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Monthly Archives: November 2020

Physician Specific Disability Insurance Why Preparing for the Unexpected is One of the Best Financial Decisions You Can Make

In an instant, an illness, accident or injury can derail the career you’ve worked so hard to build. Best case scenario, your ability to treat patients may be put on hold for a few weeks until you recover. Worst case, a life-changing diagnosis means you’re unable to practice medicine indefinitely.

Whether temporary or permanent, when your career comes to a sudden stop, your financial responsibilities keep right on rolling – you still need to provide for your family while also finding a way to pay off your medical school loans.

Securing private disability insurance while you’re in residency is a simple way to protect your financial security in the event of the unexpected. As a financial planner and independent insurance broker, Larson Financial Group can help you navigate the complicated world of own-occupation insurance and find a policy that best fits your budget—today and in the future.

Why disability insurance isn’t a one-size-fits-all solution

When comparing insurance carriers, it’s important for residents to focus on physician-specific, own-occupation options. Own-occupation policies, available from independent insurance providers, protect your personal earning potential if you’re forced to leave the medical career you trained for because of a disability. For instance, if you’re an orthopedic surgeon, and a hand injury suddenly pushes you out of the operating room, the right own-occupation policy ensures you continue to receive income until you retire.

As with any policy, there are different coverage tiers available, and understanding which fits your needs is crucial to your financial health:

  • Two-Year – At the lower end of the spectrum, a two-year policy will pay the income you would earn as a healthcare provider for two years. If your carrier determines you are physically and mentally able to switch to another occupation, they will no longer continue to cover your costs.
  • Not Working – For many physicians, their dedication to patient care doesn’t end because of physical limitations. A “not working” policy actually stifles your ability to use the knowledge and skills you acquired as a medical professional. For instance, if you invent a medical device that brings in income while on leave, your disability insurance payouts will be limited, if not canceled completely. 
  • Double Dip – The policy Larson often recommends as a firm is the “double dip.” This own-occupation option allows you to earn income from other sources if you go on disability, but continues to pay you the same income you would make if you were performing the career you trained for. 

Three factors residents should keep in mind when shopping for insurance

As a resident on a budget, disability insurance is often the last thing you want to think about. However, according to The White Coat Investor, getting disability insurance now is the most important financial decision a resident can make. But there are several important elements to take into consideration.

  1. Don’t limit yourself to your hospital’s group disability offerings. Most healthcare systems will cover the cost of your group disability insurance. However, because it’s employer-paid, any insurance benefits you receive while on disability leave will be taxable. Plus, most group policies are limited to two years. Finding supplemental disability insurance is crucial to ensure your payouts continue up until retirement.
  2. Get your policy while you’re young. As you grow older, new health issues will start to emerge. Even in your thirties and forties, it can be challenging to find an affordable policy – if you can find a carrier who will cover you at all! It’s important to shop for providers when you’re at your youngest and healthiest, and premiums are at their lowest. If you take advantage of a 30 percent discount while in residency, for instance, instead of waiting one year until you’re practicing, you can earn $218,000 more over the course of your career if you become disabled.
  3. Work with an independent broker. When you go directly to an insurance carrier, you’re limited to the policies they offer. In many cases, they may not provide the coverage you need, especially since policies are gender- and state-specific. An independent insurance broker like Larson can compare policies across numerous providers to find available discounts that best fit your budget.

Partner with Larson Financial Group for disability insurance

Larson’s independent insurance brokers are dedicated to finding residents their perfect match when it comes to disability insurance. By making a small financial sacrifice now, you can protect your future earning potential and your family’s financial security no matter what health crisis comes your way. To learn more about your options, contact Larson Financial Group at 314-787-7399. 

Advisory Services provided by Larson Financial Group LLC, a Registered Investment Adviser.

First-Year Contract Negotiation – Show Me the Money!

The first-year contract you sign post-residency or fellowship sets the base for your entire career. Not only do future salaries, benefits and bonuses all build on what you earn today, but having the right safety net now can protect you in the event of a termination or malpractice claim which can threaten your family’s financial security.

Before you jot your signature on the dotted line, it’s important to have both an attorney and financial consultant on your side to help you negotiate for the compensation and protection you deserve. 

