Estate Planning: You’re Never Too Young

June 27, 2024April 20, 2015 by Justin Nabity

Why physicians should begin with the end in mind and secure their estate plan early

It’s understandable why many physicians in their 40’s and 50’s are inordinately focused on their careers and on trying to accumulate assets; they’ve been playing catch up since they left training, and they have a shorter time horizon in which to achieve their most important goals. However, a common mistake most physicians make is to put off planning their estate until they’ve accumulated some wealth, not realizing that there is so much that can happen along the way which can have devastating consequences for their families. While there are a number of reasons why younger physicians tend to avoid facing these critical issues, the minimal time and expense it takes to address them, thus preventing unnecessary hardship and heartache, makes it almost inexcusable not to.

5 Things Financially Successful Physicians Do Differently

June 27, 2024April 20, 2015 by Justin Nabity

While all physicians face the same financial challenges early on in their careers, each one begins to make decisions about their financial future that will set them on an individual course largely determined by the consequences of their actions – or inaction.

Challenges not met early on with deliberate steps to overcome them can eventually become obstacles to financial success which can grow increasingly insurmountable in a shrinking time horizon.

Perhaps the biggest difference between financially successful physicians and those who struggle is the realization that there is not a minute to waste in setting the right course.

For younger physicians, the best course is the one followed by physicians who have achieved financial success.

Taxes, Job Search and Malpractice Insurance Premiums

November 26, 2024April 19, 2015 by Justin Nabity

New Tax Legislation: How does it affect physicians?

The American Taxpayer Relief Act of 2012 was signed into law on January 2, 2012. It includes new tax rates, restrictions on itemized deductions and exemptions, and extensions of certain deductions and credits. This act affects physicians the same way it affects others who make salaries approaching the law’s new limits.

For example, the new tax rate for married-filing-jointly taxpayers who make more than $450,000 in 2013 will rise to 39.5%. For those with taxable income of more than $450,000, capital gains rates will increase to as much as 20%. On the other hand, if you are still in residency or fellowship, and you happen to have some money available to buy a house, you might want to do that soon. The zero-percent capital gains rate is still in place for those who make less than $72,500 (joint) or $36,250 (single).

Physician Contracts, Disability Insurance and Investments

June 27, 2024April 19, 2015 by Justin Nabity

Contracts: Horrible Unexpected Results Of Casual Contracts

It’s tempting to trust your new employer and assume he or she has your best interests at heart. Employers are, after all, showing faith in you when they offer you a contract. However, it’s not uncommon for unexamined contracts to contain unintended pitfalls that make things go horribly wrong, sometimes long after you’ve been hired. That’s what happened to a physician in the Chicago area, as described in this article. How do you overcome contract dangers like this?