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Why Physicians Need Financial Advisors Now!
[By Vicki Rackner MD]
http://www.CertifiedMedicalPlanner.org
I recently attended a surgical meeting. Most conversations with my physician colleagues turned to the same singular topic: physicians’ new financial reality.
And the message is, “It hurts!”
Physicians’ Financial Plans
Financially savvy physicians execute thoughtful retirement plans. Yet, today about half of surveyed physicians are behind where they would like to be in retirement preparedness. Further, today only about half of physicians work with professional financial planners.
As a physician myself, I understand why smart physicians fail to take smart financial action. We physicians dedicate ourselves to the alleviation of pain and suffering of others. Retirement is a distant personal concern that does not cause immediate financial pain today. We put it off.
Lesson from My Dentist
Years ago my dentist recommended that I undergo a procedure to replace a filling. He explained that the filling material put in my mouth about 40 years ago tends to pull from the tooth over time and allow new cavities to form.
As much as I like my dentist, I actively avoid spending time in his dental chair. I put off the recommended filling replacement year after year. That is, of course, until I experienced vague throbbing from that tooth. I rearranged my schedule so I could tend to this small problem before it became a much bigger problem. Who wants a root canal!
For physicians retirement planning is like that proactive filling replacement. We understand that without action there will be problems down the road. However, the threat of a problem in the distant future does not propel many like myself to action today.
***
***
The ObamaCare [PP-ACA] Opportunity for Financial Advisors
ObamaCare is the source of acute financial pain for physicians. It’s the financial toothache. Practicing physicians are looking at:
- Higher taxes. Doctors represent 9 of the 10 highest earners in the US.
- Rising costs of goods and services as businesses address their own higher tax bills.
- The costs of building the infrastructure that will lead to greater healthcare efficiencies, like converting to electronic medical records, hiring new staff to address new administrative demands and aligning with new compliance requirements.
- Lower professional fees. The 24% Medicare fee reduction that was averted this year will become reality soon. As Medicare goes, so, too, go the rest of the insurance fee schedules.
- Decreasing patient referrals as primary care doctors sell their practices.
- Physicians know they need to act now to avoid the financial root canal. Each physician is in the process of creating a personal ObamaCare plan.
Physicians’ Wants and Needs
As a financial advisor, you know that physicians NEED a retirement plan. Kids need to eat their broccoli, too. It’s good for them.
Physicians WANT a plan to help them achieve the personal, professional and financial goals that drew them to a career in medicine. Engaging physicians by address their ObamaCare plan is about as hard as getting kids to eat ice cream.
What This Means for You
Today physicians actively seek experts to help them create their ObamaCare plans.
Financial advisor are winning new physician clients. As Seattle Seahawks quarterback Russell Wilson asks, “Why not you?”
If you want to work with more physician clients, this is your moment! Seize it. You have a chance to join the high-performing financial advisors mining the treasures in the medical market.
Assessment
Should wish to learn more here’s a video that addresses 4 questions:
- Why do physicians need you now?
- What do you need to know about physicians now?
- How do you engage physicians now?
- How do you conduct yourself so physicians want to conduct business with you now?
About the Author
Vicki Rackner MD is an author, speaker and consultant who offers a bridge between the world of medicine and the world of business. She helps businesses acquire physician clients.
VIDEO: https://www.youtube.com/watch?v=CeCyidc4JP8&feature=player_embedded
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Conclusion
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- FINANCE: Financial Planning for Physicians and Advisors
- INSURANCE: Risk Management and Insurance Strategies for Physicians and Advisors
- Dictionary of Health Economics and Finance
- Dictionary of Health Information Technology and Security
- Dictionary of Health Insurance and Managed Care
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Filed under: Career Development, CMP Program, Experts Invited, Financial Planning, Retirement and Benefits | Tagged: ACA, certified medical planner, CMP™ Course, ObamaCare, Physicians' Financial Plans, PP-ACA, Vicki Rackner MD, Why Physicians Need Financial Advisors Now |
The Leading Business Education Network for Doctors, Financial Advisors and Health Industry Consultants 
Personal Financial Planning Education for Physicians
Almost a decade ago, Fortune magazine carried the headline “When Six Figured Incomes Aren’t Enough. Now Doctors Want a Union.” To the man in the street, it was just a matter of the rich getting richer.
The sentiment was more precisely quantified, when I reported in the March 31, 2005 issue of Physician’s Money Digest, along with Editor Gregory Kelly, that a 47-year-old doctor with $184,000 in annual income would need about $5.5 million dollars for retirement at age 65.
Sadly, a study by the Kaiser Permanente Foundation in California, reported that doctor’s chose to work four hours longer each week rather than take a ten percent pay cut.
And, “Physicians have a significantly low propensity to accumulate substantial wealth”, according to Thomas Stanley – Author “The Millionaire Next Door” [New York Times].
