Author: blogs2025

  • PFIC Rules for Indian NRIs in USA: Tax Impact & Solutions

    PFIC Rules for Indian NRIs in USA: Tax Impact & Solutions


    Confused about PFIC rules for Indian NRIs in USA? Learn how PFIC affects your Indian mutual funds, tax filing, and smart alternatives to avoid penalties.

    If you’re an NRI living in the US and investing in Indian mutual funds or other foreign assets, then you might have come across a scary term called PFIC or Passive Foreign Investment Company. Many NRIs panic when they hear this, mainly because of the complex taxation and reporting rules around it. In this article, I’ll break it down for you in simple terms so that you know what PFIC is, how it affects you as an NRI, and what steps you can take to handle it smartly.

    PFIC Rules for Indian NRIs in USA: Tax Impact & Solutions

    PFIC Rules for Indian NRIs in USA

    What is PFIC?

    PFIC stands for Passive Foreign Investment Company. It is a concept under the US Internal Revenue Code (IRC Section 1297). This rule was introduced to prevent US taxpayers from deferring tax or converting ordinary income to capital gains through foreign investments that generate passive income.

    So, what exactly qualifies as a PFIC?

    A foreign (non-US) company is considered a PFIC if it meets either of the following conditions in a tax year:

    1. Income Test: 75% or more of the company’s gross income is passive income (like interest, dividends, capital gains, rents, royalties).
    2. Asset Test: 50% or more of the company’s assets produce or are held to produce passive income.

    Why Should NRIs in the US Care About PFIC?

    Let’s say you are an NRI living in the US and you are investing in Indian mutual funds, ETFs, or ULIPs. From the US tax perspective, many of these investment instruments qualify as PFICs.

    This means:

    • The IRS considers these investments as tax shelters, and
    • You will be subject to punitive taxation rules and mandatory filing requirements.

    Common Indian Investments That May Be Considered PFICs

    • Mutual Funds (equity, debt, or hybrid)
    • ULIPs (Unit Linked Insurance Plans)
    • Exchange Traded Funds (ETFs)
    • REITs or Infrastructure Investment Trusts (InvITs)

    This is because most of these funds are registered as foreign corporations in India and earn passive income. Hence, under PFIC rules, they become taxable under special rules in the US.

    How is a PFIC Taxed in the USA?

    If you hold a PFIC, you have three options for reporting and taxation under the US tax law:

    1. Default Taxation (Excess Distribution Method) – Most Penal

    • Under this method, any gains from the sale or income (dividends) from PFIC are taxed at the highest marginal tax rate applicable in the year the income is recognized.
    • The IRS applies interest charges as if the income had been earned and untaxed over several years.
    • This is extremely punitive and complicated.

    Example: You sold an Indian mutual fund with Rs.5 lakh gain. Instead of long-term capital gains (20% in India), IRS may tax it as if you earned Rs.1 lakh each year over 5 years and didn’t pay tax — and add interest.

    2. Qualified Electing Fund (QEF) Election

    • You must obtain annual information from the PFIC to declare your share of income and capital gains.
    • This election is rarely practical because Indian mutual fund houses don’t provide QEF statements or financial data in the required IRS format.
    • Hence, for most NRIs, this option is not feasible.

    Problem: No Indian mutual fund (SBI, HDFC, ICICI, etc.) provides these QEF statements. So, this is not practical for Indian investors.

    3. Mark-to-Market (MTM) Election

    • If you elect this method, you declare annual unrealized gains/losses based on the fair market value of your investment at year-end.
    • Gains are taxed as ordinary income, while losses are allowed to the extent of prior-year gains.
    • However, this is applicable only for publicly traded PFICs (which most Indian mutual funds are not).
    • Again, not practical for most Indian investments.

    Problem: Most Indian mutual funds are not traded on US-recognized exchanges, so this method is unavailable for most NRIs.

    Bottom line: For most NRIs investing in Indian mutual funds, taxation under the default PFIC rules applies — which is the most complex and harsh.

    Reporting Requirements: Form 8621

    If you are a US person (citizen or resident alien), and you own PFICs directly or indirectly, you are required to file Form 8621 along with your US tax return.

    • One form is required per PFIC investment per year.
    • If you hold multiple mutual funds, you’ll need to file multiple forms (If you hold 10 mutual funds, you need 10 forms.)
    • Even if you didn’t sell or earn anything, you still have to report.
    • No minimum threshold — even a Rs.10,000 investment is reportable.
    • Missing this form can keep your entire tax return open for audit forever.
    • Failing to file Form 8621 can result in penalties, delays in tax processing, and extended audit windows.

    Many tax preparers charge high fees (CPA costs: $100 to $300 per form — which adds up quickly!)to file Form 8621 because of its complexity. If you don’t file it correctly, you might end up with IRS scrutiny or overpaying taxes.

    Practical Examples for Indian NRIs

    Let’s make it real with a simple example.

    Scenario:

    • You moved to the US in 2022 on H1B.
    • You already had Rs.20 lakhs in Indian mutual funds (5 different schemes).
    • You didn’t sell anything in 2022.
    • You think there’s no tax — but that’s wrong.

    IRS says:

    File 5 Forms 8621 for each mutual fund.

    You may owe tax if the fund paid dividends or showed gains.

    Even unrealized gains may be taxed under the default method.

    Not filing = Audit risk + Penalties.

    Latest Developments and IRS Guidance (As of 2024-2025)

    Here are the emerging PFIC-related developments and enforcement trends you must know as an NRI:

    1. Increased IRS Scrutiny Under FATCA & CRS

    The IRS is using data shared under FATCA (Foreign Account Tax Compliance Act) and Common Reporting Standards (CRS) to identify foreign investment holdings of US residents. NRIs with undeclared mutual funds or ULIPs are increasingly at risk of:

    • Audits
    • Penalties for missed filings (especially Form 8621, FBAR, Form 8938)

    Even if you have no taxable gain, not filing Form 8621 when required may leave your entire return open to audit indefinitely.

    2. Tax Software Integration Still Lags

    Though platforms like TurboTax and H&R Block now flag PFICs, they don’t support Form 8621 directly. Many NRIs are being forced to file via CPAs or manually using fillable PDF forms.

    This increases the cost of tax preparation, often:

    • $100–$300 per Form 8621 per fund per year

    If you have 10 Indian mutual funds, your filing cost alone may run into thousands of dollars.

    3. No Indian Mutual Fund AMC Offers QEF Reporting

    A Qualified Electing Fund (QEF) election is the most tax-friendly way to handle PFICs — but it requires specific annual disclosures from the fund (income, capital gains, etc.) in IRS format.

    As of 2025:

    • No Indian AMC (SBI, HDFC, ICICI, etc.) provides QEF statements.
    • So QEF election is not possible.
    • You’re left with Default or Mark-to-Market (MTM) — both tax-heavy.

    4. Mutual Fund Units May Be Deemed Sold Even Without Selling

    If you make a gift, switch plans (from regular to direct), or transfer funds between AMCs, it may be treated as a “constructive sale” for US tax purposes, triggering PFIC taxation.

    5. IRS Watch on Cryptocurrency and PFIC Overlaps

    Some Indian crypto-based ETFs and structured notes are beginning to emerge, which also fall under PFIC classification. Expect tighter rules and tracking on:

    • Crypto-linked funds
    • Hybrid products combining equity + crypto

    Indian Investments That Are NOT PFICs

    Investment Type PFIC Status Reason
    Direct Indian Stocks (Equity) Not PFIC You own the company directly — not pooled funds.
    NRE/NRO/FCNR Bank Deposits Not PFIC Fixed deposits, not investment companies.
    Government Bonds (G-Secs, SDLs, T-Bills) Not PFIC Issued by Govt. of India.
    PPF / EPF Not PFIC Government retirement schemes, not pooled funds.
    Sovereign Gold Bonds (SGBs) Not PFIC Issued by RBI.
    Traditional LIC Plans (non-ULIP) Not PFIC Treated as insurance, not investment pool.
    Direct Real Estate (Physical property) Not PFIC Not a fund; you directly own the asset.

    Indian Investments That ARE PFICs

    Investment Type PFIC Status Reason
    Indian Mutual Funds (Equity/Debt) PFIC Pooled funds earning passive income.
    ULIPs (Investment-linked plans) PFIC Treated as investment companies by IRS.
    ETFs by Indian AMCs PFIC Corporate structures generating passive returns.
    REITs/InvITs PFIC Structured like companies, distribute passive income.
    AIFs (Cat I & II) PFIC Investment fund nature.
    Portfolio Management Services (PMS) PFIC Usually pooled — treated like PFICs.

    What Are Your Options as an Indian NRI in the USA?

    Option 1: Avoid PFICs Altogether

    • If you are planning to stay in the US long term, it’s simpler to avoid Indian mutual funds.
    • Invest in US-based India-focused ETFs (like INDA, EPI).
    • These are not PFICs, easier to report, and have lower tax headaches.

