at legal, tax or other financial advice related to individual situations, because each person’s legal, tax and financial situation is different. Specific advice needs to be tailored to your situation. Therefore, please consult with your own attorney, tax professional and/or other advisors regarding your specific situation.

To help reach your goals, you need a skilled professional by your side. Contact your local Security Mutual life insurance advisor today. As part of the planning process, he or she will coordinate with your other advisors as needed to help you achieve your financial goals and objectives. For more information, visit us at SMLNY.com/SMLPodcast. If you’ve enjoyed this podcast, tell your friends about it. And be sure to give us a five-star review. And check us out on LinkedIn, YouTube and X (formally Twitter). Thanks for listening, and we’ll talk to you next time.

Tax laws are complex and subject to change. The information presented is based on current interpretation of the laws. Neither Security Mutual nor its agents are permitted to provide tax or legal advice.

The applicability of any strategy discussed is dependent upon the particular facts and circumstances. Results may vary, and products and services discussed may not appropriate for all situations. Each person’s needs, objectives and financial circumstances are different, and must be reviewed and analyzed independently. We encourage individuals to seek personalized advice from a qualified Security Mutual life insurance advisor regarding their personal needs, objectives, and financial circumstances. Insurance products are issued by Security Mutual Life Insurance Company of New York, Binghamton, New York. Product availability and features may vary by state. 

• COVID-19 (coronavirus) Information

Episode 343 – No one enjoys receiving a letter from the IRS, especially when they open it and realize that their return is being reviewed. The odds are longer than most people realize, but what should you do if this happens to you?

Hello, this is Bill Rainaldi, with another edition of Security Mutual’s SML Planning Minute. In today’s episode, what happens when you get audited?

No one enjoys receiving a letter from the Internal Revenue Service (IRS), especially when they open it and realize that their return is being reviewed. There are few things that create more fear and anxiety than a so-called “exam letter.” It very often means that you’re looking at a significant time commitment just to put together the documentation they’re looking for. It could also mean some serious expenses for additional taxes, interest, penalties, and accounting fees.

Back in episode 328 we talked about some of the things that may trigger an audit. Today, we take things a step further and talk about how to prepare if you are one of the unfortunate few who get tagged.

In a recent article for Schwab.com, Hayden Adams, a former IRS agent, explains what happens during an audit, and has some suggestions on how to get ready.[1]

The first step, before anything else, is to confirm that it actually is the IRS you are speaking to. We’ve discussed all sorts of scamsters in previous episodes, and they love pretending to be the IRS. And with good reason. Any mention of the words “Internal Revenue Service” is bound to get the someone’s attention.

Note that if the initial contact is through a text message or email, there’s a good chance that it’s a fraud. Almost every IRS audit begins with a letter in the mail, one that usually says, “your return has been selected for examination.”

The letter will also provide the name of the IRS agent, their phone number and the case number. This gives you the opportunity to call the IRS independently so they can verify that the information is accurate.[2]

The next step is to figure out what type of audit it is. There are generally three categories: correspondence audits, office audits, and field audits.[3]

A correspondence audit takes place entirely by mail. The IRS notices what they believe to be a mistake on the tax return and asks you to pay additional taxes by a certain date. At that point you can either pay the extra tax (plus potential penalties and interest) or let them know why you think they’re the ones who made the mistake.

An office audit tends to get into more detail. It involves a visit to the IRS office involved, where you bring the documentation required for the specific issue the IRS is questioning. On these types of audits it’s generally recommended that you organize your documentation as best you can before you arrive. The better the agent can match your records to what they’re looking at, the quicker the process will go.[4]

A field audit tends to be more thorough than the other two. This is where an agent comes to your home or place of business to review your financial records. But beware: With this type of audit, the agent has the ability to expand the scope of the audit if they notice anything they find questionable.[5]

Fortunately, the most intensive form of an IRS audit, the Taxpayer Compliance Measurement Program, or TCMP audit, no longer exists.[6] Taxpayers were selected randomly for a TCMP audit. Unlike the previously listed audit types, the TCMP was a comprehensive examination of every line in the entire tax return. It was not designed to generate revenue, although often it did. Its primary purpose was to gather data that the IRS could use to better target future enforcement efforts.

The TCMP was discontinued in the 1990s, replaced in 2001 by the National Research Program, or NRP. This newer program has the same goals as the TCMP but is designed to be less intrusive. Many NRP audits only look at a few specific items on the return.[7]

So, what’s the best way to prepare for an audit? Schwab has four suggestions.[8]

One last note: It’s important to realize that the general rate of tax audits has declined in recent years. According to CBS News, only 0.2 percent of individual income tax returns filed for the 2020 tax year were audited.[10] Note that these returns were filed in 2021 and that this is the most recent data available from the IRS.

Of course, the audit rate goes up considerably when you make more money. But it’s still only about 2.4 percent for people with incomes above $10 million.[11] So maybe some of us are more worried than we should be.

[1] Adams, Hayden. “What Happens During an IRS Audit?” Schwab.com. https://www.schwab.com/learn/story/what-happens-during-irs-audit?cmp=em-XCU (accessed July 7, 2025).

[2] Id.

[3] Id.

[4] Id.

[5] Id.

[6] AccountingInsights Team. “What Were TCMP Audits and Do They Still Exist?” Accountinginsights.org. https://accountinginsights.org/what-were-tcmp-audits-and-do-they-still-exist/ (accessed July 7, 2025).

[7] Id.

[8] Adams, Hayden. “What Happens During an IRS Audit?” Schwab.com. https://www.schwab.com/learn/story/what-happens-during-irs-audit?cmp=em-XCU (accessed July 7, 2025).

[9] Id.

[10] Picchi Aimee. “Many taxpayers fear getting audited by the IRS. Here are the odds based on your income.” CBSNews.com. https://www.cbsnews.com/news/tax-irs-audit-here-are-your-chances-cbs-news-explains/ (accessed July 7, 2025).

[11] Id.

This podcast is brought to you by Security Mutual Life Insurance Company of New York, The Company That Cares®. The content provided is intended for educational and informational purposes only. Information is provided in good faith. However, the company makes no representation or warranty of any kind regarding the accuracy, reliability, or completeness of the information. 