Assembling Your Negotiation Team

Many first-year physicians consult with a contract lawyer or employment attorney in order to understand the fine print of their agreements. An attorney will focus on a number of issues, including termination, malpractice, moonlighting, liquidated damages, and restricted covenants. 

When determining if an attractive offer is truly the best for you financially, it is time to turn to a Larson Financial Group expert who is experienced in the financial aspect of contract negotiations. With the right national comparative data in hand and an understanding of your current and future career goals, your personal Jerry Maguire can determine if the salary, benefits and bonuses offered are competitive. And if they’re not, we can empower you with the information you need to make your case for greater compensation. 

Working With Your Financial Planner Through the Negotiation Process 

For example, let’s say a neurologist who comes to our office for a consultation is offered a base salary of $225,000. The hospital is willing to pay $25 per RVU for anything over 5,000 RVUs and expects the physician to get to 6,000 RVUs. That extra $25,000 on top of the base salary puts the neurologist at 40-45% of the national average for compensation.

Because the hospital wants the neurologist to hit 6,000 RVUs, from a work standpoint, the physician sits at 60-65% of the national average for productivity. In other words, the neurologist is getting paid at the 40-percentile mark according to the national data, but asked to work at the 60-percentile mark. 

The question for the neurologist and the financial planner is – “How can we get those numbers closer together so that the physician is more fairly compensated for the extra work?” The key is to determine which levers to pull in negotiations with the employer, which could mean asking for a higher base salary, suggesting $50 per RVU as opposed to $25, or requesting a bonus over 5,000 RVUs.

While you can come back to the table with a counter offer, there are many control factors to consider. For example, hospitals don’t always have to pay the national market rate, especially those in rural communities or for specialties in oversaturated markets. But if you bring a realistic approach to renegotiation, you and your employer can often find a middle ground.

Four Key Points to Remember During Negotiation

After almost a decade of preparing for your career, you deserve to be treated and compensated fairly. As you head into contract negotiations with your employer-to-be, be sure to have a plan of action in place to put you in the driver’s seat of your financial future:

  1. Reference the data. If there’s anything medical professionals understand, it’s research data. Keep emotions out of negotiation and instead present the national compensation comparison data you and your financial planner worked on together. 
  2. Avoid anecdotes. Sharing examples of the salaries your fellow residents received will do little to help your case. Every situation is different – one’s professional experience, where they choose to practice, and what they specialize in all play a role in how they’re compensated. Stick to the numbers and skip the stories.
  3. Good cop versus bad cop. If negotiation comes to a stalemate, pull in your financial planner. If we determine your employer is undervaluing your worth, we can write a detailed letter on your behalf that outlines how their offer stacks up to current market trends.
  4. Retain legal and financial counsel. The recent COVID-19 outbreak has put the legality of many contracts into question as elective surgeries are put on hold and hospitals lay off or reduce hours for physicians. Having your legal and financial team at the ready can help you react quickly to unexpected complications now and to contract negotiations down the road.

If your residency is about to come to a close and you’re ready to take the next step on your career path, contact the financial planners at Larson Financial Group before signing any contract. We can connect you to a reputable contract lawyer, review your offer, and offer aspects of financial strategies to consider as you negotiate your future. To schedule your consultation, contact us today at 314-787-7399.

Advisory services offered through Larson Financial Group, LLC, a Registered Investment Advisor. Securities offered through Larson Financial Securities, LLC, member FINRA/SIPC. Insurance services offered through Larson Financial Group, LLC, an insurance agency.

Larson Financial Group, LLC, utilizes MGMA software to gather national compensation comparison data and other relevant data to assist physicians in contract negotiation. 

Digital Marketing Advisor

Job Description 

Our hope is that Financial Advisors at Larson Financial Group can help their clients spend more time with their four-year old child or grandchild and less time worrying about their 401(k)s. We believe that healthy financial habits are created through a solid financial plan, and the role of a Financial Advisor is to steward our clients through that process.

Since the dawn of our industry, Financial Advising has often occurred with an advisor and client sitting at a conference table in an austere bookshelf-lined boardroom. But times are changing as technologies evolve and enable us all to connect from the comforts of our own home. This role will work in a primarily educational capacity on forums, social media sites, and elsewhere online, providing advice to prospective clients and helping others around the nation as they seek to further their own financial goals.

