SML Planning Minute

Security Mutual Life Advanced Markets Team
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SML Planning Minute shares concise and entertaining financial ideas, for individuals, families, and business owners.

  1. 8H AGO

    Should You Collect Social Security and Invest the Difference?

    Should You Collect Social Security and Invest the Difference? Episode 372 – In the past few months, some social media “finfluencers” have suggested that it might be a good idea to collect your Social Security early and invest the money in the stock market. Does it actually work? We follow up on a recent article from The Wall Street Journal that covers the issue in detail. More SML Planning Minute Podcast Episodes Transcript of Podcast Episode 372 Hello, this is Bill Rainaldi, with another edition of Security Mutual’s SML Planning Minute. In today’s episode: should you collect Social Security and invest the difference? A few weeks ago we did an episode on the concept of “buy term and invest the difference.” The idea is that rather than purchasing a permanent life insurance policy, you could, theoretically, buy a term policy and invest the difference in premiums into a diversified portfolio. The idea is that if things went well, you could be able to self-insure once the term policy expired. We explained some of the practical reasons why such an idea rarely works. A similar concept has recently become popular for people considering their Social Security. The theory goes that instead of waiting, you should collect as early as possible, take that money and invest it in the stock market. In the end, its proponents argue, you’ll be better off. It has even become a popular meme on TikTok and YouTube, and The Wall Street Journal recently took an in-depth look.[1] Perhaps not surprisingly, there are some potential issues with this approach. Individual workers get to choose when they start collecting their Social Security benefit. They can collect as early as age 62, as late as age 70, or anytime in between. But there are tradeoffs. “Full Retirement Age,” the age at which you can collect your full unreduced benefit, is age 67 for most of us. If you collect at age 62, you’re getting a five-year head start, but the tradeoff is that your lifetime benefit is reduced by 30 percent. If you wait until age 70, you’re collecting three years behind schedule, but your reward is that your benefit is 24 percent higher. For example, if your personal benefit at Full Retirement Age is $1,000 per month, you would get $700 if you started at age 62, or $1,240 if you started at age 70. The difference between 62 and 70 is about 77 percent.[2] For people who have reason to believe they’re going to live well into their 80s or beyond, it generally makes sense to wait as long as possible. If you live long enough, you’ll easily make up the difference, and then some, by waiting. The “collect early and invest it” trend has gotten a lot of attention recently from people known as “finfluencers.” Market gains in the past few years have certainly fueled the movement. So, what exactly is the problem with this approach? Volatility and sequence of returns risk are major issues. The market may do well in any particular year, but that’s no guarantee of anything financially. According to Wall Street Journal columnist Jason Zweig, “Taking Social Security early just to invest the money in stocks is a dumb idea for most people.”[3] The reason? According to Zweig, if you’re a non-smoker in your early 60s with a college degree and a decent income, chances are that you will live into your mid-80s. And when you look at the amount of money you’re likely to receive over your remaining lifetime, the difference can be staggering. One of most important features of Social Security is that your income is inflation-protected. Cost-of-living adjustments (COLAs) can make a huge difference over time. And the higher your starting amount, i.e., the longer you wait to collect, the bigger the COLA will be, at least in nominal terms. COLAs are essentially risk-free. And few things, including the stock market, come with that kind of inflation protection. Social Security is, essentially, a form of longevity insurance. Zweig argues that Social Security and the stock market are two completely different things, and it makes no sense to try and compare them. Either way, we’re talking about a relatively small subset of the American population: people with the flexibility to collect Social Security when they want to, not when they need to. Age 62 is the most popular claiming age,[4] and there’s a reason for that. Some people have no other choice. They simply need the money to survive. And further, there’s something called the “Earnings Test.” Anytime you collect Social Security before Full Retirement Age, the amount you receive could be reduced if you’re trying to work and collect at the same time. It’s all very complicated but, for 2026, the so-called “earnings limit” is $24,480.[5] If your wages go over that limit, your benefit will be reduced $1 for every $2 over. So, if you’re a good earner, the Earnings Test could make it impractical for you to collect before Full Retirement Age, unless you’re also willing to give up your job. If you want, you can still employ the collect Social Security and invest the difference strategy, you just might have to start at 67 rather than 62. For those who can afford it, Zweig makes an alternative suggestion. Choose to file later on and use some of your fixed income assets to help finance your cost of living while you wait to collect your Social Security. This is commonly referred to as a “bridge” strategy.[6] So, is it possible that you would be better off if you collect your Social Security at age 62 and reinvest the money? As with “buy term and invest the difference,” it is hypothetically possible, but poses some hazards to be aware of. [1] Zweig, Jason. “Are Stocks a Better Bet Than Social Security?” The Wall Street Journal. https://www.wsj.com/finance/investing/are-stocks-a-better-bet-than-social-security-873ab68a?mod=Searchresults&pos=2&page=1 (accessed January 26, 2026). [2] Id. [3] Id. [4] Hagen, Kailey. “These 3 Social Security Claiming Ages Get More Popular Every Year.” Fool.com. https://www.fool.com/retirement/2025/02/16/3-social-security-claiming-ages-get-more-popular/ (accessed January 27, 2026). [5] Social Security Administration. “2026 Social Security Changes.” SSA.gov. https://www.ssa.gov/news/en/cola/factsheets/2026.html (accessed January 27, 2026). [6] Zweig, Jason. “Are Stocks a Better Bet Than Social Security?” The Wall Street Journal. https://www.wsj.com/finance/investing/are-stocks-a-better-bet-than-social-security-873ab68a?mod=Searchresults&pos=2&page=1 (accessed January 26, 2026). 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, 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 be 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.​ SubscribeApple PodcastsSpotifyAndroidPandoraBlubrryby EmailTuneInDeezerRSSMore Subscribe Options