    Option 2: Shift to Non-PFIC Indian Assets

    Consider moving your investments to:

    • Direct Indian stocks (e.g., Reliance, TCS).
    • NRE/NRO FDs – though interest is taxable, they’re not PFICs.
    • Government bonds – G-Secs, T-Bills, or RBI Floating Rate Bonds.
    • SGBs – offers gold exposure without PFIC classification.

    Caution: Selling existing PFICs may trigger taxes — consult a tax expert first.

    Option 3: Retain PFICs But File Diligently

    If you prefer to hold Indian mutual funds:

    • Budget for annual CPA filing costs.
    • File Form 8621 properly.
    • Understand that taxation will be harsh (especially on gains).

    Common Mistakes NRIs Make

    Thinking PFIC rules apply only when you sell – Wrong.

    Skipping Form 8621 due to small balances – Wrong.

    Gifting Indian mutual funds to avoid PFIC – May trigger “constructive sale.”

    Believing ULIPs are exempt – Wrong, IRS treats them as PFICs.

    Ignoring older Indian investments – IRS looks at current holding, not purchase date.

    Frequently Asked Questions (FAQs) – PFIC for NRIs in the US

    1. Does PFIC apply to investments made before moving to the US?

    Yes, it can apply, and this is where many NRIs get caught off guard.

    • The IRS does not care when or where you invested. If you’re now a US tax resident, all your global investments — including those made in India before moving — must be reported as per US tax laws.
    • So, even if you invested in Indian mutual funds 5 years ago, and moved to the US last year, you may still need to:
      • File Form 8621 for each mutual fund (or PFIC) you continue to hold.
      • Report income, gains, and even unrealized gains, depending on the PFIC method applied.

    Example: You bought Rs.10 lakhs of mutual funds in 2020 while in India. In 2024, you move to the US. From the day you become a US tax resident, any gains or income generated are taxable in the US, and PFIC rules kick in — even if you didn’t sell.

    2. What if I never sold my Indian mutual funds? Do I still need to report them?

    Yes. Just holding a PFIC like an Indian mutual fund requires reporting.

    • Whether or not you sell, you must file Form 8621 every year.
    • There’s no de minimis threshold — even small balances are reportable.

    Skipping the filing can leave your entire US tax return open for audit indefinitely.

    3. Can I avoid PFIC by investing through a US-based brokerage in Indian ETFs?

    Yes. Many NRIs prefer using US-domiciled ETFs (like iShares MSCI India ETF – INDA or WisdomTree India Earnings Fund – EPI) that provide exposure to Indian markets.

    • These are not PFICs, as they’re structured under US tax laws.
    • Gains and dividends are treated like any other US investment — simpler reporting and lower tax impact.

    4. Can I gift or transfer Indian mutual funds to family members in India to avoid PFIC filing?

    Technically yes, but it’s not that simple.

    • A gift or transfer is often considered a “constructive sale” by the IRS, triggering PFIC taxation.
    • You may owe taxes as if you sold it at fair market value, even if you didn’t receive any money.
    • Always consult a cross-border CPA before doing this.

    5. Is a ULIP still a PFIC if it has an insurance component?

    Yes. Even though ULIPs are marketed as insurance in India, they’re treated as investment funds by the IRS if they:

    • Don’t meet US insurance definitions, or
    • Accumulate passive investment income

    ULIPs are almost always treated as PFICs unless structured carefully — which Indian insurers don’t usually do with US compliance in mind.

    6. Can I switch from Regular to Direct Plan in mutual funds without triggering PFIC taxes?

    Unfortunately, no.

    • Any switch is considered a sale and a new purchase.
    • The IRS may treat it as a disposition of PFIC shares, triggering taxation under the default PFIC method (which can be quite punitive).

    7. I’ve held Indian mutual funds for over 10 years. Should I sell them now?

    Selling PFICs may be wise to avoid future complexities, but:

    • The act of selling triggers PFIC tax rules if done while you’re a US resident.
    • It’s best to do a PFIC impact analysis with a tax advisor.
    • You may explore electing the Mark-to-Market method (if eligible), which taxes gains annually instead of on sale — sometimes simplifying the burden.

    8. Can I use the QEF method to report Indian mutual funds?

    No — at least, not practically.

    • The QEF (Qualified Electing Fund) method is the most tax-friendly PFIC reporting method.
    • But it requires annual statements from the fund in a format that complies with IRS rules.
    • No Indian AMC provides these — so QEF is not available for Indian mutual funds today.

    9. Is EPF or PPF considered PFIC?

    No.

    • EPF and PPF are government-backed retirement schemes, not pooled passive investment companies.
    • However, the interest earned is taxable in the US (even if tax-free in India).
    • You may still need to report them under FBAR or FATCA if balances exceed thresholds.

    10. What happens if I don’t report my PFICs to the IRS?

    There are serious risks:

    • IRS may impose penalties for non-disclosure, especially for high-value assets.
    • You may lose eligibility for statute of limitations — i.e., your entire tax return stays open for audit indefinitely.
    • Future green card or citizenship processes may be affected by tax non-compliance.

    Filing even a zero-dollar Form 8621 can protect you from these consequences.

    What About NRIs in Other Countries?

    The PFIC rule is only applicable to US tax residents or citizens. If you are an NRI living in UAE, UK, Singapore, Australia, etc., then PFIC does not apply to you.

    However, each country may have its own tax rules for foreign investments. For example:

    • UK has its own reporting fund regime.
    • Australia taxes foreign mutual funds differently.

    But PFIC rules are unique to the United States — and infamously complex.

    The PFIC rule is one of the most complicated tax regulations faced by NRIs in the US. If you are investing in Indian mutual funds or similar instruments, you are very likely dealing with PFICs — which means higher taxes, complex filings, and more compliance.

    It is not illegal to invest in PFICs, but you must be careful about reporting them correctly and understanding the tax consequences.

    As a fee-only financial planner, my advice is always to simplify your financial life. If the costs and compliance burden of PFIC rules outweigh the returns, then it may be better to explore US-domiciled alternatives or direct investments in India that do not fall under PFIC classification.

    When in doubt, always consult a qualified cross-border tax expert.

    Conclusion – If you are an Indian NRI living in the US, dealing with PFIC rules can be confusing and stressful. The IRS treats many common Indian investments like mutual funds, ULIPs, ETFs, and REITs as PFICs — which means more paperwork, higher taxes, and extra costs. But don’t worry — you can still manage it smartly. Once you understand which investments are considered PFICs and how they are taxed, you can make better decisions. Instead of mutual funds or ULIPs, you can choose simpler options like direct Indian stocks, NRE bank deposits, or US-based ETFs that invest in India — these are easier to manage and don’t fall under PFIC rules. You don’t have to stop investing in India completely. Just plan it carefully based on your current country of residence and tax rules. It’s always wise to take help from a cross-border tax expert and a fee-only financial planner who understands both US and Indian rules. With the right guidance, even complicated rules like PFIC can be handled smoothly and won’t come in the way of your financial goals.

    For Unbiased Advice Subscribe To Our Fixed Fee Only Financial Planning Service

  • Holiday Gift Guide 2024 | Powercakes

    Holiday Gift Guide 2024 | Powercakes


    Holiday Gift Guide 2024

    December 8, 2024 –

    Happy Holiday Season, friends!! I can’t believe we’re already into the most wonderful time of the year (other than the summer, for me)!

    If you’re like me, I have a few “secret santa” gifts I need to get (asap) as well as get the hubs some surprises under the tree.

    If I had to make a list myself, I’d be putting all practical items as I wear these day in and day out with being a Trainer. Since I get to live in comfort, I can’t complain, and want to pass that along to others.

    The funny thing was this morning one of our in-house Physical Therapists at the gym said to be “Kasey you’re just one big adidas symbol” and I laughed because, well, it’s true! I had an olive green matching Fleece set on and I’d be lying if I said I didn’t have one in at least 4 different colors on rotation.

    So, whether you want to get yourself something special around this time of the year or pass along that comfort, here are my top adidas picks for the holidays!

    Holiday Gift Guide 2024 | Powercakes
    Women’s Hoodies: Guys, you can ask everyone in my gym about my go-to look as it’s gotten colder because THESE are it! I am totally obsessed with these Essentials Oversized Fleece Hoodies. I wear them paired with the Essentials Fleece Joggers either every or every other day. If I’m not in the oversized hoodie, I’m 100% in the Essentials Crew Fleece Sweatshirt because I’M IN MY COMFORT ERA.

    adidas Ultraboost 5X Running Shoe: I recently just did a blog post all about my love for these shoes! They aren’t too thick but not too thin – a perfect in between! Plus, I’m obsessed with the color.

    Tracksuit: I mean, can we go wrong with a matching set? No. If you don’t want the fleece options I listed above (my current wardrobe, lol) any of the adidas tracksuits are always in style!

    Sports Bra: adidas is known for their sports bras and they are also known to last. I personally go with their light support options, but any option you choose would be great. They also have ones with cute designs and also cute straps!

    Waterproof Hiking Shoes: These Terrex Free Hiker 2.0 Gore-Tex Hiking Shoes would be the perfect gift for your avid hiker! I, myself, love hiking but hate when my shoes get wet. These would provide support, comfort, & keep away the wet.