The information presented is designed to provide general information regarding the subject matter covered. It is not to serve at legal, tax or other financial advice related to individual situations, because each person’s legal, tax and financial situation is different. Specific advice needs to be tailored to your situation. Therefore, please consult with your own attorney, tax professional and/or other advisors regarding your specific situation.

To help reach your goals, you need a skilled professional by your side. Contact your local Security Mutual life insurance advisor today. As part of the planning process, he or she will coordinate with your other advisors as needed to help you achieve your financial goals and objectives. For more information, visit us at SMLNY.com/SMLPodcast. If you’ve enjoyed this podcast, tell your friends about it. And be sure to give us a five-star review. And check us out on LinkedIn, YouTube and X (formally Twitter). Thanks for listening, and we’ll talk to you next time.

Tax laws are complex and subject to change. The information presented is based on current interpretation of the laws. Neither Security Mutual nor its agents are permitted to provide tax or legal advice.

The applicability of any strategy discussed is dependent upon the particular facts and circumstances. Results may vary, and products and services discussed may not appropriate for all situations. Each person’s needs, objectives and financial circumstances are different, and must be reviewed and analyzed independently. We encourage individuals to seek personalized advice from a qualified Security Mutual life insurance advisor regarding their personal needs, objectives, and financial circumstances. Insurance products are issued by Security Mutual Life Insurance Company of New York, Binghamton, New York. Product availability and features may vary by state. 

Episode 342 – Thinking of collecting your Social Security at age 62? Watch out for the “Excess Earnings Test.” It’s a bit more complicated than you may realize.

Hello, this is Bill Rainaldi, with another edition of Security Mutual’s SML Planning Minute. In today’s episode, thinking of collecting Social Security early? Not so fast.

So, you have the option of starting to collect your Social Security as early as age 62 (age 60 if you’re a surviving spouse), or as late as age 70. For most of us, Full Retirement Age is age 67. That’s when you can collect your full, unreduced benefit. If you collect earlier than your Full Retirement Age your benefit is reduced. The longer you wait, the more money you’ll get every month. So, what do most people do?

Well, the most popular choice is to begin collecting at age 62.[1] Always has been. But beware: there’s a trap lurking that you need be aware of. It’s called the “Excess Earnings Test.” For many people, the Excess Earnings Test effectively limits your choices. You can collect early if you want to—say age 62, 63 or 64—or you can continue working. But if you make a good income from your job, you can’t do both.

Here’s how the Excess Earnings Test works. If you’re still working and making good money, the government would prefer that you wait until Full Retirement Age before you start collecting your Social Security. So, they give you a disincentive if you start early.

For example, let’s say you file at age 62. In that calendar year, your wages in excess of the earnings limit ($23,400 for 2025) will cause a benefit reduction of $1 for every $2 you go over the limit.[2] Note that the limit is indexed annually.

Is it possible to completely eliminate your Social Security benefit in a given year? Sure. Let’s say you want to start collecting in January, but you continue to work. Let’s also assume that your reduced age 62 benefit is $2,000 per month. If you do the math, that means that if you earn more than $71,400 in wages, your benefit will be reduced all the way to zero.

The limit is not quite so onerous in the calendar year you reach Full Retirement Age. For 2025, that benefit reduction is $1 for every $3, and the earnings limit is $62,160.[3] If you turn 67 this year, that more generous limit will apply.

Also note that they use a monthly test (rather than an annual test) in the calendar year you first apply. In 2025, the monthly amount works out to $1,950 per month, or $23,400 divided by twelve. This is important because let’s say you retire in June. You might have made a lot of money in the first half of the year, but that’s irrelevant if you start collecting in July after you’ve stopped working.  In that scenario, there’s no need to worry about the Excess Earnings Test.

How do they enforce this? When you first apply, they’ll ask you how much money you think you’re going to make in the next 12 months after you start collecting. They will adjust your payment accordingly based upon what you tell them, then adjust the payments again the following year when your actual income figures come in from the IRS.

One piece of good news is that not all types of income count towards the test. They’re basically interested only in your earned income. This would include gross wages (W-2 income) and net self-employment income. It does not apply to things like IRA distributions, dividends and interest income. Also, earned income by your spouse doesn’t count; it’s just you.

And just keep in mind that the Excess Earnings Test no longer applies after you reach Full Retirement Age. If you make a million dollars at age 68, it won’t reduce your Social Security income. But you’ll still have to pay your 6.2 percent Social Security withholding tax that gets withheld from your income.

When the Excess Earnings Test does apply, it counts against all types of Social Security benefits; it’s not just your personal benefit. It also applies if you get a spousal, survivor, or children’s benefit. There’s also a special calculation for disability benefits.

What happens if your Social Security benefit is withheld due to the Excess Earnings Test? Understand that when a reduction occurs, it’s done on a monthly basis. For example, let’s again assume your age 62 benefit is $2,000, but due to the Excess Earnings Test, your benefit is going to be reduced by 50 percent. This does not mean that you’re going to get $1,000 per month for the next 12 months. What it means is that you’re going to get nothing at all for the first six months, then the full $2,000 for the next six months.

It’s important to understand this because it means that even if you lose some of your benefits, not all is lost. In this example, your benefit would be adjusted upward when you get to Full Retirement Age. When you get to age 67, they will add back the six months you lost and start treating you as though you had begun collecting at 62 and six months, rather than age 62. This will result in a slight increase when you get to age 67.

It’s safe to say that, like many aspects of Social Security, the Excess Earnings Test is pretty complicated. It’s best not to go it alone. Your Security Mutual Life insurance agent can help. He or she will assemble your team and coordinate with your attorney and tax professional to review your situation and to help determine the plan that will best suit your needs and objectives.

[1] Brandon, Emily and Sandberg, Erica. “The Most Popular Ages to Collect Social Security.” money.usnews.com. https://money.usnews.com/money/retirement/social-security/articles/the-most-popular-ages-to-collect-social-security (accessed June 4, 2025).

[2] Social Security Administration. “Receiving Benefits While Working.” Ssa.gov. https://www.ssa.gov/benefits/retirement/planner/whileworking.html (accessed June 4, 2025)

[3] Id.

This podcast is brought to you by Security Mutual Life Insurance Company of New York, The Company That Cares®. The content provided is intended for educational and informational purposes only. Information is provided in good faith. However, the company makes no representation or warranty of any kind regarding the accuracy, reliability, or completeness of the information. 

The information presented is designed to provide general information regarding the subject matter covered. It is not to serve at legal, tax or other financial advice related to individual situations, because each person’s legal, tax and financial situation is different. Specific advice needs to be tailored to your situation. Therefore, please consult with your own attorney, tax professional and/or other advisors regarding your specific situation.

To help reach your goals, you need a skilled professional by your side. Contact your local Security Mutual life insurance advisor today. As part of the planning process, he or she will coordinate with your other advisors as needed to help you achieve your financial goals and objectives. For more information, visit us at SMLNY.com/SMLPodcast. If you’ve enjoyed this podcast, tell your friends about it. And be sure to give us a five-star review. And check us out on LinkedIn, YouTube and X (formally Twitter). Thanks for listening, and we’ll talk to you next time.

Tax laws are complex and subject to change. The information presented is based on current interpretation of the laws. Neither Security Mutual nor its agents are permitted to provide tax or legal advice.

The applicability of any strategy discussed is dependent upon the particular facts and circumstances. Results may vary, and products and services discussed may not appropriate for all situations. Each person’s needs, objectives and financial circumstances are different, and must be reviewed and analyzed independently. We encourage individuals to seek personalized advice from a qualified Security Mutual life insurance advisor regarding their personal needs, objectives, and financial circumstances. Insurance products are issued by Security Mutual Life Insurance Company of New York, Binghamton, New York. Product availability and features may vary by state. 

Episode 341 – News flash: Estate planning is not for just the wealthy. Here are some ideas put forward in a recent article by renowned estate attorney Jonathan Blattmachr, especially for what he describes as “middle tier clients,” which he defines as people whose wealth does not exceed the available exemptions.

Hello, this is Bill Rainaldi, with another edition of Security Mutual’s SML Planning Minute. In today’s episode, we’ll discuss practical estate planning ideas for middle tier families. Middle tier families, those families with wealth falling below the estate tax exemption, are strongly encouraged to make plans for disposition of their estates.

Estate planning is often thought of as a concept exclusively for the wealthy. But that’s not true.  The wealthy may need estate tax planning but practically everyone needs estate planning. As of 2025, the federal estate tax exemption amount for 2025 is set at nearly $14 million for individuals and $28 million for married couples, well out of the range of most—in fact, almost all—individuals.[1] But some estate planning concepts apply not just to the very wealthy, but to what are called “middle tier” taxpayers.

Some of these ideas may simply be common sense for many of us. For one thing, you should have a will, and it should be updated periodically. Having a will can help clarify your wishes as to how your assets should be handled at your death. Otherwise, the decision will be left up to the state you live in. A will can also save money, help prevent family disputes and simplify everything for your loved ones during this very difficult time.

Another common idea is making use of a life insurance trust. A life insurance trust can offer many advantages, including helping protect insurance death benefits from creditors, providing greater control over how and when your beneficiaries receive the funds, and in some cases, saving state estate or inheritance taxes. Yes, several states have their own state estate or inheritance tax systems with significantly lower exemption amounts.

But there’s more. In a recent article for the NAEPC Journal of Estate & Tax Planning, renowned estate attorney Jonathan G. Blattmachr, Esq., made some suggestions for what he refers to as “middle tier clients,” in other words, people with some significant assets, but whose wealth does not exceed the available exemptions. Here are a few of his ideas:[2]

Avoiding “Ruinous” Lifestyles. No shock here. If you become addicted to drugs or alcohol, it could easily ruin your emotional, physical and financial health. Extravagant spending over a long period of time is also likely to be ruinous.

Protecting Your Lifestyle for You and Your Family. As Blattmachr points out, inflation can be a lifestyle-killer. He suggests that in order to maintain your spending power, your investments need to grow at an after-tax rate that is higher than the inflation rate. This concept still applies after you’re gone.

Getting Descendants to Enter Prenuptial Agreements. As Blattmachr points out, divorce is one of the most common ways that an unanticipated large claim against someone’s assets might happen. A prenuptial agreement is often considered good financial planning. Blattmachr goes so far as to suggest that the older generation make it a requirement that, in order to receive benefits from the family, the younger generation must enter into a prenuptial or postnuptial agreement that protects against claims that come from a divorce. He also recommends that an independent fiduciary determine if the agreement provides adequate protection.

Closely Examining 401(k)s, Qualified Plans and IRAs. Many “middle-tier” taxpayers have a significant amount of money in a 401(k), qualified plan or IRA. Virtually all distributions from these plans are subject to ordinary income tax, and the same applies to post-death distributions due to what’s known as “income in respect of a decedent” or IRD.[3]

Planning for these types of assets, whether during your lifetime or as part of your estate, is among the most difficult financial challenges you might face. A Roth IRA or 401(k) can help.

Estate Building Through the Use of Life Insurance. Life Insurance is simply an excellent tool to build your estate and create a legacy for your heirs. It can help provide financial support to your beneficiaries after your death, helping them to maintain their lifestyle and cover some of their expenses.

Protecting Wealth Building Potential: Disability income insurance is vital to protect the primary source of your ability to create wealth and that is the income you earn from working. An individual who is disabled, simply can’t continue building wealth and savings, unless their income capacity is protected with disability insurance.

Making Use of the Gift Tax Annual Exclusion. This year’s annual gift tax exclusion amount is $19,000 per individual.[4] Through the use of “gift-splitting,” that is, making a combined gift with your spouse, the limit is doubled to $38,000, and that amount is per recipient. For example, if you have three children, you can make a $38,000 gift to each child, for a total combined gift of $114,000. If you go above the limit, it will reduce your federal estate and gift tax exemption amount.

Limiting Your Potential Liability With a Business Entity. We discussed some of this during episode 334. The use of a limited partnership, corporation, limited liability company or other entity to hold some of your business or investment assets can provide asset protection and tax benefits to you and your family.

This is just the beginning. There are many other ideas that could potentially come into play. It’s safe to say that this is a complicated subject, and it’s best not to try and do it on your own. You may need assistance, whether you’re part of the so-called “middle tier” or not!

Your Security Mutual Life insurance agent can help. He or she will assemble your team and coordinate with your attorney and tax professional to review your situation and to determine the strategy and products that will best suit your needs and objectives.

