Physicians may benefit from the right type of financial planning that addresses all of their unique needs: risk management, retirement planning, debt management and estate planning.
Life & Disabilty Insurance: Instead of choosing default coverage amounts, we review your personal net worth, personal risk exposures and other considerations to ensure that your coverage is appropriate and adequate to meet your needs.
Key person insurance: This type of insurance can provide coverage for key employees, such as yourself and can fund buy-sell agreements in the event of a business owner’s or partner’s death.
Reducing risk, protecting assets and loved ones is a major concern for the physicians we work with on a day-to-day basis. Reviewing the need for insurance and looking to various carriers in order to find the most appropriate fit can help to best manage this issue. Specific areas to consider include:
We have found that most physicians have unique retirement planning needs. Many start out their careers with significant school debt and a shorter time frame in which to accumulate retirement assets. As their incomes grow, they often need flexible retirement vehicles that provide the ability to increase contributions. We work with you to determine how to appropriately structure your own plan within your practice.
We will work with you and your CPA to consider ordinary income and capital gains taxes on your investments you have now and as they grow. We also review how taxes will impact the taking of income as you move into retirement. In addition, through our financial planning process we can review protected and unprotected assets and how using advanced estate planning strategies can allow you to leave a legacy to your children and grandchildren or fulfill philanthropic wishes.
The 2011 Association of American Medical Colleges Graduation Questionnaire found that the median education debt is $160,000. As you move into your practice as a physician, an early assessment of your educational loans, cash flow and other liabilities can be beneficial to your later financial health. In our financial planning process we will look at how to appropriately restructure payment of student loan debt while managing other expenses.
As a physician you want to have a comprehensive strategy in place as you accumulate assets and build your practice. At Harkins Wealth Management, we identify potential liabilities, including lawsuits, divorce settlements and creditor claims.
Our practice has two individuals who are Certified Divorce Financial Analyst (CDFA®) professionals and who have the experience and education to understand the subtleties of asset division during divorce. This is critical especially for those high net worth individuals who have significant exposure in the division of assets. Most physicians have exposure to these liabilities and more; this is why we put together a comprehensive plan with the goal of protecting assets before potential claims or financial problems materialize.
Lawsuits and Creditors:
We work with your CPA and attorney to develop a suitable strategy based on your own situation. As your personal circumstances become increasingly complex with the growth of your business, so must the solutions utilized. As a team, we can look at sophisticated approaches to asset ownership and the use of certain trust structures.