    9 min

  2. FEB 17

    Nine Reasons You Need an Agent When You Buy Life Insurance

    Nine Reasons You Need an Agent When You Buy Life Insurance Episode 371 – No matter how far we go with AI, there are a few places where we need to deal with a real human being. Life insurance is one of those places. Here are nine reasons why it helps to have an agent when you buy life insurance. More SML Planning Minute Podcast Episodes Transcript of Podcast Episode 371 Hello, this is Bill Rainaldi, with another edition of Security Mutual’s SML Planning Minute. In today’s episode: here are nine reasons you may need the help of an agent when you buy life insurance. Have you ever been caught in “chatbot prison”? You’re calling a major institution, and you’d like to speak to a real person. But their customer service phone system puts up one roadblock after another. It’s aggravating. You need to be persistent just to hear a human voice. There is a good chance this trend will continue into the future. But for some things, life insurance being one of them, a real conversation with a real person, maybe even face-to-face, can reduce your stress level and help you achieve a positive result. Buying a life insurance policy can sometimes be a complicated process. But as we discussed last year in episode 316, it’s a whole lot easier than it used to be. Still, there are some challenges you’ll need to get past, and a real human being can be of enormous value to you. In fact, according to LIMRA’s Life Insurance Barometer study from December 2025, 3 out of 4 life insurance buyers would prefer to work with a real person. And 94% of those express trust in their advisors.[1] Here are nine basic reasons why you might need the help of an agent: It can be complicated. Do you really know the differences between traditional whole life, variable and universal life? Not many people outside of the insurance profession do. It’s critical to find someone with expert knowledge and the ability to explain what really matters when comparing the different product types. Do you need term or permanent life insurance? Both have their pros and cons. A real person can help guide you through both. Personalized needs assessment. Every situation is different. How much coverage is right for you? How do you even begin to figure that out? A licensed insurance professional can help you gauge your current and future needs, and those of your family if—God forbid—you’re no longer there. Would you rather talk it out with an AI bot or a competent, experienced professional? Understanding underwriting. Underwriting is the process the life insurance company goes through to assess your health status, whether it will be able to offer coverage to you, and if so, at what rate. Younger, healthier people typically pay a smaller premium than older people with multiple impairments. How do you figure out if your premiums are purchasing coverage suited to your own health situation? An insurance professional, who knows and understands different carriers and the various factors they will consider, can help prepare your application and potentially help you secure a lower premium. Is there something that can be negotiated? Maybe. But having an advocate for you with the insurance company can be a big advantage. Cash value and the potential for future income. Some life insurance policies have cash value, some don’t. Some go so far as to have guaranteed death benefits and cash values, while others don’t. One of the benefits of most forms of permanent coverage is that, if structured properly, the cash value can be used as a source of income or emergency fund if needed. But it’s tricky because there are so many permanent product options in the marketplace. It can be worthwhile to have someone there who understands the ins and outs of how cash value accumulation works with each of the options available to you. Ongoing support. Things change. Going through a divorce? Need to change your beneficiary? How about transferring the policy to someone else? If you have an ongoing relationship with your insurance professional, help is just a phone call away. It’s also nice to have someone who can send you a reminder if you miss a premium payment or have to change your address. Having a long-term relationship with an advisor you trust. Your needs may grow as your family or your income grows. Why restart the process with someone new? You may find yourself more comfortable if you’re dealing with someone who already knows you and has learned how to communicate clearly with you. Understanding the differences between insurance companies. Things like underwriting and customer service can vary widely from one insurance company to the next. One company’s product may be a bit less expensive, but is it worth it if they’re impossible to deal with, or if you’re not going to get the rate you thought you would? An experienced professional knows how to deal with situations like this and can help achieve the best result possible for you in the long run. Policy design and riders. Do you need a chronic illness rider? How about waiver of premium or accelerated death benefits? They can all be very important, but do you even know what they are? A life insurance professional can explain how each of these work, and whether they could be valuable for you. Then, you can more clearly decide for yourself whether they’re worth the cost. And finally… In most situations, it doesn’t cost you anything extra. The agent gets paid by the insurer, not the purchaser. You typically end up paying the same premium whether you use an agent or not. So, how do you find a real person to help with your insurance needs? Your Security Mutual Life insurance agent can help. Your Security Mutual Life insurance agent can augment or assemble your team and coordinate with your attorney and tax professional to review your situation and to determine the insurance plan that will best suit your needs and objectives. [1] LIMRA. “Beyond the Basics: Why Human Advice Still Wins in Life Insurance.” Limra.com. https://www.limra.com/en/research/research-abstracts-public/2025/2025-insurance-barometer-study/beyond-the-basics-why-human-advice-still-wins-in-life-insurance-partial-infographic/ (accessed February 12, 2026). 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, 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 be 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.​ SubscribeApple PodcastsSpotifyAndroidPandoraBlubrryby EmailTuneInDeezerRSSMore Subscribe Options

    9 min

  3. FEB 10

    Are My Retirement Savings on Track?

