$17,000 a year in 2012. Individuals age fifty or older can make an additional “catch-up contribution” of $5,500. Most 401(k) plans allow you to invest your contributions in a suite of investment options that may include stock-, bond, and cash-based investments. Unlike pensions that provide a future guarantee of income, a 401(k) provides only what you contributed plus any earnings (and as with any investment vehicle, your investments may lose value). Work with your financial advisor to establish a long-term investment plan that will help dictate how you invest your 401(k). Some employers provide matching contributions, which you should try to maximize. This might require adjustments to your monthly contribution rate. Senior Vice President Investments Denny Boys, CFP®, is with Boys Georgiadis Financial Strategies Group of Wells Fargo Advisors. Contact him at denny.boys@wellsfargoadvisors.com or (415) 291-1286. Wells Fargo Advisors, LLC, member SIPC, is a registered broker-dealer and separate nonbank affiliate of Wells Fargo & Company. CAR 0812-02682
Should I consider umbrella coverage, and why? The question you really should be asking yourself is, “How much coverage should I buy?” All physicians should have a personal umbrella or excess liability policy to protect their assets. Even though you purchase homeowners, automobile, and possibly watercraft liability policies, the limits generally available through these policies are not adequate to satisfy potential multimillion-dollar settlements. A personal excess liability policy is designed to protect against multimillion-dollar settlements and defense costs resulting from personal injury, bodily injury, or property damage lawsuits. Coverage is designed to extend beyond the required underlying primary limits provided by your homeowners, auto, and other personal policies. You can generally purchase between $1M and $5M limits with limited underwriting and up to $10M of additional coverage with more extensive underwriting. If you have significant assets to protect, have a youthful driver at home, own a dog, have a swimming pool, entertain at home, or drive in an area with a large number of uninsured or underinsured motorists, then an umbrella policy should be in your personal risk-management plan. You can’t afford not to have one. Roy Lyons is the managing director at Marsh, a global leader in insurance broking and risk management. Contact him at (213) 346-5946 or Roy.S.Lyons@marsh.com.
Matt Dickstein
Business Attorney Representing Medical Practices Since 1994 * Medical Corporations * Stark & Kickback / Regulatory Compliance * Employment & Contractor Agreements * Breakaway Physician Competition * Buying & Selling a Practice * Hospital – Group Contracts * Leases for Medical Offices * Multi-Discipline Practices
Idea of the Month: Always acknowledge a fault. This will throw those in authority off their guard and give you an opportunity to commit more. – Mark Twain
39488 Stevenson Pl. #100 Fremont, CA 94539 510-796-9144 mattdickstein@hotmail.com mattdickstein.com www.sfms.org
October 2012 San Francisco Medicine
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