    Men’s Sneakers: Not only would these make a great gift for the guy in your life, but I’d honestly snag a pair for myself as well! I’ve been on the hunt for shoes to wear with jeans this year and these Gazelle Indoor Shoes have been all the rage!

    To add to any of these, you can’t go wrong with their socks, bags, or beanies!

    I hope you have a wonderful holiday season!

    Be true to you,

    Kasey

  • HP: How To Earn 0 A Month Ahead Of Q2 Earnings – HP (NYSE:HPQ)

    HP: How To Earn $500 A Month Ahead Of Q2 Earnings – HP (NYSE:HPQ)



    HP Inc. HPQ will release its second-quarter financial results after the closing bell on Wednesday, May 28.

    Analysts expect the Palo Alto, California-based company to report quarterly earnings at 80 cents per share, down from 82 cents per share in the year-ago period. HP projects quarterly revenue of $13.15 billion, compared to $12.80 billion a year earlier, according to data from Benzinga Pro.

    On May 21, Morgan Stanley analyst Erik Woodring maintained HP with an Equal-Weight rating. He also raised the price target from $25 to $29.

    With the recent buzz around HP, some investors may be eyeing potential gains from the company’s dividends. Currently, HP offers an annual dividend yield of 4.09% — a quarterly dividend of 29 per share ($1.158 a year).

    To figure out how to earn $500 monthly from HP, we start with the yearly target of $6,000 ($500 x 12 months).

    Next, we take this amount and divide it by HP’s $1.158 dividend: $6,000 / 1.158 = 5,181 shares.

    So, an investor would need to own approximately $146,830 worth of HP, or 5,181 shares to generate a monthly dividend income of $500.

    Assuming a more conservative goal of $100 monthly ($1,200 annually), we do the same calculation: $1,200 / $1.158 = 1,036 shares, or $29,360 to generate a monthly dividend income of $100.

    Note that dividend yield can change on a rolling basis, as the dividend payment and the stock price both fluctuate over time.

    The dividend yield is calculated by dividing the annual dividend payment by the current stock price. As the stock price changes, the dividend yield will also change.

    For example, if a stock pays an annual dividend of $2 and its current price is $50, its dividend yield would be 4%. However, if the stock price increases to $60, the dividend yield would decrease to 3.33% ($2/$60).

    Conversely, if the stock price decreases to $40, the dividend yield would increase to 5% ($2/$40).

    Further, the dividend payment itself can also change over time, which can also impact the dividend yield. If a company increases its dividend payment, the dividend yield will increase even if the stock price remains the same. Similarly, if a company decreases its dividend payment, the dividend yield will decrease.

    HPQ Price Action: Shares of HP gained by 1.3% to close at $28.34 on Tuesday.

    Read More:

    Image: Shutterstock

  • Cheryl Reeve isn’t saying if she’ll continue as the Team USA coach as 2028 Olympics loom

    Cheryl Reeve isn’t saying if she’ll continue as the Team USA coach as 2028 Olympics loom


    MINNEAPOLIS — When Sue Bird was appointed as the Managing Director for the U.S. women’s national basketball team earlier this month, Cheryl Reeve reached out to congratulate her.

    Reeve, the 58-year-old longtime coach of the WNBA’s Minnesota Lynx, coached Team USA to its 10th Olympic gold medal last summer in Paris, France.

    “I was thrilled for USA Basketball to appoint Sue to the position, and I thought the timing of it was great,” Reeve said last week before the Lynx played the Dallas Wings. “The evolution — you know, it’s hard to change something. It’s been so successful for so many years. And so, I give leadership, General (Martin) Dempsey, (CEO) Jim Tooley, just a lot of credit for that decision.”

    But beyond that, Reeve says she and Bird haven’t talked about anything else, such as, if Reeve will continue to be the head coach of the senior national team.

    “I congratulated Sue, and that’s been the extent of our conversation,” Reeve said when asked by SB Nation if she planned to coach the team in 2026 or 2028.

    And so, with the FIBA World Cup approaching in about a year, and the next Summer Games on U.S. soil looming in 2028, it’s unclear who the next coach of the ultra successful U.S. women’s basketball team will be.

    At her introductory press conference on May 8, Bird — who won five Olympic gold medals while representing Team USA as a player — identified “choosing a coach” for the 2026 World Cup in Berlin as one of her top priorities.

    “There’s no specific timeline on that, but obviously that is super important,” Bird said. “And then once that’s done, choosing the larger staff.”

    Based on the history of the U.S. national team, it wouldn’t be stunning if Reeve doesn’t continue on as head coach. Really, it would only be surprising if she is indeed standing on the sidelines in Los Angeles when the Summer Games begin in 2028. Beginning with Billy Moore in the 1970s, only one of the 11 coaches to lead the national team have coached in multiple Olympics: Geno Auriemma. Though, it’s worth noting that Pat Summitt would have likely been the coach for the 1980 team too had the U.S. not withdrawn from the games in Moscow. Instead, her lone Olympic coaching stint came in 1984, when the U.S. won the gold for the first time.

    Every other coach that has led the national team has typically coached for just one cycle that includes a World Cup and an Olympics. That group includes Kay Yow, Theresa Grentz, Tara VanDerveer, Nell Fortner, Van Chancellor, Anne Donovan and Dawn Staley.

    Should Reeve remain the coach, she would join Auriemma as the only two people to coach the women’s national team in multiple Olympics.

    Tooley told the Associated Press that Bird’s term for managing director is for four years. She’ll have a major say in what the roster looks like and who the coach is for the World Cup and Olympics.

    “Of course I’ve started to think about it, jotting some names down here and there,” Bird told the AP of choosing the next coach. “It’s the first priority without a doubt. There are so many qualified coaches in college and the WNBA.”

    Should Bird not decide to retain Reeve as the coach of the national team, one possible and seemingly logical successor could be Kara Lawson.

    The head coach of the Duke Blue Devils has a long history with and deep ties to Team USA. She won a gold medal as a player in 2008 — playing alongside Bird — and coached the Americans to an Olympic gold in 3×3 basketball at the 2021 Olympics in Tokyo. Lawson was also an assistant coach on Reeve’s Team USA staff last summer and was the lead scout for the gold medal game against France. Additionally, she has already been appointed as the head coach of Team USA for the FIBA AmeriCup this summer in Chile.

    Lawson coached the Blue Devils to an ACC Championship this season, her fifth at Duke, and guided the team to its first Elite Eight appearance since 2013. It’s also worth noting that Duke athletic director Nina King was appointed to the USA Basketball Board of Directors for a term that runs through 2028.

    The next FIBA Women’s World Cup begins on Sept. 4, 2026, in Berlin, Germany.

  • Legal malpractice insurance renewal guide

    Legal malpractice insurance renewal guide


    The answer: it depends. While many believe that insurance is a “set-and-forget” type of investment, that isn’t always the case. Depending on your area of practice, location, and more uncontrollable factors, your insurance coverage may go “out of date” sooner than you think. That is, if you aren’t setting up a proactive legal malpractice insurance renewal.

    It’s imperative that once you get an insurance policy as a legal practitioner, you don’t sleep on staying in the know about your coverage. Getting a legal malpractice insurance renewal done proactively, and beyond the standard annual renewal period, can expose potential pitfalls and new advantages.

    But while that all sounds fine and good, you may be thinking to yourself, “How am I going to find the time to check in on my policies so frequently? I’m a lawyer! I have a lot to do!” And, you’d be right. In this article, we’ll go through the reasons why it’s important for you to check in on your policies more frequently, and how to make the process as painless as possible.

    Why do I need to keep legal malpractice coverage up-to-date?

    Legal malpractice coverage, also known as lawyers’ professional liability insurance or errors and omissions insurance, protects attorneys and law firms from financial losses and reputational damage stemming from claims of negligent legal advice or actions. 

    Social inflation has become the main growth driver of US liability claims, according to Swiss Re Institute‘s new Social Inflation Index. Primarily due to a rising number of large court verdicts, social inflation increased liability claims in the US by 57% in the past decade. So, consistently ensuring that your policy limits will cover all of your potential expenses is vital. No one wants to be underinsured.

    Beyond the financial, there are some reasons why you may be legally required to keep your malpractice insurance coverage up-to-date: 

    • Clients may require their legal counsel to maintain a specific coverage limit in order to act as their representation 
    • Depending on your state, you may be legally required to disclose your insurance coverage status to the government as well as to your clients

    There are also other reasons why you should keep your LPL coverage up-to-date:

    • Peace of mind: Working as an attorney or running your own firm comes with enough stress as is, you don’t need another thing keeping you up at night. Knowing you have adequate financial protection against potential professional liability claims can be one less thing to worry about.
    • Uncover potential gaps in your current coverage in advance of making a claim and finding out the hard way. Especially as new circumstances and risks emerge and evolve, you or your business may encounter an issue that your policy doesn’t, or never did, cover.

    How often do I really need to review my policy?

    An insurance renewal is the process in which an insurance policy is extended for another term, typically under similar or the same conditions as the original policy. This typically occurs for the same duration as the original policy term.

