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Multiple Stocks Set Record Highs as President Biden signs the $1.9 Trillion Corona-virus Relief Bill

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Stocks Continue to climb:

Recently, multiple stocks, including the Dow and S&P 500 which both set record highs. This is mainly due to the new coronavirus relief packages. Specifically, The U.S. House of Representatives voted to pass a $1.9 trillion coronavirus relief package on Wednesday. It is crazy to think that it has already been a year since the World Health Organization decided to call the coronavirus a world pandemic. Hopefully, this is the last relief package that will have to be put into play as the coronavirus is starting to subside. Thanks to the mass distribution of the vaccines, we can hope to see the virus soon fade away.  

Another stock to keep your eye on and The Coronavirus Relief Package:

Roblox is a video game platform that just had its IPO on Wednesday and will begin trading on the New York Stock Exchange. Since Roblox is a younger-aged based platform, the urgency to bring in more adult users caused controversy within. However, weighing in the benefits, we can assume Roblox is on the right track. Furthermore, Nasdaq has always seemed to be a good index  to follow and even more recently after the index climbed about 2%. The main reason all these stocks are thriving is mostly because of the coronavirus relief package that was signed by President Biden on Thursday, March 11. After making its way through the House and Senate very quickly, the relief package has been signed. I’m sure that the government won’t hesitate to start sending out the checks and PPP money as soon as possible. As it will not only benefit the people struggling with coronavirus but also help with the distribution and production of the Vaccine. Ultimately, distributing the vaccine is the most important thing on the agenda right now. I assume the quicker the vaccines are distributed, the quicker the country will get back to normal.  Now that the country is seeing a good chance of economic recovery, the market should begin to flourish once again.

More Good News to come:

According to Bloomberg consensus data, job openings rose to 6.9 million at the beginning of the year. This is great considering a lot of jobs were lost amid the virus. Although being job-less might not have affected you directly, I’m sure we can all agree it’s a pretty great sight to see the steps being taken to finally get this country back on its feet. By creating these job openings and allowing people to get back to work has multiple benefits. While it does directly help the people and families that have been struggling to find a job, it is also very helpful in order to contribute to a boost in the economy. And a boost in the economy means a boost in overall spirit throughout the country. That’s just what we need in these times. It has been far too long since the country has operated in a ‘normal’ sense. We are near the finish line and the people of America see it coming.

To conclude:

Overall, the most important news this week is Biden signing the coronavirus relief package. This directly caused many benefits in the economy. Including; Americans receiving aid from the impacts of the virus, the stock market reaching all-time highs, and finally the economy beginning to stabilize. After the recent events this week, I’d say the future is looking bright for our country.

Stay tuned for next weeks blog post to stay up to date on current events in the stock market and economy. Feel free to call us at 561-705-2005 or visit our website AskWealthCare.com

The information provided is for educational purposes only and is not intended as investment advice for anyone. All information discussed is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy. The views presented today are those of WealthCare Financial and do not necessarily represent the views of AlphaStar Capital Management, LLC. The opinions expressed are subject to change without notice and do not constitute financial, legal or tax advice. Please consult your financial professional before executing any financial strategy.  Investment Advisory and financial planning services are offered through AlphaStar Capital Management, LLC, an SEC registered investment adviser. AlphaStar and WealthCare Financial are independent entities

Budgeting Tips for Low-Income Doctors in a High Cost of Living Areas

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Doctors and Physicians heal the wounds of their patients. If there is any way they need treatment, it can be in financial literacy. Finance and medical professions are poles apart. A key area of financial planning is budgeting.

Since the disastrous events of coronavirus last year, many practices are struggling to find their way back into the routine. Medical practices are at the farthest point to return to a point of pre-pandemic. Physicians and Doctors with low income in high cost of living areas are exposed to great financial risks.  Financial planning and budgeting can help you survive the difficult times of economic recession.

Let’s briefly take a glance at the budgeting process before we jump into the details of budgeting.

Define the Scope of Budget

Defining the scope of a budget means aligning your financial goals with budgeting. If you want to improve the medical practice equipment, it will need investment. You may also be planning to save for personal expenses such as a house renovation. Keep your financial goals in mind before preparing the budgets.

For clarity, keep the business financial goals separate from your personal financial ones. It will help you smoothly run the practice without compromising on your lifestyle. Remember, your financial success at practice will eventually affect you and your family’s financial well-being.

