Missing The Point
Ronald W. Roge, MS, CFP,
MD Preferred Financial Advisor
You
undoubtedly know that the SEC has sued Goldman Sachs for fraud. I have
been following the media and government pundits on this topic, and I am
beginning to conclude that they just don't get it.
Yes, I agree
that for Goldman Sachs not to disclose to their retail clients that they were
betting against the very products they helped create for their institutional
clients and then sold those products to their retail clients, is disgraceful
and unethical, even if it turns out to be legal.
Goldman,
the SEC, U. S. Congress and the media are missing the entire point about this
event, as they argue the very fine details of what's legal, what's not. What they are missing is that a financial advisor has a sacred relationship
with his or her clients. It's called fiduciary duty and responsibility.
Accepting
fiduciary responsibility is the first principle under which all financial
regulation should be based. No exceptions for anyone in the financial
services industry. Sadly, the new financial regulatory bill does not
require a fiduciary standard. The bill authorizes the study, not the
implementation of a uniform fiduciary standard. It will allow situations
like Goldman's to continue to perpetuate and confuse the public, as to who is a
fiduciary and who is not a fiduciary.
Jack Bogle,
founder of the Vanguard Group is fond of saying; -- "You can't serve two
masters at the same time." Goldman Sachs, to my knowledge, probably
did not act in the best interest of their retail clients, because they are not
a fiduciary. Their real clients are the corporations and institutions for
whom they create products, which they then turn around and sell to their retail
clients, as they allegedly did with mortgage backed securities, according to
the SEC charges.
The problem
with financial regulation in the U.S. is that rules for operating are not based
on the first principle of being accountable as a fiduciary, for all of your
clients all of the time. The system is also confusing because Registered
Investment Advisors (RIA's are governed by the SEC) are required by law to be a
fiduciary, whereas registered representatives of a broker-dealer (Governed by
FINRA) are not fiduciaries and their allegiance, by law, is to their broker
dealer, not the client. The only filter a registered representative has
to use before selling a product is a suitability test. Playing these
confusing rules of both the SEC and FINRA against one another, like a concert
violinist, allowed Bernard Madoff to run his Ponzi scam as long as he did.
Goldman may
try and buy their way out of this by paying a big fine and hoping the problem
will go away without admitting guilt. I hope the SEC has the wherewithal
to pursue this to a proper and just conclusion. I think Goldman's
reputation has been damaged, but history shows that they have managed to
survive. We only have one thing in life
that we really own, and that's our reputation. As Warren Buffet has said,
"Your reputation takes a lifetime to build, but only seconds to
destroy."
Goldman vs.
the SEC is a teaching moment for the financial services industry, U. S.
Congress, SEC, the media, and public. It teaches us that we need a
fiduciary standard as the first principle from which all financial regulation
flows. Playing the game of serving two masters at the same time is no
longer acceptable behavior. It's time for the fiduciary standard to be
the first principal from which all financial regulation is created. Without exceptions!
As a SEC
Registered Investment Advisor (RIA), we take our fiduciary duty to our clients
seriously, not because it's the law, but because it's the right thing to
do. That's because we answer to an even higher authority, who tells us to
live by the Golden Rule - "Do to others as you would have them do to
you."
Ronald W.
Roge, MS, CFP, Chairman & CEO, R.W. Roge & Company, Private Wealth
Management Since 1986. 630 Johnson Avenue, Suite 103, Bohemia, NY 11716 t: 631-218-0077 f: 631-218-0147
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Destiny - A peek behind the curtain
If you knew
that you were ten times more likely to get Alzheimer's than the average person
but could do nothing about it...would you want to know? If you knew that your brother was at 100
times the average risk of dieing of a heart attack but there was nothing he
could do to change those risks...would you tell him?
Well, the
day is fast approaching when you will be to afford to have your genome mapped
out and delivered into your hands in a nice neat report. Why would anyone not be interested in such a
valuable database of information? There
are actually a number of very valid reasons.