    While annual renewals are standard, waiting for them to address significant changes or emerging risks can leave you and your firm vulnerable. In life — and in practicing law — things are always changing and evolving, making the need for a more agile approach to insurance a must-have. 

    While the standard review cycle is yearly, it may be wise to check in on your coverages at the halfway point if possible. As well, if you experience significant changes at your firm, it’s probably a good time to review. We’ll go over a few of those potential changes below.

    There are some changes within a law firm that could immediately prompt a legal malpractice insurance renewal. It’s easy to assume your current policy still covers all your needs, but changes in your role or responsibilities might introduce new risks that your old policy doesn’t address. 

    Here are some changes that could prompt a review of your current policies:

    1. Significant changes in staffing 

    If your firm has recently hired a large number of new attorneys or let go of a number of staff, you should take a look at your current policy and ensure it still covers what you need. Further, an increased reliance on “of counsel” contract attorneys may also require some changes in your coverage plan. As well, the departure of key partners may also be cause for a policy review.

    Solution: Having a policy with a broad definition of “Insured.” If your policy doesn’t specify exactly how many staff are employed by your firm, you may not be required to amend your policy in this circumstance. However, review your policy to ensure that this is the case.

    2. Insurance policies and regulations change

    Insurance policies and regulations change to adapt to evolving risks, protect coverage holders, and ensure financial stability within the industry. It’s important to stay informed about any modifications to your policy to avoid misunderstandings or gaps in coverage, it’s not uncommon for regulations to change and you may need to adjust your coverage in turn. 

    Solution: Your insurance company will notify you of these changes ahead of time. If there are anticipated or known changes in the terms of your coverage, you will receive a conditional legal malpractice insurance renewal notice.

    3. You have changed practice areas 

    Regularly reviewing your policies helps ensure compliance with relevant regulations and industry standards, especially in the circumstance that you change your practice area. Perhaps you are entering a new, higher-risk practice area or scaling back other practice areas. These changes can impact your coverage and the cost associated with it. 

    Solution: Handle this at your next legal malpractice insurance renewal. Your insurance policy is signed in the previous year for a year’s worth of activities. You can reach out to your insurance provider, but it will not adjust costs or coverage until your yearly renewal date.

    4. Changes in your firm’s business operations or structure

    Similarly, if your business location has changed or if you are opening locations in new jurisdictions, you’ll need to update your policy to reflect those changes. Firm ownership or beneficiary designation changes should also be considered. As well as expanding to hybrid work models, mergers or new partnerships would also merit an update to your policy. Additionally branching out to pro bono or contract work outside of your regular role and responsibilities should also prompt a coverage review. Being underinsured or having inadequate coverage due to changes in your firm’s place of business or overall structure can leave you vulnerable to unexpected losses.

    Solution: All of these changes, including relocations, mergers and acquisitions and more, are all changes that can be made mid-term. These changes should be reported to your insurance provider. It may not change the cost of your policy at the time, but it can be noted for an upcoming legal malpractice insurance renewal.

    5. Changes in your professional financial health or client portfolio 

    Life changes, such as starting a new business, changing positions, or buying a new property, can affect your insurance needs. Similarly, business changes, like expanding operations or introducing new services, can bring new risks. Substantial growth or reduction in revenue may also merit a change in coverage. Be sure to take note of developments as they arise and check in with your insurance agent if you’re not sure if these new circumstances could impact your policy. 

    Solution: Talk with your insurance agent. If you are concerned that a change to your business might negatively impact your coverage, or worse, that you may no longer be covered, your insurance agent can help clarify.

    How do I proactively review my legal malpractice insurance?

    It is good practice to periodically review your existing professional liability policy before a claim is made to confirm that the policy provides coverage that meets your needs. Further, if no claims have been made and no changes have taken place on your end, twice a year is a safe benchmark for policy reviews. The midyear review will allow for an opportunity to refresh your memory, look at industry changes, and start thinking about what you may need to update or change in advance of your legal malpractice insurance renewal date. 

    Ready to start your review? Here’s how to better understand your insurance coverage: 

    Review your coverage by following these five simple steps: 

    1. Refresh your memory on key terminology including terms like premium, deductible and wrongful act. Grasping the full definitions of these words and others will ensure your review is comprehensive.
    2. Get started by looking at your policy’s declarations page. The declaration page summarizes your policy which can make it easier to brush up on your coverage without having to read the entire policy document.
    3. You’ve read the summary, now it’s time to read the fine print. Be sure to take a look at any insuring agreements and exclusions. 
    4. Finally, you can assess what options you have for renewal. Do you want to change providers? Do you want to add or omit coverage? You should feel equipped to answer these questions once you’ve completed your review. However, if you are still unsure, now is the time to tap into your agent for guidance. 

    It’s also important to note that not all insurance policies automatically renew and you may need to be an active participant in your renewal. While insurers are required to send a notice of upcoming renewal, it is important to be prepared with questions on your current and potentially changed coverage. So, mark your calendar.

    If there’s a gap between the expiration and your new policy’s effective date, you may not have insurance coverage for that time because insurers are generally not required to back-date to close the gap. 

    The early bird benefits of midyear policy reviews 

    Changes in business operations or the legal landscape in general can make your existing policy inadequate. Regularly reviewing and updating your policy ensures it remains aligned with your current needs and helps you avoid costly gaps in coverage. 

    There’s more to gain than lose with a midyear policy review.

    Knowing your insurance coverage is up-to-date and tailored to your specific needs provides peace of mind, especially in case of unexpected events. Proactively setting up a legal malpractice insurance renewal beyond the standard annual renewal is crucial for maintaining adequate protection and mitigating potential risks. 

    If you’ve completed your review and are looking for an insurance provider that understands law firms and their needs, get a quote and get started on your legal malpractice insurance renewal journey with Embroker today.

     

     

  • The Financial Advice Boomers Swear By That’s Keeping Millennials Broke

    The Financial Advice Boomers Swear By That’s Keeping Millennials Broke


    The Financial Advice Boomers Swear By That’s Keeping Millennials Broke
    Image source: Unsplash

    There was a time when the classic money rules made sense—buy a house young, avoid debt at all costs, stick to one job until retirement, and you’ll be set. That time was several decades ago. Yet many Baby Boomers continue to hand down this advice with the confidence of people who lived through a very different economy. Meanwhile, Millennials, saddled with student debt, sky-high rent, and stagnant wages, find themselves wondering why these time-tested strategies are failing them.

    The problem isn’t that Boomers want to lead Millennials astray. Quite the opposite: they believe they’re offering wisdom. But the financial system they succeeded in no longer exists. Housing isn’t affordable. Jobs aren’t stable. Education doesn’t guarantee economic mobility. In fact, some of the most common boomer-era money principles are now dangerously out of touch with economic reality.

    So what happens when you try to play by outdated rules in a rigged game? You lose and often feel like it’s your fault. Let’s break down the most harmful advice Millennials are still hearing and why it’s time to rewrite the rules.

    Financial Advice That Needs to Go

    “Buy a House as Soon as You Can” Isn’t Always Smart Advice Anymore

    For Baby Boomers, buying a home was the ultimate goal and a reasonably attainable one. Real estate prices were lower relative to income, down payments were manageable, and mortgage interest rates often came with substantial tax advantages. Fast forward to today, and the path to homeownership looks more like a maze with booby traps.

    Millennials face record-high home prices, stricter lending standards, and urban housing markets where buying requires six-figure incomes or massive inheritances. Add in student loans, inflation, and rising insurance premiums, and it’s clear that rushing to buy a home isn’t always a financially sound move.

    In many cases, renting is the smarter choice, especially when it comes with flexibility, lower upfront costs, and no surprise repair bills. The belief that renting is “throwing money away” simply doesn’t hold up when homes are overvalued, and ownership costs can crush an already tight budget.

    “Stick With One Job for 30 Years” Is a Recipe for Stagnation

    Loyalty used to be a two-way street. Boomers who stayed with a company long-term were often rewarded with pensions, promotions, and job security. But for Millennials, staying put can mean falling behind.

    Today’s job market rewards agility, not tenure. Career advancement often happens through lateral moves, strategic job hopping, or gig-based entrepreneurship, not waiting patiently for a promotion that may never come. Worse, sticking with one employer can mean missing out on market-value pay raises, especially in industries where raises barely outpace inflation.

    Millennials who follow the “stay loyal” advice often find themselves underpaid and overworked, while their peers who switch jobs every few years see exponential income growth. In today’s world, loyalty should be earned, not assumed.

    “Cut the Lattes” Isn’t Going to Save You from a Broken System

    The infamous avocado toast and latte shaming? It’s financial gaslighting. The idea that Millennials are broke because of minor indulgences is not only wrong. It’s insulting. For Boomers, small savings may have added up to something meaningful. But Millennials are fighting much bigger budget battles.

    Wages haven’t kept pace with inflation. Healthcare costs have skyrocketed. Rent eats up over 30% of income in most cities. Student loans are a monthly fixture. In this environment, cutting out coffee won’t solve the problem. Rethinking the entire system might.

