Nobody wants to hear they have cancer — not the teenager who expects to make the varsity softball team as a freshman, the PhD candidate preparing to defend his dissertation, the young physician who lives next door or the grandmother who lives down the street.
In my experience, I’ve found that physicians tend to realize the importance of investing for retirement and are good savers. As a result of such good habits and higher than average incomes, physicians also tend to have above average wealth. Even so, upon approaching retirement age, there are often questions about when to begin receiving Social Security benefits.
Country singer and actor Jimmy Dean once said, “I can’t change the direction of the wind, but I can adjust my sails to always reach my destination.” There is no better scenario in which to recall this sage advice than in the always-changing world of financial markets.
If you’re anything like me, a certain inner peace and satisfaction comes from knowing that your financial house is in order.
Beginning in 2006, but accelerating in 2013, the focus of estate planning shifted away from tax planning and toward income and capital gain planning. This shift is a direct result of substantial increases in the estate tax exemption from $2 million in 2006 to $5.43 million in 2016.
Desperate Times Call for Desperate Measures: Making Sense of Negative Interest Rates in Global Markets
In a show of economic desperation in overseas markets, governments are lowering interest rates below zero percent and similarly issuing bonds with negative interest rates. It’s a head-scratching phenomenon, even for those of us who work in the often-complex world of finance and economics. Why would anyone willingly sign up for a guaranteed loss when investing or lending money?
Lead, Follow or Get Out of the Way: Using Monthly Dashboards to Improve Your Medical Practice Performance
When used correctly, medical practice dashboards can help you lead discussions in management meetings, help you summarize and follow important metrics in your revenue cycle, and get unprofitable or inefficient operations out of your way.
In late 2008, we received an email from Kathy, a client of several years, requesting that we wire money to her. Kathy is a writer who travels a lot for her work, so this was not an unusual request. What was unusual was the fact that she indicated she would not be available by phone for several hours and included instructions for wiring the money to a bank in South Carolina. Apparently, Kathy was already at the airport and was beginning the boarding process. She was running late, and her need for cash was urgent.
When I’ve had the opportunity to work with multiple generations of a single family, I’ve found that simply applying basic financial planning strategies often results in significant benefits. In my experience, multigenerational planning most often begins with the middle generation, extends to the third generation, and ultimately incorporates the first (and oldest) generation. Generally, the first generation is the one passing significant wealth on to the next two. What follows is a real-life example of the value of multigenerational planning.
In last month’s issue, I discussed general strategies for philanthropic giving and introduced readers to the concept of a Donor Advised Fund (DAF). The next step for some physician philanthropists might be to start a private foundation. This is a big step that not only requires an astute understanding of the rules governing foundations, but also organizational and management skills. For many physicians, taking on the additional burden of starting and running a foundation can be a daunting task. I typically suggest that physicians consider starting a private foundation only after they first acquire grant-making skills, solidify their long-term gifting strategy and determine if a private foundation is the right fit for their families.
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