Choose the Right Budgeting Method

Perhaps you are a detailed-oriented person naturally, a line-by-line budgeting technique evaluating expenses in detail would suit you. Perhaps you don’t like to go into that much detail and keep your interest in summarized form only.

Choosing the right budgeting method can help you achieve effective results. For example, zero-based budgeting calls for wise and calculated spending for each penny earned. It means every expense at your medical practice should make sense. A formal 50-30-20 budgeting method would want you to categorize your spending into necessities, savings, and wants.

Learn to Analyze the Budgeting

Who knows the importance of follow-ups better than a physician? Analyzing budgets is a similar process to that as well.

Variance analysis is comparing actual performance against the standards or targets. Ideally, you’ll aim to achieve a positive variance in budgets. A negative variance will disclose the shortcomings and let you evaluate the causes of inefficiencies.

Control and Review of Budgeting

Once you identify the variances in budgets, it’s time to take corrective measures. Reviewing the budgets means identifying areas of improvement. Variances will inevitably identify inefficiencies in operations.

Budgeting reviews will also help you to understand the expense categories. You’ll learn to differentiate between variable, fixed, and overhead expenses.

You can take control of every budget in a similar method. It will increase your medical practice efficiency and eventually lead to increased revenues.

Align Budgeting Process with your Medical Practice Goals

It means harnessing the benefits of financial planning and budgeting. For example, compare your quarterly variable expenses such as utility bills for the same period of the previous year. Identify the differences and take corrective measures.

Let’s say, you identified a 1% variance in a particular revenue stream. 1% can be $100 or $500 monthly depending on the total revenue. Convert it to annual variance, and factor it for the next 10 years. You’ll know how much you would’ve missed without a budgeting method.

Now that you have grasped the idea of budgeting and its fundamentals, let’s discuss some practical ways of improving your medical practice with budgeting.

Here is a 5-step road-map for low-income doctors and medical practices in a high-cost area of living to practically harness the benefits of Budgeting.

Learn to Differentiate between Wants and Needs

It is often the case in our lives that we fail to distinguish between wants and needs. Honestly, our professional lives are no exceptions to this ignorance as well.

Let’s say, you want to increase the revenue stream of your medical practice, who wouldn’t? For that, you need an extra MRI machine to purchase. It seems you have been outsourcing the MRI scans to a nearby lab, and someone just came with an idea to install a new MRI machine.

Budgeting implies an important aspect of financial forecasts. A buy v lease projection will reveal whether you actually NEED that MRI machine or not. One step ahead, it may reveal whether the return on investment will match or exceed your business’s total ROI or not.

A Proportional budget or a 50 (needs) – 30 (wants) – 20 (savings) budget is a great tool to identify and control the after-tax income. The practice will help you achieve future financial goals through savings. Once you identify the wants and needs clearly, it will be your guilt-free spending.

Think of Relocating to a Cheaper Place

Relocating is not a simple process, neither it is an easy decision. If your medical practice is in a high cost of living area, and your average income is categorized low, it suits you. Before you make the final decision on relocating to a cheaper place, consider the following key questions.

  • Will you be able to retain your current patients?
  • What is the competition in the new point of relocation?
  • What are the total costs if you decide to relocate to a new point?
  • How long will it take to cover the investment for relocation?
  • Will your staff willingly accept the decision? How will it affect your staffing needs in a new workplace?

The best option for you will be to consult an advisor. It will reduce the costs of relocation to a new point. The advisors will help you understand the demographic and competition analysis as well. Your goal should be to reduce the real estate costs without a compromise on the revenue.

Diversify your Income Sources

Low-income doctors with medical practices in high cost of living areas will inevitably struggle to increase revenue streams. They carry the burden of heavy student loans, taxes, and higher business costs. An effective way of reducing costs and increasing the after-tax profits is to increase the income streams.

Doctors and Physicians can increase their income by expanding services or figuring out alternative non-medical revenue streams.

Here are a few quick ideas for you to increase your total income.

Medical Practices – Alternative Sources of Income

  • Introduce new ancillary services at your medical practice: Physical Therapy, Allergy Therapy, Medical Spa, Weight Loss Services.
  • Increasing Lab practices and facilities.
  • Consider in-house dispensing services.
  • Partnering with another medical practice for sessions or emergencies.
  • Expanding counseling services.

Non- Clinical: Alternative Sources of Income

  • Counseling and Coaching – Sports teams, Youngsters.
  • Teaching and Lecturing.
  • Investments in real estate, stocks, or side business.