    Millennials aren’t financially irresponsible because they enjoy takeout now and then. They’re navigating a far more punishing economy, one where the cost of living has soared without a comparable increase in financial opportunity. Shaming them for $5 decisions ignores the systemic $500 problems.

    saving flat lay, money, saving money
    Image source: Unsplash

    “Debt Is Always Bad” Leaves No Room for Strategy

    Boomers grew up in a world where credit was scarce, interest rates were volatile, and debt often spelled disaster. So, their instinct to avoid debt at all costs is understandable but unhelpful in a modern context.

    Millennials live in an economy where strategic use of debt is not just common but often necessary. Few people can afford higher education, housing, or even emergency expenses without borrowing. When used responsibly, debt can be a tool, not just a trap.

    The key is understanding how to manage debt: knowing when to borrow, how to shop for rates, and how to prioritize repayment. Blanket fear of all debt leads people to avoid building credit, miss investment opportunities, or get blindsided when emergencies hit. Financial literacy (not financial avoidance) is the real protection.

    “You’ll Regret Not Having Kids By 30” Ignores Economic Reality

    Another subtle piece of advice Millennials often hear from older relatives is about starting families “before it’s too late.” While it may come from a place of love, this pressure completely disregards financial reality.

    Raising a child today costs hundreds of thousands of dollars from birth to 18, and that’s not including college. Daycare can rival rent in many cities. And paid parental leave is still not guaranteed in the U.S. For Boomers, starting a family young was financially possible. For Millennials, it can feel like a decision between survival and stability. Choosing to delay parenthood or skip it altogether is often the result of careful economic planning, not selfishness.

    “Retire Early by Saving Aggressively” Isn’t Possible for Everyone

    The FIRE (Financial Independence, Retire Early) movement may sound empowering, but even that concept has its roots in advice that assumes a level of privilege Boomers once enjoyed. Many Millennials struggle just to make ends meet, let alone max out retirement accounts or buy investment properties on the side.

    Even when saving is possible, the idea of early retirement feels like a fantasy for those burdened by stagnant wages and heavy debt. Millennials need realistic strategies for financial resilience, not shame for not stashing away 25% of their income by age 30.

    The better advice? Save consistently, automate where you can, and build flexibility into your plans. Retirement might not come at 50, but that doesn’t mean you can’t build a life you enjoy long before then.

    So What Should Millennials Do Instead?

    The first step is to let go of shame. You’re not failing because you’re not following the rules. You’re failing because the rules changed, and no one told you.

    Next, build your own framework based on today’s reality. That includes:

    • Prioritizing financial literacy over rigid rules

    • Using tools like high-yield savings accounts and ETFs to grow wealth gradually

    • Saying no to homeownership pressure if it doesn’t fit your situation

    • Leveraging job changes and remote work to increase income

    • Learning the mechanics of credit rather than avoiding it entirely

    Perhaps most importantly, Millennials should lean into community—sharing information, collaborating on housing, pooling resources, and unlearning harmful money myths together.

    What outdated financial advice have you received that just doesn’t work today? How are you rewriting your own money rules?

    Read More:

    Why Many Millennials Will Die With Debt—And Be Blamed for It

    7 Reasons Millennials Are Choosing to Rent Forever—And Loving It

  • SSD25 Winners

    SSD25 Winners


    Our team is continuously impressed by our LSF community. All the women in this community worked their butts off for 8 weeks and we’re so proud of each and every one of you! 

    Thank you for pushing yourselves and our community to be the best we can be! 

    Time to shout out our Spring Slim Down 2025 winners! These inspiring women, not only have incredible transformation photos but have the most amazing stories!

    GRAND PRIZE WINNER

    Toni Scott (

    @toni.scott_lsf
    )

    Total pounds lost: 12

    Story:

    “Honestly, I almost didn’t submit my story because I wasn’t 100% “perfect” during the challenge. But then I realized, “Well, that’s the point, right?” Life isn’t going to be perfect all the time, and neither are we. It’s during these imperfect moments that we need to bounce back and stick to the foundations.


    I started off strong, but around the 6th week of the challenge, I had to undergo unexpected surgery, which took me out for the remainder of the challenge. Despite the roadblocks, I stuck to the foundations of the LSF HBMP and am now 12 pounds lighter and a total of 12.5 inches smaller! If you take anything from my story, let it be this: don’t let one small hiccup ruin your entire journey! I could have thrown in the towel and given up, but I didn’t, and the results are beyond amazing. You don’t have to be 100% perfect to see results.

    The “old me” would have given up the moment I had surgery, thinking, “Screw it, I can’t be 100% perfect, so what’s the point?” But I realized that LSF isn’t just another diet or fad—it’s truly a lifestyle, and a maintainable one at that! These past 8 weeks have proven that to me and hopefully to everyone following my journey on Instagram. I have never felt (or looked) better, and the confidence I now have is priceless.

    Thank you, Team LSF, for empowering women like me to rediscover their strength, confidence, and joy and knowing that even through the hard times in life I can still keep going.”


    RUNNER UP WINNER

    Cheryl Motak (

    @lifebycheryll
    )

    Total pounds lost: 8

    Story:

    “The last three years have been life changing for me. I started a family, and now have two wonderful babies, a two and a half year old and a nine month old. As my family has grown, so has my body. I’ve grown babies, but also added on a significant amount of weight. After having my daughter, I really struggled with losing weight and maintained about 15lbs more than what I started with. After my son, I just added to what I had already gained, but this time I wanted to stop looking at weight loss as a one time goal, but rather a forever lifestyle that could be maintained. I lost 8 lbs during this challenge and am now below my prepregnancy weight for my son!!

    But, that’s not what’s most significant to me. In addition to my before and after pictures for this challenge, I have a before and after mindset. Before I thought, if I don’t stick to my plan, I’m a failure. I might as well restart tomorrow. After I think, if I dont stick to my plan it’s OK, I’m human! I might as well find joy in the moment because I’m still on my journey!

    To me this challenge wasn’t about being perfect (although hello 55 day app workout streak!), it was about having the discipline to push myself and stay consistent while having the grace to accept when things aren’t “perfect”. There were days where I didnt have the energy to go all in, but I still found a way to move in the moment and give what I could. There were days when I enjoyed an ice cream with my daughter, but I still made sure I achieved my protein goals and made a veggie with every meal. I’m so proud of what I’ve accomplished in the last 8 weeks, but more importantly, I’m proud of the framework I’ve set up to continue achieving my goals and become the best version and role model of myself for my kids and husband!


    RUNNER UP WINNER

    Kennedy (@Kennedy_lsf)

    Total pounds lost: 8

    Story:

    SSD was an eye opening challenge for me because it was my first 8 week challenge back to the LSF community. I had to sit down with myself and evaluate what was holding me back from being happy in my skin and really try with my nutrition. I cut out excessive alcohol and tried to be cognizant of what calories were going in and coming out! I 1000% upped my activity with the bonus moves, app workouts, and walking every day at least a mile at work or with my dog. I stopped making excuses and started to dig into my discipline reserve, something that has not been used in a LONG time.

    One huge change that I implemented this challenge was actually joining an accountability group. It was nice to see other women going through the same things that I was with scheduling and feeling burnt out, etc. but we kept showing up for ourselves! Very inspiring! I tried new exercise techniques and fell in love with moving my body again for 20-30 mins to improve not only my physical appearance, but boost mental cognition and mood! I am a full love sweat fitness believer since 2019 and you guys just keep impressing me with the quality and quantity of challenges to keep us motivated and looking our best.”


    PINK HEART RECIPIENT

    Allison (
    @Allison.fit.lsf
    )

    Community Shoutouts:

    • “@allison.lsf was always a great a great cheerleader” – Cheryl

    • “My accountability group was just everything. Shoutout to @angelaciams_lsf @samrand.lsf and @shannon.lsf !! This was just the most intimate group ever, we were so vulnerable and I just feel so connected to them. I also have to mention Allison (@allison.fit.lsf) and Ellinor (@ellinor_lsf) who were not part of my group, but constantly messaged me and encouraged me! I truly feel like we are all friends!!” – Camila

     



  • FreshBooks

    FreshBooks


    This post may contain affiliate links which means I receive a small commission at no cost to you when you make a purchase.

    Freshbooks is an accounting software that was founded in Canada in 2003. It started out as an invoicing software that has expanded hugely over the years. It is now a double entry accounting system for sole traders and small businesses.

    Freshbooks provides all the basic accounting functions – invoicing, bills and bank statement imports. There are too many features to list and a whole app centre with options that integrates to help book appointments, manage projects and time etc. It is a super easy to use software. You can try Freshbooks free for 30 days, which includes all features except advance payments so you will get a good idea of how easy it is to use. Once your 30 day trial is over you will need to select the plan that best suits your need. Check the pricing diagram below to see the features that each plan has.

    FreshBooks, a cloud-based accounting software provider, announced today that it is expanding its invoicing software offering to meet the needs of New Zealand small businesses. This includes the creation of a new starter plan and competitive pricing packages with unique pricing, set in NZ currency.

