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
Top Financial Security Professionals Best-In-State
Entering the second half of 2024, the life insurance industry has been enjoying prolonged higher interest rates and rising equity markets, both positive factors for those whose business revolves around selling investment products like annuities. Insurance agents are now called financial security professionals and besides life insurance policies, they offer wealthy families a full suite of investment, retirement and estate planning services. The fourth annual Top Financial Security Professionals Best-In-State list from Forbes and SHOOK Research features some 1,445 experts. Below you will find the best-in-state insurance professionals from across the country who made the 2024 list. CLICK HERE FOR THE FULL METHODOLOGY. The Highlights Lynzie Wolters Firm: New York LifeLocation: Roseville, CAAUM: $3.1 billion“Our philosophy has always been rooted in a protection-first approach. We believe we can grow investment strategies over time but it is essential to make sure client assets are adequately protected.” View Profile Loren Hsiao Firm: 22 One Advisors | Northwestern MutualLocation: Allen, TXAUM: $3.1 billion“We spend a lot of time with clients asking what is your ‘good name’ so that we as a firm can connect their balance sheet with their heart.” View Profile Data provided by SHOOK®Research, LLC. Data as of 12/31/23. Source: Forbes.com(July, 2024). Neither SHOOK nor Forbes receives any compensation in exchange for placement on its Top Financial Security Professional (FSP) rankings, which are determined independently (see methodology). FSP refers to professionals who are properly licensed to sell life insurance and annuities. FSPs may also hold other credentials and licenses which would allow them to offer investments and securities products through those licenses. Ranking algorithm is based on qualitative measures learned through telephone, virtual and in-person interviews to measure best practices. Also considered: client retention, industry experience, credentials, review of compliance records, firm nominations; and quantitative criteria, such as: assets under management, sales figures and revenue generated for their firms. Investment performance is not a criterion because client objectives and risk tolerances vary, and audited performance reports are rare. Individuals must carefully choose the right FSP for their own situation and perform their own due diligence. SHOOK’s research and rankings provide opinions intended to help individuals choose the right FSP and are not indicative of future performance or representative of any one client’s experience. Past performance is not an indication of future results. For more information, please see www.SHOOKresearch.com. SHOOK is a registered trademark of SHOOK Research, LLC. Editor’s note: This article appeared in the July 2024 print edition of Forbes magazine: https://www.forbes.com/lists/best-in-state-financial-security-professionals/. 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.
America’s Top Financial Security Professionals
Rising equity markets and prolonged higher interest rates tend to be ideal environments for financial advisors specializing in selling life insurance products, including annuities. Formerly referred to as agents, these wealth managers prefer the moniker “financial security professionals” today and increasingly focus on all aspects of client’s finances including, estate, tax and retirement planning. Forbes and SHOOK Research have teamed up to rank the best professionals in the insurance industry in our fourth annual list of America Top Financial Security Professionals. Below you will find the top 100 insurance professionals across the country who made this year’s ranking. CLICK HERE FOR THE FULL METHODOLOGY. The Highlights Jeri Turley Firm: Winged Keel Group Location: Richmond, VA AUM: $95 billion“Education is huge—most people think of term and whole life insurance, but that’s just not the world we live in anymore, there are so many different products.”View Profile Matthew Lipscomb Firm: Ashford Advisors Location: Atlanta, GA AUM: $1.8 billion“When you talk to a client, you need to take complex situations from taxes to trusts and describe them in a way that a sixth grader could understand. I don’t let my team use any industry jargon.”View Profile Data provided by SHOOK®Research, LLC. Data as of 12/31/23. Source: Forbes.com(July, 2024). Neither SHOOK nor Forbes receives any compensation in exchange for placement on its Top Financial Security Professional (FSP) rankings, which are determined independently (see methodology). FSP refers to professionals who are properly licensed to sell life insurance and annuities. FSPs may also hold other credentials and licenses which would allow them to offer investments and securities products through those licenses. Ranking algorithm is based on qualitative measures learned through telephone, virtual and in-person interviews to measure best practices. Also considered: client retention, industry experience, credentials, review of compliance records, firm nominations; and quantitative criteria, such as: assets under management, sales figures and revenue generated for their firms. Investment performance is not a criterion because client objectives and risk tolerances vary, and audited performance reports are rare. Individuals must carefully choose the right FSP for their own situation and perform their own due diligence. SHOOK’s research and rankings provide opinions intended to help individuals choose the right FSP and are not indicative of future performance or representative of any one client’s experience. Past performance is not an indication of future results. For more information, please see www.SHOOKresearch.com. SHOOK is a registered trademark of SHOOK Research, LLC. Editor’s note: This article appeared in the July 2024 print edition of Forbes magazine: https://www.forbes.com/lists/top-financial-security-professionals/. 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.
