Bill Schu

I have written often for this site on the potential benefits of working with a financial advisor, which I generally think is a really good idea for dentists. Part of the reason is that dentists often have so much on their plate that investing the time in being a good investor isn’t necessarily at the top of their list. But there are some dangers, too, in turning responsibility for your investment portfolio over to someone else. The key to doing it well, as it is with most things, is the simple strategem of “Trust, but verify.”

Sounds simple, right? But... how do you verify? If you’re working with an advisor who knows less about finance and investing than you do, you’re working with the wrong advisor. So how do you make sure your trusted advisor has earned that trust? Over two parts, we’ll look at a few missteps your advisor may make, and a couple you may make in working with an advisor. If you spot some of these behaviors in your own relationship, strongly consider making a change.

Not learning or adhering to your investment goals, or your core values.

 No advisor worth working with will suggest any transactions or investments prior to learning, in significant detail, what your investment objectives are and how you’d like to reach them. As part of this process, an advisor should be prepared to explain her core principles, her history in pursuing them, and how she goes about meeting them. This information-gathering is the foundation of a long-term partnership. An advisor in it only for the commissions or fees won’t spend a lot of time on it; someone interested in a long-term, mutually beneficial relationship will.

Being vague about how payments are structured.

 Specificity and detail are the enemy of any nefarious advisor. Bernie Madoff, the most notorious of the bunch, was able to carry on destroying people’s financial futures as long as he did because most of his customers didn’t ask detailed questions about how the returns were earned or how his fees were structured. They saw sustained growth and didn’t ask much about it.

Make sure you understand fully, and up front, what you’ll pay for, when, and how much. This will involve a slight descent into the weeds of how different financial fee structures work and why. But having that knowledge will give you peace of mind, even if you never use it again. And you don’t always have to understand something fully to be able to ask probing questions about it. That act of questioning alone may be enough to indicate to your advisor that you won’t simply go blindly along with whatever structure he is suggesting.

Ignoring your calls, your spouse, or your portfolio.

 An advisor who doesn’t return your calls may not be hiding anything nefarious, but he also isn’t hiding his indifference to your business. An advisor who talks to you with impatience or condescension is telling you that giving you full explanations isn’t worth her time. An advisor who ignores your spouse or partner is telling you to find another advisor.

A mistake you may make: One size fits all

Because many dentists are also business owners in addition to individual investors, the temptation may be to combine the expertise of one advisor who is given some responsibility over certain aspects of the business in addition to matters relating to your portfolio. While in some cases with an advisor you trust completely this might be acceptable, it’s generally a bad idea. For tax purposes and for many other reasons we’ll cover in an upcoming column, it is really important to keep a separation of church and state between your personal finance and business income and expenses. That should include any and all advice you receive from an advisor.

In part 2, we’ll look at some more subtle signs of advisor misbehavior, including putting their interests ahead of yours.

Articles

Investing is complicated and dentists are busy. So it's easy to get complacent when keeping tabs on your finances. Here are three signs you might should keep a closer eye on your advisor.

3 Warning Signs of Financial Advisor Malfeasance 

 when investing for retirement, I mentioned that as your income improves, your lifestyle choices may become more expensive as well.

A nicer car befitting your station as a dentist isn’t necessarily a bad thing, nor is a bigger house or nicer office space as your income gradually improves; that nice office space may even drive additional revenue. My point in the earlier column was that earning more doesn’t always equate to having “extra” funds to set aside—a common misconception for investors planning to save more in some distant future.

But it’s also perfectly natural, and even healthy, to engage in some measure of lifestyle improvement over the course of your life and career. The key is to be aware of this trend as you budget and save, and to be honest with yourself about what your current and future priorities are.

Part of the reason most economic experts decry “lifestyle creep” is because of the difference in control most people have over two key components of their financial situation: earning and spending. Depending on your dental practice, and whether you work for a health system or own or share a partnership in a practice, your earnings may fluctuate a bit from year to year. A typical dentist may be paying off debt for the first few years, buying into a partnership shortly after that, and earning significantly more in their late 40s or early 50s.

Unless you’re in some sort of fee-for-service arrangement, you’re likely to have significantly more control over your spending on a daily, weekly, and monthly basis than on your income. Curbing spending, then, in favor of saving, is often a more promising avenue than simply trying to earn more.

