Wall Street knows something the average investor does not. You might call it the industry’s dirty little secret, if it didn’t involve billions of dollars and millions of investors. The deception is preserved by a confluence of people and pretense…
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What to Invest to Avoid Playing Retirement Roulette
You’ve probably thought about how much you’ll need to retire comfortably. But if you haven’t done the calculations, you’ll likely be shocked at the actual amount. Most physicians need $5 million-$6 million in investable, liquid (cash) assets to retire comfortably based on a 3%-5% after-tax annual return…
Biotechnology and Its Role in the Healthcare Spending Issue
Traditionally, investors looking for less volatile, more consistent long-term returns have sought the safety of healthcare. This downturn has been different. During this downturn, healthcare showcased deep disappointments, including drugs failing to gain FDA approval (Sepracore, Watson, and Imclone), potential financial fraud (Elan and Andrx), and earnings disappointments (Alpharma and Bausch & Lomb)…
How Money Manager Steven Abernathy Keeps Beating the S&P
Even if most of your investments are in mutual funds, you may want to own a few stocks to up your returns. Investment manager Steven Abernathy makes focusing on just a few stocks the cornerstone of his successful approach. Here are his insights now…
The Luster Matrix
Collaborative Investing is an investment research philosophy that I have followed for 11 years. It has proven its worth time and time again. Essentially, it is uniting the knowledge base of industry experts – practitioners in specific industries with a working knowledge of products – with your financial expertise…
Why Your Practice’s 401(k) may be Audited
Many medical practices are not compliant with federal rules regarding the retirement plans they offer to employees.
Today’s 401(k) plans can be highly complex. Unfortunately, middlemen have been profiting from multiple layers of fees at the expense of the employee-unbeknownst to many employers who had the best of intentions. Legislation passed in the last two years aims to expose these hidden fees, expenses, and liabilities inside of your company’s plan.
So what does this mean for physicians?
6 Tax Essentials Physicians Need to Know
Physicians must have a solid plan in place to deal with taxes and retirement.
Since 2001, the tax code has undergone 4,680 changes-an average of more than one change per day. Even worse, physicians are paying more in taxes. Because of these trends, intelligent tax preparation has become essential, not optional.
How To Prepare Your Heirs For Their Inheritance
“Be careful to leave your sons well instructed rather than rich, for the hopes of the instructed are better than the wealth of the ignorant.” – Epictetus.
Research cited in a 2013 Wall Street Journal article found that 70% of an affluent family’s wealth is typically gone by the end of the second generation, and 90% is destroyed by the end of the third. Nearly every culture has some version of the axiom “from shirtsleeves to shirtsleeves in three generations,” dating back to China over 2000 years ago. The proverb describes how the first generation works hard to create a fortune; the second generation enjoys its spoils, substituting hard work with entertainment, and the third generation—with no role model to follow—squanders what remains of the fortune, relegating their children to starting the process over again.
When Bad Wealth Management Happens To Good People
Fans of the HBO series Boardwalk Empire, will remember when Nucky, the boss, and Jimmy, the ambitious protégé, speak the night before Prohibition is enacted. Despite Jimmy’s Princeton education, he discovers he won’t have a major role within the business, which happens to be organized crime. Robust bootlegging operations in America between 1920 and 1933 provided easy cash for those willing to operate outside of the law. And many were.
3 Ways to Avoid Tax Hits in Estate Planning
Estate planning is an often-neglected aspect of wealth management, because it involves thinking about an inevitable reality few wish to confront. Thinking about the fine details and nuances of what will outlive us and be passed on to heirs can prove daunting even for the most pragmatic of physicians. Nevertheless, ignoring it is a mistake.