2023 Edition – Community Impact
Celebrating field awards, recognition, and impact. Reimagining mutuality and empowering excellence. As I turn the pages of this year’s edition, I am once again filled with pride and gratitude for all. As I turn the pages of this year’s edition, I am once again filled with pride and gratitude for all of you. When we gather throughout the year to celebrate your achievements and share progress and ideas, I feel the energy in this community– it’s palpable. I’m inspired by the meaningful impact you have on families and businesses and the significant role you play in how Guardian fulfills its purpose to inspire well-being. One change you’ll notice this year is that we’ve renamed this publication as Community Impact. This evolution is a direct reflection of your feedback – it captures how you think about yourselves collectively, as well as how we consider your collective impact. There is one statistic I heard this year that has stayed with me. According to the ACLI, life insurers pay out $2.5 billion everyday compared to $3.3 billion from Social Security. Guardian and you contribute to this overall impact, one family at a time. In addition to your daily work with clients, we also see care and generosity in your response to communities in distress. We often talk about the mutual nature of our success. We had a noticeable increase in our recruiting numbers for financial professionals this year. We know that the need for financial guidance is as strong as ever – research shows that consumers continue to struggle with financial wellness and feel more confident when working with a financial professional. Thank you for helping grow our presence across your communities. Our commitment to you remains steadfast and we continue to invest in resources to help you reach your best. You can read more about the continued progress we’re making to empower you to reach new markets and to elevate your suite of competitive resources. Thank you for your partnership throughout the year – we value your input and appreciate the importance of aligning on a shared future. I look forward to continuing our momentum in the year ahead! Congratulations to all and my best wishes for continued success. Leyla Lesina Head of IM Distribution Editor’s note: This article appeared in the June 2024 print edition of Guardian: https://community-impact-2023.webflow.io/. 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.
Investing tips for women: Your questions answered
How does the gender pay gap affect women’s investing opportunities? Depending on the shortfall, inadequate pay can decimate one’s ability to properly save. Ideally, people should strive to save at least 20% of their salary. If a woman makes 80 cents to a man’s one dollar, her ability to save is thwarted—either she won’t save anything at all, or her standard of living will need to decrease significantly to account for the budget reduction. While the latter scenario is more ideal, it begs for an alternative, which is to eliminate the pay gap entirely. Easier said than done. Once someone accepts a job offer, there’s a lot less room for negotiating salary. It’s essential for you to know your worth beforehand and to not accept anything less. When your future livelihood is at stake, it’s vital that you do your homework, which means researching appropriate salaries in the industry. Additionally, you must effectively market your skill sets, making certain a prospective employer clearly sees your value. Negotiation is expected. If you’re new to the bargaining table, that’s OK. It’s not something we’re typically taught in school. So, prepare yourself ahead of time. Don’t just expect an employer to automatically offer you what they’re willing to actually pay you. They’ll invariably start low, you’ll start high, and then you’ll both meet somewhere in the middle. Anticipate this discussion. Many experts have written books on the subject. One that comes to mind is Nice Girls Don’t Get the Corner Office by Lois P. Frankel. You can find numerous others as well as a mountain of videos online about this topic. What are some common barriers women face when it comes to investing? The most common barrier, regardless of gender, is not knowing where to begin. But because of societal expectations, men are more inclined to eventually put their money to work for them, whereas many women tend to eschew risk altogether. Perhaps in an ironic twist, women are often better savers. Their one hurdle? A reluctance to put their money into growth vehicles. Instead, the money often gets tucked away into a savings account simply because it