[1] Schubel, Kate. “The 2025 Estate Tax Exemption.” Kiplinger.com. https://www.kiplinger.com/taxes/whats-the-new-estate-tax-exemption (accessed May 29, 2025).

[2] Blattmachr, Jonathan G. “Some Reasonable Estate Planning Steps for the Middle Tier Family.” Naepcjournal.org. https://www.naepcjournal.org/issue/46/some-reasonable-estate-planning-steps-for-middle-tier-family/ (accessed May 29, 2025).

[3] Id.

[4] Fidelity Wealth Management. “Lifetime estate gift tax & annual gift exclusions.” Fidelity.com. https://www.fidelity.com/viewpoints/wealth-management/insights/lifetime-gift-and-estate-tax-exclusions (accessed May 30, 2025).

This podcast is brought to you by Security Mutual Life Insurance Company of New York, The Company That Cares®. The content provided is intended for educational and informational purposes only. Information is provided in good faith. However, the company makes no representation or warranty of any kind regarding the accuracy, reliability, or completeness of the information. 

The information presented is designed to provide general information regarding the subject matter covered. It is not to serve at legal, tax or other financial advice related to individual situations, because each person’s legal, tax and financial situation is different. Specific advice needs to be tailored to your situation. Therefore, please consult with your own attorney, tax professional and/or other advisors regarding your specific situation.

To help reach your goals, you need a skilled professional by your side. Contact your local Security Mutual life insurance advisor today. As part of the planning process, he or she will coordinate with your other advisors as needed to help you achieve your financial goals and objectives. For more information, visit us at SMLNY.com/SMLPodcast. If you’ve enjoyed this podcast, tell your friends about it. And be sure to give us a five-star review. And check us out on LinkedIn, YouTube and X (formally Twitter). Thanks for listening, and we’ll talk to you next time.

Tax laws are complex and subject to change. The information presented is based on current interpretation of the laws. Neither Security Mutual nor its agents are permitted to provide tax or legal advice.

The applicability of any strategy discussed is dependent upon the particular facts and circumstances. Results may vary, and products and services discussed may not appropriate for all situations. Each person’s needs, objectives and financial circumstances are different, and must be reviewed and analyzed independently. We encourage individuals to seek personalized advice from a qualified Security Mutual life insurance advisor regarding their personal needs, objectives, and financial circumstances. Insurance products are issued by Security Mutual Life Insurance Company of New York, Binghamton, New York. Product availability and features may vary by state. 

Episode 340 – Actively listening to what someone else is saying can be incredibly hard, but it comes with enormous benefits. How do effective leaders manage it?

Hello, this is Bill Rainaldi, with another edition of Security Mutual’s SML Planning Minute. In today’s episode, want to be an effective business leader? Learn how to listen.

Listening is one of the most underrated business skills. Learning how to listen effectively is a difficult task, but it can pay enormous dividends in a business situation. A 2022 article in Forbes magazine suggests that, while it’s easy to see how challenging it can be to carefully listen to someone, we often fail to grasp the huge benefits that come with it.[1]

This is what’s known as “active listening.” Active listening is defined as “a way of listening that involves full attention to what is being said for the primary purpose of understanding the speaker.”[2] If we are not making the effort to actively listen, there’s a good chance we will misunderstand what the other person is saying. And the consequences can be huge.

Active listening has been shown to be effective in building relationships and generating trust.[3] To be a good listener, you need to learn to stop speaking and be willing to give someone your full attention. Simply put, silence can be an underestimated source of understanding and power.

Effective listening seems to be more difficult than many people realize. How many times have you heard someone say “I’m sorry, I’ve forgotten your name…?”  More likely, it’s not that they’ve forgotten your name, but they never actually learned it in the first place. It’s very difficult to learn someone’s name when you’re not actively listening. It all happens very quickly, and it requires a certain amount of concentration.

Just how good are you at this special, learned skill? A recent article on LinkedIn suggests some of the ways that we can be both good and bad at listening, and some practical steps we can take to improve this learned skill.[4]

The author, financial psychologist Dr. Charles Chaffin, outlines five ways to be a good listener along with five ways to be a bad listener.[5]

The good news first. Here are Dr. Chaffin’s suggestions:

Now the bad news. Here are five things that terrible listeners tend to do:

The truth is that, perhaps more than anything else, the person you’re speaking to simply wants to be heard and understood.  Recognizing that can go a long way in generating rapport and trust and making yourself more successful.

[1] Zenger, Jack. “The Unforeseen Rewards Of Good Listening.” Forbes.com. https://www.forbes.com/sites/jackzenger/2022/05/19/the-unforeseen-rewards-of-good-listening/ (accessed May 23, 2025).

[2] Grande, Dianne. “Active Listening Skills.” psychologytoday.com. https://www.psychologytoday.com/us/blog/in-it-together/202006/active-listening-skills (accessed May 27, 2025).

[3] Zenger, Jack. “The Unforeseen Rewards Of Good Listening.” Forbes.com. https://www.forbes.com/sites/jackzenger/2022/05/19/the-unforeseen-rewards-of-good-listening/ (accessed May 23, 2025).

[4] Chaffin, Charles. “Listen! 5 Ways to be a BAD Listener..and a GOOD Listener.” LinkedIn.com. https://www.linkedin.com/pulse/listen-5-ways-bad-listener-good-dr-charles-chaffin-r15we/ (accessed May 23, 2025).

[5] Id.

[6] Id.

This podcast is brought to you by Security Mutual Life Insurance Company of New York, The Company That Cares®. The content provided is intended for educational and informational purposes only. Information is provided in good faith. However, the company makes no representation or warranty of any kind regarding the accuracy, reliability, or completeness of the information. 

The information presented is designed to provide general information regarding the subject matter covered. It is not to serve at legal, tax or other financial advice related to individual situations, because each person’s legal, tax and financial situation is different. Specific advice needs to be tailored to your situation. Therefore, please consult with your own attorney, tax professional and/or other advisors regarding your specific situation.

To help reach your goals, you need a skilled professional by your side. Contact your local Security Mutual life insurance advisor today. As part of the planning process, he or she will coordinate with your other advisors as needed to help you achieve your financial goals and objectives. For more information, visit us at SMLNY.com/SMLPodcast. If you’ve enjoyed this podcast, tell your friends about it. And be sure to give us a five-star review. And check us out on LinkedIn, YouTube and X (formally Twitter). Thanks for listening, and we’ll talk to you next time.

