The Importance of Transparency in your Practice
Being straightforward with your team will earn their respect and get things done. Tell them what’s going on in the practice, and things will operate much more smoothly. When it comes to improving managerial aptitude, there isn’t a business owner or entrepreneur out there who doesn’t want to become a better communicator. It’s practically unimaginable that, in this information age, successful people don’t inherently understand the value of effective communication. As a private dental practitioner, you have a clear message you want to broadcast to everyone with whom you do business, both patients and employees. Through your words and actions, you want them to know that they can count on you. I believe everyone in your office has the same three questions for you—why what you have to say is important to them; how it’s going to help them; and if they can, in fact, trust you. That last one is the clincher. You need to earn their trust if you aim to keep them, and you can’t earn their trust unless you’re transparent regarding your intentions. If there’s anything I’m guilty of, it’s overcommunicating. I don’t hide my intentions, especially not from my staff. If you think that business is like a poker game and you must keep your hand to yourself, you’re going to lose a lot of people. You’ll come across as inauthentic or aloof, if not downright deceitful. How to institute a new policy When instituting a new policy, understand that you have every right as a business owner to change the way you conduct your office. But also expect that your people will want to know at least a general reason why they’re being asked to suddenly shift gears. Resist any temptation to throw your weight around. Don’t use “I’m the boss” as your justification. You want your team to embrace change, and they’ll be infinitely more cooperative if they understand your vision. Otherwise, they’ll pay you lip service and revert to doing things the old way behind your back. Most dentists I coach don’t have a problem with outlining their reasons behind business decisions once they get the hang of it. They understand the logic of bringing everyone up to speed and making sure they’re on the same page. Where it gets tricky is when mistakes happen, particularly when the dentist is the one who drops the ball. I promise that the sooner you confess, the better. There’s no shame in making mistakes as long as you own up to them as soon as possible. If you choose the opposite route and try to cover up your tracks, your people will not only find out about your mishap, but they’ll invariably make up a worse scenario in their heads about what you did and why you did it. Don’t let it get to that. It’s nearly impossible to earn back trust and respect once you’ve lost it. Own your mistakes Not surprisingly, owning up to your mistakes improves your overall trustworthiness while simultaneously showing your team the importance of being accountable for their mishaps. Oversights and misjudgments are part and parcel of doing business. Nobody is immune to making them. Thankfully, the vast majority of mistakes aren’t a big deal when they’re addressed in a timely manner. You catch it early, and you carry on with a newfound sense of clarity about how to do better. Unfortunately, that’s not the case when you’ve unwittingly created a culture of sweeping things under the rug. That’s when problems fester and become terrible thorns in your side. Remember that when you’re the boss, people follow your lead. So, make it clear that blunders are inevitable, particularly by acknowledging your own, and then demonstrate your willingness to learn as you go and let everyone else do the same. In time, such hiccups will become fewer and less consequential as you all find your groove and hone your skills. Avoid too much of a good thing While my intentions are to espouse the virtue of overcommunicating, I would be remiss if I didn’t emphasize that too much broccoli can kill you. In other words, you can have too much of a good thing and communication is no exception. Not everything that happens in the confines of your practice needs to be announced to your entire team. For instance, if a key employee needs time off because of something such as chemotherapy, keep the specifics private. Not only does federal law prohibit you from disclosing medical information about one employee to another, but doing so would instantaneously erode your trustworthiness. When you need to inform your team of an employee’s time away, simply state that they must tend to something urgent and leave it at that. Your staff will be sympathetic and cooperative even if they don’t know the details. There’s a fine line when it comes to open communication and transparency. Knowing what to say and when to say it is an art, and it’s not difficult to master. I’ve learned to read the room. I take a moment to gauge my surroundings, and then I calibrate my words to the person standing in front of me. Some of the people I coach appreciate when I’m “New York direct” with them. They not only can handle it, but they benefit from my refusal to mince words. However, I can’t be like that with everybody. For the most part, I’ve learned to approach people from underneath rather than come straight at them. Before I offer my critique, I make certain they know that I care about them and their success. On those occasions when I have a lot to get off my chest, I remind myself that a firehouse is hardly an effective way to water a houseplant. Sometimes when it comes to constructive and transparent communication, fewer words get the job done beautifully. Editor’s note: This article appeared in the September 2024 print edition of Dental Economics magazine: https://www.dentaleconomics.com/practice/human-resources/article/55131784/the-importance-of-transparency-in-your-practice. Dentists in North America are eligible for a complimentary print subscription. Sign up
