As a PWS advisor working with physicians, our role is not to replace specialized professionals in each area but to collaborate with attorneys, accountants, and insurance specialists to create comprehensive financial plans that address all aspects of a physician client's financial life.
Additionally, staying current with industry developments and continuously expanding our knowledge will ensure we are able to provide the most relevant and effective advice to our clients.
Physician Specifics
Understanding of the various physician employment models, such as private practice, academic institutions, hospital employment, or group practice.
Physician-specific retirement plans, such as 403(b)s and 457(b)s for those working in non-profit organizations and government institutions.
Medical practice buy-ins and buyouts, including valuation methods, funding options, and tax considerations.
Medical Industry Trends
Emerging technologies in the medical field on physicians' incomes and the demand.
Healthcare policy and reimbursement models on cash flow and financial planning for physicians.
Cash Flow and Budgeting
Implement advanced cash flow management techniques like cash reserve optimization, which involves strategically allocating funds to optimize returns and liquidity.
Cash flow forecasting to assist physicians in making informed financial decisions based on expected income and expenses.
Tax Mitigation Strategies
Advanced tax strategies like Roth conversion ladder and mega backdoor Roth IRA for high-income physician clients to maximize tax-free income in retirement.
Benefits and complexities of establishing a defined benefit plan or cash balance plan for practice owners to achieve substantial tax deductions and retirement savings.
Basic Estate Planning
Testamentary trusts to protect assets and provide for loved ones, especially for physicians with minor children or individuals with special needs.
Benefits of creating a revocable living trust to avoid probate and maintain privacy for the physician's estate.
Advanced Estate Planning
Intricacies of irrevocable life insurance trusts (ILITs) as a tool for estate tax reduction and wealth transfer while maintaining control over life insurance proceeds.
Grantor-retained annuity trusts (GRATs) and qualified personal residence trusts (QPRTs) as strategies to transfer assets at a discounted value, reducing potential estate tax liability.
Term Life Insurance Planning
Analyze different term life insurance riders, such as disability income riders, which can provide additional protection for physicians during periods of disability.
Discuss options for converting term policies to permanent coverage if the physician's needs change over time.
Permanent Life Insurance Planning
Compare various types of permanent life insurance, such as whole life, universal life, and indexed universal life, based on cash value growth potential, flexibility, and risk tolerance.
Evaluate the benefits of using life insurance as a tax-efficient savings vehicle, particularly for high-income physicians who have maxed out other retirement accounts.
Disability Insurance Planning
Explain the concept of "own-occupation" disability insurance, which provides coverage if the physician is unable to perform the specific duties of their medical specialty, even if they can work in another capacity.
Discuss supplemental disability insurance policies that can be layered on top of group coverage to increase the overall benefit amount.
Long-Term Care Insurance Planning
Analyze hybrid long-term care insurance policies that combine long-term care benefits with life insurance or annuities, providing potential flexibility and coverage for various scenarios.
Different Investment Account Types
Dive deeper into investment account selection and asset location strategies to optimize tax efficiency across taxable and tax-advantaged accounts based on the physician's investment holdings.
Discuss the advantages and considerations of using a Roth IRA for tax-free growth and withdrawals in retirement.
Basic Portfolio Construction
Introduce more sophisticated portfolio construction techniques like factor-based investing, where portfolios are built around specific risk factors to enhance returns and reduce volatility.
Discuss asset location strategies that prioritize tax-efficient investments in taxable accounts and tax-inefficient assets in tax-advantaged accounts.
Retirement Planning
Evaluate the benefits and drawbacks of establishing a defined benefit plan for physicians with significant income and a desire to accelerate retirement savings.
Discuss Roth conversion strategies to manage tax liabilities during retirement and reduce potential Required Minimum Distributions (RMDs).
Education Planning
Explore different education funding options beyond 529 plans, such as Coverdell Education Savings Accounts (ESAs), Uniform Transfers to Minors Act (UTMA) accounts, or trusts.
Retirement Income Planning
Discuss the complexities of creating a retirement income plan that considers various income streams, such as Social Security, pensions, retirement account distributions, and annuities.
Evaluate the pros and cons of using immediate annuities or deferred income annuities as part of a retirement income strategy.
Charitable Planning
Introduce the concept of a Charitable Remainder Trust (CRT) or Charitable Lead Trust (CLT) to help physicians achieve their charitable objectives while receiving potential tax benefits.