SML Planning Minute

Six Ideas on How to Manage Debt Revisited Episode 364 – According to an estimate by Experian, the average American adult holds $6,501 in credit card debt. Is there a way out? Here are six things that you might want to try. More SML Planning Minute Podcast Episodes Transcript of Podcast Episode 364 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 ideas on how to manage debt. In today’s economy, you don’t have to be a big spender to feel overwhelmed by how much you owe. You’re certainly not alone. As of late last year, the average American adult held $6,501 in credit card debt, according to an estimate by Experian.[1] This is up 10 percent from the previous year. And credit card interest rates can be as much as 20 percent, or even higher. Once you’re saddled with a significant amount of debt, there is rarely an easy way out. But if you’re in that situation, here are six things that you might want to try. The idea is to get your debt under control before it has more serious consequences for your financial health. Audit your spendingPay off the high interest debts first[2]Consolidate your debts.[3][4]The “snowball” techniquePay more than the minimum[5]Sell things you no longer need. One final note. Owing money to someone else is not always such a bad thing, and living debt-free is not always the best choice. You need to look at the details of the debt itself. For example, if you bought a house a few years ago with a 3 percent mortgage and tax-deductible interest, why would you hurry to pay it back? You may be able to get a better rate of return simply by keeping the extra money and investing it. [1] Horymski, Chris. “Average Credit Card Debt Increases 10% to $6,501 in 2023.” Experian.com. https://www.experian.com/blogs/ask-experian/state-of-credit-cards/ (accessed October 21, 2024) [2] Sherman, Emily. “6 Easy Ways to Pay Off Debt.” usnews.com. https://money.usnews.com/money/personal-finance/debt/articles/easy-ways-to-pay-off-debt (accessed October 21, 2024) [3] Frankel, Robin Saks. “5 Steps To Take Now To Save More And Reduce Debt.” Forbes.com. https://www.forbes.com/advisor/personal-finance/steps-to-take-to-save-more-and-reduce-debt/ (accessed October 18, 2024) [4] Coleman, Sara. “The pros and cons of 0% APR credit cards.” Bankrate.com. https://www.bankrate.com/credit-cards/zero-interest/pros-cons-of-zero-percent-apr-cards/?tpt=b (accessed October 21, 2024) [5] Sorter, Amy. “7 tips to help dig your way out of debt.” Bankrate.com. https://www.bankrate.com/personal-finance/debt/ways-to-get-out-of-debt/?tpt=b (accessed October 18, 2024) More SML Planning Minute Podcast Episodes 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 as legal, tax or other financial advice related to individual situations, because each individual’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...

Be Skeptical of Financial Advice on Social Media Episode 363 – It is perhaps not surprising that a lot of the financial advice you get on social media is misleading. A recent study shows us just how bad the situation is. More SML Planning Minute Podcast Episodes Transcript of Podcast Episode 363 Hello, this is Bill Rainaldi, with another edition of Security Mutual’s SML Planning Minute. In today’s episode, be skeptical of financial advice on social media. Here’s a shocker: much of the financial advice you get on social media like TikTok or Facebook is bad. Overly simplified advice without proper disclosure can be misleading and is often inaccurate. One of the great things about the internet is that, unlike previous generations, we now have almost unlimited accessibility to information about anything we’re interested in, anytime or anywhere. We can get our hands on a vast amount of information with just a few clicks. But it comes with some serious danger. TikTok has become a leading social media platform for younger people, with over 150 million active users in the United States.[1] It is full of advice on all kinds of different subjects, and personal finance is no exception. It’s become so popular that it now has its own term for their form of financial advice: “FinTok videos.”[2] And there are lots of them out there, which often get shared to other social media platforms. But in some of the least surprising news of the past few years, an analysis done by DayTrader.com looked at ten viral videos on TikTok and concluded that, when it comes to financial content on TikTok, 7 of the 10 videos were “misleading” or worse.[3] The reviewers evaluated the TikTok videos based on four criteria: accuracy, risk disclosure, oversimplification and educational value. They concluded, based on the standards they set, that a substantial portion of the content “failed to meet basic standards of financial advice.”[4] Let’s not forget that FinTok videos, like many social media postings, are generally designed to create revenue. Much of the material is, perhaps not surprisingly, focused on crypto and other digital assets, often presented without context or any risk disclosure.[5] You don’t need to be any sort of expert to post something on TikTok or any other social media platform. Any TikTok user can create a video on virtually any topic at their own whim. The TikTok user merely needs access to the platform. The democratic nature of social media may be good in some ways, but it can create real issues when it comes to FinTok videos. Does the speaker have any background or expertise in what they are talking about? Or are they trying to be provocative for the sake of clicks? There’s a noticeable generational gap when it comes to online financial advice. Younger people are significantly more likely to rely on social media for financial information.[6] According to a recent research report sponsored by the CFP Board, 61 percent of younger Americans (under age 45) make use of online financial resources at least once per week, while 48 percent of Americans age 46 and older do so.[7] These are significant percentages for both groups but greater for younger people. Regardless of where it comes from, misleading financial advice can cause serious harm. According to the CFP Board, some of the most common effects of relying on misleading financial advice include: [8] When someone acts on inaccurate, outdated or misleading information, it can have an enormous impact on their financial future, especially for younger people. The effects and aftershocks might still be felt decades later. So, younger people are the ones with the most at stake, but they also may be the most vulnerable. What’s the best way to deal with all this? Be skeptical. Before taking action, it might be a good idea to get your information from trained professionals who at least have some background in the financial areas where you need help. Your Security...

Do You Really Want to Disinherit a Family Member? Episode 362 – So, you’ve been estranged from one of your children for years now. Your feelings are hurt, and the relationship seemingly has no chance of recovery. Now what? You can certainly disinherit your child if you wish. But beware: it’s more complicated than you may realize. More SML Planning Minute Podcast Episodes Transcript of Podcast Episode 362 Hello, this is Bill Rainaldi, with another edition of Security Mutual’s SML Planning Minute. In today’s episode: do you really want to disinherit a family member? It’s not easy. So, you’ve been estranged from one of your children for years now. Your feelings are hurt, and the relationship seemingly has no chance for recovery. Now what? You’re feeling a strong urge to disinherit your child. It’s your money, and you’re certainly entitled to do that if you want. But beware: it’s more complicated than you may realize. There are many potential reasons that a parent might consider disinheriting a child. Disinheritance sometimes comes into play with large estates, family business interests and blended families.[1] But there are other potential issues. You may have an heir who can’t control their spending, has other disabilities or doesn’t share your philanthropic ideas. But there’s a significant downside. As author Susan Lipp pointed out in an article for Wealth Management, the emotional effects of disinheriting a child could destroy their physical and mental well-being. And it might not even have its intended effect. Eliminating a family member as an estate beneficiary isn’t likely to change anybody’s mind, and perhaps even worse, it may result in expensive litigation.[2] Ok so, in spite of all the potential headaches, you’ve decided that there’s no going back. You’re going to take the plunge and formally disinherit someone. Now what? Of course, you’re going to need the help of an experienced estate attorney. He or she can help you avoid some potential traps you might not be aware of. The attorney would likely want to carefully explain one of those traps: you ‘re going to need to be specific when you disinherit someone. In other words, it’s usually not enough to just leave your child’s name out of your will. You’ll need to explicitly state that you’re excluding this person. Otherwise, a court might conclude that you accidentally omitted this individual rather than doing so deliberately.[3] Remember, you won’t be there to argue otherwise. Also, disinheriting one child while favoring another child may foster ill-will or even animosity between them after your death and disrupt family harmony. You may want to avoid that if you can. And your attorney is also likely to remind you of how important it is to keep your will up-to-date. No matter how awful things are right now, reconciliation might still be possible someday. Also, there may be children born after the will is executed. They will need to be accounted for, one way or another. If your disagreement is with your children, one relatively simple idea might be to skip a generation and give the money to your grandkids. But beware. For a wealthy family, these types of gifts can be made impractical by the Generation Skipping Transfer Tax, or GST. If applicable, the GST Tax rate is a flat 40 percent. Thankfully, under current tax law, the GST tax will only affect wealthy individuals representing less than 1% of the population.[4] But there’s more. Direct gifts to grandchildren can make the already frayed emotional situation even worse. Some experts feel that such a maneuver would be seen as an even bigger insult and would cause more damage than simply disinheriting everyone.[5] And, as we’ve discussed many times on this program, don’t forget to look at beneficiary designations. If you’ve made the difficult decision to disinherit someone, the last thing you want is for that person to get an accidental inheritance simply because you forgot to take their name...

