By David Wray
David Wray, the president of the Profit Sharing/401(k) Council of America, once said that the purpose of profit-sharing plans is “to generate goodwill and a feeling of partnership” between employer and employee. Profit-sharing plans give employees a share in the profits of a company each year and can help to fund their retirements.
All funds contributed to a profit-sharing plan accumulate tax deferred, as with other defined-contribution retirement plans, but employer contributions are tax deductible only if the plan is defined as an elective deferral plan, which means that instead of accepting their profit shares as cash, employees defer the assets into retirement funds.
Articles abound with the claim that - if you save $100 a month, earning 10 percent per year, you will have a given sum of money in 30 years. These simplistic future-value exercises (also known as deterministic calculations) are helpful in explaining the potent effect of compound interest and encouraging investors to start saving early; after all, it was Einstein who once said, "the most powerful force in the universe is compound interest." The problem with such deterministic calculations is that they assume the average annual earnings will remain constant throughout the investment period - in other words, investments will always have positive returns. If we have learned anything these past few years, it is that stock markets do not always earn positive returns each year, and that returns can be volatile. Until recently, most financial advisors used deterministic calculations to forecast future portfolio values; however, such calculations fail to answer the most crucial questions on an investor's mind: Will I have enough money to retire? In recent years, financial advisors have shifted away from using deterministic calculations and toward Monte Carlo simulations to be able to answer the aforementioned questions with a greater level of confidence.
On April 12th Health and Human Services Secretary Kathleen Sebelius announced a program projected to save 63,000 lives and up to $35 billion in health care costs over the next three years by preventing hospital related injuries and illnesses.
"Americans go the hospital to get well, but millions of patients are injured because of preventable complications," Sebelius said. "Working closely with hospitals, doctors, nurses, patients, families and employers, we will support efforts to help keep patients safe, improve care, and reduce costs. Working together, we can help eliminate preventable harm to patients."
The Chinese curse "may you live in interesting times" seems an appropriate description for how many medical professionals feel about their lives. Over the past couple of decades, physicians have had to work harder, not to make more money, but just to stay in place economically. Many are older and working harder than ever, yet find the lifestyle that they have enjoyed in the past gradually eroding.
There are many reasons for the "treadmill syndrome." However, what is most frightening is not the obvious economic fallout, but the lifestyle compromises that many physicians are not even aware of until, unfortunately, it may be too late. Let's take a look at how the rising costs of educating children are materially contributing to more years worked with a potentially diminishing level of satisfaction.
By Brian Picariello CPA/PFS, CFA, Traust Sollus Wealth Management
609-779-6700, [email protected]
You have chosen to open your own practice because you know that running a business of your own is the way to build your personal fortune. You are prepared to put in the time and take the business risks, because you know the rewards will come.
As a good doctor, you probably put in long days taking care of your patients, and then want to spend time with your family as well. Although revenue is coming in and you're taking home a good paycheck, do you know how to take to maximize the value of your business and use it to grow your own personal wealth?
This year choose to find the time to take the four steps that will help your reach your personal financial goals.
Making excuses to delay estate planning is easy. In fact, maybe you’ve already thought: “I’ll worry about it when I’m older.” Or “My estate is too small to be affected.” Or even, “I don’t know what I’m going to do with my assets yet.” However, if you are unprepared when incapacity or death strikes, your family’s financial future may not be protected. While there is no designated age for beginning to plan your estate, waiting too long may rob your beneficiaries of much of their inheritance. That’s why it’s important to take the time now - before you need an estate plan.
If you’re like most Americans, ringing in the New Year also means resolving to change old habits, or start new ones. Year after year, getting one’s personal finances in order consistently ranks as one of the top 5 New Years resolutions. As with any resolution, the hard part is not making the promise, but actually putting it into action – consistently. Many of us have suffered through overcrowded gyms in January, only to see attendance slowly wane in February and March. But, if you are like the majority of Americans who will commit to get your finances in order in 2011, here are five concrete steps you can take now to get you on the right track.
The finance reform has created many questions regarding financial advisors. This article discusses the differences between a fiduciary advisor and a suitability broker. A registered investment advisor (RIA) works under the Investment Advisor Act of 1940. A broker-dealer works under the Securities Act of 1933. The Investment Advisor Act of 1940 requires the advisor to act as a fiduciary and therefore act in the best interest of the client. Generally an ongoing relationship is developed when working with an RIA. The RIA provides unbiased advice about the investments being managed and directs the investments based on the goals of the clients.
Medicare and Medicaid reimbursements continue to drop. HMO penetration in many areas is increasing. Malpractice premiums are rising at an alarming rate. And, healthcare reform will soon overwhelm private practice groups across the country with 31 million new patients. In response, many physicians are turning to the Physician Wellness Group and their unique office based nutrition business model that enables a practice to provide additional health care options to their patients. The Physician Wellness business model offers full-time business support, income not tied to insurance reimbursements, separate tax benefits; all with no additional overhead.
Information is the key to success when a practice opportunity comes along. When entering the interview process a candidate can expect the practice to have their list of questions in hand. It is equally important that the physician candidate be prepared to gather the information he will need to make a career decision. How much, how long, how many are questions that usually come to mind: