Do Contract Reviews Work?

Contract reviews can be expensive. Do contract reviews work?

Anticipation is defined as a feeling of excitement about something that is going to happen or the act of preparing for something. On average, physicians spend at least 10 years in training and preparing to step into their career. When that day finally comes you’re presented with a 10 – 30 page document outlining and describing in great detail the minutia of the offer. In most cases, comparing the awareness level of what’s actually included in the contract or isn’t included, is a bit lopsided. On one side of the table is the health care organization or practice with their team of attorneys and on the other side of the table is, you. Being presented with the offer usually leads to many different emotions, all in the midst of trying to evaluate the compensation, benefits, implications, ramifications and details of a legal document.

The majority of physicians who are presented with a job offer and contract usually feel that they either can’t negotiate, shouldn’t negotiate, or that there really aren’t areas for negotiation, that the offer is what it is. Continue reading…


doctors life podcast

The Doctor’s Life Podcast Episode 033- Keep Your Spouse Involved In Your Finances

It may not be something you want to hear, but keeping your spouse involved in your finances is important. I know, I know…sometimes they are terrible with money. Or maybe they just aren’t interested in going through financial goals or looking at a present-day money situation. It is important for your family’s financial goals that they are involved. If both of you are involved, you will be directed towards one common goal.

Nick Schneider is in The Doctor’s Life Podcast studio to explain why it is important for you to have your spouse involved in your finances. All episodes of The Doctor’s Life Podcast are available here, iTunes, Android, and on SoundCloud. Make sure to subscribe and you will be the first to get new episodes of The Doctor’s Life Podcast. Continue reading…


Financially Prepared Physicians

Retirement In Sight for June 2016

R E T I R E M E N T  I N  S I G H T
Presented by Nick Schneider

 

MONTHLY NEWS AND INFORMATION FOR CURRENT AND FUTURE RETIREES
 

JUNE 2016

   

One act of real usefulness is worth all the abstract sentiment in the world.

– Anne Radcliffe

    

GOLF TIP
Get the broom out

If you start topping the ball either because you are a beginner or because you have a negative “muscle memory” associated with taking deep divots, this exercise can help. Every day, take 10 golf swings with a kitchen broom. Focus on brushing the bristles against the floor and reaching and extending your left arm on the follow-through.

 

BRAIN TEASER
The Apple Wrapper Riddle.
A shop sells apples for $1 each. Each apple comes wrapped in a special wrapper. You can trade 3 wrappers for 1 apple. If you have $15, what is the maximum number of apples you can buy?*

 

DID YOU KNOW?
In the 1800s, aluminum was actually worth more than gold

Back then, it was a precious metal: coveted for its light weight, yet very difficult to produce. In 1852, usable aluminum was worth the equivalent of $1,200 a kilogram in today’s terms. By 1900, new and easy ways of creating aluminum had emerged and a kilogram of it cost less than a dollar.5

   

RETIRING WITH A COMFORTABLE LEVEL OF INCOMEIn retirement, your level of income directly affects your quality of life. How can you effectively give yourself more spending power?

From a portfolio standpoint, you can focus on income-producing investments. When you start planning for retirement, you invest with an emphasis on growth. As you transition to retirement, growth remains important – but you also need to seek investments that can potentially create ongoing income streams. In addition, you can plan to make your portfolio more tax-efficient. Too many investors pay too little attention to this factor and leave money on the table.

New retirees sometimes spend more per month than they anticipate. Retiring with an income plan outlining how much money you really need and where it will come from may help you avoid this shock. Longevity and inflation will certainly come into play. The Social Security Administration says that today’s average 65-year-old can expect to live until his or her mid-eighties; about a quarter of 65-year-olds will live past age 90. So across a 20-year retirement, your income must grow significantly to maintain your standard of living, even if inflation proves mild.1,2

HOW MUCH DO WE REALLY KNOW ABOUT ELDERCARE?

As a society, perhaps not as much as we should. In a new Associated Press/NORC poll of Americans 40 and older, 38% of those surveyed said they expected to depend on Medicare “quite a bit” or “completely” for long-term care. In truth, most long-term care is non-medical and Medicare will not pay for it. Just 20% of respondents had any form of long-term care coverage.

While 77% of survey respondents said they would want to be cared for at home if eldercare was necessary, only 18% thought they would turn to family members or friends for no-cost eldercare. The reality is different. By the estimate of the Department of Health & Human Services, unpaid caregivers deliver roughly 80% of in-home eldercare. More states may be ready to give these caregivers a financial break. Right now, California, New Jersey, and Rhode Island are the only states mandating employers to offer them paid leave – but New York will join the list in 2018, and 19 other states are considering such legislation.3

ON THE BRIGHT SIDE
You may spend less during retirement than you think you will. According to an analysis in the Journal of Financial Planning, households headed by 65-year-olds that spend $100,000 a year typically reduce their expenditures 20% by age 80.4

 


Nick Schneider may be reached at Nick@PhysicianAdvisorsLLC.com

Securities offered through Lion Street Financial, LLC. (LSF), Member FINRA & SIPC. Investment Advisory Services offered through Physician Investment Advisors, LLC. Physician Advisors and Physician Investment Advisors are not affiliated with LSF.

This material was prepared by MarketingPro, Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. This information has been derived from sources believed to be accurate. The publisher is not engaged in rendering legal, accounting or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional. This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty.

* TRIVIA ANSWER: Stumped? Contact me for the answer! Nick@PhysicianAdvisorsLLC.com

CITATIONS.
1 – forbes.com/sites/joeljohnson/2016/05/02/four-strategies-to-maximize-your-retirement-income/ [5/2/16]

2 – ssa.gov/planners/lifeexpectancy.html [6/9/16]

3 – nextavenue.org/expectations-long-term-care-match-reality/ [6/3/16]

4 – cnbc.com/2016/05/26/retirement-spending-good-news-at-last.html [5/31/16]

5 – todayifoundout.com/index.php/2014/05/aluminium-cost-gold/ [5/13/14]


Should You Change Jobs or Stay the Course?

Does sticking with the same firm actually hurt your financial potential?

Provided by Nick Schneider

If you spend two years or less at a series of jobs, is that a problem? Shouldn’t your resume signal loyalty instead of transience?

Well, maybe it isn’t a problem. Maybe you are doing yourself a financial favor instead, especially in this decade. Maybe the conventional wisdom about “getting ahead” is flawed. The era of the organization man/woman is long gone, and how many people do you know who have spent a decade or longer working for one employer?

Remember 5% annual raises? Chances are, your most recent raise was on the order of 2-3%. While you are keeping up with consumer prices at that rate, you may not be making up for any financial steps you took backward as a result of the recession. Even the all-stars at your firm may be getting just a 5-6% yearly raise.

Quitting to find a better wage is on the rise. In 2015, 16% of U.S. workers indicated to CareerBuilder that they were ready for a change. This year, 21% want to make a move. CareerBuilder’s Rosemary Haefner believes one reason for that rising percentage is a lack of employer investment in employees. “Whether the lack of investment is in the form of a paycheck, learning opportunities or career advancement, it often comes down to whether the employee feels valued.”1

It’s also down to the improving economy. With unemployment in down to 5%, it’s clear that hiring is happening. While that may not mean that every industry is looking for new blood, some are definitely looking for an infusion of personnel. The talent-hungry tech sector has boosted its average salary 5.3% from 2015 levels in hopes of locating qualified applicants.1

Is now the time to make your move? Five percent unemployment is approaching “full employment,” a period where the economy is getting the most out of skilled and unskilled labor. Assuming things remain on their current course, we may not see many more months where as many as 200,000 jobs are created, even as people who have stopped looking for work are drawn back into the working world. That could make this an ideal time to look upward if you are hoping to find a better-paying or more challenging job.2,3

On the other hand, there are bad times to change jobs, and U.S. News & World Report noted some of those. If you’re overworked, having interpersonal issues at the office or just bored, you can overreact; restructuring your workday or work tasks may offer a solution. If a major life event, long vacation or house hunt is just ahead, a job change may not be ideal or smart. It may not be wise if you sense that the economy (or your industry) is in line for a downturn, or if you’ve been at your job for less than a year. Lastly, a job search that coincides with the holiday season may be more prolonged than you anticipate; HR officers and managers may be more available (and less stressed) when mid-January rolls around.4

If you love what you do and are good at it, you may see no reason to change jobs. Alternately, you might reason that you could excel and love your work even more in a new environment. Consider the above-mentioned factors (and others) if you are looking for greener grass.

Nick Schneider may be reached at Nick@PhysicianAdvisorsLLC.com.