How dentists can sidestep their business blind spots
Everyone needs to acknowledge that they have blind spots. Not addressing these in your dental practice can lead to problems in your business. When it comes to blind spots, perhaps the biggest one of all is assuming you don’t have any. But everyone has blind spots. Thankfully, they pose a serious threat only when we refuse to acknowledge them. Private dental practitioners, and business owners in general, intuitively understand how to maneuver around many potential blind spots. For example, you hire support staff. You’d miss out on a lot of business if you didn’t at least have a scheduler. Assuming you already have dedicated employees, the bigger question becomes: what might be hiding in plain sight that’s hindering your potential for greater success? I take pride in my ability to think on my feet and make quick decisions. Good leaders are often encouraged to make snap judgment calls, but therein lies a trap. Savvy opponents can pick up on your fast thinking and trick you into choosing a rash course of action in haste rather than an effective strategy. Don’t get me wrong. I’m not suggesting that bad actors are out there baiting you to fall for their deceit. But if you’ve developed a habit of taking swift action, take a breath first. Rarely does provocation need an immediate response. This is especially true when you receive harsh criticism. It’s natural to want to defend yourself, particularly when you’ve done nothing wrong. On the other hand, if you’re especially empathetic, you might do the opposite, which is immediately soothe the upset patient or employee. Proceed with caution. Neither approach is to your advantage. Pause briefly, and then clearly state your intent to seek more information. Let the other party offer their point of view before you tell them yours. Tell them you appreciate their feedback, and if you’re ready, offer a resolution. If you need more time, assure them they’ll receive a response once you’ve had time to decide. What can cause blind spots? While pulling the trigger too quickly may be the biggest culprit in worsening your blind spots, there are plenty of other considerations. Another big mistake I see is entrepreneurs who surround themselves only with those who think like they do. In my business, I don’t want partners who think like me. Do I want them to share my values? Absolutely! But I need people who are pragmatic, detail-oriented, or who habitually think outside the norm. The more pairs of eyes, the better. Together, we see what others can’t. If everyone agrees with you, then you’re poised to walk straight into a great big hole. Learn to be receptive when your teammates sound the alarm. It’s a great feeling to move forward in your business with confidence and ease. But don’t get cocky. I remind my clients that hubris and ego will bring them to ruin. Being overly confident is a blind spot in and of itself. Nothing puts a lid on future success like the stubborn refusal to learn and adapt. If we don’t learn, we get left behind. Be open see feedback and criticism as guidance. When you see a pattern in the feedback you receive, it’s time to pivot. You might soon realize that something is off kilter. You might be able to pinpoint what’s wrong based on the feedback you’ve been getting. But you still might not know how to solve it. Never fear. That’s where someone like me comes in. Why a consultant is a good idea As a key strategist, I’ve built my career seeing what others need to watch out for but aren’t in a position to sense for themselves. If there’s one lesson that sticks out above the others after being in this business for 40 years, it’s the impossibility of seeing the bigger picture from the inside. You can’t do it. But a willing team of experts from the outside looking in can see. If you’re in the midst of wanting to make a big shift in your organization, don’t try to do it alone. The risk is too great. Know that there’s guidance well within reach. Professionals like me are adept at providing essential insight, saving you tens of thousands, if not hundreds of thousands of dollars in avoidable mistakes. Your job isn’t to overcome every last one of your weaknesses. Instead, surround yourself with a people who know how to identify potential challenges and who will help you navigate around them. I encourage my clients to grow as big as they can dream, and then dream bigger. The caveat? I don’t let them do everything all at once, and I don’t let them do it alone. When it comes to charting unfamiliar territory, give yourself the benefit of time, and more importantly, seek various perspectives. You’ll gain the requisite clarity to see past potential blind spots and forge safely ahead. Editor’s note: This article appeared in the August 2024 print edition of Dental Economics magazine: https://www.dentaleconomics.com/money/article/55089160/how-dentists-can-sidestep-their-business-blind-spots. Dentists in North America are eligible for a complimentary print subscription. Sign up here.Mark B. Murphy, CEO of Northeast Private Client Group, is an accomplished author, speaker, and motivator who’s revolutionizing the financial planning and wealth management industry. He helps entrepreneurs achieve multigenerational wealth through personalized strategies, leveraging his strategic planning and financial engineering expertise. Forbes has ranked him as the number one financial security professional in New Jersey and number 15 nationwide. Additionally, his book, The Ultimate Investment, is a number one bestseller and new release on Amazon.