Spending, though, has its positive and negative aspects. Spending just to spend, buying new and better products and services just because we can, and spending beyond our means are all hazards. Not spending at all, however, can be discouraging. The austerity that comes from drastic saving, when it comes at the expense of current joy, can make saving for retirement seem like a slog at best. Who wants to engage in a slog for their entire career? Life is happening right now all around us, and living like a pauper now for some theoretical enjoyment once you’re retired doesn’t sound like a panacea.

These two terms are often contrasted in financial literature, but in this case I’m not talking about the difference between growing your money and simply stashing it away. Rather, I’m referring to the choice you may face if you run your own dental practice or are part of a partnership: if you have more income, do you “save” it for retirement, or “re-invest” it in your practice, perhaps to upgrade equipment, hire additional staff, or seek other improvements. There are many variables to these decisions, and the decision will depend on your goals and circumstances. The key is to carefully analyze the risks and potential benefits in both approaches before making any impulsive decisions.

The key in all these decisions is to find the right balance for you. It won’t be simple. There are too many factors at play to simply plug numbers into a spreadsheet, measure the daily happiness of having X dollars to spend every month, and then assess that measurement against the future benefit of having a secure retirement.

To help find your balance, stick to the basics: Set your financial goals after a great deal of thought and planning; build a great budget and stick to it; and consider 

As you move through your career and pay off your student loans, you'll likely find your paychecks are increasing in size. Follow these tips to ensure you can enjoy your money without neglecting your savings.

Income Rising? How to Balance 'Lifestyle Creep' and Savings

The vast majority of dentists engage in ethical practices and steer clear of behaviors that could take advantage of their patients financially. Unfortunately, however, the dentists who don’t make bigger news. Local newscasts are often filled with stories of dental malfeasance.

Nevertheless, alongside physicians, nurses, and pharmacists, dentists generally score high on Gallup’s annual surveys of the most trusted professions. Building and maintaining patient trust is an everyday endeavor; any encounter with a patient that leads to doubt about your professionalism could lead to loss of a customer, or, worse, potential litigation. Here are a few tips for keeping the trust you fought hard to earn.

Avoid aggressive diagnosis of tooth decay

As fluoridation and better overall dental hygiene continue to chip away at the nation’s need for cavity care, the temptation for some might be to look for opportunities for restorations and other pricey procedures that may not be necessary in some cases. Upselling is prevalent in many industries, but unlike the “undercarriage protection” made famous by the movie 

, creative selling in dentistry and other fields of healthcare can be quite damaging. Medical diagnoses are often subject to second opinions from patients, but because it is rarer in dentistry, the temptation is there to over-diagnose.

Consider frequency of cleanings, exams, and x-rays

You and your staff are quite familiar with the risks associated with radiation exposure, but your patients may be less so. When x-rays are needed—particularly cone-beam and other types of x-rays that involve large doses of radiation—take the time to explain to the patient why the x-rays are necessary and what the risks might be.

Communicate well with every patient, but take special care with new ones

On a related note, we have covered the importance of good communication 

 and elsewhere. While it’s important to establish and nurture relationships with all patients, those who are new to your practice can be particularly susceptible to a lack of trust, because they have no history with you. Take every opportunity to engage new patients on a professional level before and after your portion of their dental exam or procedure.

The period of evaluation that comes with the start of the new year may have you looking at revenue earned last year and projections for this year. There is nothing wrong with putting plans in place that will drive additional revenue. Just make sure that the care and trust of your patients always remains the paramount consideration in the process.

Like it or not, dentistry is a business. And while making the bottom line add up is critical, so, too is ensuring patients have the kind of experience that keeps them coming back.

3 Ways to Build Dentist-Patient Trust

Every year, you know there are financial matters you need to take care of throughout the year, but you may not know when the best time to do them. For dentists who run their own practice or participate in a partnership, annual financial calendars should include business reviews as well as personal review. This brief, handy guide will help you figure out when to do what.

Review 2015 portfolio performance and make necessary 2016 adjustments

It’s not written in stone that the end of one year and the beginning of the next is the best time to review past performance and make adjustments. But, since any time is fine, how about now? Why now? Because re-balancing and reviewing can seem like a “nice to have” rather than a “need to have,” and may, for that reason, get pushed to the back burner. But it really shouldn’t. This is an important step to make sure you are on track to meeting your financial goals.

It’s important to review this annually, because priorities change, and financial goals are not set in stone. Use this time to check your progress, verify the performance of any advisor you may be working with, and look at any needs for immediate liquidity.