seems like the responsible thing to do. When it comes to money, there’s a real danger in playing it safe. Long-term saving without investing leads to shrinkage due to inflation. Therefore, investing is a necessity and a matter of survival when it comes to retirement. Unfortunately, huge segments of the population never hear this message, particularly women. What’s stopping the message? A persistent belief that it’s rude to talk about money, especially among women. They may think it’s greedy, boring, or not virtuous. Fortunately, this is changing, and more women are taking an active role in the growth of their wealth. How can women overcome a lack of confidence and knowledge in investing? Get your hands on some financial literature. It’s safe and there’s absolutely no risk. You can put down books you don’t like and find others that resonate with you. Libraries are tremendous resources. If the idea of spending a few afternoons at the library doesn’t interest you, then consider social media. There are innumerable groups on Facebook and elsewhere where members continually disseminate new information, allowing casual observers to delve into topics at their leisure. Eventually, you’ll come across financial experts who speak to you, whose messages resonate with you in a profound way. That’s big. When that happens, it’s an invitation to dig further and research more of their material. In time, you’ll develop a working vocabulary, and the world of investing will no longer appear foreign to you. When you feel ready, the time will come to reach out to a financial advisor who can get you started on your wealth-building journey. Choose a tailored approach, either one that’s hands-on or one that’s more passive in nature, depending on your comfort level. Conversations around money will become effortless, and the growth of your prosperity will become a foregone conclusion. What are some investment strategies that are particularly relevant for women? Understand your own risk tolerance. Don’t let your impatience override your reticence. Inhibitions exist for a reason. It’s perfectly fine to start slowly. Get your feet wet before you dive in. Get your balance first, then take action. Often, the best place to start your investment journey has less to do with your bank account and more to do with your overall health, both mental and physical. When it comes to enhancing well-being, it’s all reward and no risk. What better first investment! When you start with the idea of wellness and vitality, a remarkable phenomenon occurs—you channel a renewed sense of optimism about the direction of your life. You feel in control. That’s exactly where you want to be before you put your cold hard cash on the line. The last thing you want to feel is desperate. Desperation leads to rash decision-making and ill-timed behaviors. However, when you feel secure, when you know that you’re the manager of your destiny, you gain the requisite clarity to move forward and make impeccable decisions about how to allocate your money. What resources and support networks are available for women investors? To gain a clear picture of where you want to be, it’s nice to have role models. I mentioned the importance of finding teachers who resonate with you. Taking that a step further, it’s helpful to find people who once stood exactly where you’re standing and to learn their story of how they got where they are now. Understand that your job isn’t to replicate their success or do everything precisely how they did it. That wouldn’t make sense. Your path is unique to you, but it’s useful to not only see that it’s possible to get where you want to be, but to witness numerous examples of how to get there. You want an abundance of good ideas from which to choose. When it comes to investing, diversity is key. Sticking all your eggs in one basket can quickly lead
Your mindset matters for the success of your dental practice
When I coach dentists about how to elevate their private practices, I don’t start by examining their business or employees. Instead, we discuss how they can elevate their own mindset. I ask, “What are you willing to do that you’re not doing now in order to get what you don’t have?” This is a straightforward question, but the way someone answers will determine whether they’ll get what they’re aiming for. Many dentists are willing to work harder and longer hours, at least temporarily, if this will launch their business into a multi-million-dollar practice. However, in choosing to grind it out, they inevitably get themselves in a bind. The moment they take their nose off the grindstone, whatever success they’ve