What’s So Great About a Rollover?
Changing jobs can be a tumultuous experience. Even under the best of circumstances, making a career move requires a series of tough decisions, not the least of which is what to do with the funds in your old employer-sponsored retirement plan. Some people choose to roll over these funds into an Individual Retirement Account, and for good reason. About 35% of all retirement assets in the U.S. are held in IRAs, and 62% of traditional IRA owners funded all or part of their IRAs with a rollover from an employer-sponsored retirement plan.1 Distributions from traditional IRAs and most other employer-sponsored retirement plans are taxed as ordinary income and, if taken before age 59½, may be subject to a 10% federal income tax penalty. Once you reach age 73, you must begin taking required minimum distributions from a Traditional Individual Retirement Account in most circumstances. Withdrawals from Traditional IRAs are taxed as ordinary income and, if taken before age 59½, may be subject to a 10% federal income tax penalty. Contributions to a Traditional IRA may be fully or partially deductible, depending on your adjusted gross income. Generally, you have four choices when it comes to handling the money in a former employer’s retirement account. First, you can cash out of the account. However, if you choose to cash out, you may be required to pay ordinary income tax on the balance plus a 10% early withdrawal penalty if you are under age 59½. Second, you may be able to leave the funds in your old plan. However, some plans have rules and restrictions regarding the money in the account. Third, you can roll over the assets to your new employer’s plan if one is available and rollovers are permitted. Fourth, you can roll the money into an IRA. Rollovers may preserve the tax-favored status of your retirement money. As long as your money is moved through a direct “trustee-to-trustee” transfer, you can avoid a taxable event. In a traditional IRA, your retirement savings will have the opportunity to grow tax-deferred until you begin taking distributions in retirement.2 Rollovers can make it easier to stay organized and maintain control. Some people change jobs several times during the course of their careers, leaving a trail of employer-sponsored retirement plans in their wake. By rolling these various accounts into a single IRA, you might make the process of managing the funds, rebalancing your portfolio, and adjusting your asset allocation easier. Keep in mind that the Internal Revenue Service has published guidelines on IRA rollovers. You generally cannot make more than one rollover from the same IRA within a one-year period. You also cannot make a rollover during this one-year period from the IRA to which the distribution was rolled over.3 Also, the Financial Industry Regulatory Authority (FINRA) has published some material that may help you better understand your rollover choices. FINRA reminds investors that before deciding whether to retain assets in a 401(k) or roll over to an IRA, an investor should consider various factors including, but not limited to, investment options, fees and expenses, services, withdrawal penalties, protection from creditors and legal judgments, required minimum distributions, and possession of employer stock.4 An IRA rollover may make sense whether you’re leaving one job for another or retiring altogether. But how your assets should be allocated within the IRA will depend on your time horizon, risk tolerance, and financial goals. 1. ICI.org, February 20242. The information in this material is not intended as tax advice. It may not be used for the purpose of avoiding any federal tax penalties. Please consult a tax professional for specific information regarding your individual situation.3. IRS.gov, 20244. FINRA.org, 2024 The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG Suite is not affiliated with the named broker-dealer, state- or SEC-registered investment advisory firm. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security. Copyright 2024 FMG Suite.
What Is a Roth 401(k)?