    “FreshBooks recognizes the depth and breadth of small businesses across New Zealand. We’re excited to help local owners impress their clients and get paid faster with our competitive new starter plan and invoicing software,” said Dragana Ljubisavljevic, SVP of International Markets at FreshBooks. “FreshBooks is listening to the passionate small business owners in New Zealand by making it easier for them to digitize their invoicing.”

    The expansion in New Zealand arrives as small business owners look for invoicing software that is intuitive and simple to use. FreshBooks is different because it’s built exclusively for small businesses, making it easier to stay on top of invoicing. The company’s new starter plan in New Zealand lets businesses:

    • Send 2 invoices per month to up to 2 clients

    • Collect online payments without invoicing

    • Track unlimited expenses

    • Get paid with credit cards via Stripe & PayPal

    • Access their account from anywhere on iOS and Android devices

    As you can see the pricing is really good and there is currently 70% off for 3 Months which makes its really cheap to try especially if you are just starting out in business. How many clients you have will determine the subscription that you need. With plans starting from $5 and 4 plans available you can easily upgrade to the next package as your business expands. The software is created for freelancers, sole traders and businesses with contractors or employees.

    They also have a global support team that you can phone if you need help. I know this can be a big problem with some software and you just really need to pick up the phone and speak to someone. The support team is available from Tuesday – Saturday 2am – 2pm NZ time as they work on Canadian hours.

    So if you are looking for a new software or just starting out check out FreshBooks and see if one of their plans suits your needs and budget.

  • Olive Oil vs. Vegetable Oil vs. Butter

    Olive Oil vs. Vegetable Oil vs. Butter


    Are vegetable and seed oils “toxic”?!

    From TikTok to bestseller lists, vegetable oils—a.k.a. “seed oils”—are a big topic right now.

    To be fair, folks have debated the merits of vegetable oils dating back to when they first entered the marketplace.

    More recently, however, with the advent of the carnivore diet, vegetable oil hate has roared back into the socials. Maybe you’ve come across posts that refer to these cooking oils as “toxic sludge,” “motor oil,” “the hateful eight,” and “the biggest cause of chronic disease that nobody knows about.”

    The anti-vegetable oil logic goes something like this…

    Animal fats have been with humans for thousands of years. Vegetable fats, on the other hand, were invented during the last century when profit-seeking companies wanted to find a way to sell cheap-to-grow foods to unsuspecting consumers.

    Another argument: Like margarine, vegetable oils were marketed as healthier alternatives for butter, and yet, people argue, these oils are worse than butter, raising your risk for obesity, anxiety, depression, ulcerative colitis, and more.

    In contrast to the above line of thought, other experts will tell you that vegetable oils are harmless, potentially even health-promoting—and absolutely better than butter.

    So, who’s right?

    Like so many nutrition topics, the truth is too nuanced to fit on a meme.

    In this story, we’ll help you sort the science from the pseudoscience so you can make informed decisions about the oils you choose to include in your diet.

    What are vegetable oils?

    Sometimes called “seed oils,” vegetable oils start, as you might suspect, from the seed of a plant. The most common ones you’ll find in a typical grocery aisle include:

    • Canola oil
    • Corn oil
    • Safflower oil
    • Sesame oil
    • Sunflower oil
    • Soybean oil
    • Grapeseed oil

    By the way, if you feel like there’s a bunch of oils missing from that list, it’s probably because those oils come from non-seed plants (such as olive, avocado, palm, or coconut oil, which all come from fruits, and aren’t considered vegetable or seed oils).

    How are vegetable oils processed?

    Non-vegetable oils—such as olive and avocado oil—are derived from naturally fatty foods. In fact, olives are so oily that you could theoretically make your own olive oil at home. (Just Google “how to make olive oil from scratch,” and you’ll find a number of videos walking you through the steps.)

    The same can’t be said of most vegetable oils, which mostly come from foods with a relatively tiny fat content to begin with.

    Case in point: A cup of green olives contains about 20 grams of fat,1 whereas a cup of corn has 2 grams.2

    As a result, manufacturers must use an extensive multi-step process to extract this small amount of oil from these non-oily foods. These steps include:

    • Crushing: A machine uses high pressure to press oil from the seeds.
    • Refining: The seeds are heated with a solvent, such as hexane, to extract more oil.
    • Deodorizing: To create a neutral taste and remove unwanted compounds, the extracted oil is then cooked at 400 F (204 C) for several hours.

    During this process, health-promoting polyphenols and other stabilizing nutrients are lost, and small amounts of unsaturated fats are transformed into trans fatty acids (also called partially hydrogenated fat).

    (Interesting fact: This also happens during deep frying. When vegetable oils sizzle in a restaurant’s deep fryer for hours, the trans fat content of the oil increases.)

    To call these processed oils “toxic” might be an exaggeration. However, nutrition scientists generally agree that people should avoid trans fats in the diet, and in 2018, the Food and Drug Administration banned manufacturers from adding trans fats to processed foods.3 4

    What cooking oils should you eat?

    At PN, we’ve created several visual guides people can use to make informed decisions about what to eat.

    (We’ve also created a shopping list, which you or your clients can print out and take to the grocery store. Check it out: Healthy Fats Shopping List)

    In these guides, we’ve placed a few vegetable oils—expeller-pressed canola oil, high-oleic sunflower, and safflower oils—in the “Eat Some” section. For us, “eat some” is another way of saying that these foods will neither improve health nor harm health—when consumed in reasonable amounts. In some cases, like in the example of dark chocolate, when consumed in small amounts, they might even improve health.

    The rest of the vegetable oils, along with butter and other saturated fats, fall into the “Eat Less” category, as the image below shows. You’ll find vegetable oils in bold.

    An infographic showing dietary recommendations for different cooking oils and fats, divided into three categories: 'EAT MORE' (including extra virgin olive oil, walnut oil, and avocado oil), 'EAT SOME' (including various oils like flaxseed and coconut), and 'EAT LESS' (including butter, margarine, and various processed oils).

    We’ve gotten hate mail from folks who say certain vegetable oils—especially cold-pressed canola oil—should appear alongside olive oil in the “eat more” category. Plenty of others say all vegetable oils belong in the “eat less” column, and that butter belongs in “eat some” or even “eat more.”

    To understand the scientific reasoning behind our recommendations, let’s explore some head-to-head matchups.

    Extra-virgin olive oil vs. expeller-pressed canola oil

    These oils are the least refined of their kind.

    To make extra virgin olive oil (EVOO), manufacturers grind and mechanically press olives, without using any heat. Similarly, expeller-pressed canola oil is made by mechanically pressing rapeseed, without the use of heat or chemical solvents.

    🟢 The case for extra virgin olive oil (EVOO)

    Olive oil is richer in heart-healthy monounsaturated fatty acids (MUFAs) than almost any other cooking oil.

    In addition, unlike the more refined “light” olive oil, EVOO maintains most of the olive fruit’s original polyphenols. These plant-based substances help to combat inflammation and protect cells from damage.

    Perhaps most importantly…

    More studies vouch for EVOO’s health-promoting qualities than for any other cooking fat.

    For example, researchers asked 22,892 adults from Southern Italy to self-report their olive oil consumption. People who consumed the most olive oil (more than two tablespoons a day) were 20 percent less likely to die over the 13-year study than people who consumed the least olive oil (less than one tablespoon a day).5

    Other research has linked the consumption of olive oil with a reduced risk of:

    • High blood pressure6
    • Heart disease
    • Type 2 diabetes7
    • Dementia8
    • Cancer9

    Consumption of olive oil is also associated with reductions in LDL cholesterol, especially when used to replace saturated fats like butter and coconut oil.10

    Smoke point: Should you avoid cooking with olive oil?

    Years ago, culinary experts recommended using EVOO only on salads and other uncooked foods. Back then, they assumed EVOO’s relatively low smoke point (350 to 410F) meant the oil would break down when heated, losing some of its distinctive flavor and health benefits.

    We now know that smoke point isn’t as big a deal as previously thought.

    That’s especially true in the case of EVOO, whose polyphenols and high concentrations of monounsaturated fats help keep the oil stable when heated.

    In research that heated a variety of cooking oils to 464 F (240C) and then held them at 356 F (180C) for several hours, EVOO remained more stable than any other oil tested, including canola oil.11

    🟡 The case for expeller-pressed canola oil

    One of the more affordable cooking oils on the shelf, canola oil, is made from a Canadian-made hybrid of the rapeseed plant.

    (The word “canola” refers to the first three letters of “Canada” with a fun “ola” added to the end for marketing purposes.)12

    Among vegetable oils, canola is the richest in heart-healthy monounsaturated fats (though several non-vegetable oils have it beat) as well as alpha-linolenic acid, a plant-based omega-3 fatty acid.

    In addition, canola oil contains plant substances called phytosterols that help influence blood cholesterol for the better, especially when used as a substitute for butter, research has found.13 14 15

    The winner

    Extra virgin olive oil is the clear winner.

    The body of research in support of EVOO dwarfs the body of research in support of expeller-pressed canola.