First of
all, the report is going to basically be nothing but bad news. After all, there is no link to genetics that
will predict wealth, happiness, talent or success. What it can do is list all of the genes that
have the potential to make you sick. And
in most cases, there is probably little that you can do to change the future
with that knowledge.
Secondly,
most people would probably not be willing to make a meaningful commitment to
make radical lifestyle changes to prevent a "statistically possible" future
health event. Let's face it, we all know
that those who have a good diet, exercise regularly and make intelligent
lifestyle choices generally live longer. I would hardly describe our younger generation as healthy, wealthy and
wise.
The hidden
costs of using genetic information are also a consideration. An article appearing in the Lancet notes that
even if a complete DNA screening were affordable, the real cost of such
information lies in its analysis and the counseling that would be required to
use the information intelligently. And
at present the counseling resources simply are not in place at any cost.
And
finally, there is the principle of unintended consequences. With the increasing incursion of the
government into all aspects of healthcare, what is to prevent insurance
bureaucrats from using genetic information to set insurance rates and provide
services?
Without
question, mapping the human genome is one of the greatest achievements in the
history of mankind. But we are a long
way from putting this new database of information to practical use.
"Fossil
bones and footsteps and ruined homes are the solid facts of history, but the
surest hints, the most enduring signs, lie in those miniscule genes. For a
moment we protect them with our lives. Then,
like relay runners with a baton, we pass them on to be carried by our
descendents. There is a poetry in genetics which is more difficult to discern
in broken bones. And genes are the only
unbroken living thread that weaves back and forth through all those bone yards."- Jonathan Kingdon
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No Extension...
Another Example of Government Think
Harry Salzman, MD Preferred Realtor
Having reached the end of the federal tax credit for Home buyers (April 30 was the
deadline for signing a contract under this program), the explanation given by
the government for not extending the program was, "Continuing this program would
cost us too much money."
This glib
explanation sounds reasonable to people who don't understand how the free
market economy works. i.e. people who don't understand who pays taxes and where
they get the money to pay them. Let's look at some of the various types of
benefits to the government that are generated by the sale of a home: Federal income taxes State income taxes Capital gains taxes Local Sales taxes And, last, but certainly not
least, JOBS, JOBS, JOBS
The
following is a partial list of individuals and companies that typically receive
income (and thus become liable for additional tax revenues) whenever someone
buys a home: The Seller of the home The companies that the Seller
hires to prepare the home for resale. E.g. the decorator, the stagger, the
re-modeler, the landscaper, etc. The companies from whom the
people named above purchase their supplies The Moving company The appliance stores The providers of services that
the Buyer will hire. E.g. internet, TV, alarm services, etc. The Mortgage broker The Lender The Accountants The Realtor.
In other
words, because this program produces more tax revenues to local, state and
federal governments than it 'costs' , the Home buyers' tax-credit program should
not be looked at as a "loss" to the government, rather, it should be viewed as
a method for 'priming the pump' for additional tax revenues for all
levels of government.
If this way
of evaluating the benefits of the Home buyers' tax credit seems revolutionary,
consider that the state of California has now passed similar tax-credit
legislation that offers $10,000 to Home buyers. Their legislature has recognized
that the best way to increase tax revenues is to offer incentives to taxpayers.