You can consider any other side hustle that can increase your clinical and non-clinical revenue. Diversification of income will help you reduce the burden of debts. It will also help you create emergency funds to reduce over-reliance on loans.

Paying off your Student Loan

Paying off medical student loans can take years of hard work. It depends on your career stage, income, and loan scheme. You can plan to pay off your student loan early, it will not incur you any penalty. It will also help you increase your net income.

Here are a few quick tips for you to pay off your medical student loan faster.

Start Making Repayments Early

This advice is for young doctors. You may find it hard but try starting repayments of your medical student loan as early as possible. Some doctors leave it until they become attending physicians, but it wouldn’t help the cause at all.

Refinance Your Student Loan

Consider refinancing your student loan. Particularly, if you have other high-interest debts as well. Refinancing can save your total interest costs with debt consolidation.

Switch to Income-Driven Repayment Plan

Low-income doctors living in high-cost areas of the business should consider this option. Consider opting for a federal income-driven repayment plan for your student loans. The drawback with this option is it will prolong your repayment tenure.

Live within the means – for a few more years

It simply means to continue living a disciplined life as you already are. Spend less and save more. Contribute more towards your student loan repayment, there is no penalty on early repayments on it.

Tax Planning – Reducing the Tax Bill

Tax planning can be stressful for many business owners. It’s not just the year-end settlement but an ongoing practice to manage your tax bill. The IRS allows you to reduce the tax liability in several legitimate ways. Low-income doctors should plan ahead of time to create an effective strategy for tax management.

Here are a few quick tips for you to reduce your medical practice’s tax bill.

  • Take qualified business income deductions.
  • Apply for tax credits when and wherever applicable.
  • Contribute more towards the employee contribution plans and adjust the employee remunerations against it.
  • Adjust the depreciation methods for newly purchased equipment and machinery.
  • Adjust your medical practice’s income and expense timings to fit-in the right tax slab.
  • Write-off bad debts of your business to reduce taxable income.

Budgeting is a great financial tool for any business. It’s a must-have planning tool for low-income doctors. It can increase your operational efficiency as well as lower your expenses when used effectively.

Contact an expert advisor today for more information on retirement planning for physicians. Sometimes a fresh perspective from a trusted source is all you need. Feel free to call us at 561-705-2005 or email us at Michael@AskWealthCare.com

 

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Please share this market update with family, friends, or colleagues.

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By clicking on these links, you will leave our server, as they are located on another server. We have not independently verified the information available through this link. The link is provided to you as a matter of interest. Please click on the links below to leave and proceed to the selected site.

This document is for educational purposes only and should not be construed as legal or tax advice. One should consult a legal or tax professional regarding their own personal situation. Any comments regarding safe and secure investments and guaranteed income streams refer only to fixed insurance products offered by an insurance company. They do not refer in any way to securities or investment advisory products. Insurance policy applications are vetted through an underwriting process set forth by the issuing insurance company. Some applications may not be accepted based upon adverse underwriting results.  Death benefit payouts are based upon the claims-paying ability of the issuing insurance company. The firm providing this document is not affiliated with the Social Security Administration or any other government entities. 

                     

Financially Fit: 7 Financial Risks Medical Professionals Face (and how to fix them)

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Medical professionals face several financial risks in their line of work. For some, it may seem like there is no solution to their problems. Such risks include risks from real estate investments, disability, death, inadequate insurance, and much more.

Physicians face high risks whether employed by a hospital or practicing privately on their own.

 In the list below, we will look at some of those risks and how you as a physician can fix them.

  1. Risk of Running out of Money due to Poor Investments Returns

A physician has very little time to know where and how he or she should invest. Considering the amount of work they are involved in makes it rather hard for them. As a professional, you need to find ample time to review your financial situation.

If you are interested in investing in your private practice, it would be wise to seek financial advice before moving forward.

Where can a physician find relevant financial information? Only through financial media adverts such as websites, radio shows, magazines, or TV adverts. Information found through advertising is not enough to properly help on how to invest.

Unfortunately, for some physicians, they take the fast way without consultation. Doing so only leads to poor investments, and some have ended up losing their retirement savings.

The best solution would be for a medical professional to seek the advice of a financial specialist.

These specialists will help you to develop an excellent financial plan helping you to reach your financial goals.

As a physician, you might be having general information about how to manage your finances. The specialists will now help you by advice further on the right direction and how your investments will be fruitful. They can help draw up a financial plan steering you in the right direction.

  • Disability Insurance

It is paramount for a physician to have an insurance policy that covers disability. Depending on their gross income, most physicians can spend between 2% and 5% on insurance premiums.