managed to eke out will come to a halt. So, instead of working yourself into oblivion, leverage the power of your mind rather than your hands. Dentists’ roles likened to prime ministers and kings Before I discuss specifics, I’ll lay some groundwork to give a broader perspective of the mindset I’m seeking. Successful dentists must fulfill two roles: prime minister and king. Most private practitioners learn to be good prime ministers. Through experience, they gain executive expertise in managing an organization. They hire a scheduler, a team of hygienists, an office manager, and a bookkeeper. They establish rules to keep everyone and everything in working order. If you’ve been running your practice for a few years, you’ve likely grown into the prime minister shoes. But don’t pat yourself on the back just yet. Remember that a truly successful dentist must also be king, and that’s what throws many for a loop. Make no mistake. You can’t be a dictator or a despot—such character traits make for horrible kings. Good kings and queens inspire confidence. They set the tone through their own attitudes and behaviors. Knowing this, I’ll return to my question about what you’d be willing to do to obtain what you don’t have. Are you willing to listen? Plenty of leaders think they’re listening when they’re only hearing what’s being said and not understanding whoever is speaking. Patients and employees both typically provide ample wisdom in their feedback. But you must be receptive to what they’re saying. If you routinely dismiss them, they’ll keep quiet and assume they’re better off leaving you in the dark. Build rapport with patients and team Do you think you might be in the dark sometimes? How can you build more rapport with your people? Customers and employees have common questions about you. Who are you? Why should I trust you? Why should I care about what you’re providing? What are you going to do for me? The most successful private practitioners I coach can recite their answers with conviction. Never assume you can sidestep these questions with money. The dentists who struggle the most believe they can retain their employees and patients with high wages and rock-bottom prices, which does nothing to instill loyalty. When people come to you because of money, they just as easily leave you for money. If you want a thriving multi-million-dollar practice, you need to know what differentiates you from every other dentist in town. It’s easier to do than you may think. Most dentists don’t realize this because they focus more on their problems than on their mindset. If you come to work distracted by any number of things, you’re doing your team a huge disservice. I coach my clients to fixate on where they’re going, and to give no attention to things that aren’t relevant, especially things that only serve to take them down emotionally. If you blunder into the office in a huff and not caring about your business, then your business isn’t going to care about you. On the other hand, if you walk in with enthusiasm and passion, appreciative of your staff and all they’re doing to keep your office humming along, then they’re going to follow suit, taking care of each other and your valued patients in the process. If you could develop one new attribute, I recommend the ability to get yourself in a good mood when you’re at work. I mean it when I say that only 20% of your success is the result of your technical prowess. That other 80% resides in the culture you’ve instilled in your practice. When you’ve figured out the magic formula, everyone is just as excited to be there as you are. They’re learning and expanding their skills right alongside you. Everyone thrives on each other’s excellence. You’re all being financially rewarded for your tremendous accomplishments. That kind of momentum is unstoppable. Hopefully, this has stirred some exciting ideas in you. But ideas mean nothing until they’re backed by plans. I’ve been an advisor for 40 years, and while everyone loves to tell me their ideas, few can tell me their plans. For those in search of a coach who can help formulate solid plans, know that my door is always open. Keep in mind that developing a master mindset isn’t like getting a certificate that you can hang on your wall. It’s an ongoing process, and having a coach to keep your mind fresh, alert, and on track is an investment that will serve to keep you in a perpetual state of leveling up. Editor’s note: This article appeared in the April 2024 print edition of Dental Economics magazine: https://www.dentaleconomics.com/14306008. 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.