(Golly. It almost seems like Reagan was right. ..The best way to increase
income to the government is to lower taxes. Whooda thunk it ?!!! )
Harry
Salzman, Salzman Real Estate Services, Ltd, 538 Garden of the Gods Road, Colorado SpringsCO80907, Toll Free: 800-677-MOVE(6683) or
719-598-3200
|
A Glimpse
of the Future
Do you
remember those B grade sci-fi movies where aliens visit the earth and take on
the appearance of normal human beings? At some point in the flick, an
unsuspecting citizen surprises the alien while they are removing their human
skin and get a glimpse of the monster beneath. Well, I
don't want to get carried away here, but I believe I just got a glimpse of the
creature beneath the skin of our president. And the view was not pleasant. On
Wednesday, President Barack Obama visited the Illinois community of Quincy to give a speech promoting his
financial reform legislation. Nothing new or unusual here. He has been on the
stump for two days now. And his
message was the usual pabulum praising the passage of health care reform and pitching
the financial reform legislation now before Congress. "I just want people to be
able to not go bankrupt and lose their house when they get sick," the President
stated reasonably. "We need good old, common sense, Wall Street reform." Now, his
idea of good old common sense and mine differ a bit. But I'll agree that common
sense is a pretty good starting point. It was at this point that the President
made an unscripted comment and to at least some of us, we got a glimpse of his
true political philosophy. "We're not trying to push financial reform because
we begrudge success that's fairly earned." I'm sure
that what he considers fair and what most capitalists consider fair differ
considerably. But he followed this up with a real zinger..."I do think at a
certain point you've made enough money..." My god, it's an alien (I'm referring
of course to my earlier analogy not his citizenship...another issue entirely).
Was I the only one that saw the disguise slip? I mean, the man just said that
the most sacred of all capitalist principles, the right to the fruits of your
labor with no artificial limits, should no longer apply. Sensing
that his mask had slipped, he made an admirable recovery stammering, "but you
know, part of the American way is, you know, you can just keep on making it if
you're providing a good product or you're providing a good service." And of
course the adoring crowd and liberal press just stared with glassy eyed
adoration at the man we all believe to be one of us. But is he?
Did we just get a quick look at the America that Barack Obama sees every
morning when he heads for his office? Like the kid in the sci-fi movie...who will
believe what you just saw? Who do you tell? How do you warn the town's people?
If there has ever been a moment where I was tempted to taste the Cool Aid, it
has passed. I will never again doubt the future that this man plans for all
citizens of accomplishment and wealth. "Socialism is workable only in heaven where it isn't needed, and in hell where they've got it already." - Cecil Palmer |
Life Insurance 201:
Insuring Your Practice
By Mark Maurer,
President, PhysicianInsure
MD Preferred Insurance Provider
When most people
think of life insurance, they think of it as something they need in their
personal lives. But the benefits of life insurance extend way beyond the family
unit into protection for businesses and key employees.
Of course, life
insurance is a valuable personal tool for income replacement to provide money
for loved ones in case you die and cannot earn an income, for income creation to
provide cash needed for final expenses at death, and for asset preservation to
pay for estate taxes or to equalize the amount of an estate for multiple dependents.
However, as a
physician, life insurance has many business-related practical uses and
beneficial impacts for you. You must consider not only your personal financial needs,
but also the needs of your practice. After all, you are both a physician and a businessperson.
The number one use of
life insurance for business is to fund buy-sell agreements. A buy-sell
agreement lays out what happens if/when one of the practice owners dies. It establishes
the price of the practice, identifies who the buyer will be, and mandates that
the estate of the deceased must sell. While buy-sells may be funded with
retained earnings, a long-term payout, or borrowed money, many practice owners
find life insurance to be a much better source of financing.
Life insurance can also
ensure that the beneficiary of the deceased owner gets paid in full and in cash
immediately. Many times, without life insurance, the income derived from the
business declines because one of the individuals who performed a good portion
of the work is no longer there, or because additional staff must now be hired
to replace that person. Either way, the beneficiary may not get paid -- either
in full or on time -- if future earnings will be needed to fund the buyout.
Life insurance can prevent that from happening.
The second major
use of life insurance in business is key person. Practices insure tangible things
like the building from fire and destruction, the equipment, and liability losses,
yet many do not insure the most valuable asset and, really, the only one that
brings in income: the key employees.
Key person life insurance
works like this: The practice buys coverage on the key employee. The business
owns the policy, pays the premiums, and is the beneficiary. If the key employee dies, the practice receives
the death benefit proceeds to help replace either the income that key employee
was generating or the key employee him/herself.
