Accept Referrals To Specialists

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So, you’ve learned that the only real way to build and maintain wealth is by leveraging effort, assets, and people. You’ve learned that leveraging people is the most powerful method of Leverage and that leveraging advisors is the most powerful way to Leverage people. It wouldn’t be a stretch to say that once you figure out how to use Leverage to achieve even a modest level of wealth, learning how to Leverage advisors is the single most important thing you can do if you want to save time and money and get the most out of your medical career.
To help you better understand this lesson, you need only look at the practice of medicine. A primary care physician is generally the first line of contact for a patient. Though the Doctor has a very wide range of general knowledge, he or she will have to refer patients to a number of specialists. In some instances, the Doctor may request the help of radiologists to review tests. In other instances, there may be a referral to surgeons who will undoubtedly need to work with anesthesiologists. The Doctor will encounter cases in which patients will need referrals to obstetricians, gynecologists, urologists, cardiologists, orthopedists, oncologists, and other specialists. The situation with respect to your finances is very similar.
In this Article—Accept Referrals to Specialists—we will examine the types of advisors who can help you Leverage your time and money, review the benefits and limitations of each specialist, point out some common pitfalls, and ultimately recommend how to assemble the right team of advisors.

The Value of Financial Specialists
The best way to maximize your benefit from leveraging people is to work with experts in many financial and legal fields. As you learned in Lesson #2, you have very different needs than Average Americans do. As a result, the right specialists for most people are not likely to be the right advisors to help you.
As you become more successful, you need advisors even more. Adding employees, making additional investments, purchasing equipment and real estate, and creating new businesses add complexity to your plan. This increased Leverage exponentially increases the complexity of your comprehensive financial plan. This complexity necessitates the need for a team of advisors. Without a very strong team, you will struggle to find the time to focus on the important things that make you money, let alone enjoy any free time. To illustrate the value of advisors, refer to the equation below:

  • Wealth can only be achieved through Leverage
  • Leverage can only be managed with a team of Advisors
  • Wealth can only be achieved with a team of advisors managing the Leverage

In this section, we will discuss the reason why Doctors need a team of knowledgeable advisors with diverse areas of expertise. Then we will discuss how to maximize the value of your advisors and suggest tips for working with your team.

Managing Complexity: The Need For Advisors
Most people realize that wealth creates complexity. What Doctors need to realize is that the management of complexity and Leverage is not the job of a traffic cop. As wealth grows, the number of complicated, technical risks that the Doctor faces also grows exponentially.

As an example, the transition from running a sole proprietorship to having a single employee may not seem to be major, but that couldn’t be further from the truth. The addition of just one employee creates a need for:
· Payroll creation, funding, and paymentsPen on Notebook
· Regular payroll tax payments (or you can go to jail)
· Withholding tax filings and payments
· Workers compensation insurance or fund payments
· Occupation Safety Hazard Association (OSHA) compliance
· Separate retirement plan (ERISA) regulations and contribution requirements
· A host of other state and federal reporting requirements.

In addition to all of the aforementioned specific issues, the Leverage of assets also increases the need for more general categories of planning, like asset protection, banking (private and commercial), business planning, financial planning, healthcare law, HIPAA, Medicare, income tax management, investing, life insurance analysis, disability insurance analysis, property and casualty insurance analysis, long-term care insurance analysis, educational funding, retirement planning, family law, gift and estate tax planning, charitable planning, Medicaid planning, and a host of other areas.
Each category of planning has its own technical areas that can be competently handled by an advisor who has expertise in that area. Although it is common to find an advisor who has expertise in several areas, there are categories in which the input of two advisors may be necessary. For example, tax issues are typically handled by a both a tax attorney and a CPA. As a result, there is no way that a small team of two or three advisors could possibly handle the needs of a Doctor. This means that a Doctor may need to Leverage the services of six or more advisors over their career.
While the concept of such a large team may seem overwhelming, consider your profession of medicine. Adult patients do not continue to see the obstetrician who delivered them or the pediatrician who treated them in childhood. Patients need to see a number of specialists as they mature and as their needs change, often consulting with a number of Doctors at once.
If you are like your patients, you may want to be able to keep the same financial “primary care” advisors for as long as possible. Having someone you know and trust as your primary contact is very comforting. This “primary advisor” can help explain situations to you, find the right specialists if a need for one arises, and help communicate with you as complicated procedures take place. Keep this in mind. In Lesson #10, there will be discussion of your team of advisors. One of your advisors on this team is going to be the primary contact to help you through it all.

Working With Your Team
Having the right team of advisors is another step in the right More

The Specialists Doctors Need

Posted by & filed under Business, Business Owners, Doctors, Healthcare.

