The Leading Business Education Network for Doctors, Financial Advisors and Health Industry Consultants

BY DR. DAVID EDWARD MARCINKO; MBA MEd CMP®

SPONSOR: http://www.CertifiedMedicalPlanner.org

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SPONSOR: http://www.MarcinkoAssociates.com

Most individual physician portfolios are simply a list of stocks.  Doctors with such lists usually know the cost of each position and when they acquired it.  It is not unusual to find inherited low cost stocks in the account that have been held for many years.

When you inherit securities, a new cost basis is established (the price of the stock on the date of death or six months later—the executor of the estate makes this determination). Even though there would be no capital gain liability if the stock were sold immediately after date of death, most people simply don’t do anything, just hold the stock. Of course taxes should be considered when selling securities but the investment merit should be the overriding factor. 

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Doctor and Accountant Opinions

In a personal communication, Mr. L. Eddie Dutton, CPA said, “First make an investment decision and if it fits into the tax plan, so much the better.  Doctors often wonder where they will get the money to pay the taxes.  I say to get it from the sale of the appreciated stock and cry all the way to the bank with your profit.”

Dr. Ernest Duty MD, a very successful private investor advises “Ask yourself this question: If you had the money instead of the stock, would you buy the stock?  If your answer is ‘Yes’ then, hold on to the stock but if you say ‘No, I wouldn’t buy that stock today’ then, sell it” [personal communication].

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EDUCATION: Books

SPEAKING: Dr. Marcinko will be speaking and lecturing, signing and opining, teaching and preaching, storming and performing at many locations throughout the USA this year! His tour of witty and serious pontifications may be scheduled on a planned or ad-hoc basis; for public or private meetings and gatherings; formally, informally, or over lunch or dinner. All medical societies, financial advisory firms or Broker-Dealers are encouraged to submit a RFP for speaking engagements: E-MAIL CONTACT: MarcinkoAdvisors@outlook.com 

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Filed under: "Ask-an-Advisor", Accounting, Experts Invited, Financial Planning, Investing, Portfolio Management, Touring with Marcinko | Tagged: budgeting, certified medical planner, CMP, finance, Financial Planning, Investing, ISP, Marcinko, personal-finance, Portfolio Management, stock management, stocks |