While many people are familiar with the benefits of traditional 401(k) plans, others are not as acquainted with Roth 401(k)s. Since January 1, 2006, employers have been allowed to offer workers access to Roth 401(k) plans. As the name implies, Roth 401(k) plans combine features of 401(k) plans with those of a Roth IRA.1,2,3 With a Roth 401(k), contributions are made with after-tax dollars – there is no tax deduction on the front end – but qualifying withdrawals are not subject to income taxes. Any capital appreciation in the Roth 401(k) also is not subject to income taxes. What to Choose? For some, the choice between a Roth 401(k) and a traditional 401(k) comes down to determining whether the upfront tax break on the traditional 401(k) is likely to outweigh the back-end benefit of tax-free withdrawals from the Roth 401(k). Please remember, this article is for informational purposes only and is not a replacement for real-life advice, so make sure to consult your tax professional before adjusting your retirement strategy to include a Roth 401(k). Often, this isn’t an “all-or-nothing” decision. Many employers allow contributions to be divided between a traditional 401(k) plan and a Roth 401(k) plan – up to overall contribution limits. Considerations One subtle but key consideration is that Roth 401(k) plans aren’t subject to income restrictions like Roth IRAs are. This can offer advantages to high-income individuals whose Roth IRA has been limited by these restrictions. (See accompanying table.) Traditional 401(k) Roth 401(k) Roth IRA Contributions Contributions are made with pretax dollars Contributions are made with after-tax dollars Contributions are made with after-tax dollars Income Limits No income limits to participate No income limits to participate For 2024, contribution limit is phased out between $230,000 and $240,000 (married, filing jointly), and between $146,000 and $161,000 (single filers) Maximum Elective Contribution* Contributions are limited to $23,000 in 2024, ($30,500 for those over age 50)* Contributions are limited to $23,000 in 2024, ($30,500 for those over age 50)* Contributions are limited to $7,000 for 2024, ($8,000 for those over age 50) Taxation of Withdrawals Qualifying withdrawals of contributions and earnings are subject to income taxes Qualifying withdrawals of contributions and earnings are not subject to income taxes Qualifying withdrawals of contributions and earnings are not subject to income taxes Required Distributions In most cases, distributions must begin no later than age 73 In most cases, distributions must begin no later than age 73 There is no requirement to begin taking distributions while owner is alive * This is an aggregate limit by individual rather than by plan. The total of an individual’s aggregate contributions to his or her traditional and Roth 401(k) plans cannot exceed the deferral limit – $23,000 in 2024 ($35,000 for those over age 50). Source: IRS.gov, 2024 Source: IRS.gov, 2024 Roth 401(k) plans are subject to the same annual contribution limits as regular 401(k) plans – $23,000 for 2024; $30,500 for those over age 50. These are cumulative limits that apply to all accounts with a single employer; for example, an individual couldn’t save $23,000 in a traditional 401(k) and another $23,000 in a Roth 401(k).4 Another factor to consider is that employer matches are made with pretax dollars, just as they are with a traditional 401(k) plan. In a Roth 401(k), however, these matching funds accumulate in a separate account, which will be taxed as ordinary income at withdrawal. Setting money aside for retirement can be part of a sound personal financial strategy. Deciding whether to use a traditional 401(k) or a Roth 401(k) often involves reviewing a wide range of factors. If you are uncertain about what is the best choice for your situation, you should consider working with a qualified tax or financial professional. 1. To qualify for the tax-free and penalty-free withdrawal of earnings, Roth 401(k) distributions must meet a five-year holding requirement and occur after age 59½. Tax-free and penalty-free withdrawals also can be taken under certain other circumstances, such as a result of the owner’s death or disability. Employer matches are pretax and not distributed tax-free during retirement. Once you reach age 73, you must begin taking required minimum distributions.2. In most circumstances, you must begin taking required minimum distributions from your 401(k) or other defined contribution plan in the year you turn 73. Withdrawals from your 401(k) or other defined contribution plans are taxed as ordinary income, and, if taken before age 59½, may be subject to a 10% federal income tax penalty.3. Roth IRA contributions cannot be made by taxpayers with high incomes. In 2024, the income phaseout limit is $161,000 for single filers, $240,000 for married filing jointly. To qualify for the tax-free and penalty-free withdrawal of earnings, Roth IRA distributions must meet a five-year holding requirement and occur after age 59½. Tax-free and penalty-free withdrawals also can be taken under certain other circumstances, such as a result of the owner’s death or disability. The original Roth IRA owner is not required to take minimum annual withdrawals.4. IRS.gov, 2024 The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG Suite is not affiliated with the named broker-dealer, state- or SEC-registered investment advisory firm. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security. Copyright 2024 FMG Suite.