PhysicianAdvisorsLLC.com

This material was prepared by MarketingPro, Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. This information has been derived from sources believed to be accurate. Please note – investing involves risk, and past performance is no guarantee of future results. The publisher is not engaged in rendering legal, accounting or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional. This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty. This is neither a solicitation nor recommendation to purchase or sell any investment or insurance product or service, and should not be relied upon as such. All indices are unmanaged and are not illustrative of any particular investment.

Securities offered through Lion Street Financial, LLC. (LSF), Member FINRA & SIPC. Investment Advisory Services offered through Physician Investment Advisors, LLC. Physician Advisors and Physician Investment Advisors are not affiliated with LSF. Physician Investment Advisors, LLC’s outgoing and incoming e-mails are electronically archived and subject to review and/or disclosure to someone other than the recipient. We cannot accept requests for securities transactions or other similar instructions through e-mail. We cannot ensure the security of information e-mailed over the Internet, so you should be careful when transmitting confidential information such as account numbers and security holdings. If the reader of this message is not the intended recipient, or an employee or agent responsible for delivering this message to the intended recipient, you are hereby notified that any dissemination, distribution or copying of this communication is strictly prohibited. If you have received this communication in error, please notify us immediately by replying to this message and deleting it from your  computer. 

Citations.

1 – cnbc.com/2016/05/05/8-good-reasons-to-say-take-this-job-and-shove-it.html [5/6/16]

2 – investopedia.com/terms/f/fullemployment.asp [2016]

3 – businessinsider.com/jobs-report-preview-april-2016-2016-5 [5/6/16]

4 – money.usnews.com/money/careers/slideshows/the-10-worst-times-to-switch-jobs [9/18/13]


Best States to Practice Medicine…and Why

When it comes to deciding where you should go next for your practice, you have to ask yourself the question “where’s the best place to live?” Then you have to think about what should factor into your decision?

Things like income, taxes, cost of malpractice and cost of living probably come to mind. Wouldn’t it be nice if it was just as simple as picking the best location-based on those items alone and then pursing the job market? The problem is that it’s not that easy because there are other factors that play a major role. But we’ll table them for this discussion and focus on the components we can measure.

Let’s look at the top 5 rankings based on some of the data that was analyzed by Medscape’s Best and Worst Places to Practice in 2015

Guess which states are in the top 5? You might be surprised

#1 – Tennessee

The reason why is because it had the second lowest cost of living, income taxes were only 7.6%, malpractice costs were middle of the pack nationally and the average compensation was $279k. For lifestyle they have many theme parks and attractions like Gatlinburg and Pigeon Forge and the Great Smoky Mountains National Park.

#2 – Mississippi

Their average physician compensation is around $275k. They also have low-income taxes and the malpractice payouts were more favorable. A big plus for MS is their low-cost of living without the hefty price tag of that you’ll find among its more expensive peers.

#3 – Oklahoma

With a low-cost of living and an average income of $304k among doctors plus a 8.5% average state and local income tax rate, you can get a lot of financial mileage there.

#4 – Texas

This one has no state income tax and it has the benefit of the reduced malpractice payouts because of a 2003 constitutional amendment. There are many communities to choose from and lots of amenities for families. The sheer size of the state caters to almost any preference of geography, climate or city size.

#5 – Wyoming

It makes the cut because of no state income tax, higher compensation around $312 on average and much to see in the natural beauty of the landscape. For doctors who prefer a fee for service model since managed care is not available there, this is a great location for them.

So what is it that most important to you because there are many things to consider? If there is a change coming up in your future, you’ll have to figure out where everything falls and then begin your search. Once the search begins you don’t have to go at it alone. Feel free to reach out to one of our advisors who can help locate job prospects and get you introduced to specialized attorneys who can help you negotiate.


doctors life podcast

The Doctor’s Life Podcast Episode 029- Paying for Your Child’s Education

It may be a dream of yours to be able to start paying for your child’s education. As you know, and education is already expensive, so imagine when your child gets to that age to choose a major and you had it set in your mind that you wanted to pay for it all!

Nick Schneider is back for this episode of The Doctor’s Life Podcast to let us know how to start saving now so when it comes to paying for your child’s education, we are prepared and can pull it off. All episodes of The Doctor’s Life Podcast are available here, iTunes, Android, and on SoundCloud. Make sure to subscribe and you will be the first to get new episodes of The Doctor’s Life Podcast. Continue reading…


doctors life podcast

The Doctor’s Life Podcast Episode 027- When You Should Get Disability Insurance

Do you know when you should get disability insurance? If you like saving thousands of dollars over your career, there is definitely a right time to start a disability insurance policy.