    In addition, EVOO has a more favorable fatty acid profile. By the way, so does avocado oil, which is why you’ll also find it in the “eat more” column.

    However, you can buy roughly twice as much expeller-pressed canola oil for half as much money as EVOO. Because of this, expeller-pressed canola can be a good budget-friendly choice. In addition, because of expeller-pressed canola’s more neutral flavor, many people prefer it over EVOO for baking.

    When used in moderation, expeller-pressed canola can be part of a healthy diet. It is likely to be at least health neutral, if not somewhat health beneficial.

    Expeller-pressed canola oil vs. refined canola oil

    This match-up comes down to how processing methods affect the end product.

    🟡 Expeller-pressed canola oil

    An expeller press is a machine that squeezes oil out of seeds.

    It’s able to do this without the use of solvents or heat, which helps preserve beneficial compounds such as alpha-linolenic acid and phytosterols.

    🔴 Refined canola oil

    Refining removes some protective alpha-linoleic acid while adding small amounts of unhealthy trans fatty acids. This results in a product that is proportionally lower in omega-3 fatty acids and higher in omega-6 fatty acids.

    The winner

    Expeller-pressed canola oil wins, but only by a small margin.

    That’s because canola oil starts with a less controversial fatty acid profile than many other vegetable oils, as the chart below shows. Soybean oil, for example, has less heart-healthy monounsaturated fat and much more theoretically inflammation-contributing omega-6 fat.

    A chart titled 'Fatty Acid Ratios of Various Cooking Fats' comparing the percentages of different fatty acids (monounsaturated, polyunsaturated, omega-3, omega-6, and saturated) across six types of fats: extra virgin olive oil, avocado oil, walnut oil, canola oil, soybean oil, and butter.

    Are omega 6 fatty acids “inflammatory?”

    The typical American consumes around 16 to 20 times more omega-6 fats than omega-3s.

    This imbalance could theoretically increase inflammation in your body, potentially raising your risk for diabetes, obesity, and other health problems, argue some experts.16

    Years ago, the recommendation to balance your omega 6s with omega 3s was widespread. (The suggested “ideal” ratio: Anywhere from 1:1 to 4:1, in favor of omega 6s.)

    These days, there’s more debate among nutritional scientists as to whether this imbalance contributes to chronic inflammation, especially when those omega 6s are consumed in whole foods that contain many other beneficial compounds.

    For example, nuts and seeds—both naturally rich in omega-6 fats—have been associated with a range of health benefits, including reductions in blood cholesterol and inflammation.17 18

    In 2019, Harvard Health ran the headline “No need to avoid healthy omega-6 fats.” In support of their argument, a 2019 study from the American Heart Association journal Circulation determined that, if anything, the consumption of omega-6 fats reduced the risk for stroke, heart disease, and early death.19

    However, while nuts and refined canola oil may share a somewhat similar fatty acid profile, the two foods differ in one important way. As we mentioned earlier, refined canola oil is basically pure oil. Meanwhile, nuts and seeds come packaged with health-protective fiber, polyphenols, protein, vitamins, and minerals.

    Minimally-processed foods, like nuts or extra virgin oils, include a complex matrix of health-promoting nutrients. Highly-processed oils, on the other hand, have lost the vast majority of those healthful compounds, leaving mostly just the fatty acids which are more prone to oxidation (we’ll cover that next).

    Refined vegetable oil oil vs. butter

    This is the match-up that triggers the most arguing on the interwebs.

    Let’s cover the major claims from both sides—plus what the research says.

    🔴 The case for butter

    Butter proponents argue that saturated fats have been unnecessarily vilified. They point to nutrition recommendations during the 1980s and 1990s that recommended people replace butter with trans-fat rich margarine.

    (We all know how that went.)

    Margarine aside, others claim the research in support of reducing saturated fats is thin at best.20

    However, excessive saturated fat consumption (beyond 10 percent of total calories) does seem to boost cholesterol levels and may increase your risk of heart disease.21

    Some research has found that replacing 5 percent of the saturated fats in your diet with monounsaturated fats could reduce the risk of heart disease by 15 percent. Similarly, replacing 5 percent of the saturated fats in your diet with polyunsaturated fats (with most of that coming from refined vegetable oils) reduces the risk of a future heart attack by 10 percent, according to an analysis of eight studies involving 13,614 people.22 Many other studies support this finding.23

    But not all saturated fats affect blood cholesterol equally. In some dairy foods, a membrane—called a milk fat globule membrane—surrounds the saturated fats and seems to limit their cholesterol-raising properties.

    However, butter is low in this protective membrane, and consequently raises blood cholesterol more than other high-fat dairy products, like full-fat milk, cream, yogurt, or cheese.24 25 26

    The U.S. Dietary Guidelines recommend capping saturated fat at less than 10 percent of your calorie intake. A tablespoon of butter contains 7 grams of saturated fat—a third of the recommended daily limit in a 2000 Calorie diet.

    So, while you don’t necessarily need to eliminate butter, it’s worth moderating your intake.

    (Interested in learning about all the nuances of saturated fat consumption? Read: Is saturated fat good or bad for you?)

    🔴 The case for refined vegetable oils

    Due to their chemical structure, polyunsaturated fats are inherently less stable and more prone to oxidation than saturated or monounsaturated fats.

    During the refining process, protective phytochemicals and antioxidants are stripped, making these oils more prone to oxidation. The theory is that this oxidation increases inflammation in the body and elevates the risk of various health conditions.

    There’s some evidence to suggest that diets rich in polyunsaturated fats, especially from refined vegetable oils, are associated with increased levels of oxidized blood lipids, lipid peroxidation, and other markers of inflammation.27 28

    If you only use refined corn or safflower oils to lightly coat veggies before roasting them, you likely don’t have much to worry about.

    However, for the vast majority of people, the biggest source of refined vegetable oils isn’t home-cooked meals—it’s ultra-processed foods.

    The extra processing and repeated heat exposure used to create ultra-processed foods further oxidize these oils. Additionally, these foods are often loaded with potentially harmful ingredients like added sodium and sugars, and low in beneficial nutrients like fiber, vitamins, minerals, and phytonutrients.

    Plus, they’re incredibly calorie-dense and difficult to stop eating, which can raise your risk for obesity. (Find out exactly why highly-processed foods are so “addictive”: Why you can’t stop eating ultra-processed foods.)

    Most ultra-processed foods list one or more vegetable oils as one of their ingredients. Even ultra-processed foods that you wouldn’t think of as “fatty” contain small amounts. You’ll find them in store-bought cookies, chips, crackers, sauces, frozen dinners, meal replacement shakes, boxed macaroni and cheese, salad dressing, boxed rice blends, and more.

    In a large review involving nearly 10 million people, the consumption of ultra-processed foods was associated with a higher risk of premature death.29 In addition, studies have linked high consumption of ultra-processed foods with the following health problems:30 31 32 33

    • Heart disease and heart attacks
    • Stroke
    • High blood pressure
    • Depression
    • Overweight and obesity
    • Diabetes
    • Reduced HDL cholesterol
    • Cancer

    You don’t have to abolish ultra-processed foods.

    But your health will benefit from capping your consumption to about 20 percent or so of your intake, with the other 80 percent or so from mostly minimally-processed whole foods.

    This alone will naturally lower your refined vegetable oil intake to a safer level, without much fuss. Plus, consuming refined vegetable oils in the context of a diet that’s rich in colorful plants, fiber, phytochemicals, and antioxidants may help offset the concern of oxidation. (For example, by putting a reasonable amount of commercial salad dressing on a large, colorful salad.)

    The winner

    This match-up is a draw.

    Ultimately, both should be limited in the diet, and neither are health-promoting.

    Most refined vegetable oils are lopsidedly rich in polyunsaturated fatty acids compared to monounsaturated fats, and are stripped of many protective compounds. As mentioned earlier, some experts argue that these omega-6-rich fats may contribute to inflammation (but the evidence here is mixed). Because of how they’re processed, seed oils also contain some of those trans fats that everyone agrees we should all minimize.

    In contrast, butter is low in omega 6s but high in saturated fat, which can be problematic in higher amounts. Especially since it’s so low in the protective milk fat globule membrane. However, compared to refined vegetable oil, butter is less processed. Like olive oil, it’s one of those fats you could theoretically make at home.

    Some final parting advice

    This might be obvious from the head-to-head matchups, but we’ll say it anyway.

    If you like it and can afford it, EVOO is a great choice.

    Cold-pressed avocado oil and walnut oil are also great options, as both are rich in antioxidant compounds. Like EVOO, avocado oil is a rich source of MUFAs. Walnut oil’s fat primarily comes from polyunsaturated fats, so it’s best used as a dressing rather than used for cooking (as it’s less heat stable).

    However, like EVOO, avocado and walnut oil tend to be expensive. If you or your client are budget-conscious, expeller-pressed canola oil is a solid runner-up.