Caring for Aging Parents
Thanks to healthier lifestyles and advances in modern medicine, the worldwide population over age 65 is growing. In the past decade, the population of Americans aged 65 and older has grown 38% and is expected to reach 82 million in 2050. As our nation ages, many Americans are turning their attention to caring for aging parents.1,2 For many people, one of the most difficult conversations to have involves talking with an aging parent about extended medical care. The shifting of roles can be challenging, and emotions often prevent important information from being exchanged and critical decisions from being made. When talking to a parent about future care, it’s best to have a strategy for structuring the conversation. Here are some key concepts to consider. Cover the Basics Knowing ahead of time what information you need to find out may help keep the conversation on track. Here is a checklist that can be a good starting point: It is also important to know the location of medical and estate management paperwork, including:3 Be Thorough Remember that if you can collect all the critical information, you may be able to save your family time and avoid future emotional discussions. While checklists and scripts may help prepare you, remember that this conversation could signal a major change in your parent’s life. The transition from provider to dependent can be difficult for any parent and has the potential to unearth old issues. Be prepared for emotions and the unexpected. Be kind, but do your best to get all the information you need. Keep the Lines of Communication Open This conversation is probably not the only one you will have with your parent about their future healthcare needs. It may be the beginning of an ongoing dialogue. Consider involving other siblings in the discussions. Often one sibling takes a lead role when caring for parents, but all family members should be honest about their feelings, situations, and needs. Don’t Procrastinate The earlier you begin to communicate about important issues, the more likely you will be to have all the information you need when a crisis arises. How will you know when a parent needs your help? Look for indicators like fluctuations in weight, failure to take medication, new health concerns, and diminished social interaction. These can all be warning signs that additional care may soon become necessary. Don’t avoid the topic of care just because you are uncomfortable. Chances are that waiting will only make you more so. Remember, whatever your relationship with your parent has been, this new phase of life will present challenges for both parties. By treating your parent with love and respect—and taking the necessary steps toward open communication—you will be able to provide the help needed during this new phase of life. 1. WashingtonPost.com, February 14, 20232. PRB.org, January 9, 20243. Note: Power of attorney laws can vary from state to state. An estate strategy that includes trusts may involve a complex web of tax rules and regulations. Consider working with a knowledgeable estate management professional before implementing such strategies. The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG Suite is not affiliated with the named broker-dealer, state- or SEC-registered investment advisory firm. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security. Copyright 2024 FMG Suite.
Women and Financial Strategies
RetirementRead Time: 3 min Women who share money management duties with their partner tend to take on a lion’s share of the responsibility for the household finances. Yet only 18% of women feel very confident in their ability to fully retire with a comfortable lifestyle.1,2 Although more women are providing for their families, when it comes to preparing for retirement, they may be leaving their future to chance. Women and College The reason behind this disparity doesn’t seem to be a lack of education or independence. Today, women are more likely to go to college and graduate than men. So what keeps them from taking charge of their long-term financial picture?3 One reason may be a lack of confidence. One study found that only 55% of women feel confident in their ability to manage their finances. Women may shy away from discussing money because they don’t want to appear uneducated or naive and hesitate to ask questions as a result.4 Insider Language Since Wall Street traditionally has been a male-dominated field, women whose expertise lies in other areas may feel uneasy amidst complex calculations and long-term financial projections. Just the jargon of personal finance can be intimidating: 401(k), 403(b), fixed, variable. To someone inexperienced in the field of personal finance, it may seem like an entirely different language.5 But women need to keep one eye looking toward retirement since they may live longer and could potentially face higher healthcare expenses than men. If you have left your long-term financial strategy to chance, now is the time to pick up the reins and retake control. Consider talking with a financial professional about your goals and ambitions for retirement. Don’t be afraid to ask for clarification if the conversation turns to something unfamiliar. No one was born knowing the ins and outs of compound interest, but it’s important to understand in order to make informed decisions. Compound Interest: What’s the Hype? Compound interest may be one of the greatest secrets of smart investing. And time is the key to making the most of it. If you invested $250,000 in an account earning 6%, at the end of 20 years your account would be worth $801,784. However, if you waited 10 years, then started your investment program, you would end up with only $447,712. This is a hypothetical example used for illustrative purposes only. It does not represent any specific investment or combination of investments. 1. HerMoney.com, April 12, 20222. TransAmericaCenter.org, 20213. Brookings.edu, October 8, 20214. CNBC.com, June 8, 20225. Distributions from 401(k), 403(b), and most other employer-sponsored retirement plans are taxed as ordinary income and, if taken before age 59½, may be subject to a 10% federal income tax penalty. Generally, once you reach age 73, you must begin taking required minimum distributions. The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG Suite is not affiliated with the named broker-dealer, state- or SEC-registered investment advisory firm. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security. Copyright 2024 FMG Suite.
