On Investment Management and Physician PRUDENCE

ON “PRUDENCE” IN FINANCE AND INVESTMENT MANAGEMENT

TERMS & DEFINITIONS FOR PHYSICIANS

http://www.MarcinkoAssociates.com

***

PRUDENT BUYER: The efficient purchaser of market balance between value and cost.

PRUDENT MAN RULE: An 1830 court case stating that a person in a fiduciary capacity (a trustee, executor, custodian, etc) must conduct him/herself faithfully and exercise sound judgment when investing monies under care. “He is to observe how men of prudence, discretion and intelligence manage their own affairs, not in regard to speculation, but in regard to the permanent distribution of their funds, considering the probable income as well as the probable safety of the capital to be invested.” Allows for mutual funds and variable annuities.

PRUDENT INVESTOR RULE: A fiduciary is required to conduct him/herself faithfully and exercise sound judgment when investing monies and take measured and reasonable investment risks in return for potential future rewards. Allows for mutual funds, stocks, bonds, variable annuities asset allocation & Modern Portfolio Theory.

CITE: https://www.r2library.com/Resource/Title/0826102549

INVESTING TEXTBOOK

***

ORDER: https://www.routledge.com/Comprehensive-Financial-Planning-Strategies-for-Doctors-and-Advisors-Best-Practices-from-Leading-Consultants-and-Certified-Medical-PlannersTM/Marcinko-Hetico/p/book/9781482240283
***

Leave a comment