Are You Ready for the New York LLC Transparency Act Starting January 1, 2026? Episode 361 – The effective date of the New York Limited Liability Company Transparency Act, January 1, 2026, is nearly upon us. If your business was created in, or authorized to do business in, New York, you may be affected. If so, are you prepared to comply with its mandates and regulations? More SML Planning Minute Podcast Episodes Transcript of Podcast Episode 361 On January 1, 2021, the National Defense Authorization Act of 2021 (NDAA) was passed. Included in the NDAA was the Corporate Transparency Act (CTA) designed to develop a more robust regulatory framework to combat money laundering and tax evasion activities using potentially anonymous entities. The main requirement of the CTA is the full disclosure of the identities of the individual owners of an entity, or those who control the entity as beneficial owners. Reporting occurs when the entity is created or when there is a change of ownership or control. The CTA would also create a national registry of entities and their owners.[i] The effective date was January 1, 2024. Failure to comply with the CTA would result in severe civil and criminal penalties, including fines of $500 per day up to $10,000 and up to two years of imprisonment.[ii] At the time, however, many legal commentators and at least one federal court, believed the CTA overreached and was unconstitutional.[iii] On March 2, 2025, the U.S. Department of the Treasury (Treasury Department) announced that “not only will it not enforce any penalties or fines associated with the beneficial ownership information reporting rule under the existing regulatory deadlines, but it will further not enforce any penalties or fines against U.S. citizens or domestic reporting companies or their beneficial owners after the forthcoming rule changes take effect either. The Treasury Department will further be issuing a proposed rulemaking that will narrow the scope of the rule to foreign reporting companies only. Treasury takes this step in the interest of supporting hard-working American taxpayers and small businesses and ensuring that the rule is appropriately tailored to advance the public interest.”[iv] On March 21, 2025, the Treasury Department’s Financial Crimes Enforcement Network (FinCEN) issued an Interim Final Rule adopting these changes. New York created similar legislation known as the New York Limited Liability Company Transparency Act (NYLTA) on December 23, 2023, modeled after the CTA, and effective specifically against limited liability companies (LLCs) created in, or authorized to do business in, New York. There are some exceptions such as banks or other highly regulated industries and publicly traded companies. On March 1, 2024, in anticipation of changes to the rules, regulations and interpretation of the federal CTA, New York repealed the original NYLTA and replaced it with the current version. The NYLTA created its own framework and definitions to remove any ties with the federal CTA.[v] Accordingly, notwithstanding the changes in the federal CTA, New York has not changed its requirements for the NYLTA. Starting January 1, 2026, LLCs formed in New York or LLCs created in other jurisdictions, whether domestic or foreign, but authorized to do business in New York, must comply with NYLTA. Existing LLCs formed or registered prior to January 1, 2026, have one year to file an initial beneficial ownership information (BOI) report with the New York Department of State (NYDOS). New LLCs formed or registered on or after January 1, 2026, have 30 days to file their BOI. Penalties for failure to comply can include daily fines of up to $500 and potentially suspension of business authorization or dissolution of the LLC. Unlike the federal CTA, exempt companies must still file an attestation of exemption with the NYDOS within 30 days of the LLCs formation or qualification to do business in New York. As of this...