Some factors that will determine your disability plan include age, health, and medical specialty, how disability is defined in your policy, location, waiting period, and how much of the disability cover you will need.

Physicians who pay more premiums are Surgeons, Obstetricians, Anesthesiologists, Registered nurses, and Podiatrists. Physicians in dentistry, internists, Gastroenterologists, and primary care physicians usually pay the lowest premium rates.

The primary disability insurance policies will pay out 60% of your gross income. For example, if your annual income is about $336,000, you will receive $17,000 per month from your disability insurance.

Your premiums tend to increase as you age. Expect to pay higher premiums as you grow old.

To save on your insurance premiums, inquire if your insurance provider offers discounts. Some insurance companies give out discounts on premiums paid annually rather than those paid in monthly installments.

  • Inflation

With inflation rising, the economy usually suffers high costs. All sectors suffer, and one of the most affected ones in the healthcare sector. Healthcare costs will rise, yielding devastating consequences.

Public payers reimburse most doctors and hospitals. With the rate of inflation speculated to increase, physicians will receive 90% of what is fully allocated Medicare costs for their patient’s care costs.

Medical providers each year negotiate reimbursement rates with their commercial insurers. Some rates are as high as 200% of the amount Medicare pays. It can later lead to the closure of hospitals and loss of employment.

The best solution would be for the health care system to embrace changes. First, the health care system can begin by reducing the cost of high-quality care. They can then minimize medical errors and maximize prevention and remove treatments that have no clinical efficacy.

  • Alternative Payment Method

Physician’s payment models tend to be complex, and the change keeps on increasing. With alternative payment methods on the rise, the way of compensating physicians is changing. Such methods include bonuses and penalties for meeting their goals.

Research has indicated that medical practitioners are at a high risk of financial risks brought about by alternative payment methods. These include penalties for the cost of overruns.

Physicians are more welcoming to alternative payment methods that help to improve patient care. Clinical improvements were noticeable and commended by physicians despite them not benefiting from financial bonuses.

To have a solution to the alternative payment method, practicing physicians need to help design the alternative payment method. It will help improve their engagement and see more productivity in inpatient care.

  • Entrepreneurism in Health Care

Having physicians may reduce the effects of private firms taking ownership and control of health care institutions. The decision of patient care will remain with the physicians. From the beginning, physicians are the ones who have been relatively independent of health care institutions. They are bound ethnically to put the interests of the patients ahead of their interests.

Entrepreneurs now seek to invest in a health care business that happens to be outside of their practice.

Physicians must fulfill a role often known as ‘fiduciary,’ where the physician acts on behalf of his patients’ interests.

Some entrepreneurial developments in the health care sector may affect the probability of a physician’s behavior towards the patient’s ethical interest. The investments brought forth in the health care organization and bonus incentives may negatively influence the physician’s decisions. It could lead to the medical professional being biased when making decisions that will not serve the patients’ interests first.

Another challenge is that physicians would offer various services from their establishments with their separate source of income. They receive extra payments from having tests done at their laboratories.

However, such provisions have been dropped, and physicians can no longer generate personal income from services they do not provide.

Though, physicians are allowed to own their establishments such as hospitals, nursing homes, laboratories, and pharmacies. They tend to invest in freestanding and non-institutional health centers that many people are welcoming.

  • Interest Rate Risk from Real Estate Investments

Is it recommended for physicians to invest in real estate? By investing in the right assets, you can be sure that you will generate good returns.

Most physicians already fall into the higher part of federal and state tax brackets. As an investor, you can deduct the expected depreciation from your annual tax return with commercial property depreciation.

There are two ways of getting involved in real estate: active and passive real estate investing.

Active real estate investing is a risk mainly for those whose time is limited. As a physician, you would want to weigh out your options first. Investing would require you to outsource the properties, research the local market, secure financing, and manage the property yourself.

As for passive real estate investing, it can suit well with your schedule as a medical professional. It is not very involving. The benefits of passive investments are saving on time, benefiting from a more significant capital pool, deduction of property depreciation from your annual tax bill, entrust the help of professional management, and no dealing with lenders.

At times, you cannot predict how the investment will end up. Some risks that you can consider are:

  • Purchasing a bad property
  • If the investment has a lawsuit
  • Getting bad tenants
  • Poor location
  • Leverage
  • Value Decrease in the market

By doing proper diligence, you can reduce the risk involved in real estate. All investments carry possible risks, and the real estate is not exempted. Do your investigations and, if need be, seek the help of a professional.

