Hugh Doherty, DDS, CFP

Many investors have the potential to fulfill their financial destiny. But certain behaviors can slow or completely stymie their financial growth.

Here are a few behavioral issues to avoid if you want to stay on top of your investment strategy.

1. Inactivity can prove detrimental to your personal finances, and it could result from the fear of investors to take on risk or a fear of failure.Investors who were frightened by the large market drop of 2008 are now sitting with portfolios that contain too much cash and/or bonds. The effects of inflation and taxes will prevent these investors from reaching their retirement goals. Although they are not taking equity market risk, they still risk running out of money.

2. Following the latest investing fad and ignoring your specific goals can take you off the right course to fulfill your investment strategy and lifestyle needs. The herd mentality, defined as the altered state of mind induced by the emotion of group momentum, is what happens when an individual investor abandons an investment plan in order to follow others in his or her peer group. This emotional contagion can be due to -- and prolong -- a market bubble such as the Internet tech bubble of the late 1990s. It can cause emotional reaction in the opposite direction, such as the market crashes of 1929 and 2008. People make mistakes because they don't have a plan or don't stick to it when emotions run high.

3. Spending an extraneous amount of time analyzing financial paperwork can have negative repercussions.

Take, for example, an investor who pores over investment data to choose the most lucrative stocks and bonds, but he is unable bring himself to buy. He has a great plan but fails to act on it. No matter how wonderful the plan, if it remains a theory it doesn't work. The best financial decisions come from a balanced decision-making process and a sound strategy for vetting investments. With those two components working in sync, an investor can gather information, assess it and make an informed decision to fulfill his or her plan's goals. The sheer volume of financial information available today can make decision-making seem overwhelming. Americans are often so overwhelmed by choices that many become paralyzed when making decisions and conclude the best decision is to not make one at all. Don't allow the volume of complex financial news that you are bombarded with on a daily basis overwhelm you. Stay focused on what is most important to you and your financial goals. The basic rules still apply - Paying your bills on time and investing for your financial future are always smart financial decisions.

4. Anchoring, or the tendency of investors to place undue weight to an initial finding, could lead to bad investment decisions, and ultimately cause you to miss an opportunity to get the most from your investment strategy for lack of knowledge. It is important for your financial plan to be flexible and realistic. This is difficult to do if you take a myopic approach. In this situation, you might want to hire a trusted financial planner to help you understand all of your options.

More About The Doctor's Financial Network... 

Lois Banta

1. Design systems and protocols for a good foundation of production and collections.

2. Hire and train for positive attitude and acquire great teams with a dedication towards customer service and effective communication.

3. Hold a "morning huddle" every day to check in on the pulse of the practice and address day to day concerns before they become major issues.

4. Strategize each week by holding team meetings. Set a theme for each week of:

• Cross training
• Analyzing monthly numbers
• Continuing Education
• Role play - practice communication for patient questions.

5. Choreograph your schedule for optimal productivity.

6. Get the money off the books and into the bank quickly.

7. Utilize excellent customer service... patient's impression of you begins on the phone.

8. Sharpen your clinical and practice management skills often by attending and participating in select continuing education.

9. Inspect what you expect.

10. Have more professional fun and find your "internal giggle".

More About Banta Consulting... 

Jan Keller

In the current economic environment, the collection of accounts receivable becomes more of a challenge each day. There are several easy steps to take; however, that can help:

• Strengthen your collection procedures.
• Shorten your accounts receivable aging numbers.
• Improve your overall collection rates.
• Improve cash flow.

Let's take a look at a few that you can implement easily and quickly:

Define Your Internal Credit Guidelines

If your first thought was "what guidelines?", now is a perfect time to develop and implement a strong internal credit guideline policy. It's important to have clear written guidelines for your team to follow that go beyond "Make sure our patients pay, or "Just collect the money." And remember, as the doctor, you must resist the urge to make or imply financial arrangements when discussing treatment with a patient. Let your Financial or Treatment Coordinator handle this at the appropriate time, based on your treatment guidelines.

Tip: Allow your Treatment Coordinator leeway to vary from the guidelines based on the credit worthiness and past history of the patient, or in an attempt to attract the right new patient into the practice.

Tip: A system of controls for checking out a potential patient's credit should be in place, and it should be used before treatment is rendered. Further, there should be clear communication between the entire team as to current patients who become delinquent or otherwise do not follow the credit policy. Your morning huddle is an excellent place to bring this information to the team's attention.

More About Jan Keller and Associates...