 By Jan. 31, with a few minor exceptions, employers, financial institutions, and others who have documents related to your tax liability are required to send them to you. That’s a good time to gather all your documents for your tax professional, or, if you do your taxes yourself through an online program, to get a sense for your liability or refund. If you owe, you can wait until April to submit your taxes and payments. If you’re expecting a refund, you’ll want to submit your tax returns sooner.

 Consider this task a part of spring cleaning. As we covered in greater detail 

, each year, you should look over your retirement plan documents, and discuss beneficiaries with your advisor and your family to make sure nothing has changed and the money will go where it’s supposed to in the event of your untimely passing.

Why now? For the same reason you should review your portfolio performance now--because otherwise this may get pushed to the back burner, where it decidedly doesn’t belong. Life insurance is an obvious need, but depending on your age and overall health, you may also consider long-term care insurance, disability insurance, updating your malpractice coverage, and any other needs you should address.

When it comes to insuring your practice, there is a long list of variables, including new services you’re now offering, changes to Federal and State Laws regarding dental malpractice, and recent court decisions that could prompt a change in your malpractice coverage. Talk to your malpractice insurance provider to make sure you’re up to date. 

It’s not as if this step is any less important than any of the tasks above, but the simplest way to become overwhelmed is to over-schedule the beginning of the year.

If you run your own practice, or if you simply have significant assets you’ve built up over time, it’s a good idea to consult an asset protection attorney to make sure you’ve minimized your personal and business liability. Make sure your 

 is sufficient and up-to-date. Is your risk management plan as robust as it needs to be? An annual review can help make sure that it is.

Of course, there are many other steps you’ll need to take during 2016 to make sure you stay on track. Having a basic calendar in your head or on paper will help you navigate the new year.

As we ease into 2016, it's a good time to mark your calendar for periodic check-ups and financial milestones.

Now's the Time to Plan Your 2016 Financial Calendar 

Delicious eggnog is behind us, and 2016 is upon us. The financial sins of 2015, if indeed there were any, are in the rear view mirror, and the opportunity to get on a productive financial course is here. This is the first of a short series of articles on getting 2016 off to a great start.

 Budgeting isn’t everyone’s strong suit, and you may be getting by just fine without one. But as the calendar changes over, consider developing at least a basic budget, even if you don’t look at it every day and don’t account for every dollar of income and expenditure. No budget is perfect, and no budget has to be. But as described here, a 

is not only the roadmap to a successful financial future, it can be the foundation for it.

Take stock of your stocks (and the rest of your portfolio), pull a free credit report, and reassess your financial goals. The holidays can be very busy for most, so you may have missed an opportunity to look at the overall performance of your 2015 portfolio. Take that opportunity during the dog days of winter, before the allure of spring takes you back outside. While you’re at it, take advantage of one of the free credit report services — preferably at 

 — to do a maintenance check on your credit rating. (Other companies that advertise free credit reports often engage in a bait-and-switch in which people who don’t read the fine print closely are enrolled in clubs and other nonsense that ultimately lead to charges.) Check your reports for inaccuracies and alarm bells, and have a general sense of your credit rating, which can impact borrowing power and overall credit availability.

I have talked about the pros and cons of working with and advisor 

. So much of this decision comes down to personal choice and what 

 you are. You can read those articles for more information, but for now consider that the two biggest fears of working with an advisor — fear of stepping out of your comfort zone and a lack of trust giving access to outside persons – can both be overcome through time and effort. Working with the right professional can be an important step in this year’s financial journey. The beginning of the year is a good time to think about this, because your advisor may also be able to provide some tax guidance, which will come in handy over the next few months.

 If you didn’t get a chance to do it last year, look at your life, homeowners, auto, and other insurance to make sure your beneficiaries are updated and that your coverage still reflects your needs. Loyalty to one fine insurance company may be important to you, but it never hurts to shop around and find out what other insurers are charging for policies similar to yours. If nothing else, you can go to your current insurer, explain that you’d like them to keep your business, but ask for lower costs comparable to other reputable companies.

The actions you take at the beginning of the year can set the tone for a financially successful 2016. In future installments, we’ll look at setting your 2016 financial calendar, financial vehicles to reconsider in 2016, and ways to optimize your savings and investments.

As you ease back into work following the holiday season, take some time to ensure your 2016 begins with smart financial decisions.


New Year, New You: 4 Financial Tips for Starting the Year Right

Many of us tend to think that once they achieve their fortunes, the truly wealthy stay that way over long periods of time—generations or more. But the reality is actually quite different.

A new study from investment banking service UBS Group AG and PricewaterhouseCoopers (PwC) shockingly revealed that 56% of those with fortunes of greater than $1 billion in 1995 had fallen out of that worth bracket as of 2014—just 20 years later.