  • Having a Malpractice Insurance to avoid Inadequate Insurance

Insurance is one of the recommended long-term financial plans. The medical profession is one of the highest paying careers and has a high income; many physicians have many assets. Before taking up an insurance cover, be it a disability, business overhead, or life; seek a skilled professional’s advice.

Without an adequate insurance policy, some physicians face the risk of losing their license to practice.

 Medical malpractice insurance is designed as specialized professional liability insurance. It covers the physician’s liability against any arising disputed services resulting from a patient’s death or injury.

Medical malpractice is required by anyone who intends to practice medicine. Hospitals must have this insurance for their physicians to defend any malpractice claims that might bring any dispute.

Because the amount of insurance required to meet your malpractice insurance varies, it is crucial to confirm with a professional medical insurance consultant. The professional will guide you on the type and amount of coverage you need.

There are two types of malpractice insurance: claims-made and occurrence. A claims-made policy will cover when an incident took place and after a filed lawsuit. The occurrence policy covers any claim that happened during the period of the coverage, even after the claim has been filed after the policy lapses.

As a physician who is going into private practice, ensure you have malpractice insurance. It will cover claims associated with medically associated risks such as regulatory requirements and cyber liability.

Contact an expert advisor today for more information on retirement planning for physicians. Sometimes a fresh perspective from a trusted source is all you need. Feel free to call us at 561-705-2005 or email us at Michael@AskWealthCare.com

Share the Wealth of Knowledge!

Please share this market update with family, friends, or colleagues.

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By clicking on these links, you will leave our server, as they are located on another server. We have not independently verified the information available through this link. The link is provided to you as a matter of interest. Please click on the links below to leave and proceed to the selected site.

This document is for educational purposes only and should not be construed as legal or tax advice. One should consult a legal or tax professional regarding their own personal situation. Any comments regarding safe and secure investments and guaranteed income streams refer only to fixed insurance products offered by an insurance company. They do not refer in any way to securities or investment advisory products. Insurance policy applications are vetted through an underwriting process set forth by the issuing insurance company. Some applications may not be accepted based upon adverse underwriting results.  Death benefit payouts are based upon the claims-paying ability of the issuing insurance company. The firm providing this document is not affiliated with the Social Security Administration or any other government entity.

10 Things Every Physician Must Do To Prepare for Retirement:

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Financial planning is something that doesn’t come naturally aligned with the medical profession. It doesn’t imply physicians can’t manage a sound financial management plan. Retirement planning is vital for every profession, for medical professionals even more.

After the current pandemic caused uncertainties of life around the globe, who else can understand the importance of planning better than Physicians?

It’s a certainty that you joined the medical profession to serve humanity. That shouldn’t lead you to the complacency of ill planning about your retirement plan affecting you and your loved ones. You deserve to have a flexible and comfortable life post-retirement. For that you’ll have to plan for your retirement now for the time you think of hanging your white coat.

  1. Match Your Lifestyle With Retirement Planning:

What’s enough for you by the time you retire? Yeah, that’s what you need to think now. Everyone lives with a unique lifestyle that comes with different habits. One persona may be content to live within $5,000 a month post-retirement; another perhaps would need $20,000.

  • Where would you settle after retirement? Will you relocate to a particular place?
  • How much would it cost you to stay in that particular vicinity? How many family members will be supporting by then?
  • How much your normal retirement plan contributions will be?

At this stage, you’ll need to consider the importance of long-term financial planning. Your financial success wouldn’t come overnight.

At what age do you plan to retire? Retiring at 60 is different from retiring at 67 altogether in financial terms.

  1. Don’t Fall Into A Debt Trap:

Medical students take the heaviest toll when it comes to student loans. Once you secure a job, it becomes easier to finance your student loan installments. As you grow with your annual income, debts start growing too. Is that coincident?

Well, it’s natural to be tempted to go for more with upgrading a vehicle, house, and interior designing and exotic vacation planning. Just keep an eye on your compound interest payments you make every month.

A few simple tips can help you save a large sum in the long run.

  • Consider refinancing your expensive student loan with a cheaper option
  • Think of debt consolidation with a single personal loan that comes with a lower interest rate
  • Avoid excessive credit card usage and late payments
  • Keep an eye on your credit score, it directly affects your lending costs i.e. the interest rate charged by banks
  • Evaluate your house mortgage options now for the long run to avoid reverse mortgage costs later

  1. How Much Should You Save On Your Income?

Talk to any financial advisor, and the savings bar will be set at least 20% of your gross income. That’s the income before your taxes come into play. Your gross income will also get a boost with investments and saving accounts.