Specialists Doctors need

Choosing Advisors

Before you can choose your advisors, delegate responsibilities to team members or begin to benefit from the Leverage of advisors, you need to understand the types of advisors you need. In this chapter, we provide a list that covers the team members that 90% of situations require. Some advisors, like mortgage brokers, are not discussed because they typically play a transactional role at different points in the client’s lifetime. The other advisors may review mortgages, but the mortgage broker typically is looking for the lowest price and isn’t changing loan offers based on the other pieces of the comprehensive financial plan. In addition, unique circumstances may call for some teams to require additional advisors with very unique skills.

Below is the list of the most common advisors:
Choosing Advisors· Asset Protection Attorneys
· Accountants
· Estate Planning Attorneys
· Tax Attorneys
· Insurance Professionals
· Investment Advisors
· Financial Planners

Accountants
The term accountant will be used to generically describe an accountant, Certified Public Accountant (CPA), or Enrolled Agent (EA).
What They Do: Accountants (and CPAs and EAs) are trained and licensed to prepare tax returns for submission to the Internal Revenue Service. Each state has its own licensing and accreditation procedures for accountants and CPAs. California is no exception. The CPA has a multi-part exam that is required to earn the CPA accreditation. Enrolled Agents complete a federal licensing process. In all situations, these advisors primarily prepare tax returns. In the most desirable client-advisor relationship, the accountants also provide clients with advice on tax matters.

Limitations of an Accountant:
1. The U.S. tax law is potentially the most complex set of rules created by human-kind, and significant changes are made to these rules every year. Therefore, it is impossible for any accountant to be well versed in all areas of tax policy. More likely, the accountant may only know one or two areas (of 20 or more potential areas) intimately. Tax planning is like medicine—each area has become so complex that one can’t possibly expect to become an expert in many disciplines. In the medical arena, most patients and physicians realize that one Doctor can’t do everything. They both readily accept being referred to, or referring patients to, other physicians. A gastroenterologist would no sooner make diagnoses for skin conditions than a dermatologist would try and diagnose and treat an intestinal issue. Unfortunately, this is what happens all the time in the tax arena.
2. Some accountants are comfortable acknowledging what they know and don’t know. Some accountants feel responsible for answering all tax questions and resist referring clients to other accountants for specific needs for fear of losing the client altogether. This is more of a limitation of an individual than it is a limitation of the profession as a whole, but it should be recognized.
3. Conflicts of interest may arise. Many accountants are beginning to look for additional revenue opportunities by getting licensed in life insurance and securities. They will then recommend their clients particular investment and insurance products. This can create significant conflicts of interest with clients who are looking for tax advice, but who are getting financial suggestions. Clients should be concerned how accountants who deal with very complex tax issues find time to become experts in insurance and investments. In revisiting our Doctor analogy—how could a practicing dermatologist find the time to learn oncology on the side and offer high-quality consultation to the dermatology clients who develop cancer? Savvy patients would prefer a full-time oncologist in that situation. Despite the conflict and impracticality, many CPAs with years of accounting experience are now trying to increase revenue by advising clients on investments and insurance, despite having little or no practical experience in these areas.

Asset Protection Attorneys
The term asset protection attorney describes an attorney who has a strong working knowledge of and experience in the area of creditor protection. There is no state-specific accreditation for asset protection. All attorneys must be admitted to the Bar Association in the state(s) in which they wish to practice. To see if an attorney is licensed and in good standing in California, you can go to www.calbar.org.
What They Do: Asset protection attorneys specialize in the field of asset protection. They help clients arrange their personal and business affairs in a manner that protects their wealth from potential future lawsuits and other creditor risks. Because many of the tools used in asset protection are the same tools used in estate planning and business planning, it is common for asset protection attorneys to also have a strong working knowledge in those areas as well.

Limitations of Asset Protection Attorneys:
1. Because asset protection is a relatively new field of law and most attorneys are overwhelmed in their primary fields of interest (litigation, business law, estate planning, etc.), few attorneys have found the time or had the interest to study this important field of law. As a result, there are very few attorneys who are experts in this area. Though one of the co-authors (Mr. Mandell) specializes in this area, he is one of fewer than 50 attorneys in the country whose focus is exclusively in this area.
2. Asset protection attorneys are NOT estate planning or tax attorneys—or any other type of attorney, for that matter. Do not expect that you will get estate planning or tax advice from these attorneys unless they also have specific training in these areas. However, your asset protection attorney should be willing to interact with attorneys from the other fields who will be necessary to help you complete your planning.

Estate Planning Attorneys
The term estate planning attorney describes an attorney who has a strong working knowledge of and experience in the area of trusts, probate, and estate planning. There is a state-specific accreditation for estate planning in many states. All attorneys must be admitted to the Bar Association in the state(s) they wish to practice.
What they do: Estate planning attorneys focus on helping families address the financial More