Medical Entrepreneur

 

I am a recent Board Certified Resident doctor entering job market.  What should I be aware of?

You have two good options--take a staff position in a hospital or enter a private practice.  Each has its own advantages and disadvantages.  Analyze your "behavioral style" to determine if your make up is to be an employer or an employee and choose the entry appropriately. 

 

As a resident doctor, I am very good at my specialty but have not received any business training.  How do I get business working knowledge?

You should work with reputable, experienced legal and financial advisors.  You can engage a financial professional to work in coordination with other professional advisors, such as attorneys, accountants, etc.,  and to help create a plan in order to achieve your personal and financial objectives, both short and long term, through practice management, risk management, and financial management.

 

If I enter private practice, what are some risks that I should avoid?

You made a significant investment in your education to be a physician.  The first thing you should consider is protecting your most valuable asset, which is your ability to earn your living because of your profession.  Engage an independent  financial professional to help you design and implement a plan to transfer the risk of a disability to a highly rated insurance carrier.

 

As a new doctor, how do I go about achieving financial independence?

Consider your plan as constructing a new house.  First you build your foundation by minimizing some or all the potential risks from unforeseen future events that might impact you and your family.  Second, build your first floor by investing a portion of your income in moderately low risk investments with the potential for immediate tax advantages. Third, build your second floor by investing a portion of your income that may result in higher returns with correspondingly higher risks.  Fourth, install a long lasting roof by regularly monitoring changes in your objectives and your investments.  Seek an experienced and reputable financial professional to help you accomplish these objectives.

 

I am a highly-compensated staff physician at a large hospital.  I would like to make larger contributions to my retirement plans?  What are my options?

Investigate if your organization has implemented a "deferred compensation" plan for highly compensated employees.  If they do not, engage a financial professional to help you promote the potential benefits of such a plan to your organization's executive committee.

 

I have a successful private practice.  I would like to make larger contributions to my retirement plans on a pre-tax basis.  What are my options?

Consider investigating and implementing a combination of defined benefit and defined contribution plans designed to help you achieve your objectives.

 

I am concerned about not having a large enough nest egg in my retirement.  What are my options?

There are two phases--a wealth accumulation phase and a wealth distribution phase.  Determine your income needs in retirement, considering the following risks, taxation, inflation, investments, market and life expectancy,  Implement a plan and monitor it regularly with an experienced financial professional.  

 

I want to sell my practice.  Where do I start?
 
A good place to start is to determine the value of the practice, so as to establish a realistic sales price range.  Also, it is prudent to analyze how to minimize tax liability on the sale of the business in order to better maximize the income one would actually receive. 

 

I want to protect my personal assets from exposure to liability, but I don’t know how.

Remove all personal guarantees from business obligations and set up an LLC company thereby reducing the risk to your personal assets.