    Similarly, high-oleic sunflower and safflower oils are richer sources of monounsaturated fats than their high-linoleic cousins. When substituted for saturated fats like butter, high-oleic oils have been associated with cardiovascular benefits.34 35

    Regardless of what cooking fats you or your client choose, you’ll also want to do the following:

    ✅ Prioritize minimally-processed whole foods.

    Whole and minimally-processed foods—such as nuts, seeds, avocados, olives, and salmon—are more likely to feature health-promoting monounsaturated (MUFAs) and omega-3 fats. They also come packaged with a wide array of other good-for-you nutrients such as fiber, protein, minerals, and antioxidants.

    In contrast, ultra-professed foods are generally devoid of everything you keep hearing you should consume more of. These foods also tend to be calorie-dense, highly rewarding, and hard to stop eating.

    If you’re not sure whether packaged food is minimally processed or highly processed, take a close look and consider:

    • Does anything in nature resemble this food?
    • Does it look like it came from an animal or a plant?
    • If you look at the list of ingredients, do you see animal or plant components?

    If you answer “no” to most of the above, the food is likely highly processed.

    ✅ Limit deep-fried foods.

    It doesn’t matter what source of fat is used to fry them.

    Sort all fried foods into the “eat less” category.

    ✅ Get most of your fats from food, not oils.

    EVOO is associated with longer, healthier lives. However, that doesn’t mean you should be doing shots of it.

    As a general rule, you’re better off getting most of your fat from foods like avocados, olives, nuts and seeds than from any cooking oil.

    Whole food fats are rich in fiber, phytochemicals, vitamins, and minerals, and are generally less calorie-dense than oils. (But having one to three servings of oils or butter per day is reasonable.)

    And if you want personalized advice to suit your body, your eating preferences, and your goals, check out our Nutrition Calculator to figure out how fats fit into your overall diet.

    References

    Click here to view the information sources referenced in this article.

    If you’re a coach, or you want to be…


    You can help people build sustainable nutrition and lifestyle habits that will significantly improve their physical and mental health—while you make a great living doing what you love. We’ll show you how.


    If you’d like to learn more, consider the PN Level 1 Nutrition Coaching Certification. (You can enroll now at a big discount.)

  • The new learning loop: How insurance employees can co-create the future with AI | Insurance Blog

    The new learning loop: How insurance employees can co-create the future with AI | Insurance Blog


    The annual Accenture Tech Vision report is in its 25th year and continues to be a huge source of insight for our technological future. This year, AI: A Declaration of autonomy  features four key trends that are set to upend the tech playing field: The Binary Big Bang, Your Face in the Future, When LLMs Get Their Bodies, and The New Learning Loop.  “The New Learning Loop” is a particularly compelling trend to me for the insurance industry. This trend explores how the integration of AI can create a virtuous cycle of learning, leading, and co-creating, ultimately driving trust, adoption, and innovation. 

    The virtuous cycle of trust between AI and employees 

    Trust is obviously important in any industry but since the insurance industry relies on the trust-based relationship between the customer and the insurer, especially when it comes to claims payouts, in essence, insurers effectively sell trust. Customer inertia when it comes to switching insurance providers comes down to the fact that they are happy with a repeatable insurer who makes good on this trust promise at the emotional moment of truth and pays in a timely fashion. This trust ethos needs to carry through to an insurers’ relationship with its employees. For any responsible AI program to be successful, it must be underpinned by trust. No matter how advanced the technology, it is worthless if people are afraid to use it. Trust is the foundation that enables adoption, which in turn fuels innovation and drives results and value.  In fact, 74% of insurance executives believe that only by building trust with employees will organizations be able to fully capture the benefits of automation enabled by gen AI. As this cycle continues, trust builds, and the technology improves, creating a self-reinforcing loop. The more people use AI, the more it will improve, and the more people will want to use it. This cycle is the engine that powers the diffusion of AI and helps enterprises achieve their AI-driven aspirations. 

    From ‘Human in the loop’ to ‘Human on the loop’ 

    In fostering this dynamic interplay between workers and AI, initially, a “human in the loop” approach is essential, where humans are heavily involved in training and refining AI systems. As AI agents become more capable, the loop can transition to a more automated “human on the loop” model, where employees take on coordinating roles. This approach not only enhances skills and engagement but also drives unprecedented innovation by freeing up employees’ thinking time, exemplified by the fact that 99% of insurance executives expect the tasks their employees perform will moderately to significantly shift to innovation over the next 3 years. 

    Capitalize on employee eagerness to experiment with AI 

    Insurers need to take a bottom-up rather than a top-down approach to employee AI adoption. Stop telling your employees the benefits of AI- they already know them. Everybody wants to learn and there is already huge excitement amongst the general public about the endless possibilities of AI. We see this in our daily lives. We use it to help our children do their homework. The AI action figures trend is just one that shows how people are eager to demonstrate their willingness to try it out and have fun with the technology. The key is to actively encourage employees to experiment with AI. Build on the conviction that we think it will be useful and enhance our and their careers if we all become proficient users of AI. We are already building this generalization of AI at many of our clients. Our recent Making reinvention real with gen AI survey revealed that insurers expect a 12% increase in employee satisfaction by deploying and scaling AI in the next 18 months. This increase is expected to lead to higher productivity, retention, and enhanced customer trust and loyalty, all of which drive efficiency, growth, and long-term profitability.  

    Insurers need to turn any perceived negative threat into a positive by emphasizing the fact that AI will lead to the reduction of mundane, repetitive tasks and free up employees to work on innovation projects like product reinvention. With 29% of working hours in the insurance industry poised to be automated by generative AI and 36% augmented by it, the necessity of this constant feedback loop between employees and AI is reinforced. This loop will help workers adapt to the integration of technology in their daily lives, ensuring widespread adoption and integration. 

    Cut out the mundane and the noise for your employees 

    Underwriters, in particular, can benefit from AI by using LLMs to aggregate and analyze multiple sources of data, especially in complex commercial underwriting. This can significantly reduce the time spent on tedious tasks and improve the accuracy of risk assessments. The international best-selling book “Noise: A Flaw in Human Judgment” by Daniel Kahneman, Olivier Sibony, and Cass R. Sunstein, one of my personal favorites, focuses on how decisions and judgment are made, what influences them, and how better decisions can be made. In it, they highlight their finding at an insurance company that the median premiums set by underwriters independently for the same five fictive customers varied by 55%, five times as much as expected by most underwriters and their executives. AI can address the noise and bias in insurance decision-making, even among experienced underwriters. AI can provide acceptable ranges and objective criteria for premium calculations, ensuring more consistent and fair outcomes. 

    Addressing the readiness gap through accessibility 

    Despite 92% of workers wanting generative AI skills, only 4% of insurers are reskilling at the required scale. This readiness gap indicates that insurers are being too cautious. To bridge this gap, insurers can take a more proactive approach by making AI tools easily accessible and encouraging their use. For example, within our own organization, all employees are using AI tools like Copilot and Writer on a regular basis. We don’t have to tell them to use these tools; we just make them easily accessible. 

    To foster this proactivity, insurers should recognize and advertise successful use cases, showcasing both the people and the learnings. The key is to find the spearheads—those who are already using AI effectively—and highlight their achievements. The insurance industry is still in the early stages of AI adoption, and no one knows the full extent of the killer use cases yet. Therefore, it is crucial to allow employees to experiment with the technology and not be overly prescriptive. 

    Reshaping talent strategies through agentic AI 

    This integration of AI is also disrupting traditional apprenticeship-based career paths. As insurers develop AI agents, new capabilities and roles will emerge. For instance, the product owner of the future will engage with generated requirements and user stories, while architects will be able to rapidly generate solution architectures and predict the implications of different scenarios and outcomes. With AI embedded in the workforce, insurers will need to focus on sourcing skills needed to scale AI across market-facing and corporate functions. This may involve looking beyond their own walls for expertise and capacity, covering a wide spectrum of low to high domain expertise roles. 

    How to capture waning silver knowledge  

    With a retirement crisis looming in the very near future in the industry, in an era of fewer employees, how can AI agents drive a superior work environment, providing choice and better balance? The new generation of insurance personnel can leverage the knowledge and experience of retiring experts by extracting decisions and risk assessments from historical data, free from bias. For example, Ping An’s “Avatar Coach” transforms training with immersive scenes and customizable avatars powered by an LLM, reducing training expenses by 25% and achieving a stellar 4.8 NPS for high engagement. An AI use case that we increasingly encounter is documenting the functionality of legacy systems where control has been lost or is very scarce. We have come across instances where tens of millions of lines of code are not documented due to the age and size of the systems. LLMs are extremely useful here as they can effectively read the code and tell us what the modules do. This will help insurers regain control before the mass employee exodus. 

    A cultural shift to embed AI in the workforce is the key to success 

    The New Learning Loop is not just a technological shift but a cultural one. By fostering a dynamic interplay between employees and AI, insurers can create a virtuous cycle of learning, leading, and co-creating. This cycle will not only enhance employee satisfaction and productivity but also drive innovation and long-term profitability. The key is to build trust, encourage experimentation, and recognize and celebrate successful use cases. As the insurance industry continues to evolve, the integration of AI will be a cornerstone of its future success.