Justin Nabity answers the question of when you should get disability insurance on this episode of The Doctor’s Life Podcast. All episodes of The Doctor’s Life Podcast are available here, iTunes, Android, and on SoundCloud. Make sure to subscribe and you will be the first to get new episodes of The Doctor’s Life Podcast. Continue reading…


Physician Life Insurance Family

Disability Insurance Discounts Exist!

What is with all this talk about discounts on disability insurance? Why are you hearing so much about it at this time of year? Does it really matter to get a discount on the insurance? What would happen if you waited to get it a later date?

The disability insurance companies have created an incentive for doctors to sign up at key times in order to maximize enrollment and at the same time offer significant savings for those who get their policy going earlier. We are talking about individual disability insurance here, not employer, group or association insurance. We are going to focus our attention on individual plans since more than 80% of doctors get their individually owned policies are obtained by doctors at the start of their careers according to the American Medical Association’s Physician Financial Preparedness Survey.

How much are we talking about in savings from the discount? Continue reading…


taxes

Weekly Economic Report for May 2, 2016

Nick Schneider Presents:

 

WEEKLY ECONOMIC UPDATE

WEEKLY QUOTE

 

“He who lives little, changes little.”

                                                                                                                                

– Anatole France

      

   

WEEKLY TIP

 

Starting your career? Beware of spending money to maintain an image. If you are tempted to “fake it ‘til you make it,” you may soon be awash in consumer debt.

  

   

WEEKLY RIDDLE

 

It cannot see and it feels no pain, despite matter constantly going through its eye. What is it?

 

 

Last week’s riddle:

Sandra is running in a half-marathon and she passes the second person in the race. What position is she in?

   

Last week’s answer:

Second place.

 

 

 

May 2, 2016

INCOME OUTDISTANCES SPENDING

Personal income rose 0.4% in March, yet the Commerce Department reported personal spending up just 0.1%. That mild uptick contributed to a poor first quarter for GDP; last week, the Bureau of Economic Analysis estimated Q1 growth at 0.5%.1

CONSUMER OPTIMISM declineS

The Conference Board’s consumer confidence index dipped 1.9 points in April to 94.2. Also descending was the University of Michigan’s consumer sentiment index, which ended April at 89.0 after concluding March at 91.0.1,2

 

A ROUNDUP OF HOUSING NEWS

New home sales fell 1.5% in March according to the Census Bureau, after a 0.4% retreat in February. The (just-released) February S&P/Case-Shiller home price index shows a 5.4% overall rise in home values across 12 months, down from 5.7% in the January edition. Lastly, the National Association of Realtors reported a 1.4% March gain in its pending home sales index.1

 

MAJOR INDICES RETREAT

The Nasdaq was the benchmark that stumbled hardest last week on Wall Street, falling 2.67% to settle at 4,775.36 Friday. April ended with the S&P 500 at 2,065.30 and the Dow at 17,773.64; the S&P lost 1.26% for the week; the Dow, 1.28%.3

 

THIS WEEK: Monday, April’s ISM manufacturing PMI appears plus earnings from AmeriGas, Anadarko Petroleum, Del Taco, Denny’s, Ferrari, Fossil, Loews Corp., and Sysco. Tuesday earnings include results from Archer Daniels Midland, Avis Budget, Boise Cascade, CBS, Clorox, Cummins, CVS Health, Duke Energy, Estee Lauder, Etsy, GrubHub, Hyatt, Macerich, Molson Coors, Papa John’s, Pfizer, Pitney Bowes, Smart & Final, Sprint, Starwood Hotels & Resorts, Valero Energy, Vulcan Materials, and Western Union. On Wednesday, the Street looks at the April ISM services PMI, ADP’s April job-change report and earnings from Allstate, Chubb, Fitbit, GoDaddy, Green Dot, Humana, iHeart Media, Marathon Oil, Mosaic, Noble Energy, Priceline, Prudential Financial, Sempra Energy, Sunoco, Tesla, Tesoro, Time Warner, Transocean, TripAdvisor, Whole Foods, and Zynga. Thursday, an initial claims report and a new Challenger job-cut report appear, plus earnings announcements from Acadia Pharmaceuticals, Activision Blizzard, Alibaba, El Pollo Loco, Fluor, GoPro, Icahn Enterprises, Jamba, Kellogg, Kemper, Kraft Heinz, Merck, MGM Resorts, Motorola Solutions, Nvidia, Occidental Petroleum, Shell Midstream Partners, Wingstop, and Yelp. The Labor Department’s April jobs report arrives Friday, plus earnings from Allergan, Cigna, Exelon, Revlon, and Weyerhaeuser.