Beyond buy-sell and
key employees, as practices become more successful and move past just
surviving, the owners tend to look for additional benefits or rewards for themselves
and the employees. This is where salary continuation
comes into play.
Salary continuation
(sometimes referred to as "Golden Handcuffs") says basically this: "IF you
continue to work until age 60 or 62 or 65, the practice will continue some set salary
starting after retirement. And IF you should die before retirement, the practice
will pay that same salary continuation to your beneficiary starting at time of
death."
And finally, some
businesses purchase life insurance for certain employees and let the employees
name the beneficiary. This can be done as a straight bonus plan or as a split dollar
plan, in which the practice and the employee share the premium expenses.
In summary, life
insurance can be used to protect your practice from dying when one of the
owners does. It is a proven method both for ensuring the business absorbs the
death of a key employee and for rewarding select employees.
PhysicianInsure is a national provider of insurance designed
exclusively for physicians. For more information or for a confidential quote,
please contact us at: info@physicianinsure.com or 877.962.8737.
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The Neck of the Bottle
Healthcare
insurance is coming. The GOP threat to
revisit the reform legislation and repeal it is pie-in-the-sky nonsense. The chances of a major entitlement program
being repealed by Congress are about as great as the chance of a rural Iowa citizen finding a primary care
doctor. And access to health care is the
issue that will dominate the ongoing dialog about health care in America.
In an April
13th post to this blog I related some of the dismal statistics about
the growing shortage of primary care physicians. In the coming decade this country will likely
face a shortage of as many as 150,000 doctors. And there is little that our medical schools can do about the problem.
In the
physician community, primary care physicians are the poor relatives. They pile up the same mountain of education
debt as specialists but earn a fraction of what their colleagues in glamorous
sub specialties like spinal surgery. But
even if the income and debt factors could be addressed there is a structural
problem in the training pipe line that is going to be very difficult to solve.
Last year
four new medical schools opened and enrolled 190 new students. According to a Wall Street Journal article
twelve existing medical schools increased 1st year enrollments by an
additional 150 slots. If we accept the
industry's own numbers, we are going to need to increase the output of our
medical schools by 45,000 by 2020. The
math just doesn't work.
And even if
our medical schools were to some how expand dramatically and we were to open our
shores to a flood of foreign trained physicians, there is still an immovable
bottle neck in the system. There is a
fixed number of medical residency positions. After completing medical school, every doctor, whether American trained
or foreign, must complete a three year residency program.
Most
residency programs are funded primarily with Medicare money. And the same Congress that is opening the
flood gates of new patients imposed a cap on that funding back in 1997. As a result there are only about 110,000
residency slots in the U.S. We are not talking about small
change here. Medicare provides over $9
billion dollars to teaching hospitals. And that is indeed a lot of money. But it is going to cost more to train more doctors. And again, in its infinite wisdom, Congress
put no additional funding for residency slots in the new healthcare bill.
The
shortages we are facing will be upon us in a matter of two years. It will take at least ten years to affect the
flow of new physicians entering the system even if everything that needed to be
done gets done. The math just doesn't
work. Lower pay for physicians, heavier
patient loads, longer hours, no tort reform, no additional funding for medical
training, restrictive immigration laws barring foreign trained physicians and a
medical industry that opposes alternate forms of primary care such as nurse
practioners. Our short sighted policies
and poorly thought out legislation have put is in an untenable situation once
again.
"I might be in favor of national healthcare
if it required all Democrats to get their heads examined." Ann Coulter
|
Feng Shui Your Finances
Stacy Francis, Francis Financial, Inc., MD Preferred Financial Advisor
An
Examination of Your Behavior Reveals the Answer
Over the past several years we have seen some irrational investors coming out
of the woodwork. According to MSN, reviews of tens of thousands of investor accounts -
with the identities concealed but the entire buy and sell actions revealed -
have demonstrated that investors routinely make irrational choices, especially
in times of market volatility. These people make investment decisions based
solely on a variety of emotional considerations, often at the detriment of
their long-term financial success.