Women and Financial Strategies
RetirementRead Time: 3 min Women who share money management duties with their partner tend to take on a lion’s share of the responsibility for the household finances. Yet only 18% of women feel very confident in their ability to fully retire with a comfortable lifestyle.1,2 Although more women are providing for their families, when it comes to preparing for retirement, they may be leaving their future to chance. Women and College The reason behind this disparity doesn’t seem to be a lack of education or independence. Today, women are more likely to go to college and graduate than men. So what keeps them from taking charge of their long-term financial picture?3 One reason may be a lack of confidence. One study found that only 55% of women feel confident in their ability to manage their finances. Women may shy away from discussing money because they don’t want to appear uneducated or naive and hesitate to ask questions as a result.4 Insider Language Since Wall Street traditionally has been a male-dominated field, women whose expertise lies in other areas may feel uneasy amidst complex calculations and long-term financial projections. Just the jargon of personal finance can be intimidating: 401(k), 403(b), fixed, variable. To someone inexperienced in the field of personal finance, it may seem like an entirely different language.5 But women need to keep one eye looking toward retirement since they may live longer and could potentially face higher healthcare expenses than men. If you have left your long-term financial strategy to chance, now is the time to pick up the reins and retake control. Consider talking with a financial professional about your goals and ambitions for retirement. Don’t be afraid to ask for clarification if the conversation turns to something unfamiliar. No one was born knowing the ins and outs of compound interest, but it’s important to understand in order to make informed decisions. Compound Interest: What’s the Hype? Compound interest may be one of the greatest secrets of smart investing. And time is the key to making the most of it. If you invested $250,000 in an account earning 6%, at the end of 20 years your account would be worth $801,784. However, if you waited 10 years, then started your investment program, you would end up with only $447,712. This is a hypothetical example used for illustrative purposes only. It does not represent any specific investment or combination of investments. 1. HerMoney.com, April 12, 20222. TransAmericaCenter.org, 20213. Brookings.edu, October 8, 20214. CNBC.com, June 8, 20225. Distributions from 401(k), 403(b), and most other employer-sponsored retirement plans are taxed as ordinary income and, if taken before age 59½, may be subject to a 10% federal income tax penalty. Generally, once you reach age 73, you must begin taking required minimum distributions. The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG Suite is not affiliated with the named broker-dealer, state- or SEC-registered investment advisory firm. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security. Copyright 2024 FMG Suite.