Building Generational Wealth by Mark Murphy
Advisor Perspectives welcomes guest contributions. The views presented here do not necessarily represent those of Advisor Perspectives. If building generational wealth were easy, everyone would do it. In truth, it takes focus, discipline, and proper guidance each step along the way. Perhaps most importantly, your mindset will determine your fate. For those in their mid-to-late 40s, and perhaps early 50s, there are still steps you can take to create lasting prosperity for yourself and your family, provided you’re prepared for the challenges ahead. Moving forward, we’ll consider five tasks a formidable wealth-builder should undertake immediately. Maintain Your Health Perhaps nothing is more important than staying on top of your physical and mental health. I don’t separate the two aspects because each one affects the other; thus, it’s vital to maintain both facets of your overall well-being. It’s nearly impossible to make money when you’re sick. In fact, the opposite is true. Poor health, and the accompanying medical bills, will rapidly erode your savings. Health insurance can protect you to a certain extent, but it’s not a panacea. Your main priority should be to only see doctors (and your dentist) for routine check-ups. If anything abnormal appears, tend to it immediately before it becomes a more serious issue. Ideally, your focus remains on daily maintenance, ensuring proper nutrition, adhering to an exercise regimen that elevates both your heart and your mood, and feeding your brain a steady diet of helpful information rather than fruitless headlines about politics that are beyond your control. Wealth-builders acquire new skill sets while everyone else remains glued to television and social media. Later on, your increased know-how will pay enormous dividends. Know Your Cost of Living Your next order of business is to find out how much your life costs so that you can effectively manage your income. Tally up your monthly necessities, everything including housing, car payment, gas, insurance, utilities, groceries, and your gym membership if you use it. Consider these as non-negotiables since you have to pay them no matter what. After these bills are paid, any money that remains is where all your power resides — it’s your discretionary income, what you can control. As an aspiring wealth-builder, you want to develop a limitless appetite for investments and a relentless habit of cutting expenses. If you don’t need it, trim it from your budget. Anticipate eating out a lot less. In doing so, you’ll not only retain a significant portion of your earnings, but your health will likely improve since you’ll have complete control over every ingredient you ingest. Also, keep tabs on your alcohol consumption, understanding that it’s an expensive habit with a list of potential detriments to both your physical and mental well-being. Since our first priority is our health, and our second priority is saving, it only makes sense to ensure that we’re not overindulging. An occasional drink with clients or fellow business associates is likely harmless. However, keep in mind that you can almost always order something nonalcoholic without offending anyone in the process. Save & Invest Now that you’ve established a framework for increased savings, it’s time to ramp up investments. If you don’t already have a sufficient emergency fund (three to six months’ worth of living expenses) set aside in a high yield savings account, focus on building up those reserves first. Relying on credit cards in an emergency is a recipe for disaster. Even debt as little as $4,000 financed at 24% APR can spiral out of control if all you do is pay the minimum, particularly when more emergencies creep up and force you to add to the growing balance. Once you’ve got adequate liquid savings, your job is to then start filling your retirement account buckets, focusing on any employer-matched 401(k) first to reap the maximum risk-free gains inherent in the company match. If you haven’t already done so, the other buckets you’ll want to begin filling will include a Roth IRA and a Health Savings Account. The yearly maximum contributions for those accounts are $7,000 and $4,150, respectively, but if you’re 50 or older, you can include an additional $1,000 annually in catch-up contributions to your Roth IRA. (When you turn 55, the same goes for your Health Savings Account.) A Roth IRA is especially critical for generational wealth because proper withdrawals from it during retirement will be tax-exempt. As for the Health Savings Account, its tax benefits are even more significant, being the only type of savings vehicle to offer the elusive triple-tax advantage, meaning that contributions are tax deductible, growth is tax deferred, and usage is tax exempt. Select Your Advisor Hopefully at this point, you’ve established a rhythm with regard to your earning and saving. Assuming that you’re bringing in enough to adequately save and invest, it’s time to seek professional guidance. Wealth-building is a full-time job in and of itself independent from your employment. The vast majority of those intent on generating massive wealth will need the expertise of a fiduciary — an advisor who is beholden to your interests above their own. In most cases, you’ll want to rely on them for much of your investment portfolio. In addition to your monetary investments, a good advisor will lend you their expert opinion on a variety of subjects related to your wealth, whether it be pointing you in the direction of a suitable accountant, an attorney, or even classes for your professional development. In many instances, they’ll even assist you in forming effective strategies to get a business off the ground. In short, there’s no reason to go it alone. As humans, we need proper guidance, specifically from those who have a broader scope of the financial world and its myriad complexities. Even if you have an MBA, it would be foolhardy to close yourself off from an outside perspective. No matter how brilliant you are, you can only know so much. Give yourself the benefit of listening to an expert who undoubtedly sees things you can’t. The cost of