    Are My Retirement Savings on Track? Episode 370 – It’s an age-old question that seems like everybody asks: am I saving enough for retirement? It’s never going to yield an easy answer. There are so many variables: age, future savings rates, rate of return, lifestyle, etc. Where do you even begin? Fortunately, there are benchmarks available at every age that can give you a sense of whether you’re on track. More SML Planning Minute Podcast Episodes Transcript of Podcast Episode 370 Hello, this is Bill Rainaldi, with another edition of Security Mutual’s SML Planning Minute. In today’s episode: are my retirement savings on track? It’s an age-old question. Am I saving enough for retirement? There’s never going to be an easy answer, especially if you’re young. There are so many variables: age, future savings rates, rate of return, lifestyle, taxes, etc. Where do you even begin? There are plenty of opinions to be found. Global asset management giant T. Rowe Price has done some notable research on this topic. They’ve published a series of benchmarks at every age that can give you a sense of where you stand as of today. The benchmarks are based on current income. For example, if you’re 30 years old, they suggest that your total savings should be one half of your annual income or more. They suggest 100 percent of your income if you’re age 35, twice your income at age 40, three times at age 45, and five times at age 50. The multiplier goes to seven times at age 55, nine times at age 60, and eleven times at age 65.[1] Note that these figures include contributions, both by you and your employer, to a workplace retirement plan such as a 401(k). As you can probably tell, these are just ballpark estimates. To come up with these estimates, they assume that your household income goes up by five percent per year until age 45, and three percent thereafter. They assume an inflation rate of three percent. They also assume a seven percent return before taxes, and that everyone retires at age 65. Upon retirement, the assumed withdrawal rate is four percent. As with anything else, the individual situation you’re in will vary over time, so it’s safe to say that these benchmarks have their limitations. Also, they assume you’re relying only on personal savings and Social Security for retirement income. If you have other sources, such as a pension, your personal benchmark might be lower. Also, remember that Social Security benefits—assuming they’ll still be there for younger Americans—are progressive in nature. That is, for Americans with higher earnings, Social Security benefits will represent a smaller percentage of their retirement income. So, in most cases, people with higher earnings will have to rely more heavily on personal savings to meet their retirement needs. How can you meet these suggested goals? T. Rowe Price says that, as a general rule, most people should probably save at least 15 percent of their income if they wish to keep up with the benchmarks, more than that if you’ve already fallen behind.[2] So, what do you do if you’re below the benchmark? With discipline, some people can start increasing their savings rate right away, and that would be the ideal solution. But it’s very difficult for most people. You might be able to make your increased savings rate automatic, simply by having your employer increase the contribution rate that is withheld from your paycheck. In other words, pay yourself first! Either way, if your employer has a 401(k) with an employer match, make sure you at least take full advantage of it if you’re not already doing so. If you’re getting on in years and you don’t have enough in savings, one alternative might be to slowly transition into retirement with part-time employment. It’s not ideal. After all, you’ll be fully retiring later than you would prefer, but it could make a significant difference, including the possibility of health insurance benefits which can be costly in retirement. One final question. Is it possible to save too much for retirement? We talked about this back in episode 296. The answer is yes. As important as it is to save as much money as you can as early as possible, you have to balance that against your current lifestyle. If you’re younger, you could easily overextend yourself if you fully fund your 401(k). This could result in maxing out your credit cards to meet your monthly expenses.[3] That could end up costing you more than the savings are worth. It’s also important to understand the role of taxes. Just remember that withdrawals from a traditional IRA or 401(k) are 100 percent taxable. Once you get into your seventies, you may be subject to Required Minimum Distributions or RMDs. This means that you have to withdraw money from your IRA or 401(k) and pay tax on it, whether you need the money for your expenses or not. Also, many experts believe that future tax brackets will eventually be higher than they are today. If that does in fact happen, it could minimize the advantages of a 401(k) or IRA, because you were in a lower bracket when you took the deduction than you were when you had to pay the tax. This would minimize whatever advantage you might have had. [1]T. Rowe Price Insights on Retirement. “Are My Retirement Savings on Track?” Troweprice.com. https://www.troweprice.com/content/dam/workplace/SVRI_Retirement%20Perspective%20Savings%20Benchmark.pdf (accessed January 23, 2026). [2] Id. [3] Schrager, Allison. “Yes, Clients Can Save Too Much For Retirement.” fa-mag.com. https://www.fa-mag.com/news/yes–you-can-save-too-much-for-retirement-78828.html?section=68 (accessed August 6, 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 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, 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 be 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.​ SubscribeApple PodcastsSpotifyAndroidPandoraBlubrryby EmailTuneInDeezerRSSMore Subscribe Options

    8 min

  4. FEB 3

    Are You Ready for the Great Wealth Transfer?