The Latest on the Scamming Front Episode 360 – It seems like online scammers usually have the upper hand. The bad guys come up with a new scheme, and eventually the good guys figure it out and make changes. But then bad guys come up with more new schemes. Here are some of the latest tricks of the scamming trade. More SML Planning Minute Podcast Episodes Transcript of Podcast Episode 360 Hello, this is Bill Rainaldi, with another edition of Security Mutual’s SML Planning Minute. In today’s episode: the latest on the scamming front. It seems inevitable that online scammers, like tax cheats, will usually find a way to get the upper hand. They come up with a new scheme, and eventually someone else catches on and makes changes. But then the bad guys come up with more new schemes. Either way, the good guys always seem to be playing defense. The latest trends are a continuation of business as usual: the scammers have once again found a new way to cheat people out of their money. Here, according to a pair of new reports by Bank of America, are some of their new and innovative schemes:[1] “Juice jacking.” Tech support scams. Imposter scams.[2] Online investment scams. [3] Check fraud. [4] Phantom hacker scam. Wire scams[5] There are a number of other ways you can protect yourself. For one thing, it’s generally a bad idea to click on an unsolicited pop-up or any links or attachments sent by email or text message. It’s even a bad idea to call a phone number that may have been given to you by an imposter. Also, you need to be very careful if someone you don’t know asks you to download software, especially when they are the ones who initiated the contact. And never give remote access to your machine to someone you don’t know.[6] In other words, to restate an old axiom, verify before you trust. [1] Bank of America. “Tips to help spot and avoid a scam: what business owners should know.” bankofamerica.com https://business.bankofamerica.com/en/resources/red-flags-that-signal-a-scam? (accessed October 27, 2025). [2] Grace, Asia. “Terrifying high-tech bank scam drains your life savings in seconds — and ‘devastated’ victims are sounding the alarm.” nypost.com. https://nypost.com/2025/10/27/lifestyle/terrifying-high-tech-bank-scam-drains-your-life-savings-in-seconds-and-devastated-victims-are-sounding-the-alarm/ (accessed October 28, 2025). [3] Merrill, a Bank of America Company. “What’s trending: Cyber Security Awareness Month.” ml.com. https://www.ml.com/articles/whats-trending.html? (accessed October 27, 2025). [4] Id. [5] Id. [6] Id. More SML Planning Minute Podcast Episodes 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 as legal, tax or other financial advice related to individual situations, because each individual’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 Twitter. Thanks for listening,...

Episode 359 - A few weeks ago we took an in-depth look at some of the things wealthy people understand that the rest of us tend to miss. Today, we’ll take a look at the opposite: some financial mistakes that even wealthy people tend to make, and how we can help avoid them.

Episode 358 - Deciding when to collect Social Security is one of the most important financial decisions you’ll ever make. Make a mistake there and you’ll pay for it—every month for the rest of your life. But what if you want to retire early? That doesn’t mean you also need to collect early. A “bridge” strategy can be an important tool to get you through those years between giving up your job and collecting Social Security. It could make you much better off in the long run.

Episode 357 - Do the ultra-wealthy belong to some secret club that no one else knows about? Of course not. But it’s safe to say that they do some things differently. And the rest of us could learn a few lessons from what they’ve figured out.

Episode 356 - 529 plans are certainly popular these days, and with good reason: high contribution limits and potentially tax-free growth. But they’re not for everyone. Here are four other potential alternatives for funding a college education.

Episode 355 - Business owners selling a business are often worried about capital gains tax. There are several strategies that may help to minimize or avoid capital gains.

Episode 354 - Finding the right life insurance policy can be complicated, and it’s easy to get confused. Here are ten common mistakes we see people making when they purchase life insurance.

Episode 353 - People might think that health care is cheaper once you’re covered by Medicare. Maybe, but the cost of health care in retirement is higher than many people think. A recent study by Fidelity gives us some real numbers.

Episode 352 - Is it possible to save too much for retirement? Some have argued that the answer is yes, but with caveats.

Episode 351 - People make financial mistakes all the time, in good times and bad. What are some of the things that people get wrong when things are going well? In a recent article from ThinkAdvisor, author Bryce Sanders outlined what he believes are some of the errors people tend to make when things are looking rosy.

Episode 350 - Conservatorships have been in the news quite a bit over the last few years. What exactly is it, and how do you avoid having to deal with one?

Episode 349 - Being an optimist has been shown to increase your overall well-being. But in a recent article in Think Advisor, author Michael Finke suggests that optimism can also help with your retirement planning efforts.

Episode 348 - Are there things you wished you had learned about money when you were a kid? In today’s episode, special guest Hannah Kesler talks about some of her ideas on how to raise children to become financially savvy adults.

Episode 347 - The U.S. Department of Labor’s constantly changing rules on classifying workers as either independent contractors or employees is creating confusion among employers. What’s the current status?

Episode 346 - Does it ever make sense to reject an inheritance? On some occasions, a “qualified disclaimer” can give you a chance to do the right thing, or to avoid a major headache.

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.