As physicians go through a tough educational and career routine, they often find it hard to manage more than one job. Realistically achieving a savings target requires a lot of planning. The most effective tool to achieve savings is to adapt the budgeting habits.

Preparing monthly budgets and analyzing the results against actual expenses will reveal a lot about your spending habits. Budgeting is the best tool to manage monthly expenses.

  1. Evaluate The Retirement Plan Contributions:

Your career may grow as a full-time hospital employee, a private practitioner, or a locum tenens. Your retirement plan contribution will differ accordingly too. As a rule of thumb, maximize your retirement planning contribution towards the tax-qualified plans.

Evaluate the different retirement plans, tax benefits, and the maximum contribution that compounds to your net wealth at retirement.

The Traditional Retirement Plans:

As a physician, if you’re a part of a not-for-profit organization 403(b) will be your retirement contribution plan. For most of the physicians, it is 401(k). Both these plans come with tax implications and a maximum limit of the contribution of $19,000. You can contribute up to $26,000 after the age of 50 to these retirement plans.

Both these plans come with pre-tax contributions. Your funds will be taxed when you retire, that’s the crux of the retirement planning.

Consider An IRA Or Roth:

If your total retirement plan contribution is going to be taxed at 30%, you’ll be left with only 70% of whatever you saved over the years. That can change your net wealth drastically. One way of contributing more towards your retirement plans is to opt for an IRA or a Roth plan.

With an individual retirement account (IRA) and a Roth, you can contribute a maximum of $6,000 annually. These private contributions investment plans are taxed annually at 6% by the IRS. The tax advantage with these plans is that these investments are taxed when you make the contribution, and are tax-free at the time of retirement.

  1. Consider Alternative Retirement Plans:

Diversification remains a key point in financial planning and successful implementation. As physicians, your contribution towards IRAs and 403(b) plans may fall short of your expectations. Consider a few alternative options for long-term financial benefits of retirement contributions.

Employer Contributed Plans:

Your employer can make contributions to your retirement plans with traditional 401(k)s or a 457 one. These matching contribution plans increase your total annual contribution. For example, the joint contribution limit with a 401(k) plan is $56,000 annually.

Do remember the forfeit risk that comes with matching plans though. If you leave the job or your employer goes broke, you’ll have to forfeit a substantial amount of contribution.

Spousal IRA Plans:

This plan will best match your plans if your spouse is non-working or you both apply as joint file taxes. Your spousal IRA plan comes with an additional annual contribution of $6000 before the age of 50 and %7,000 after 50 years of age.

Another way of maximizing the retirement benefits is to privately invest as an individual. You can make an investment plan for regular monthly income to cover some extra expenses. The best way to match and enhance your retirement contribution is to invest in a long-term financial investment plan.

  1. Investment for the Long Run Success:

As a practicing physician, it’s highly unlikely that you’ll need some passive income to meet the monthly expenses. If that happens the likely cause of it may be the excessive debt payments. Consider investments paying regular monthly interest with a low risk profile such as a certificate of deposits and special saving accounts with the bank.

Likely you can afford to plan for the long-term investments with capital gains. Consider evaluating your risk profile first. The amount you can risk and how much loss can you bear at this stage of your life.

Some investments that can yield capital gains in long run for you may include:

  • Make an investment in the Bonds market with stable fixed coupons or long term capital gains
  • Consider investing in blue-chip stocks or stock index funds such as an S&P 500 
  • Make a long term investment with real estate yielding capital appreciation

Your investment choice between individual stocks and index funds may vary. It depends on your risk appetite and your financial goals. However, your savings plans and private investments should complement your retirement plans.

  1. Manage Life Risk:

Well, we should be the ones asking for this expert advice from you. Purely based on financial prospects, it’s called hedging the risk.

You may already have an auto insurance plan as it’s a compulsory one. Consider some extra insurance plans that can save you and your loved ones on contingencies.

  • Seek a comprehensive family insurance plan covering all the individual family members
  • Protect your properties and house with Property insurance and estate planning
  • Secure health and life insurance plans
  • Consider other insurance plans like Disability insurance, Vision insurance, malpractice insurance, intellectual property insurance, and so on

You may already know the key differences between the term life insurance and whole life insurance. Plan the most suited one for you and your loved ones.