Tax laws are complex and subject to change. The information presented is based on current interpretation of the laws. Neither Security Mutual nor its agents are permitted to provide tax or legal advice.

The applicability of any strategy discussed is dependent upon the particular facts and circumstances. Results may vary, and products and services discussed may not appropriate for all situations. Each person’s needs, objectives and financial circumstances are different, and must be reviewed and analyzed independently. We encourage individuals to seek personalized advice from a qualified Security Mutual life insurance advisor regarding their personal needs, objectives, and financial circumstances. Insurance products are issued by Security Mutual Life Insurance Company of New York, Binghamton, New York. Product availability and features may vary by state. 

Episode 339- The rich and famous are prone to estate planning mistakes. Today we look at some real world examples, and the lessons we can all learn from all of them.

Hello this is Bill Rainaldi, with another edition of Security Mutual’s SML Planning Minute. In today’s episode, we will take a look back at one of our favorite previous episodes, thirteen celebrity estate planning lessons.

In a recent article for the website Wealthmanagement.com, author David Lenok took a look at one of our favorite subjects: celebrity estate planning gone wrong. He came up with a list of thirteen celebrities and the mistakes they made in their planning, all of which ended up costing their families dearly later on. Let’s take a look at some of the lessons learned.

When the star of the popular television series, The Sopranos, died suddenly in 2013, he made one basic mistake: not taking full advantage of the marital exemption. The result was that his estate ended up paying taxes that could have been avoided.

For example, he decided to leave part of his estate directly to his children. An alternative would have been to leave the assets to his wife in trust for his children, thus taking full advantage of the marital exemption, while still insuring that the assets would eventually get into the children’s hands.

The singer commonly referred to as the “Godfather of Soul,” apparently knew what he wanted to happen when he died in 2006, but the instructions he left behind caused great confusion to his heirs. It ended up taking over fifteen years to straighten things out between all the parties involved, and in the end, it cost millions in both legal fees and taxes. The lesson: be sure to make your intentions clear.

This one is simple. The very popular entertainer, dubbed the “King of Pop,” tried to do the right thing. He created a trust. But he never got around to funding it. Predictably, this led to years of public bickering among family members, and millions of dollars lost.

The billionaire business mogul died way back in 1976. His intentions were never clear because he never documented what he wanted properly, and a Nevada court eventually ruled that Hughes had died intestate. His estate was eventually split among 22 people and the Howard Hughes Medical Institute. Hughes may have intended to split his estate a certain way, but we’ll never know. It’s doubtful he would have been happy with what happened.

The Jurassic Park author died in 2008 at a time when his wife was pregnant. His unborn son’s needs were never addressed in his estate planning documents. His wife eventually sued to include their son, who was born shortly after Crichton’s death. This set off a public court battle with his daughter from a previous marriage. The lesson here is to remember the unborn children, and adjust your documents accordingly.

The sole heiress of tobacco tycoon, James Buchanan Duke, made a big mistake before she died in 1992. She entrusted her wealth to her butler. It was reported that he instead lived a lavish lifestyle using money from a charitable foundation that Duke had set up. She would likely have been better off with an institutional trustee. Or perhaps she should have been more careful about who she trusted.

The last days of Casey Kasem, famed radio personality, were a tabloid editor’s dream: a whirlwind of conflict between blended families that included alleged medical abuse, negligence and kidnapping. The bottom line is that you need to be especially careful and thorough when blended families are involved.

The Oscar winning actor died much too young at the age of 46, in 2014, from a drug overdose. He had tried his best to do the right thing. But without proper planning, chaos ensued. He left his estate to his girlfriend with whom they shared three young children.  He directed his assets to be used in certain ways for the benefit of his children, which would have been best served by the creation of a series of trusts.  As a result, the lack of planning caused a significant loss of wealth to estate taxes and insufficient financial protection of  the children.

This was a case of good planning vs. bad planning. The actor, Reynolds did it right; The famed singer, Franklin, often referred to as the “Queen of Soul, ” did not.

Although it’s been over three years since her death, no one is quite sure whether Franklin died intestate or not. Three separate documents have been found which could potentially be deemed her will, but that matter has yet to be settled. Either way, most of the details of her estate are going to become public information.

Reynolds, on the other hand, had a well-documented will. And part of the design was to make sure that very little information became public. This included his son Quinton, whom Reynolds said had been taken care of in a separate trust. The details of this remain private.

The bottom line: even if you’re famous, you can keep much of your estate away from the public eye. You just have to document and plan things properly.

Without realizing it, Frank Sinatra Jr., famed singer and actor, left a mess behind when died. The problem stemmed with his wife—or some would say ex-wife—Cynthia, whom we married in 1998, and divorced in 2000. But they continued to live together, and Cynthia later claimed that they were living in a common law marriage. She filed for a second divorce—even though they hadn’t formally remarried— in 2013.

The two parties were still fighting it out at the time of Sinatra’s death in 2016. His attorney has stated that Sinatra should have been more careful. Thinking his decisions through a little bit more about his divorce could have made it more difficult for Cynthia to claim that they had been in a common law marriage.

Famed rock singer and musician, Prince, is one of the more notable examples of a famous celebrity who died having done little or no planning. With the size of his estate, turmoil was inevitable. He had a sister and some half siblings, along with several other people who have since claimed to be his children. Without any documentation of his intent, and considering the amount of money involved, you can expect the saga to continue for years to come.

Williams, the actor and comedian, is one of the few people on this list who actually had a thorough and well-documented estate plan. But conflict ensued nonetheless. His third wife, Susan Schneider, filed a petition asking for more money to pay her living expenses. And there were disputes with Williams’ three children from previous marriages, who were scheduled to receive the majority of his belongings. The issues were eventually ironed out through mediation about a year later. The bottom line is that even with the best estate plans, sometimes conflict is inevitable. Without the plan, the conflict could have been much worse.

Rock singer, Tom Petty’s estate plan was thought to be complete and thorough, however it was only when he died that it became clear that it wasn’t.

At his death he had a wife and two daughters from a previous marriage. His hope was to have all three equally involved in any decisions that needed to be made. But those decisions can be especially challenging when intellectual property, the publishing rights to his music, is involved. Strangely enough, the stumbling point was the definition of the word “equally.” It took two years to figure that one out.