A dentist’s oracle: The accountant
When it comes to success for private practitioners, money management often takes a backseat as a focal point. I’m an ardent believer that your core values must remain front and center, however, your ability to properly budget cannot be ignored. Yes, you need to make company culture the top priority, but your financial wherewithal should be embedded in the fabric of who you are, right alongside your commitment to service and leadership. To gain a better understanding of the most common financial pitfalls dentists encounter, I met with renowned CPA John P. Cataldo, founder of Cataldo Financial and Consulting Group. As a representative of independent dentists from coast to coast the past 40 years, Cataldo has built a reputation for maximizing efficiency and implementing systems that allow small private practices to not only hold their own but thrive among the large DSOs. He spoke about the Tale of Two Practices, his video series and a real-world analogy of how two dentists, each bringing in $1 million in yearly business, can end up with starkly contrasting profits. In short, the first dentist took home more than $500,000 while the other barely eked out half that amount. Regardless of which camp you’re in, the story behind the allegory is that all of us can make smarter decisions that ultimately lead to greater profitability. Perhaps most helpful of all, Cataldo asserted that if you were forced to write out a weekly check that totaled all the inefficiencies your practice cost you that week, you’d quickly eliminate those pesky snags. But since you don’t write that check, and since those costs remain hidden from plain view, most inefficiencies are ignored for far too long. Your accounts receivable may not be ideal Perhaps the biggest problem plaguing dentists who have a steady stream of business, yet struggle to make ends meet, revolves around their accounts receivable (AR). Ideally, your ledger of receivables should be about a page long and resolved within about 45-day rolling increments. If your list is longer, and your repayment calendar is closer to 90 days, that may be a sign of serious trouble. If this is a struggle for you, it’s hard to know where to begin. First, keep in mind that there’s nothing wrong with asking for payment when a service is rendered. Patients understand that when they purchase something at a department store, they can’t leave and explain that they’ll pay the bill when they get around to it. Even if they use a credit card, the terms and conditions are outlined from the beginning. To be fair, receiving payment from insurers requires a different set of tactics, but the premise is basically the same. You not only need a method of payment, but it must be based on fair market value, and you need to ensure that it’s collected in a timely manner. For some dentists, collecting payments might be less of an insurance problem and more of a staff issue. If you haven’t made sure that everyone on your team understands their duties, make those responsibilities perfectly clear. An organizational chart goes a long way toward clearing up any confusion, specifically regarding payment collection. If your staff has questions about what they should be doing, make a list and place it in everyone’s hands. Require the AR person to draft a weekly log of all payments received, balances outstanding, and communications to capture said revenue. You usually won’t have to read the log each week. Even if you read it once every three weeks, the fact that your staff is focused on physically documenting accounts and updating them regularly in the process will ensure that most outstanding balances are collected on schedule. Think before increasing your patient base For dentists actively seeking to increase their patient base, keep in mind that if the issues here aren’t addressed, boosting your workload will be a hindrance rather than a blessing. The last thing you want to do is use up more of your time and resources without the requisite systems in place to collect revenue. But let’s assume you’ve gotten that aspect of your office in working order. Now it’s time to increase your marketing efforts. Tread with caution. The most effective marketing shouldn’t cost you anything. Your best advertisement is in the form of patient satisfaction. This is particularly true in upper class markets where the cost of your services is not much of an issue. These people care most about the quality of your work and the care with which you deliver it, and they’ll reward you with referrals. Your reputation is worth infinitely more than the $20,000 you might shell out to chase new patients on social media. In fact, before you sign any money over to Facebook, consider advertising in your local paper, which is significantly less expensive and more likely to reach the demographic you’re seeking. Or you might want to eschew traditional advertising altogether and increase your community involvement, perhaps by sponsoring a local 5K race or a charity event. Regardless of the investment you make in your business, you need to understand the overall impact it will have on your bottom line. Whether it’s investing in new equipment, growing your staff, or increasing your marketing budget, you should have a grasp of the added value before you write the check. Unfortunately, if your big strategy to justify your latest equipment upgrade is a huge upfront tax deduction, you’re doing nothing to alleviate the future interest payments on that expenditure in the coming years. Don’t let such investments turn into burdensome liabilities. Empowering yourself with knowledge makes all the difference. An accountant can give you access to critical insights long before you shell out precious capital. No money should ever be spent on a whim. You don’t have to foresee every monetary entanglement along the path to greater profitability. You simply need to befriend an accountant who can spot them for you. Editor’s note: This article appeared in the March 2024 print