“Great wealth is volatile — highly volatile,” Michael Spellacy, a senior partner at PwC, said in a press release accompanying the report.

The report, an offshoot of this past spring’s comprehensive “Billionaires: Master architects of great wealth and lasting legacies,” found that those legacies don’t always last so long. The report looks at the differences between billionaires’ wealth creation, preservation, and philanthropic practices across the United States, Europe, and Asia. The survey of 1,300 billionaires analyzes data from the last 19 years (1995-2014) across the 14 largest billionaire markets, accounting for 75% of global billionaire wealth. An animated summary of the full report can be seen 

Of the 289 billionaires identified in 1995, only 126 remain in the group. Of the 163 who dropped out, 24 saw their wealth diluted among family members, 66 lost it to the inevitable and inexorable combination of death and taxes, and 73 saw fortunes decline due to business failures and other issues, the report said.

But don’t fret for the upper crust: New billionaires more than replaced those who lost their riches. UBS and PwC gathered data on 1,300 billionaires globally, more than 1,000 of them minted since 1995. The majority derived their money from finance, technology or the consumer and retail industries over the past two decades. 

In a welcome trend, many of the new billionaires are women. The number of female billionaires worldwide has increased nearly sevenfold in the past 20 years to 145, driven largely by Asian entrepreneurs. In fact, women joined the billionaires’ club with a bang—with their ranks and wealth growing at faster rates than men. There were only 22 female billionaires in 1995.

The report found that among other indicators of sustained wealth, the second generation obtaining that wealth is crucial to whether or not the wealth is maintained.

A new report shows the ultra rich have a hard time maintaining their status. But don't fret too much for the billionaires.

Most 1990s-Era Billionaires Worth Much Less Today

The Federal Reserve, which sets short-term interest rates, announced Wednesday it will increase those rates for the first time in a long time. Without getting into the specifics of the complex considerations that go into this decision, let’s take a look at what’s behind the action and what it may mean for your investment returns, mortgage rates, and the overall economy.

	Since the recession of 2008 and 2009, the economy has been in the process of a halting, at times painfully slow recovery. The Fed has kept the cost of borrowing money—the short-term interest rate—as low as possible to encourage entrepreneurs and those seeking loans to do so with as little penalty as possible. This is seen by many economic experts as a way to drive economic growth. A recent jobs report indicates that unemployment is steadily decreasing, prompting the Fed to remove what has essentially worked as an economic stimulus and move to a more neutral stance, assuming that the recent momentum will continue.

	The change in short-term interest rates is unlikely to have a huge impact on most individual investors. The rate of borrowing for auto loans, for example, will likely increase a bit, but so will the interest paid for savings and interest-bearing checking accounts. But keep in mind that a small increase in short-term rates, which this is expected to be, will still leave rates at historically low levels.

	The most likely impact of the policy change is some immediate market volatility—big swings in stock indexes such as the Dow Jones Industrial Average and the NASDAQ, for example. For long-term investors, these reverberations are like pebbles tossed into a river; they aren’t going to—and shouldn’t—divert your long-term investment strategy.

	In fact, historically, these short-term fluctuations after a Fed adjustment have led stock values to trend higher. Economists argue about the relationship of cause and effect here, but many agree that this rise is due in part to the overall strength in the economy that leads to the increase in short-term rates. As always, past performance doesn’t guarantee that stocks will perform the same this time around; it is, after all, in the past. But it does serve as a general indicator that has remained pretty tried and true over decades of economic cycles.

	Bond prices, on the other hand, tend to be pushed lower by increases in short-term interest rates. But not all bonds react to interest rate shifts in the same way. If you’re heavily invested in bonds or are getting close to retirement, you’ll want to talk to your advisor about the historic performance of municipal versus corporate bonds, stable versus high-yield bonds, and treasury or mortgage-backed bonds. For those already in retirement or receiving annuity income, there may be more substantial impacts on payments, particularly for variable annuities or new annuitants.

	In brief, this shift in short-term interest rates will not be drastic and shouldn’t substantially alter the long-term plans of most investors. Don’t overreact to the shift or to any short-term market volatility. As we’ve discussed previously, 

 is a terrible investment “strategy” for the vast majority of investors. 

The Federal Reserve is expected to announce an increase in short-term interest rates on Wednesday. Here's what that would (and wouldn't) mean for you. 