Why do people often act irrationally knowing that it will hurt them in the end?
1. Unlimited Choices and Options
Financial markets can immobilize people because of a virtually unlimited array
of stocks, bonds, mutual funds and other instruments, combined with highly
uncertain outcomes. Overwhelmed with choices and instead of researching
investment options, these investors do nothing, which explains why the
participation rates of 401(k)s with many investment choices are much less than
those with only a limited range of fund options.
2. Emotions Often Rule Investors
Another irrational investor behavior is what I call the "ostrich
effect." These people tend to put their head in the sand during times of
market volatility. We see evidence of this in the form of unopened account
statements, misinformation about investment strategies, and a general lack of
interest in how their money is invested.
3. Money Beliefs
The final irrational money behavior is the result of personal money beliefs.
Money has different meanings for everyone, from currency to a scorecard
calculating one's success in life. Feelings such as anger, happiness, guilt and
helplessness can arise from the lack or abundance of wealth. As you can see
money is a piece of paper that is emotionally charged. Some of these money
beliefs inflate the meaning of money and make stock market gains or losses
overly important.
For better or worse, the irrationality of investors has a long history and
shows no sign of subsiding. One can hope that knowledge may armor some
investors against the more obvious pitfalls. We at Francis Financial are
educating clients about these important matters in the hopes of helping our
clients lead less stressful and more prosperous lives.
Stacy
Francis, Francis Financial, Inc., 111
John Street, Suite 240, New York, NY10038, Phone:
212-374-9008 Fax: 646-219-6799, Stacy@FrancisFinancial.com
|
A unique source of income for hard pressed primary
care physicians
Medicare
and Medicaid reimbursements continue to drop. HMO penetration in many areas is increasing. Malpractice premiums are rising at an
alarming rate. And, healthcare reform
will soon overwhelm private practice groups across the country with 31 million
new patients. In response, many
physicians are turning to the Physician Wellness Group and their unique office
based nutrition business model that enables a practice to provide additional
health care options to their patients. The Physician Wellness business model offers full-time business support,
income not tied to insurance reimbursements, separate tax benefits; all with no
additional overhead.
Physician
Wellness was recently recognized for its creative business model, proven track
record and high business standards, winning the MD Preferred Service Award for
Excellence in Service to the Medical Community. To be considered for an MD Preferred Service Award, an organization must
demonstrate their commitment to making the lives of physicians better. They must be good community citizens with the
resources, staff, services and products to meet the very special needs of the
medical community. "Doctors are very
busy professionals," observed Michael O'Malley, CEO of MD Preferred
Services. "When it comes to finding service
providers and creative business partners, they appreciate an organization that has
done much of the research for them."
All
Physician Wellness nutritional products are listed in the Physicians Desk
Reference and are produced in FDA regulated manufacturing facilities. At a time when revenues are dropping and
costs are on the rise, over 2,000 physicians offices have turned to the
Physicians Wellness Program to supplement their practice cash flow and avoid
increased patient loads and service cutbacks.
Glenn Gabbard, Physicians Preferred Wellness Group, 800-606-2884,
www.physicianspreferredwellnessgroup.com
|
|
 Interested
in reading more articles like the ones found in the Advisor? Visit the
rapidly growing Rounds Online.
A blog maintained by the MD Preferred team.
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Real
Estate Agencies that specialize in helpings doctors sell homes, buy residential
or commercial real estate and relocate their families.
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Financial
planners who are NAPFA registered, fee for
service only fiduciaries that place the interests of their clients first.
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Independent
insurance agencies that serve medical facilities and private practices offering
group benefits and personal policies designed for high net worth, high income
professionals.