Women and Financial Strategies
RetirementRead Time: 3 min Women who share money management duties with their partner tend to take on a lion’s share of the responsibility for the household finances. Yet only 18% of women feel very confident in their ability to fully retire with a comfortable lifestyle.1,2 Although more women are providing for their families, when it comes to preparing for retirement, they may be leaving their future to chance. Women and College The reason behind this disparity doesn’t seem to be a lack of education or independence. Today, women are more likely to go to college and graduate than men. So what keeps them from taking charge of their long-term financial picture?3 One reason may be a lack of confidence. One study found that only 55% of women feel confident in their ability to manage their finances. Women may shy away from discussing money because they don’t want to appear uneducated or naive and hesitate to ask questions as a result.4 Insider Language Since Wall Street traditionally has been a male-dominated field, women whose expertise lies in other areas may feel uneasy amidst complex calculations and long-term financial projections. Just the jargon of personal finance can be intimidating: 401(k), 403(b), fixed, variable. To someone inexperienced in the field of personal finance, it may seem like an entirely different language.5 But women need to keep one eye looking toward retirement since they may live longer and could potentially face higher healthcare expenses than men. If you have left your long-term financial strategy to chance, now is the time to pick up the reins and retake control. Consider talking with a financial professional about your goals and ambitions for retirement. Don’t be afraid to ask for clarification if the conversation turns to something unfamiliar. No one was born knowing the ins and outs of compound interest, but it’s important to understand in order to make informed decisions. Compound Interest: What’s the Hype? Compound interest may be one of the greatest secrets of smart investing. And time is the key to making the most of it. If you invested $250,000 in an account earning 6%, at the end of 20 years your account would be worth $801,784. However, if you waited 10 years, then started your investment program, you would end up with only $447,712. This is a hypothetical example used for illustrative purposes only. It does not represent any specific investment or combination of investments. 1. HerMoney.com, April 12, 20222. TransAmericaCenter.org, 20213. Brookings.edu, October 8, 20214. CNBC.com, June 8, 20225. Distributions from 401(k), 403(b), and most other employer-sponsored retirement plans are taxed as ordinary income and, if taken before age 59½, may be subject to a 10% federal income tax penalty. Generally, once you reach age 73, you must begin taking required minimum distributions. The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG Suite is not affiliated with the named broker-dealer, state- or SEC-registered investment advisory firm. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security. Copyright 2024 FMG Suite.
Women and Financial Strategies
RetirementRead Time: 3 min Women who share money management duties with their partner tend to take on a lion’s share of the responsibility for the household finances. Yet only 18% of women feel very confident in their ability to fully retire with a comfortable lifestyle.1,2 Although more women are providing for their families, when it comes to preparing for retirement, they may be leaving their future to chance. Women and College The reason behind this disparity doesn’t seem to be a lack of education or independence. Today, women are more likely to go to college and graduate than men. So what keeps them from taking charge of their long-term financial picture?3 One reason may be a lack of confidence. One study found that only 55% of women feel confident in their ability to manage their finances. Women may shy away from discussing money because they don’t want to appear uneducated or naive and hesitate to ask questions as a result.4 Insider Language Since Wall Street traditionally has been a male-dominated field, women whose expertise lies in other areas may feel uneasy amidst complex calculations and long-term financial projections. Just the jargon of personal finance can be intimidating: 401(k), 403(b), fixed, variable. To someone inexperienced in the field of personal finance, it may seem like an entirely different language.5 But women need to keep one eye looking toward retirement since they may live longer and could potentially face higher healthcare expenses than men. If you have left your long-term financial strategy to chance, now is the time to pick up the reins and retake control. Consider talking with a financial professional about your goals and ambitions for retirement. Don’t be afraid to ask for clarification if the conversation turns to something unfamiliar. No one was born knowing the ins and outs of compound interest, but it’s important to understand in order to make informed decisions. Compound Interest: What’s the Hype? Compound interest may be one of the greatest secrets of smart investing. And time is the key to making the most of it. If you invested $250,000 in an account earning 6%, at the end of 20 years your account would be worth $801,784. However, if you waited 10 years, then started your investment program, you would end up with only $447,712. This is a hypothetical example used for illustrative purposes only. It does not represent any specific investment or combination of investments. 1. HerMoney.com, April 12, 20222. TransAmericaCenter.org, 20213. Brookings.edu, October 8, 20214. CNBC.com, June 8, 20225. Distributions from 401(k), 403(b), and most other employer-sponsored retirement plans are taxed as ordinary income and, if taken before age 59½, may be subject to a 10% federal income tax penalty. Generally, once you reach age 73, you must begin taking required minimum distributions. The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG Suite is not affiliated with the named broker-dealer, state- or SEC-registered investment advisory firm. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security. Copyright 2024 FMG Suite.