    Are You Ready for the Great Wealth Transfer? Episode 369 – Are you ready for the “Great Wealth Transfer”? It’s not that far off. The sooner you start your planning, the better. More SML Planning Minute Podcast Episodes Transcript of Podcast Episode 369 Hello, this is Bill Rainaldi, with another edition of Security Mutual’s SML Planning Minute. In today’s episode: are you ready for the “Great Wealth Transfer”? We’ve seen it coming for decades. The baby boomer generation is perhaps the wealthiest in American history. But now they’re all 60-plus years old. The long-predicted Great Wealth transfer is just getting started, and the numbers are extraordinary. By the year 2048, an estimated total of $124 trillion will be transferred. Among those amounts, approximately $105 trillion is expected to flow to heirs from baby boomers (and older) to future generations.[1] You know it’s going to happen eventually. And if you’re one of those baby boomers, you need to get to work now if you haven’t done so already. Where do you even start? If you’re the boomer, the first thing you need to recognize is that open communication is critical. But it’s a tough conversation to initiate. According to a recent survey, only 39 percent of baby boomers have provided some direction to their heirs by explaining their intentions. At the other end, just over half of the next generation feels prepared to receive their inheritance.[2] It’s probably a good idea for you and your spouse to have your plan in place before you talk it out with your heirs.[3] If you start talking before you have a concrete plan, it may lead to arguments, undue pressure on you, or unrealistic expectations. That would make it harder for you to make important decisions based exclusively on what you really want. Once everything is fully documented, you can share the details with confidence. That way, you’ll know that your estate plan reflects your true intentions without being swayed before you’ve finished setting it up. When you do have a plan in place, it’s usually best to start explaining it as soon as you can, then provide updates as needed. And it helps to be as transparent and inclusive as possible. You’ll need to make sure you share the values that are important to you, along with the reasoning behind your decisions. But don’t think it’s going to be easy. It has the potential to be an uncomfortable and challenging conversation, so make sure you choose the best time and place. Also, remember that different people will react differently to what you tell them. You should be ready to listen to them and address whatever concerns they may have. When talking things over, it helps to show some empathy for their situation, whatever it is. It may not be what you expected. You also need to make sure your heirs understand how important family unity is, both now and after you’re gone. It’s generally a good idea to talk to your family about this while there’s still time, or at least have a letter with your documents that everyone can read or hear, explaining your non-financial wishes. Also, set some realistic expectations. Many adult heirs are surprised—sometimes pleasantly and sometimes unpleasantly—by the size of their inheritance.[4] You can also build in some protections to make sure the children don’t squander their inheritance. If you’re a parent with concerns about where the money will go, there are always trust options that can provide additional security. Your estate planning attorney will likely have some ideas on this and be able to guide you. But keep in mind that some heirs may see this as a sign of mistrust and may be resentful because you did this. The challenges are many, but it can be even more difficult—and it likely requires even more work—if you’re a business owner. The sobering truth is that less than a third of family businesses successfully transition to the next generation.[5] The failure rate jumps to 90 percent by the third generation.[6] Even worse, an unsuccessful transition could potentially destroy the family relationship. It’s important that your heirs understand that you have completed the required documents, but they also have to know where to find them. An “in the event of my death” folder should be easily accessible. The folder would include information on online accounts, professional advisors, estate planning documents, and insurance information. It’s helpful to have a single person identified who can begin the process. If you’re the recipient, it might seem awkward and presumptuous to start the conversation about inheritance, but it’s OK if you approach it the right way. One thing you can do is make sure you center the discussion around your family dynamics.[7] For example, you can start by asking your parent(s) for advice on your own estate situation and let the conversation evolve from there. And, it’s best to have these conversations while everyone is of sound mind and body. As with many things in life, financial literacy can be a tremendous asset for you in this process. Make sure to educate yourself if you feel you need to. And one final thought: regardless of your financial situation, the process is likely to be complicated and time-consuming. You may need the help of an estate planning attorney to guide the process and fill in important and required details. Either way, the sooner you get started, the better. [1] Cerulli Asoociates. “Cerulli Anticipates $124 Trillion in Wealth Will Transfer Through 2048.” Cerulli.com. https://www.cerulli.com/press-releases/cerulli-anticipates-124-trillion-in-wealth-will-transfer-through-2048 (accessed January 7, 2026). [2] RBC Wealth Management. “RBC Wealth Management survey: A generational look at the Great Wealth Transfer shows financial advisors to play a pivotal role in a smooth transition.” Rbcwealthmanagement.com. https://www.rbcwealthmanagement.com/en-us/newsroom/2025-05-08/rbc-wealth-management-survey-a-generational-look-at-the-great-wealth-transfer-shows-financial-advisors-to-play-a-pivotal-role-in-a-smooth-transition (accessed January 7, 2026). [3] Wolinsky, Jacob. “Six Ways to Make Talking With Family About Estate Planning Easier.” Kiplinger.com. https://www.kiplinger.com/retirement/estate-planning/how-to-discuss-estate-planning-with-your-family (accessed January 13, 2026). [4] Id. [5] The Williams Group. “Succession Planning.” Thewilliamsgroup.org. https://www.thewilliamsgroup.org/services/succession-planning/ (accessed January 9, 2026). [6] Lee, Medora. “The Great Wealth Transfer’s begun. Are heirs-to-be ready to receive it? How to prepare.” USA Today. https://www.usatoday.com/story/money/personalfinance/2025/09/18/great-wealth-transfer-heirs-how-to-prepare/86040974007/ (accessed January 9, 2026). [7] 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, 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 be 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.​ SubscribeApple PodcastsSpotifyAndroidPandoraBlubrryby EmailTuneInDeezerRSSMore Subscribe Options

    8 min

  5. JAN 27

    Does “Buy Term and Invest the Difference” Really Work?