 

% CHANGE Y-T-D 1-YR CHG 5-YR AVG 10-YR AVG
DJIA +2.00 -1.45 +7.75 +5.64
NASDAQ -4.63 -4.94 +13.24 +10.56
S&P 500 +1.05 -1.97 +10.29 +5.76
REAL YIELD 4/29 RATE 1 YR AGO 5 YRS AGO 10 YRS AGO
10 YR TIPS 0.12% 0.14% 0.75% 2.39%

 
Sources: wsj.com, bigcharts.com, treasury.gov – 4/29/164,5,6,7

Indices are unmanaged, do not incur fees or expenses, and cannot be invested into directly. These returns do not include dividends. 10-year TIPS real yield = projected return at maturity given expected inflation.

 

 

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Securities offered through Lion Street Financial, LLC. (LSF), Member FINRA & SIPC. Investment Advisory Services offered through Physician Investment Advisors, LLC. Physician Advisors and Physician Investment Advisors are not affiliated with LSF.

This material was prepared by MarketingPro, Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. This information has been derived from sources believed to be accurate. Please note – investing involves risk, and past performance is no guarantee of future results. The publisher is not engaged in rendering legal, accounting or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional. This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty. This is neither a solicitation nor recommendation to purchase or sell any investment or insurance product or service, and should not be relied upon as such. All indices are unmanaged and are not illustrative of any particular investment. The Dow Jones Industrial Average is a price-weighted index of 30 actively traded blue-chip stocks. The NASDAQ Composite Index is an unmanaged, market-weighted index of all over-the-counter common stocks traded on the National Association of Securities Dealers Automated Quotation System. The Standard & Poor’s 500 (S&P 500) is an unmanaged group of securities considered to be representative of the stock market in general. It is not possible to invest directly in an index. NYSE Group, Inc. (NYSE:NYX) operates two securities exchanges: the New York Stock Exchange (the “NYSE”) and NYSE Arca (formerly known as the Archipelago Exchange, or ArcaEx®, and the Pacific Exchange). NYSE Group is a leading provider of securities listing, trading and market data products and services. The New York Mercantile Exchange, Inc. (NYMEX) is the world’s largest physical commodity futures exchange and the preeminent trading forum for energy and precious metals, with trading conducted through two divisions – the NYMEX Division, home to the energy, platinum, and palladium markets, and the COMEX Division, on which all other metals trade. Additional risks are associated with international investing, such as currency fluctuations, political and economic instability and differences in accounting standards. This material represents an assessment of the market environment at a specific point in time and is not intended to be a forecast of future events, or a guarantee of future results. Past performance is no guarantee of future results. Investments will fluctuate and when redeemed may be worth more or less than when originally invested. All economic and performance data is historical and not indicative of future results. Market indices discussed are unmanaged. Investors cannot invest in unmanaged indices. The publisher is not engaged in rendering legal, accounting or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional.

Citations.

1 – tradingeconomics.com/united-states/calendar [4/29/16]

2 – foxbusiness.com/markets/2016/04/29/consumer-sentiment-slips-in-april.html [4/29/16]

3 – markets.on.nytimes.com/research/markets/usmarkets/usmarkets.asp [4/29/16]

4 – markets.wsj.com/us [4/29/16]

5 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=4%2F29%2F15&x=0&y=0 [4/29/16]

5 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=4%2F29%2F15&x=0&y=0 [4/29/16]

5 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=4%2F29%2F15&x=0&y=0 [4/29/16]

5 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=4%2F29%2F11&x=0&y=0 [4/29/16]

5 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=4%2F29%2F11&x=0&y=0 [4/29/16]

5 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=4%2F29%2F11&x=0&y=0 [4/29/16]

5 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=4%2F28%2F06&x=0&y=0 [4/29/16]

5 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=4%2F28%2F06&x=0&y=0 [4/29/16]

5 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=4%2F28%2F06&x=0&y=0 [4/29/16]         

6 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [4/29/16]

7 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [4/29/16]