Where I stand today regarding my forty years in clinical medical practice forces me to say things that every physician can personally relate to. After all, we old guys frequently languish in dispensing medical advice to our peers. Most of it comes from the heart.
We all adhere to the presumption that the “best doctors” are derived from an inner desire to help people with health care problems while relying on …
Chance meeting
In the fast-paced world of medicine, characterized by long hours, administrative burdens, and burnout, I’d like to share a story about an OB/GYN physician who discovered a path to professional freedom that revolutionized his career. Dr. B.A. had spent almost a decade working as a W-2 employee after finishing his residency. However, just before committing to a new contract with a substantial $500,000 annual salary, he came across an …
As somebody who has reviewed physician employment agreements for 40 years or so, I have to admit I am more than a little jaundiced when it comes to the subject of hospital executive compensation. I’m not altogether convinced that one health system CEO really “earned” the $35.5 million he was reported to have been paid in 2021. I’m sure the pandemic was hard on him. Seeing all those physicians exposing …
Isn’t it incredible that generations of physicians today still do not know how to make money in a professional business way that is easy to learn, implement, and use?
Aside from the fact that every medical school in our nation over the last century has refused to even tell medical students that they would benefit from business education, you’d think that they had somehow been blinded to the fact that all …
Who could imagine that physicians born with an enigmatic passion to be in a position where the health of our civilization depends on them would be caught in so many obstructive and despicable circumstances that have led to increasing attrition of physicians in clinical medical practice. It is not so much about the overwhelming challenges that physicians are expected to overcome, but far more about the fact that our government, …
When building your practice, knowing what factors influence how patients find you and ultimately choose to be treated by you is critical. As a health care provider, you focus on treating patients and providing the best care possible. The business side of health care may be of less interest to you. However, to effectively grow your practice, it’s essential to know how new patients find you and why they chose …
Change is a constant in the medical field, and one significant shift that’s been shaking up the world of health care employment is the reform of non-compete contracts. Understanding the implications of these changes is crucial to every doctor. I believe it’s important for you to grasp what the new non-compete contract reforms mean and how they might affect your career.
During the first 15 years of my career as a …
As a dedicated professional, your work is incredibly challenging as you strive to maintain your primary focus on providing excellent patient care. Your inherent business powers that generate revenue make you a highly valued asset in the health care marketplace. This is why many large corporations have offered financial incentives for you to join their employed workforce. As a result, you can expect a predictably substantial paycheck deposited regularly into …
For over 40 years, I have been harping on the fact that physicians rarely understand their true value when they are looking for a new position. I always advise physicians that they get 0 percent of what they don’t ask for.
In my practice, I review physician agreements and provide a letter on my law firm stationery requesting changes. I frequently need to convince physicians that they should send my letter …
Most of us fall short of making New Year’s resolutions.
The reason is simple: unrealistic goals. Negotiation or renegotiation of your physician contract is attainable. Your income is paramount to financial freedom, job satisfaction, and avoiding burnout risk and stress.
Hospital or practice employment has increased among physicians. The motivations include financial stability, lower risk, steering clear of managing employees, running a business, and negotiating rates with insurers.
What do physicians look for …
Dividend investing, a strategy centered on generating income through regular dividend payments, holds particular relevance for doctors aiming to build a resilient and diversified financial portfolio. In this guide, we’ll explore the benefits, risks, and tax implications of incorporating dividends into a doctor’s financial strategy.
Benefits of dividend investing for doctors
Stable income stream. Dividend-paying stocks, often from established and financially sound companies, provide a consistent and reliable income stream. For doctors, this …
Before diving into the allocation strategy, let’s briefly revisit the fundamental differences between Roth and traditional IRAs.
Roth IRA: Contributions are made with after-tax dollars, but qualified withdrawals, including earnings, are tax-free.
Traditional IRA: Contributions are made with pre-tax dollars, providing an immediate tax deduction. Withdrawals, however, are subject to income tax.
Assessing current and future tax scenarios
To craft a personalized strategy, it’s crucial to evaluate the current and anticipated future tax scenarios …
Being in a dual high-income earner household — like a dual-physician or dual-dentist marriage — has unique career and family experiences. And it comes with a ton of financial assumptions.
As with most things, there are some advantages and disadvantages, both real and perceived. While individuals in these households typically enjoy mission-driven companionship, doctors face unique financial challenges during every stage of their careers.
Tax withholdings. When you have two earning spouses, …
As the year comes to an end, it’s time to start thinking about investment allocations for 2024. Many of us own mutual funds.
But how do we select the right ones for our goals?
Investing in mutual funds is a common strategy for physicians seeking diversification and professional management of their portfolios. However, with a vast array of mutual funds available, selecting the right ones can be a daunting task. To make …
Defining tax loss selling
Tax loss selling, also known as tax-loss harvesting, is a strategy employed by investors to offset capital gains and reduce their taxable income. This approach involves selling stocks or other securities that have experienced losses to counterbalance capital gains realized throughout the year. By doing so, investors aim to mitigate their tax liability and potentially improve their after-tax returns.
Mechanics of tax loss selling
Identifying losses. Investors begin by …
As the year draws to a close, it is important that we maximize our opportunities to reduce our taxes. Let’s explore three essential moves that doctors should consider before the tax year concludes to reduce their tax liabilities.
1. Contribute to tax-advantaged retirement accounts.
One of the most effective ways for doctors to reduce their taxable income is by contributing to tax-advantaged retirement accounts. Not only does this help build a secure …
The medical profession has long been associated with intense personal commitment and time-consuming work. However, in recent years, a new concept called job stacking has emerged, and it is revolutionizing the way physicians work.
In this post, I will explore the concept of job stacking for doctors, discuss its benefits, and provide guidance on how to implement it effectively.
What is job stacking?
Job stacking is the practice of working multiple jobs in …
As the year draws to a close, many doctors receive year-end bonuses. However, with these bonuses come potential tax implications that can impact the overall financial picture.
Understanding the tax landscape
Before diving into strategies, it’s essential to grasp the tax landscape. Different types of income, including bonuses, may be taxed at varying rates. Knowing the tax implications helps doctors make informed decisions. Seek a financial advisor who understands your situation if …
In the modern world, physicians are respected and highly regarded for their compassion, dedication, skill, and knowledge. People value the effort physicians put into taking care of others often before taking care of themselves. While this noble profession was once lucrative, many now find it challenging to make ends meet, given falling reimbursements, lack of independence, and exorbitant student loans. Achieving financial independence is not just a personal goal; it …
Hiring a financial advisor can be a strategic move to ensure your financial health aligns with your professional success. However, the effectiveness of this partnership depends on asking the right questions. In this article, we’ll explore four essential questions doctors should pose to their financial advisors to pave the way for a secure and prosperous financial future.
“What is your experience working with medical professionals?”
Doctors face unique financial challenges, from managing …
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