What You Need to Know If the Fed Raises Rates

Entertaining can be anything but entertaining. How many of us stress ourselves out about planning and hosting a great holiday gathering, to the point where we can’t enjoy our own party? This year can be different! I present to you five foolproof tips for having more fun at your own holiday gathering being this year.

Did you know that a small cup of store-bought eggnog contains almost 200 calories, nearly 10 grams of fat, and over 70 mg of cholesterol? The answer to this problem, of course, is not to serve store-bought eggnog!

Try this recipe from Food Network star Alton Brown: 4 egg yolks; 1/3 cup sugar, plus one Tbsp; 1 pint whole milk; 1 cup heavy cream; 3 ounces bourbon; 1 tsp freshly grated nutmeg; 4 egg whites. Beat the egg yolks until they lighten in color. Gradually add the 1/3 cup sugar and continue to beat until it is completely dissolved. Add the milk, cream, bourbon and nutmeg and stir to combine. Place the egg whites in the bowl of a stand mixer and beat to soft peaks. With the mixer still running gradually add the 1 tablespoon of sugar and beat until stiff peaks form. Whisk the egg whites into the mixture. Chill and serve.

I don’t know how many calories or grams of cholesterol are in this recipe. Neither do you. Let’s leave it that way!

People don’t want to eat a heaping pile of ham or filet mignon at a holiday party. They want to enjoy small tastes of a lot of different things. What typically happens is that you spend all day cooking a heavy main course, everyone fills up on the appetizers, and no one really eats “dinner.” So, skip the “main course” altogether, and throw a “beginnings and endings” party, in which you serve up a heap of appetizers and a smattering of desserts. Save the ham or the filets for your celebration with the immediate family.

Successfully hosting a large number of people used to mean slaving all day before, during, and after the party. These days, though, hosting means coordinating what your guests can bring. Unless your friends are truly Scrooges, they probably 

to bring something to your party. The key is to make sure you don’t have five spinach dips and nothing else. Ask people to bring their appetizer or dessert specialty, and don’t be bashful about filling holes in your menu by aggressively suggesting some items for those who are unsure what to bring.

The football season is winding to a close, the Golden State Warriors are undefeated in the NBA, presidential candidates are shooting their own feet, and the news is dominated by mass shootings and religious extremism. Make your holiday gathering about the people gathered and not about the latest sports or world news by turning your televisions to a holiday music channel. A television turned off might seem to some guests like an open invitation to turn the game on, but a television already set to a music channel may be enough of a barrier for all but the truly rude. Yes, you run the risk of hearing Madonna’s awful rendition of “Santa Baby,” but it can be the lesser of two evils.

We’re not breaking any new ground here, but December is notoriously among the worst months for wrecks, owing in part to accidents that stem from impaired driving after holiday parties. If you served some of that great eggnog or any number of other spirits during your party, make sure your guests are capable of getting behind the wheel safely. 

Last but not least, the holiday season can be a whirlwind that goes by in a flash. Take the time to enjoy the time with your guests--and some of that nog!

Entertaining can be anything but entertaining. How many of us stress ourselves out about planning and hosting a great holiday gathering, to the point where we can't enjoy our own party? This year can be different! I present to you five foolproof tips for having more fun at your own holiday gathering being this year.

5 Tips to Entertain This Winter Season Without Losing Your Holiday Cheer

Back when you were in dental school and your means were a little leaner, chances are pretty good that you relied on some kind of budget. It may not have been a fancy spreadsheet or an interactive phone app, but you used something. Now that you’re an established dentist, the need for a strict budget may be less acute, but it’s still a good idea to have some general financial parameters you set and stick to. The end of the year is a good time to revisit that budget, see how it worked last year, and make adjustments for 2016. These kinds of adjustments are not just necessary, because your income probably changes every year, but they’re also important for helping you with long-term savings.

Here are a few tips to get you started and then keep on track.

The first time you sit down to do a budget, you may be astonished by how much you spend on certain things, such as grocery shopping, data plans, or restaurant dining.  You may find ways to cut back on things that aren’t as important to your overall lifestyle and goals. But the most important aspect of this first step is just being aware of where your money goes each and every month. A good budget helps you plan and estimate expenses, of course, but it also helps you assess your overall life goals and compare your spending habits with those goals. You’ll need a record of what you earn, bank statements, copies of current bills, and any favorite money-management tools.