  1. Do Estate Planning right Now:

Consider formulating a formidable estate plan right now. It will involve nominating your beneficiaries and writing a formal will. You may opt to appoint an estate agent or an attorney to look for your estate planning.

Remember to include a few important points that may affect your long-term financial plans:

  • Write a formal will or form a trust
  • Consider burial and funeral insurance plans
  • Nominate your beneficiaries through a will or by establishing a trust
  • Consider the tax implications on your wealth distribution
  • Evaluate the debt consolidation in case of your demise

  1. Do Tax Planning Properly:

Your tax implications will differ with your income streams and the nature of income. Some of your income will be taxed at source such as your salary, and some wealth will be taxed on capital gains such as a retirement contribution fund.

Taxes are subject to change, there are numerous ways tax policies affect your net wealth. A simple choice between a traditional IRA and Roth can make tax implications different. 

  1. Revise and Monitor your Retirement plans:

As they say, “change is the only constant in this world”. Your retirement plans will also change frequently. All you have to do is to revise and monitor your financial planning regularly. Inflation and tax rates are the direct cost drivers of your living expenses. You may be changing a plan to move into another city, each locale comes with different living expenses. As your lifestyle changes, your retirement plans will need an adjustment.

Retirement planning for physicians’ working day in and day out remains a critical challenge. It’s a life-long goal and it will take a life-long effort. Starting with a sound and comprehensive retirement plan is only the first step in bringing you the peace of mind you deserve.

Contact an expert advisor today for more information on retirement planning for physicians. Sometimes a fresh perspective from a trusted source is all you need. Feel free to call us at 561-705-2005 or email us at Michael@AskWealthCare.com

Share the Wealth of Knowledge!

Please share this market update with family, friends, or colleagues.

We love being introduced!

By clicking on these links, you will leave our server, as they are located on another server. We have not independently verified the information available through this link. The link is provided to you as a matter of interest. Please click on the links below to leave and proceed to the selected site.

This document is for educational purposes only and should not be construed as legal or tax advice. One should consult a legal or tax professional regarding their own personal situation. Any comments regarding safe and secure investments and guaranteed income streams refer only to fixed insurance products offered by an insurance company. They do not refer in any way to securities or investment advisory products. Insurance policy applications are vetted through an underwriting process set forth by the issuing insurance company. Some applications may not be accepted based upon adverse underwriting results.  Death benefit payouts are based upon the claims-paying ability of the issuing insurance company. The firm providing this document is not affiliated with the Social Security Administration or any other government entity.

CHECKLIST FOR AVOIDING SCAMS DURING COVID-19

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The world has always been a buffet for scam artists and the onset of COVID-19 is the crème de la crème for the unscrupulous. The buffet includes blood drives, and fundraisers, and civil movements, and the cherry on top comes in form of a stimulus check. Before the feast ensues, there are a few things to know so you aren’t a victim of the next scam.2

How do you know if the stimulus check is fake or real?

  • The government is mailing stimulus checks, and a second-round is scheduled to hit soon, but the government will not call asking for personal information and they certainly won’t ask you to pay upfront to get your check.
  • Various federal agencies such as the Emergency Management Agency won’t call you either so do not provide your Social Security number over the phone to anyone.
  • Do not accept the word of an anonymous caller, rather check the Federal Trade Commission regarding questions on stimulus checks and the Center for Disease Control and Prevention for updates about the disease.

Are you willing to fund/donate to research?

  1. As the money rolls out, the calls will come in so be prepared by researching legitimate charities. Lists can be found online – search by state, by the attorney general, through the IRS, and via GuideStar—to ensure your money is going to a real organization.
  2. Avoid donating to organizations promoting services, cures, and medications to prevent or treat COVID-19 and never donate via cash, gift cards, wire transfer, or prepaid money card.
  3. Delete any emails claiming to be from the federal Center for Disease Control and Prevention or other expert sources that want to exchange donations for information. Legitimate information is always free from the CDC and they are not requesting money for it.

You can open doors and have an open mind, but should you open your wallet?

  • Be watchful of anyone going door-to-door offering COVID-19 testing or temperature readings and requesting your personal information for their record. Call law enforcement immediately if this happens.
  • Browse the internet carefully and only open websites from trusted sources. Do not enter your personal information on any site.
  • When emails arrive in your inbox, use caution and do not open attachments if you do not know the source and do not download anything. Both actions can result in software that will quickly obtain your personal data.