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Community
based, healthcare lawyers that offer a broad range of legal services designed
for medical practices, hospitals and their doctors.
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Medical Malpractice Insurance Nationwide
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At PhysicianInsure, we help healthcare professionals like
you tailor the right insurance policies to protect your income, your goals, your
lifestyle, and your legacy.
|
Jennie Blue
Vice President & Mortgage Banking
Officer
|
Physician Opportunities
32 Medical Specialties
Nationwide
|
Washington-Harris
Group (WHG) is a Service
Disabled
Veteran Owned (SDVO), certified SDB experienced in Health
Services
and Information
Technology.
WHG is also an IBM Business Partner.
|
Numerous physician opportunities across the country in all specialties. |
|
Westside Family Healthcare
westsidehealth.org
Westside Family Healthcare is a Joint Commission accredited
community health center with offices located in New Castle County, Delaware. Our staff provides family medical,
OB/GYN, and dental care for individuals of all ages.
Our mission is to provide equal access to quality
healthcare, regardless of ability to pay. Read More
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NEW MEXICO - Positions available for BE/BC
Internal Medicine physicians! Two communities with various options. First is an outpatient-only practice, joining a well-established
multi-specialty group. Hospitalists cover inpatient care. Group offers base
plus productivity, and a good benefits package. Nice offices, efficient
operation. The second position is in a community of about 50K population,
and is an ideal place for someone who enjoys outdoor activities! Traditional Primary Care Internal Medicine clinic. Hospital employed
position with salary and productivity compensation, excellent benefits and
relocation assistance.
For consideration, please submit CV by email attachment to fvigil@swhcr.com, or fvigil@earthlink.net,
with extension of .doc, .txt, .rtf, .PDF, or .wpd; or, in the body of an email
and we will reformat. Snail mail to: Frank Vigil, South West Health
Care Recruiters, 11000 Candelaria Rd. NE, Suite 109-W, Albuquerque, NM87112. 1-800-378-0207. we will
not share your CV with anyone unless we first obtain your permission to do
so. Hope to hear from you TODAY!
To find the perfect
Internal Medicine Opportunity
VISIT Medical Match |
Beck-Field and Associates, Inc. is a medical personnel recruitment
firm specializing in the permanent placement of registered nurses,
physicians, and other healthcare related staff. Established in 1995
the corporate offices are located just a few miles Northeast of San
Antonio, in the suburb of Selma, Texas. The corporation's owners have brought together a talented staff of
experienced and dedicated nurse and physician recruiters who have been
recognized with numerous local, state, and national awards. In spite of
tremendous growth over the past thirteen years, the original
corporation motto of "Large enough to meet your needs, but small enough
to care" continues. Beck-Field has enjoyed tremendous success primarily
due to the creative and talented people who comprise our sales force. On
a daily basis these nurse and physician recruiters are behind the
scenes providing quality recruitment services in support of hospitals,
medical groups, physician offices, and other healthcare related
organizations.
Read More |
PracticeMatch was founded in 1990 as a unique database product to
serve the in-house recruiting industry. Today,
PracticeMatch is the premier source for physician data and
recruitment services. With the strength of the two
most highly-regarded databases in the industry, consisting of both
practicing physicians and residents/fellows,
we have developed an innovative web-based delivery system based upon
detailed profiles, demonstratively high
quality, and contact information with the highest deliverable rate
in the industry. The PracticeMatch databases
dominate the recruitment market as a service for in-house physician
recruiters - in fact, healthcare systems and
recruiters have consistently chosen PracticeMatch as their
number-one resource for physician data in an
independent survey!
As time progressed and the recruiting industry began to change,
PracticeMatch continued its tradition of
innovation, developing a full portfolio of sourcing tools for
recruiters enhanced with the power of PracticeMatch
database. With sourcing services offering an in-house staff of
experts in tele-, e-, and direct marketing,
PracticeMatch has continued in its historic reputation of offering
an experience unsurpassed in the industry. Read More |
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