    Does “Buy Term and Invest the Difference” Really Work? Episode 368 – “Buy term and invest the difference” sounds like a great idea on paper. But does it actually work? More SML Planning Minute Podcast Episodes Transcript of Podcast Episode 368 Hello, this is Bill Rainaldi, with another edition of Security Mutual’s SML Planning Minute. In today’s episode: does “buy term and invest the difference” really work? For those who are unfamiliar, there are two basic types of life insurance: term and permanent. Term life insurance is pretty basic: you make a simple payment in exchange for a death benefit. The good news is you pay a specific premium for a specific number of years, say 20. Your premium purchases the specific death benefit you need, say $1 million. That’s it. There is no cash value, however Return of Premium options may exist, which would likely increase the premium. The bad news is that you must die to collect the death benefit for the benefit of your heirs. The premium can be relatively inexpensive. For example if you’re 30 years old and in good health, you might only pay $600 or so per year for your coverage under a 20-year term policy. If you survive the year, you typically pay the same amount the following year and each year thereafter until the 20-year term is complete. But the problem with term insurance is that it only covers you for the period you’ve chosen. What happens at the end of the 20 year period? You may need to start over, except now you’re 50 years old, and the cost to insure your life will be much higher, say somewhere around $2,300 per year. And this assumes that 20 years later, your health is still good enough to qualify for coverage, and at the most economical rates. On the other hand, various types of permanent life insurance exist, are generally more complex, and involve higher initial premiums. In the case of our 30-year old, the premiums may be three-to-four times the cost of term, or more. But if structured properly and premiums are paid on time, these types of policies can provide lifetime coverage, not just for a period of years. They also can potentially provide a cash value, which is the amount you would receive if you surrendered the policy for cash. You might also be able to borrow against, or withdraw some of the cash value later on. But some people are scared off by high permanent life insurance premiums compared to term. The difference is that permanent life insurance is designed to cover you for your entire life, not just a specific term. So, what do you do if you don’t want to—or can’t afford to—pay that much? Keep in mind that there are numerous ways to structure a permanent policy, and some of those can be considerably more affordable than others. There’s also an old adage in the insurance industry that you may have heard: “buy term and invest the difference.” In other words, you could buy the term policy, figure out what the premium difference is between the term and permanent policies, and invest that amount in some other place, like the stock market. The theory goes that if you’re disciplined and invest well, you’ll be better off in the long run. But does it actually work? The concept seems to make sense. You buy a term policy to cover your insurance needs temporarily and invest the difference in premium into a diversified portfolio. By the time your term policy expires, your new account may have accumulated enough money that you can now, essentially, self-insure for your permanent life insurance needs. The theory may work on paper, especially when you consider that so many of your liabilities, such as your home mortgage or a future college education for your child, are expected to be paid off in the future. But it’s not that simple. For one thing, you must commit to investing the difference every year. More on that in a minute. In addition it’s important to consider any tax advantages that permanent life insurance may offer. We spoke earlier about the cash value that a permanent policy can provide. That cash value typically grows on a tax-deferred basis. And if you structure the policy properly, cash withdrawals and loans may also receive favorable tax treatment. Then there’s the so-called “sequence of returns” risk. It’s a concept that many people—including some well-known-financial pundits—fail to consider. Sequence of returns risk is normally thought of in the context of retirement planning. It’s the issue faced when there is a market downturn late in your working years or early in your retirement years. When this happens, it could have a much bigger impact on your planned retirement income, simply because you don’t have the time you need to recover.[1] And it applies equally to “buy term and invest the difference.” Permanent life insurance, paired with another option such as guaranteed income from an annuity, can help protect against sequence of returns risk.[2] But perhaps most importantly, and we touched on this briefly a minute ago, “buy term and invest the difference” requires consistency and discipline over many years. Needs change significantly over time. The real world can be expected to throw a curve at you from time to time and even one missed investment can adversely affect the process. For example, what happens if you have a major medical emergency or other adverse financial development during one of those interim years? For many, the tendency is to skip your planned investments when money is tight, or the market is down. The entire “buy term and invest the difference” plan could crumble as a result. Is that worth the risk? Are there times when it makes sense? Absolutely. But remember that term insurance is designed for a temporary need. The simple truth is that permanent coverage can work better when the need is permanent. Confused as to which options are the best for you? A Security Mutual Life insurance agent can help. Your trusted life insurance agent will discuss and assess your needs and objectives, coordinating with you, your attorney and tax professional to review your situation and to determine the insurance plan that will best suit your needs and objectives. [1] U.S. Bank. “How sequence of returns risk can impact when to retire.” USBank.com. https://www.usbank.com/retirement-planning/financial-perspectives/sequence-of-returns-risk-impact-when-to-retire.html (accessed January 7, 2026). [2] Garcia, Gonzalo. “Why “Buy Term and Invest the Difference” No Longer Holds Up.” Linkedin.com. https://www.linkedin.com/pulse/why-buy-term-invest-difference-longer-holds-up-gonzalo-m-garcia-clu-fuwhe/ (accessed January 7, 2026). 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, 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 be 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.​ SubscribeApple PodcastsSpotifyAndroidPandoraBlubrryby EmailTuneInDeezerRSSMore Subscribe Options