Adapted from Ohio Department of Health1

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[1]https://coronavirus.ohio.gov/wps/portal/gov/covid-19/checklists/english-checklists/avoiding-scams-covid-19-checklist

Withdrawing Retirement Funds During COVID-19

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The Internal Revenue Service (IRS) announced it has expanded retirement fund withdrawal eligibility to “take into account additional factors such as reductions in pay, rescissions of a job offer, and delayed start dates.”  The updated criteria, part of the CARES Act, also allows spouses or household members to take these distributions if someone in the home was affected.1 For many Americans feeling an economic hardship due to COVID-19, this makes it is easier to access retirement account money when you need it most.

How this change can help if you’re scrambling to pay bills:

  • Investors of any age can withdraw as much as $100,000 from 401(k) plans and individual retirement accounts this year without paying the typical early withdrawal penalty of 10%.
  • The money you take out is still taxable, but you’re given three years to pay them.
  • The new law also indicates that should your situation change you have three years to redeposit the funds back into your retirement account as a rollover contribution.

Be aware that not everyone is afforded this benefit. Under Notice 2020-50, the IRS stipulates you must meet specific criteria to be eligible. Qualifications for individuals, spouses and dependents include:

A diagnosis with COVID-19 via an approved test from the CDC

Or

Experiencing adverse financial consequences from:

Being furloughed or laid off or having a reduction in work hours

Rules are changing and lifestyles are changing for everyone because of COVID-19. Understanding the changes and mandates that are being made can be overwhelming so talking with your financial planner will ensure that you and your retirement plans are secure. If you have questions, we are ready to talk so give us a call today at 561-705-2005 or email us at Ask@AskWealthCare.com.

Adapted from Forbes1

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This document is for educational purposes only and should not be construed as legal or tax advice. One should consult a legal or tax professional regarding their own personal situation. Any comments regarding safe and secure investments and guaranteed income streams refer only to fixed insurance products offered by an insurance company. They do not refer in any way to securities or investment advisory products Insurance policy applications are vetted through an underwriting process set forth by the issuing insurance company. Some applications may not be accepted based upon adverse underwriting results.  Death benefit payouts are based upon the claims-paying ability of the issuing insurance company. The firm providing this document is not affiliated with the Social Security Administration or any other government entity.

[1] https://www.forbes.com/sites/ashleaebeling/2020/06/19/irs-expands-eligibility-for-ira–401k-loans–distributions-in-covid-19-guidance/#2e0c8406d4e4

YOUR MID-YEAR FINANCIAL CHECKUP

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The plans you made at the end of 2019 may not be holding water now that we are in the middle of 2020 so it’s time to see if you are still meeting your financial goals.2 By reviewing your financial status, you can adjust in case a new job or something more impactful and unexpected has uprooted your lifestyle.

Are you sticking to your planned budget?

  • Have your monthly bills increased beyond expectation?
  • Do you have unexpected living expenses that you aren’t tracking?
  • Are your spending habits higher or lower than what your budget allows?

How are you protecting your money?

  • Have you checked your credit score and are there adjustments you can make to increase your number?
  • If you have some bad debt still floating around, can you adjust your budget to get this paid off sooner?

Are your retirement contributions still accurate?

  • Can you increase your retirement fund contributions even by a small percent?
  • If you have an annuity or IRA, are the returns the best you can get, or do you need to adjust for a better ROI?
  • Do you have a savings account tucked away for bucket-list items and is this still in good shape?

Who has your tax and FSA money?

  1. Are you paying the right amount of taxes so that the IRS isn’t holding onto your hard-earned money when you could be using it?
  2. FSAs work on a use-it-or-lose-it system so check what you have and spend it on what you need.

Adapted from CNN Business2

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By clicking on these links, you will leave our server, as they are located on another server. We have not independently verified the information available through this link. The link is provided to you as a matter of interest. Please click on the links below to leave and proceed to the selected site.

This document is for educational purposes only and should not be construed as legal or tax advice. One should consult a legal or tax professional regarding their own personal situation. Any comments regarding safe and secure investments and guaranteed income streams refer only to fixed insurance products offered by an insurance company. They do not refer in any way to securities or investment advisory products Insurance policy applications are vetted through an underwriting process set forth by the issuing insurance company. Some applications may not be accepted based upon adverse underwriting results.  Death benefit payouts are based upon the claims-paying ability of the issuing insurance company. The firm providing this document is not affiliated with the Social Security Administration or any other government entity.

2 https://money.cnn.com/2016/07/28/investing/financial-checklist/index.html