Practice Preventive Care for your Dental Business
Insurance for your dental practice is as important as insurance for your vehicle. This dentist learned the hard way and wants to educate his peers. Setting up for success means something different to everyone. But when it comes to running a private dental practice, I advise those in the field to focus on preventive maintenance. As a dentist, you impress upon patients the importance of prevention relative to treatment. You advise patients to address minor problems before they turn into more painful and expensive issues. It’s time to apply these same principles to managing your business. I met with Dr. Eric Studley, an expert in dental practice management, who understands the quintessential role that planned maintenance plays in running a dental practice. While he has held countless titles, including clinical associate professor, GP director and director of practice management and ergonomics at New York University College of Dentistry, Dr. Studley had to reinvent his career due to a disability that prevented him from practicing dentistry. He had to sell his successful practice in Brooklyn, New York, while he pursued treatment. He wound up in litigation with his disability insurer, which resulted in a settlement that barely covered his legal expenses. Forced on a new dental path This struggle defined Dr. Studley’s career path. No longer able to practice dentistry, and feeling strongly that nobody should have to go through what he did to ensure a livelihood that took more than a decade to build, Dr. Studley pivoted into insurance. Once again, he built a successful practice. He’s been named one of Forbes Top Financial Security Professionals, best in the state of New York for 2022 and 2023. Eric S. Studley and Associates Inc. represents dentists from residency to retirement, ensuring they carry the protection they need to flourish in the face of the challenges and risks. When Dr. Studley was the director of ergonomics at New York University College of Dentistry, he offered valuable insights about injury prevention to dentists nationwide. He’s positioned himself as the industry leader in proactive professional maintenance regarding the business of dentistry. Dr. Studley discussed how ingrained it is in people to insure their vehicles. People are careful to purchase a proper policy before they drive their new car off the lot. But when it comes to protecting ourselves, we often downplay the importance of insurance, focusing more on growing our investments rather than safeguarding them. It’s imperative to do both—to grow and protect your assets simultaneously. As with anything investment-related, there is no one-size-fits-all approach. Every dentist needs malpractice insurance and disability insurance, as well as some type of whole life insurance policy. But innumerable variables call for myriad solutions. So where does one begin? How to choose the right insurance A logical first step is to ask for recommendations from colleagues, particularly ones who have had to make a claim and were satisfied with the result. Regardless, be sure to seek out a seasoned insurance representative who works primarily with dentists. Getting the right agent is paramount to getting access to the best policies at the most economical price. Feel free to reach out to Eric S. Studley and Associates Inc. if you would like to schedule a consultation. The key with insurance is timeliness. The entire premise behind financial preventative maintenance is to get the appropriate policies in place before you need them. I asked Dr. Studley what advice he had for private practitioners if they want to be more proactive. His answer resonated with me. The employees he’s worked with since he started his insurance business 20 years ago have stuck by his side to this day. His beliefs regarding insurance and injury prevention extend seamlessly into cultivating his staff. He brought them aboard knowing their worth, and he does everything in his power to make certain they know how much they’re valued. He treats them as partners, which means he eagerly shares the successes of the company. Not only are they financially compensated with competitive salaries, bonuses, and profit sharing, but he often sends champagne and entire dinners to their homes to celebrate their accomplishments. How to retain your emplpyees Dr. Studley and I come from the same school of thought regarding employee retention—make employees partners so they succeed directly in proportion to the business. Replacing and retraining employees is a drain on a company’s financial health. Constant vacancies are also taxing on staff morale. When you find an excellent scheduler, a file clerk, a hygienist, or an office assistant, don’t assume they’re can be easily replaced. Furthermore, don’t assume that they’ll stick around just for the money. If they come for money, they’ll easily leave for money. Proactive care is as important to retaining your employees as it is to carrying adequate insurance. Don’t wait until your star employees hand in their resignations before you woo them back. That’s like trying to floss away a cavity. It’s too late. Give them reason to stay from the get-go. Let them grow your business on your behalf because they know what’s in it for them when they succeed. I respect dentists because of their willingness to put everything on the line for the sake of proper patient care. They’re among the most selfless people I know. Ethics are drilled into them from their first day of school, and it never leaves them. In keeping with the theme of care, I coach those who work with me to care as much about their business and employees as they do their patients. Have the right insurance in place and review it yearly to close any gaps that arise as your business matures. Consider those you hire as lifelong partners. Be selective with who you bring on board. Make them stakeholders and always treat them as such. It’s wonderful that you can count on insurers to have your back, but it’s even better when you’ve cultivated a staff who has your back. Editor’s note: This article appeared in the July