The lesson to be learned from Tom Petty: you need to spell things out very carefully.

What’s striking about this list is that so many of these mistakes are quite basic. While all of these people had access to some of the best attorneys in the estate planning field, in most cases they never followed up. And many of the mistakes here involve things that apply not just to the rich and famous, but to you and me as well. A little bit of common sense can go a long way.

Source:
https://www.wealthmanagement.com/estate-planning/thirteen-celebrity-estate-planninglessons/gallery

This podcast is brought to you by Security Mutual Life Insurance Company of New York, The Company That Cares®. The content provided is intended for educational and informational purposes only. Information is provided in good faith. However, the company makes no representation or warranty of any kind regarding the accuracy, reliability, or completeness of the information. 

The information presented is designed to provide general information regarding the subject matter covered. It is not to serve at legal, tax or other financial advice related to individual situations, because each person’s legal, tax and financial situation is different. Specific advice needs to be tailored to your situation. Therefore, please consult with your own attorney, tax professional and/or other advisors regarding your specific situation.

To help reach your goals, you need a skilled professional by your side. Contact your local Security Mutual life insurance advisor today. As part of the planning process, he or she will coordinate with your other advisors as needed to help you achieve your financial goals and objectives. For more information, visit us at SMLNY.com/SMLPodcast. If you’ve enjoyed this podcast, tell your friends about it. And be sure to give us a five-star review. And check us out on LinkedIn, YouTube and X (formally Twitter). Thanks for listening, and we’ll talk to you next time.

Tax laws are complex and subject to change. The information presented is based on current interpretation of the laws. Neither Security Mutual nor its agents are permitted to provide tax or legal advice.

The applicability of any strategy discussed is dependent upon the particular facts and circumstances. Results may vary, and products and services discussed may not appropriate for all situations. Each person’s needs, objectives and financial circumstances are different, and must be reviewed and analyzed independently. We encourage individuals to seek personalized advice from a qualified Security Mutual life insurance advisor regarding their personal needs, objectives, and financial circumstances. Insurance products are issued by Security Mutual Life Insurance Company of New York, Binghamton, New York. Product availability and features may vary by state. 

Episode 338 – Do single people really need life insurance? Here are six good reasons why they might.

Hello, this is Bill Rainaldi, with another edition of Security Mutual’s SML Planning Minute. In today’s episode, six reasons single people need life insurance too.

Not long ago, in episode 333, we talked about why young people should consider life insurance. There are also a few reasons why someone who is single—whether young or old—may want to consider getting life insurance. Here are six of our favorite reasons.

1. You have a mortgage or other debt. It’s not just a mortgage. It could be student loans or credit card bills. If someone co-signed some of your debts, these debts could become your family’s responsibility. Do you really want someone else to be saddled with your debt if something happens to you? Losing you would be tough enough.

Life insurance can help cover these debts so your family won’t have to worry about them. They’ll have enough worries as it is.

2. You have dependents. You might not have kids, but are there others depending on you financially? Maybe your parents, siblings, or even some their children? Life insurance can help them. It can help provide financial security if you’re not around. And it doesn’t have to be complicated. Even, let’s say, a 10-year term policy—listing that individual as a beneficiary—could be helpful.

3. You want to cover your final expenses. In 2025, an average funeral costs somewhere between $7,000 and $12,000.[1] What if your parents are your heirs and they have very little in savings? Your funeral could be a significant financial hardship for them.

4. You want to lock in a good rate. Premiums are generally less when you buy a policy when you’re young and healthy. Even if you’re not so young anymore, you’ll be a year older next year, and it’s only a matter of time before your health could potentially start to decline.

Whether it’s term or permanent life insurance, regardless of what type of coverage you need, premiums are likely to be less today than they will be in the future. Buying a policy before major health issues arise gives you a chance to lock in a lower premium. This is especially beneficial with permanent coverage.

5. You’re a business owner. Let’s say you have a partner in a business. What happens to you if your partner dies, and what happens to your partner if you die? In spite of your best efforts, the business might not be able to continue without proper planning.Perhaps a buy/sell agreement could fill the void. With a simple cross-purchase arrangement, your partner buys a life insurance policy on you, while you buy one on your partner. If something happens to either one of you, there is a source of cash to buy out the deceased partner’s interest. The deceased partner’s heirs, rather than receiving a portion of a (perhaps illiquid) business, get cash. Other buy/sell arrangements may be better, depending on the specific circumstances. You’ll want to consult a life insurance professional and your attorney to confirm the most appropriate structure.

We’ll be talking more about buy/sell planning in a future episode.

6. You want to create a legacy. Even if you have no children or dependents, there may still be someone you want to help out financially or a cause that you’re passionate about. If you can afford it without a having major impact on your savings or emergency fund, a life insurance policy could be a great way to create a legacy for someone—or something—you really believe in.

Of course, just because you may need insurance doesn’t always mean you can get it. Underwriting findings and rates vary from person to person. But for many people, it’s easier than you may think. Gone are the days when it took months to get a new policy. The overall process is much simpler and often less invasive than it used to be. Nowadays, many companies, including Security Mutual Life, offer an accelerated underwriting review to speed up the process.

For many single people, perhaps the most difficult part of getting life insurance is simply getting started. Your Security Mutual Life insurance agent can help. He or she will assemble your team and coordinate with your attorney and tax professional to review your situation and to determine the insurance plan that will best suits your needs and objectives.

[1] Lincoln Heritage Life Insurance Company. “How Much Does a Funeral Cost?” Lhlic.com. https://www.lhlic.com/consumer-resources/average-funeral-cost/ (accessed June 2, 2025).

This podcast is brought to you by Security Mutual Life Insurance Company of New York, The Company That Cares®. The content provided is intended for educational and informational purposes only. Information is provided in good faith. However, the company makes no representation or warranty of any kind regarding the accuracy, reliability, or completeness of the information. 

The information presented is designed to provide general information regarding the subject matter covered. It is not to serve at legal, tax or other financial advice related to individual situations, because each person’s legal, tax and financial situation is different. Specific advice needs to be tailored to your situation. Therefore, please consult with your own attorney, tax professional and/or other advisors regarding your specific situation.