This role will report to the Sales Director.   Click here for an Executive Summary of Larson Financial Group.

Responsibilities Include: 

  • Work various lead sources focusing on using digital media channels to bring in new leads and promote visibility of Larson Financial, conduct client meetings, offer and selling product solutions that fit Clients’ financial needs  
  • Run insurance illustrations, construct financial plans, report investment performance 
  • Communicate investment advice and execute financial plans  
  • Work jointly with operations teams and others to ensure concierge Client experience 
  • Manage and foster all Client relationships in a healthy manner 
  • Abide by all legal and regulatory requirements of the Advisor role 

Competencies: 

  • Adaptable and highly flexible to adjust to ever-changing financial market conditions, industry standards, compliance regulations, and evolving technology. 
  • Willing to increase knowledge of products and services as the company and industry evolves.  
  • Capable of working collaboratively and respectfully with all levels of personnel in the company. 
  • Capable of working independently and in a team environment.    
  • Self-starter who has a strong work ethic and is results driven. 
  • Able to set goals and track to them. 
  • Quick problem solver, solutions-based thinker.  
  • Excellent interpersonal and customer service skills.    
  • Excellent communication skills with the ability to build and maintain rapport and relationships with Clients and colleagues. 
  • High integrity with the drive to act in the Client’s best interest in all situations. 

Qualifications: 

  • Bachelor’s degree or equivalent in Marketing, Finance, Sales, Business, or related Field 
  • Prior experience Financial Planning and/or Sales fields preferred, but not required. 
  • Knowledge of insurance/financial services industry preferred, but not required 
  • Prior designations (CFP) and licenses held (Life and Health, Series 6, 7, 63, 66, etc.) preferred, but not required.  Position will require licensing and registration to be obtained shortly after being hired. 
  • Must be able to pass background, FINRA, and other Finance industry checks 

If you feel you’re the right fit for this position, please contact Michael.Hermann@LarsonFinancial.com with a cover page and resume for more information.

Financial Advisor

Job Description 

Our hope is that Financial Advisors at Larson Financial Group can help their clients spend more time with their four-year old child or grandchild and less time worrying about their 401(k)s. We believe that healthy financial habits are created through a solid financial plan, and the role of a Financial Advisor is to steward our clients through that process.

This role will report to the Sales Director.   Click here for an Executive Summary of Larson Financial Group.

Responsibilities Include: 

  • Work various lead sources, conduct client meetings, offer and advise on product solutions that fit Clients’ financial needs  
  • Run insurance illustrations, construct financial plans, report investment performance 
  • Communicate investment advice and execute financial plans  
  • Work jointly with operations teams and others to ensure concierge Client experience 
  • Manage and foster all Client relationships in a healthy manner 
  • Abide by all legal and regulatory requirements of the Advisor role 

Competencies: 

  • Adaptable and highly flexible to adjust to ever-changing financial market conditions, industry standards, compliance regulations, and evolving technology.  
  • Willing to increase knowledge of products and services as the company and industry evolves.  
  • Capable of working collaboratively and respectfully with all levels of personnel in the company. 
  • Capable of working independently and in a team environment.    
  • Self-starter who has a strong work ethic and is results driven. 
  • Able to set goals and track to them. 
  • Quick problem solver, solutions-based thinker.   
  • Excellent interpersonal and customer service skills.    
  • Excellent communication skills with the ability to build and maintain rapport and relationships with Clients and colleagues. 
  • High integrity with the drive to act in the Client’s best interest in all situations. 

Qualifications: 

  • Bachelor’s degree or equivalent in Marketing, Finance, Sales, Business, or related Field 
  • Prior experience Financial Planning and/or Sales fields preferred, but not required. 
  • Knowledge of insurance/financial services industry preferred, but not required 
  • Prior designations (CFP) and licenses held (Life and Health, Series 6, 7, 63, 66, etc.) preferred, but not required.  Position will require licensing and registration to be obtained shortly after being hired. 
  • Must be able to pass background, FINRA, and other Finance industry checks 

If you feel you’re the right fit for this position, please contact Michael.Hermann@LarsonFinancial.com with a cover page and resume for more information.