    9 min

  6. JAN 20

    Being a Millionaire Ain’t What It Used to Be

    Being a Millionaire Ain’t What It Used to Be Episode 367 – It wasn’t that long ago that Regis Philbin drew massive viewers with his TV program Who Wants to be a Millionaire. Never mind the fact that the top prize was $1 million before taxes, which is considerably less than $1 million after taxes. But in today’s economy, being a millionaire does not necessarily project the same status it once did. Or does it? More SML Planning Minute Podcast Episodes Transcript of Podcast Episode 367 Hello, this is Bill Rainaldi, with another edition of Security Mutual’s SML Planning Minute. In today’s episode, being a millionaire ain’t what it used to be. It wasn’t that long ago that Regis Philbin drew massive viewers with his TV program Who Wants to Be a Millionaire. Never mind the fact that the top prize was $1 million before taxes, which is considerably less than $1 million after taxes. And while it’s much more noticeable today, even during Y2K, being a millionaire did not give the same status that it once did. Yet it’s an achievement many of us are shooting for. According to a new study, almost half of all workers (48 percent) have set $1 million as their retirement benchmark. That number was only 37 percent in 2024. But people aren’t necessarily optimistic about reaching that milestone. In fact, a mere 27 percent actually expect to get there.[1] Another recent study provides more information on this. An analysis of government survey data done by Bloomberg indicates that there are more than 24 million millionaire households, or almost one in five. But a lot of that wealth is sealed into 401(k)s, IRAs and home equity, none of which is easily accessible. This is especially true for households in the lower end of the millionaire spectrum, with a net worth between $1 million and $2 million, which on average, have 66 percent of their wealth locked into these types of assets.[2] It’s important not to minimize what so many people have accomplished. $1 million is a great emotional milestone. And it’s still a lot of money. The median household net worth is considerably less: about $193,000.[3] But nowadays, you might not be able to live off $1 million. It could end up lasting you a long time, but it all depends on where you live (which you can control), your health and longevity (which you might not be able to control), and how much you spend on things like housing, health care and other expenses. Every situation is different, of course. The cost of living varies widely throughout the United States. According to research by Forbes magazine, the average cost of living, defined as “housing costs, transportation, health care, food and income taxes,” is the highest in Hawaii at $55,491. Mississippi comes in the lowest with an average of $32,336. Of course, this is just for the essentials. The figures don’t include entertainment, travel or anything else.[4] When it comes to longevity, average life expectancy has some quirks to it. For one thing, each year you age, your remaining life expectancy goes down, but not by a full year. This is a statistical oddity due to the fact that you’re still here, but a few of your peers are not. For example, if you are a male age 60, your remaining life expectancy is 23.3 years, or to age 83.3. But if you make it to age 65, your new life expectancy is 19.3 years, or to age 84.3.[5] There are gender differences as well. For people age 65, females, on average, outlive males by approximately 2.7 years.[6] These are all just averages, of course. But the resulting life expectancies are often longer than people might anticipate. Here’s another unique statistic: For a married couple age 60, there is approximately a 60 percent chance that at least one of the two will live past age 90.[7] That may or may not be you, but the longer you expect to live, the more concerned you will be about whether your $1 million is enough. How long will it last, and will you still be around when it runs out? Here are three hypotheticals compiled by SmartAsset. In the first one, assume you start with $1 million and get a 6 percent return. Also assume you are in a 24 percent tax bracket and you spend $5,000 per month. In that scenario, your $1 million should last you 30 years. But in the second scenario, assuming your return goes down to 5 percent, the well would run dry in 26 years. In the third scenario, your return goes up to 7 percent. But your tax bracket is also higher: 32 percent, and your withdrawal goes up to $6,000 per month. With those assumptions, your savings would only last 23 years.[8] Keep in mind that these examples do not include other sources of income such as Social Security. The maximum amount of Social Security you can collect is $5,181[9] per month before tax and Medicare charges, but that assumes you paid in the maximum and collect at age 70, which less than 10 percent of people do.[10] The average benefit is approximately $1,959 per month.[11] But when it comes to retirement income, the one huge advantage Social Security has is that it is indexed for inflation, although the Cost of Living Adjustment (or COLA) increases don’t always keep up. So, how much you can accumulate for retirement is important, but it’s not everything. Perhaps some of us are focusing on the wrong thing. Maybe it’s just as important to have an income plan as it is to have an accumulation plan.[12] In other words, no matter how much you save, it’s still only the first half of the journey. [1] Randall, Steve. “Nearly half of workers peg retirement target at $1M as anxiety climbs.” Investmentnews.com. https://www.investmentnews.com/retirement-planning/nearly-half-of-workers-peg-retirement-target-at-1m-as-anxiety-climbs/263546 (accessed December 15, 2025). [2] Steverman, Ben, Tartar, Andre and Davidson, Stephanie. “America Is Minting Lots Of Cash-Strapped Millionaires.” Fa-mag.com. https://www.fa-mag.com/news/america-is-minting-lots-of-cash-strapped-millionaires-84395.html (accessed December 12, 2025). [3] Kane, Libby. “The net worth it takes at every age to be richer than most people you know.” Businessinsider.com https://www.businessinsider.com/net-worth-data-american-wealth-age-2025-4 (accessed December 12, 2025). [4] Rothstein, Robin. “Examining The Cost Of Living By State.” Forbes.com. https://www.forbes.com/advisor/mortgages/cost-of-living-by-state/ (accessed December 15, 2025). [5] Social Security Administration. “Retirement & Survivors Benefits: Life Expectancy Calculator.” Ssa.gov. https://www.ssa.gov/OACT/population/longevity.html (accessed December 15, 2025). [6] The Global Statistics. “Life Expectancy by Age in the US 2025 | Stats & Facts.” Theglobalstatistics.com. https://www.theglobalstatistics.com/life-expectancy-by-age/ (accessed December 15, 2025). [7] Social Security Administration. “Longevity Visualizer.” SSA.gov. https://www.ssa.gov/policy/tools/longevity-visualizer/index.html (accessed December 15, 2025). [8] Smartasset.com. “Is $1M Enough to Retire Comfortably in 2025? Replace Guesswork With a Fiduciary-Built Plan.” Insights.smartasset.com. https://insights.smartasset.com/sem/how-long-will-1m-last-in-retirement?utm (accessed December 15, 2025). [9] Social Security Administration. “Worker with steady earnings at the maximum level since age 22.” Ssa.gov. https://www.ssa.gov/OACT/COLA/examplemax.html (accessed December 15, 2025). [10] Royal, James. “What age do most Americans take Social Security?” Bankrate.com. https://www.bankrate.com/retirement/when-do-most-americans-take-social-security/ (accessed December 15, 2025). [11] Horton, Cassidy. “What’s the average Social Security check in Dec. 2025?” Aol.com. https://www.aol.com/finance/retirement-planning/article/average-social-security-benefit-payment-december-2025-195039610.html (accessed December 15, 2025). [12] LaPonsie, Maryalene. “Can You Retire on $1 Million? Here’s How Far It Will Go in 2025.” USNews.com. https://money.usnews.com/money/retirement/articles/can-you-retire-on-one-million (accessed December 15, 2025). 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, and we’ll talk to you next time. Tax law

    9 min

  7. JAN 13

    Going Paperless: To Be or Not to Be?