To help reach your goals, you need a skilled professional by your side. Contact your local Security Mutual life insurance advisor today. As part of the planning process, he or she will coordinate with your other advisors as needed to help you achieve your financial goals and objectives. For more information, visit us at SMLNY.com/SMLPodcast. If you’ve enjoyed this podcast, tell your friends about it. And be sure to give us a five-star review. And check us out on LinkedIn, YouTube and X (formally Twitter). Thanks for listening, and we’ll talk to you next time.

Tax laws are complex and subject to change. The information presented is based on current interpretation of the laws. Neither Security Mutual nor its agents are permitted to provide tax or legal advice.

The applicability of any strategy discussed is dependent upon the particular facts and circumstances. Results may vary, and products and services discussed may not appropriate for all situations. Each person’s needs, objectives and financial circumstances are different, and must be reviewed and analyzed independently. We encourage individuals to seek personalized advice from a qualified Security Mutual life insurance advisor regarding their personal needs, objectives, and financial circumstances. Insurance products are issued by Security Mutual Life Insurance Company of New York, Binghamton, New York. Product availability and features may vary by state. 

Episode 337 – The rate of gray divorce—defined as divorce after the age of 50 following a long-term marriage—has increased in recent years. The financial impact can be especially difficult for women.

Hello this is Bill Rainaldi, with another edition of Security Mutual’s SML Planning Minute. In today’s episode, a detailed look at the epidemic of gray divorce.

Gray divorce is defined as occurring after the age of 50, following a long-term marriage.[1] There have been some high-profile cases in recent years, such as Bill and Melinda French Gates and Jeff Bezos and MacKenzie Scott.

While the overall divorce rate has fallen in recent years, the rate of gray divorce has increased dramatically.[2] The number of divorces for older couples began rising, gradually at first, in the early 70s. By 1990, 8.7 percent of marriages of people over 50 had ended in divorce. In 2019, that number had grown all the way up to 36 percent.[3] Note that the overall average divorce rate is 41 percent for first marriages, 60 percent for second marriages and 73 percent for third marriages.[4] So, the number of gray divorces is still lower than the overall average, but much higher than it once was.

What are some of the financial considerations for someone fifty-plus who may be getting divorced? There are several common issues that come up, among them:

There are other considerations as well, such as replacement of income sources, life and health insurance, income taxes, potential inheritance and managing living expenses. Other considerations include financial impact on children, retirement planning and estate planning. Keep in mind that these are some generic suggestions. If you’re in this situation, you may want to seek legal advice. The counsel of a good financial services professional should also be sought.

The rise of gray divorce has had a disproportionate impact on women.[6] One of the reasons is that after a divorce, household income tends to go down significantly, especially for women.[7]

Another reason is that after a divorce, many women are now in charge of their finances for the first time, and they need assistance.[8] According to a recent article in Financial Advisor magazine, some women are also anxious and embarrassed to admit that they don’t know as much about their finances as they should.[9]

Approximately half of all divorces are done using the “do-it-yourself” method.[10] This tends to work to the disadvantage of the partner who is less financially sophisticated. Experts have recommended that for this and other reasons, women often need professional support when going through a potential divorce.

Getting divorced is unsettling for just about anyone. But it can be even worse for someone who lacks experience with financial issues, a position many women find themselves in. Complex finances, laws and relationships all tend to make matters worse. The best thing you can do is to seek help from legal and tax advisors and financial services professionals.

[1] Cherry, Kendra. “Why So Many Older Couples Are Falling Victim to the Gray Divorce Phenomenon.”  Verywellmind.com. https://www.verywellmind.com/gray-divorce-8646068 (accessed May 15, 2025).

[2] Sergeant, Jacqueline. “Gray Divorce Surge Leaves Women In Need Of Advisors, Experts Say.” Financial Advisor. https://www.fa-mag.com/news/women-want-financial-education-as-they-end-marriage-82256.html?section=43&utm_source=FA+Magazine&utm_campaign=FAN_FA+News_042525&utm_medium=email (accessed May 15, 2025).

[3] Cherry, Kendra. “Why So Many Older Couples Are Falling Victim to the Gray Divorce Phenomenon.”  Verywellmind.com. https://www.verywellmind.com/gray-divorce-8646068 (accessed May 15, 2025).

[4] Austin, Daryl. “Divorce rates are trickier to pin down than you may think. Here’s why.” USA Today. https://www.usatoday.com/story/life/health-wellness/2024/09/05/marriage-divorce-rate/74899214007/  (accessed May 16, 2025).

[5] Fredman, Catherine. “12 Money Mistakes to Avoid When Divorcing Over 50.” Investopedia.com. https://www.investopedia.com/personal-finance/mistakes-avoid-when-divorcing-over-50/ (accessed May 16, 2025).

[6] Sergeant, Jacqueline. “Gray Divorce Surge Leaves Women In Need Of Advisors, Experts Say.” Financial Advisor. https://www.fa-mag.com/news/women-want-financial-education-as-they-end-marriage-82256.html?section=43&utm_source=FA+Magazine&utm_campaign=FAN_FA+News_042525&utm_medium=email (accessed May 15, 2025).

[7] Fredman, Catherine. “12 Money Mistakes to Avoid When Divorcing Over 50.” Investopedia.com. https://www.investopedia.com/personal-finance/mistakes-avoid-when-divorcing-over-50/ (accessed May 16, 2025).

[8] Sergeant, Jacqueline. “Gray Divorce Surge Leaves Women In Need Of Advisors, Experts Say.” Financial Advisor. https://www.fa-mag.com/news/women-want-financial-education-as-they-end-marriage-82256.html?section=43&utm_source=FA+Magazine&utm_campaign=FAN_FA+News_042525&utm_medium=email (accessed May 15, 2025).

[9] Id.

[10] Id.

This podcast is brought to you by Security Mutual Life Insurance Company of New York, The Company That Cares®. The content provided is intended for educational and informational purposes only. Information is provided in good faith. However, the company makes no representation or warranty of any kind regarding the accuracy, reliability, or completeness of the information. 

The information presented is designed to provide general information regarding the subject matter covered. It is not to serve at legal, tax or other financial advice related to individual situations, because each person’s legal, tax and financial situation is different. Specific advice needs to be tailored to your situation. Therefore, please consult with your own attorney, tax professional and/or other advisors regarding your specific situation.