So, in my 15 years of medical practice, and 10 years as a healthcare consultant and Certified Financial Planner®, I observed that physicians are particularly disadvantaged when it comes to anything regarding finance. Most doctors and healthcare providers have enough on their mind practicing their specialty and keeping up with technology, compliance and practice trends; that planning for their financial future is often forgotten.
Yet, physicians have financial planning concerns that are different than most people:
1. They enter the workforce a decade later than contemporaries, leaving fewer productive years and starting with enormous medical school debt.
2. They tend to marry and have children later in life, often postponing their offspring’s educational funding and their own retirement planning.
3. Family members often erroneously consider them affluent, seeking financial assistance.
4. Health reform has reduced remuneration just as governmental scrutiny has burdened practices with costly IT, privacy and ACA regulations.
5. A three decades long bull market is over and if the current “new-normal” prevails – meaning a 4.5% real annualized rate of return on equities and a 1.5% real rate on bonds – wealth accumulation will be reduced.
6. Lack of financial management expertise, especially in the tax code.
I taught such courses and developed curriculum for the online Certified Medical Planner™ professional designation program, with current hedge fund investor interest.
Dr. David Edward Marcinko MBA CMP™
http://www.CertifiedMedicalPlanner.org
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48% of Americans Are In The Dark About Affordable Care Act Penalties
According to a new Turbo Tax health survey conducted by Harris Poll:
• 62% of uninsured Americans are aware that they will be required to be pay a penalty.
• 87% do not realize that the deadline to avoid the tax penalty for 2014 has passed.
• 56% of those without health insurance are also unaware that uninsured individuals who meet certain criteria may qualify for an exemption from the Affordable Care Act tax penalty.
• 45% of Americans are not aware there are discounts called premium tax credits designed to make health insurance less expensive for low-to-moderate income families.
Viki – Really? These are not the types of clients I seek.
Note: Survey was conducted online within the United States by Harris Poll on behalf of TurboTax from November 6-10 among 2,022 adults age 18+ and November 13-17, 2014, among 2,014 adults ages 18+.
Source: Turbo Tax Health Survey (Harris Poll)
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Gruber, Tavenner Apologize for Obamacare Miscues
“Inexcusable” was the word of the day on Capitol Hill. Both MIT economist Jonathan Gruber and CMS Administrator Marilyn Tavenner invoked it to describe their actions during a more than four-hour hearing Tuesday before the House Oversight and Government Reform Committee. Tavenner apologized for including nearly 400,000 dental-only plans in the tally of health insurance enrollments through the state and federal exchanges during a previous appearance before the committee. “It was an inexcusable mistake,” Tavenner said. “It should not have happened in the first place.”
Gruber sought penance for a series of videos in which he spoke in extremely injudicious terms about the passage of the Patient Protection and Affordable Care Act. Most notoriously, Gruber stated that Democrats exploited the “stupidity of the American voter” to shield the costs of the law and gain support.
Source: Paul Demko
Modern Healthcare [12/8/14]
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Where Consumers Want to Learn About Healthcare Services/Cost
A recent online survey conducted by Harris Poll on behalf of SCIO Health Analytics found that 38% of insured Americans do not have a good understanding of what healthcare services are covered under their current plan.
According to the survey, here’s where they want to learn about healthcare costs and services:
• 62% want to use online research.
• 41% would use a member helpline.
• 37% would look to the insurance company.
• 31% would use doctors as their source of information.
Source: Harris Poll, SCIO Health Analytics
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Obamacare and Reagan
This article was initially published as a letter to subscribers of The Upshot’s newsletter.
Carlyle
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Dr. Rackner,
The ACA is just not affordable to a big chunk of those it was most meant to serve: The previously uninsured. In fact, many are worse off than before, according to a new study.
http://www.msn.com/en-us/money/topstories/obamacare-is-actually-not-so-affordable-unless-youre-broke/ar-AAf0EKn?li=AA4Zjn&ocid=U348DHP
This fact could also unravel part of the program’s foundation, which could be a problem for healthcare insurers.
Selma
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How Obamacare unravels?
[Risk Corridors]
The reality is that ACA risk corridors have been a disaster. Why?
Insurers have requested $2.87 billion to help cover excessive losses tied to Obamacare plans, but they’ll be receiving just 12.6% of this amount, or $362 million — a nearly $2.5 billion shortfall.
This is why more than half of Obamacare’s co-ops went belly up, and it could be another reason UnitedHealth Group has threatened to leave the Obamacare marketplace exchanges.
Karen
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Really?
Government calls for limits to short-term health coverage to ease Obamacare risks.
http://www.msn.com/en-us/money/healthcare/government-calls-for-limits-to-short-term-health-coverage-to-ease-obamacare-risks/ar-AAgNML2?li=BBnbfcN
Melinda
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