    Going Paperless: To Be or Not to Be? Episode 366 – Over the years, it seems that each of us—whether by choice or not– has been moving gradually from paper statements and checks to digital. Is it time to cut the cord completely? More SML Planning Minute Podcast Episodes Transcript of Podcast Episode 366 Hello, this is Bill Rainaldi, with another edition of Security Mutual’s SML Planning Minute. In today’s episode, is it time to go paperless? Like many people, I tend to save stuff: like credit card bills, bank statements, paper receipts, etc. I throw them into an empty file drawer until the end of the year. Then, on an annual basis, I’ll sort through this giant pile of paper, organize everything and place it into a series of folders, which take up space in my filing cabinet. It all leads to one inevitable question: Why? What’s the point of spending all this time organizing all this paperwork that, likely, I’m never going to look at again. Certainly, some items, such as cards and notes from family members, are worth saving. But what about the other 95 percent? For many of us, it’s simply the force of habit. Going digital has its advantages. For one thing, you may find that once you’re used to it, digital documents can be easier to organize and access, and you’ll save time in the process. Not to mention the space you can save in your house, and the overall environmental impact. Has the time come for most of us to go fully paperless? If so, where do we even begin? The process often starts with a few small steps such as getting some of your statements by email or paying some of your bills using a direct transfer rather than a paper check. But there’s still a lot of paper. What’s the next phase if you want to get more organized? Here are a few steps you can take: Switch to online billing and statements. Using online tools with financial institutions and service providers, such as your cellular company, can make a big dent in your paper clutter. The truth is, if you need to look up one of your old statements, it’ll probably take less time to find it online than if you had to dig through your paperwork. Pay bills online. You can schedule your online payments through your bank. They can make your payments automatically every month, or if you don’t want to go that far, they can automatically remind you when a payment is due.   When was the last time you sent a check somewhere, only to have it lost in the mail? This is one way to avoid such a hassle. Plus, in most cases, by paying online you can decide exactly what day the other party receives the funds.   There are limits, of course. Your landlord may still want a paper check. Same thing with certain vendors, like your landscaper or cleaning service if you have one. So at least for now, no matter how far you want to take this, you’re still going to be writing a few checks. Digital note-taking. If you take a lot of notes during meetings, whether for business or personal reasons, a digital note-taking platform can help. And not just with the process itself, but also with providing easy access later on. Some of the most well-known platforms are Evernote, Microsoft OneNote, and Notion.[1] Your to-do list. Most smartphones have a “to-do” app which can help organize your essential work and/or personal tasks. They make it very hard to forget your priority items. Taking advantage of digital signatures. Digital signature tools eliminate the need to print and physically sign important documents. It’s a good way to save your time and resources. Among the most popular of these tools are Adobe Acrobat Sign and Docusign.[2] Storing your digital information. You’ll need to select a place to keep your data safe and organized. Some of the most popular are Google Drive, Microsoft OneDrive and Dropbox.[3] One more tip: It might be best to start a project like this on a going-forward basis. That is, try not to think much about the big pile of paperwork you already have. There’s no need to feel overwhelmed by that backlog. You’ll get to it someday. And when you do, you might consider purchasing a quality paper shredder to help you through your pile. There are also shredding services you can contract that will pick up any documents you set aside for disposal. For now, it’s more important just to get started with something. But also note that there are limits to how far you can go. Not many people ever truly achieve a 100 percent digital lifestyle. There are some items that you’ll still need to keep a paper copy of, such as wills, birth certificates, title deeds and stock certificates. You might also want to keep a paper printout of your most important online account data, perhaps in a safe. It could save time and money for your family should something happen to you. But more than that, there are likely some paper items that you will never be able to replace. I received a birthday card from my grandmother in 1976 with a crisp new $5 bill in it. It still sits on my desk with the $5 intact. I wouldn’t trade it for anything. [1] Erdem. “How to Go Paperless: A Step-by-Step Guide.” Clinked.com. https://www.clinked.com/blog/go-paperless (accessed December 31, 2025). [2] Id. [3] Duffy, Jill. “7 Easy Tips to Finally Go Paperless.” PCMag.com. https://www.pcmag.com/how-to/7-easy-tips-to-finally-go-paperless (accessed December 31, 2025). 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, 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 be 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.​ SubscribeApple PodcastsSpotifyAndroidPandoraBlubrryby EmailTuneInDeezerRSSMore Subscribe Options

    8 min

  8. JAN 6

    Important Tax Considerations for Newlyweds

    Important Tax Considerations for Newlyweds Episode 365 – Have you gotten married recently? The next steps are considerably less exciting. There are some important financial steps you need to take. More SML Planning Minute Podcast Episodes Transcript of Podcast Episode 365 Hello, this is Bill Rainaldi, with another edition of Security Mutual’s SML Planning Minute. In today’s episode, some important tax considerations for newlyweds. So, congrats on your recent marriage. If you’re like most people, your wedding probably involved a significant amount of planning and detail: where, when, who to invite, who not to invite, where to seat everybody, etc. You may be glad you to get through such an important life-changing event, and you’re ready to move on with the rest of your life. But you’re not done quite yet. There are a number of financial details you may need to address. Here are just a few of them: Name change. If there is a name change involved, you’ll need to report it to the Social Security Administration (SSA). When you file your next tax return, the name on that return needs to match what the SSA has on file. The Internal Revenue Service, or IRS, recommends that you file a new Form SS-5, Application for a Social Security Card, which is available at SSA.gov.[1] Update your address. Make sure you let the IRS, the Postal Service, and your employer know about any address change. Coordinate your benefits. You might now have access to a better—or cheaper—health insurance plan.[2] You’ll need to look things over with your new spouse. Decide on your new filing status. Once you’re married, you can choose to file jointly or separately each year. While the IRS says that filing jointly is usually less expensive, they recommend that you calculate it both ways before you decide. Also, it doesn’t really matter what day you got married. Even if it’s on New Year’s Eve, the rules state that for tax purposes, you’re considered married for the entire year.[3] Married filing separately. Once they’re married, few people elect to file their income taxes separately. This is because it usually results in the highest combined taxes. But some people do this anyway because the individual filing the return is the only one liable for any tax bills and errors on that return. It also happens when the two spouses decide, for whatever reason, that they would prefer to only be responsible for their own taxes.[4] Marriage penalty. The so-called “marriage penalty” occurs when a married couple ends up paying more income taxes than they would have had they remained single. This becomes more likely when both of you have high earnings and close to the same income. On the other hand, if you and your spouse are at different income levels, odds are that there will actually be a marriage bonus, that is, the tax on your joint income will be less than it would be had you filed separately.[5] Standard deduction. Nowadays, only about 10 percent of taxpayers itemize their deductions.[6] The rest use the standard deduction. For 2026, the standard deduction is $32,200 for married couples filing jointly, and $16,100 for single taxpayers. These figures were adjusted as part of the One Big Beautiful Bill passed in July of 2025. On some occasions, getting married can have an impact on whether you itemize or not. Previous debts. If your new spouse owes money for previous taxes or child support, any future joint tax refund could be reduced as a result.[7] Separate homes. If you own two separate houses, it’s likely that you’ll be selling one of them when you get married. And if you’re selling at a gain, you may get extra benefits from being married. Once you’re married, you get an addition to the amount of tax-free gain you can take. The amount is $250,000 for single taxpayers, but $500,000 for married taxpayers. The rules are a bit tricky, though, and you need to make sure you meet all the qualifications.[8] Beneficiary and Will Review. This one may or may not result in tax consequences, but it is important to note. When getting married, it’s critical for each spouse to review any existing wills, plans or benefits (such as life insurance) that assigned a beneficiary or beneficiaries. Unless restricted by a court order, it’s usually preferable for the new spouse to be assigned as beneficiary in each of those examples. So be sure not to overlook this step in the process and make any required changes when getting married. Getting married represents a big change for just about anybody, and not just in your personal life. Your financial life is also likely to be affected in a number of different ways. But as long as you know what to expect, the additional stress involved should be manageable. Let the fun begin! [1] Internal Revenue Service. “Newlyweds tax checklist.” IRS.gov. https://www.irs.gov/newsroom/newlyweds-tax-checklist (accessed December 4, 2025). [2] TurboTax Expert. “Getting Married: What Newlyweds Need to Know.” Intuit.com. https://turbotax.intuit.com/tax-tips/marriage/getting-married/L0DvEUlEC (accessed December 4, 2025). [3] Internal Revenue Service. “Essential tax tips for marriage status changes.” IRS.gov. https://www.irs.gov/newsroom/essential-tax-tips-for-marriage-status-changes#:~:text (accessed December 22, 2025) [4] Willetts, Jo. “Tax tips for newly married couples.” Jacksonhewitt.com. https://www.jacksonhewitt.com/tax-help/tax-tips-topics/family/tax-tips-for-newly-married-couples/ (accessed December 5, 2025). [5] Id. [6] Tax Policy Center. “What are itemized deductions and who claims them?” Taxpolicycenter.org.https://taxpolicycenter.org/briefing-book/what-are-itemized-deductions-and-who-claims-them (accessed December 4, 2025). [7] Manganaro, John. “9 Key Tax Considerations for Newlyweds.” ThinkAdvisor.com. https://www.thinkadvisor.com/2025/06/27/9-key-tax-considerations-for-newlyweds/ (accessed December 4, 2025). [8] TurboTax Expert. “Getting Married: What Newlyweds Need to Know.” Intuit.com. https://turbotax.intuit.com/tax-tips/marriage/getting-married/L0DvEUlEC (accessed December 4, 2025). 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, 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 be 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.​ SubscribeApple PodcastsSpotifyAndroidPandoraBlubrryby EmailTuneInDeezerRSSMore Subscribe Options

    8 min
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About

SML Planning Minute shares concise and entertaining financial ideas, for individuals, families, and business owners.

Information

  • Creator
    Security Mutual Life Advanced Markets Team
  • Years Active
    2018 - 2026
  • Episodes
    150
  • Rating
    Clean
  • Copyright
    © Security Mutual Life Insurance Company of New York • All rights reserved
  • Show Website
    SML Planning Minute

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