To help reach your goals, you need a skilled professional by your side. Contact your local Security Mutual life insurance advisor today. As part of the planning process, he or she will coordinate with your other advisors as needed to help you achieve your financial goals and objectives. For more information, visit us at SMLNY.com/SMLPodcast. If you’ve enjoyed this podcast, tell your friends about it. And be sure to give us a five-star review. And check us out on LinkedIn, YouTube and X (formally Twitter). Thanks for listening, and we’ll talk to you next time.

Tax laws are complex and subject to change. The information presented is based on current interpretation of the laws. Neither Security Mutual nor its agents are permitted to provide tax or legal advice.

The applicability of any strategy discussed is dependent upon the particular facts and circumstances. Results may vary, and products and services discussed may not appropriate for all situations. Each person’s needs, objectives and financial circumstances are different, and must be reviewed and analyzed independently. We encourage individuals to seek personalized advice from a qualified Security Mutual life insurance advisor regarding their personal needs, objectives, and financial circumstances. Insurance products are issued by Security Mutual Life Insurance Company of New York, Binghamton, New York. Product availability and features may vary by state. 

Episode 336 – Being an empty nester undoubtedly creates challenges you might never have thought of. Here are some tips about what you may encounter, and how to deal with them.

Hello, this is Bill Rainaldi, with another edition of Security Mutual’s SML Planning Minute. In today’s episode, financial considerations when you become an empty nester.

So, after years—perhaps decades—of focusing on your kids, you’ve finally turned a corner. The last of your children has grown up and moved out. Now what? After having invested so much of your time and energy on your children for so long, maybe now would be a good time to bring your focus back to yourself and/or your spouse.

In a recent article, Susan Hirshman, a Director, Wealth Management at Charles Schwab, has some suggestions on what financial issues may now merit more of your attention.[1]

Hirshman says that now would be a great time to start a new business, do some volunteer work, travel, or participate more in some of your favorite hobbies. It also might be a good idea to look at downsizing your home, something we talked about back in episode 310.

It’s also a great time to reignite relationships that may have cooled while you devoted time to raising your children. Having more free time enables you to reconnect with your social network and rekindle old relationships. [2]

From a financial perspective, this is probably a good opportunity to boost your savings rate if possible. With the kids gone (and hopefully supporting themselves), your expenses might go down a bit. Also, once you get past age 50, you become eligible for extra “catch up” contributions to your employer-sponsored retirement plan or IRA, including Roth equivalents.[3] So, it may be a good time to evaluate your retirement savings and see if you’re on course to achieve your goals.

It’s also a great time to reexamine your expenses. Without the children at home, not only do you need less food in the house, but you also might eliminate special cable subscription services, or cut back on your full family cellphone plan, or sell that extra car in your driveway to pick up some cash and cut your car insurance bill. It’s also a great time to sell or donate some of your extra stuff, such as furniture you no longer need, and toys and books that are now just taking up space.

It also might be a good idea to start looking at long-term care insurance. The federal government estimates that about 60 percent of us will eventually need help with the “activities of daily living,” or ADLs.[4] These include things like getting dressed, bathing and personal grooming, among others. A long-term care insurance policy might prove valuable. Also, certain life insurance policies may include an optional chronic illness rider. This rider makes a portion of the death benefit available to help with the costs associated with a chronic illness.

Also, now might be a good time to develop a retirement spending plan. With the kids out of the house, your new spending regimen may give you a better idea of what it’s going to cost you to live in retirement.

Once you have a rough approximation of what you’re going to spend, it may be a good idea to evaluate your current retirement savings situation and strategy to see if you’re on course and to refine your plans accordingly.

You are likely to need the assistance of a qualified financial professional. Your Security Mutual Life insurance agent can help. He or she will assemble your team and coordinate with your attorney and tax professional to review your situation and to determine the strategy and products that will best suit your needs and objectives.

At this stage in your life, perhaps one of the best things you can do is simply to embrace change. It’s understandable that you might miss your kids. But this is an exciting new phase in your life. Give yourself a chance to enjoy it!

[1] Hirshman, Susan. “Retirement Planning for Empty Nesters.” Schwab.com. https://www.schwab.com/learn/story/retirement-planning-empty-nesters?cmp=em-XCU (accessed May 22, 2025).

[2] Id,

[3] Internal Revenue Service. “401(k) limit increases to $23,500 for 2025, IRA limit remains $7,000.” IRS.gov. https://www.irs.gov/newsroom/401k-limit-increases-to-23500-for-2025-ira-limit-remains-7000 (accessed May 22, 2025).

[4] Administration of Community Living. “What is Long-Term Care (LTC) and Who Needs it?” acl.gov. https://acl.gov/ltc (accessed May 22, 2025).

This podcast is brought to you by Security Mutual Life Insurance Company of New York, The Company That Cares®. The content provided is intended for educational and informational purposes only. Information is provided in good faith. However, the company makes no representation or warranty of any kind regarding the accuracy, reliability, or completeness of the information. 

The information presented is designed to provide general information regarding the subject matter covered. It is not to serve at legal, tax or other financial advice related to individual situations, because each person’s legal, tax and financial situation is different. Specific advice needs to be tailored to your situation. Therefore, please consult with your own attorney, tax professional and/or other advisors regarding your specific situation.

To help reach your goals, you need a skilled professional by your side. Contact your local Security Mutual life insurance advisor today. As part of the planning process, he or she will coordinate with your other advisors as needed to help you achieve your financial goals and objectives. For more information, visit us at SMLNY.com/SMLPodcast. If you’ve enjoyed this podcast, tell your friends about it. And be sure to give us a five-star review. And check us out on LinkedIn, YouTube and X (formally Twitter). Thanks for listening, and we’ll talk to you next time.

Tax laws are complex and subject to change. The information presented is based on current interpretation of the laws. Neither Security Mutual nor its agents are permitted to provide tax or legal advice.

The applicability of any strategy discussed is dependent upon the particular facts and circumstances. Results may vary, and products and services discussed may not appropriate for all situations. Each person’s needs, objectives and financial circumstances are different, and must be reviewed and analyzed independently. We encourage individuals to seek personalized advice from a qualified Security Mutual life insurance advisor regarding their personal needs, objectives, and financial circumstances. Insurance products are issued by Security Mutual Life Insurance Company of New York, Binghamton, New York. Product availability and features may vary by state.