You may already have a pretty good budget. If so, do you review it from time to make sure it’s still accurate? With apologies to Jerry Seinfeld’s rant on his eponymous sitcom about taking reservations, anyone can 

 the budget. The step that many people forget is to compare current and past expenses to what you budgeted, making sure you didn’t set aside too much or too little. Look at last year’s bills to help you estimate seasonal expenses, such as travel or electricity, more closely.

Budgeting, like swimming, can be dangerous if done alone. Involve your partner, and, if appropriate, your kids in the budgeting process. They are likely to play a significant role in whether or not you stick to that budget, of course. Perhaps more importantly, getting input from your family members is an essential part of future financial planning. Does your slightly-below-honor-student son plan to further his semi-education at Expensive Out of State University (EOSU)? Is your soon to be texting-while-driving daughter convinced that her upcoming birthday gift will be a shiny new car?

Budgets aren’t just for now. They should project future expenses—including your own retirement and insurance needs—and set aside savings for them.

Long-term planning always involves projections. You don’t know what the economic climate may do to the value of your practice or even your annual income, but you can estimate, using patient growth trends, the values of other practices in your area, and other variables you can measure. When you do, take into account things like inflation, potential changes to income, and unanticipated expenses. A good budget may be consistent year over year, but it won’t be static.

Even if money isn’t necessarily tight, the simple fact is that long-term saving requires discipline, sacrifice, and planning. Knowing where your money is going now can help you and your family assess how much you can save for the future. The sooner you make those kinds of decisions, the sooner you can benefit from a long-term investment strategy that may make your retirement years less dependent on the value of your practice when you’re nearing retirement. 

The end of the year is a good time to revisit that budget, see how it worked last year, and make adjustments for 2016. Here are a few tips to get you started and then keep on track.


End of Year Planning: Building a Basic Budget

Was 2015 the year you swore you’d get your finances in order? Update your patient scheduling systems and electronic health records? Pay down that dental school debt, start the college savings plans for the children, max out on that 401(k)? If you did meet your goals in 2015, there’s no ribbon or reward. Stay the course!

Whatever your financial goals for 2015 were, and whether you met them or not, don’t dwell on it. If you didn’t meet your goals in 2015, take this opportunity to look back. Not to focus on your lack of success in 2015, but to create your financial roadmap for 2016 and beyond. Here are some things to consider as we near the end of the year.

For our sister site, Physician’s Money Digest, I wrote recently about your 

—the one task or responsibility that is not only eluding you, but it may be gumming up your entire financial plan by gumming up your progress. The end of the year is the perfect time to address that thing and start with a fresh palette this January.

Evaluate your scheduling, patient record, billing, and other data systems. 

Technology has improved your personal life and your dental practice, but one of the things about technology is that it depreciates faster than physical assets. Even that brand new electronic health record you purchased one year ago is probably in need of an update. Talk to your technology providers about how often you should evaluate, reassess, and potentially upgrade the tools you use to schedule and manage patient records and billing. It may be more often than you think. 

Plan to max out your contributions next year. 

If you are a dentist at a large practice or are running your own practice, chances are you have some sort of retirement plan established, or at the very least are contributing to an individual retirement account. If you do absolutely nothing else during the end-of-year season or in all of 2016 to take control of your finances, set up your payroll deductions to max out the contributions to this plan. If you don’t have a retirement plan set up for yourself or your employees, that should be your 1 thing!  

Update your beneficiaries on retirement accounts and insurance policies. 

This step doesn’t have to be done at the end of the year, but it’s a good time to think about it. Why? Because the holidays roll around at the same time every year, and you should check and update your beneficiaries at least annually. Even if you’re young and healthy, it can also be a good time to make sure your will and any trusts you have set up are up to date. 

 If your life situation has changed, either through marriage or divorce, or the birth of a child, or even if you’ve simply had a significant adjustment in your practice’s revenue, you should probably update how much you set aside for Federal and State taxes. Though you may not wish to think about 2015 taxes until April, employers are required by law to provide tax statements by January 31. The sooner you can get a sense of what you paid last year versus what you owed, the sooner you can make adjustments. 

While we all love the idea of a big tax refund, the simple truth is that if you get a big refund every year, you’re essentially making an interest-free loan to the Federal or State government. That’s money that could be working for you instead.

The end of the year financial review doesn’t have to be about kicking yourself for not having a great 2015 financially. Use it instead as a kick-start into a financially productive 2016.

Was 2015 the year you swore you'd get your finances in order? Update your patient scheduling systems and electronic health records? Pay down that dental school debt, start the college savings plans for the children, max out on that 401(k)? Whether or not your met your goals, here are some things to consider as we near the end of the year.