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Disability insurance is advisable for most physicians. This is a complicated product, and it is important to do some due diligence to find the right fit for your situation.
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ACEP Now: Vol 34 – No 01– January 2015Life insurance is recommended if you have family members who are dependent on your income. Long-term care insurance is appropriate for some physicians with such family needs and requires careful evaluation of the company and a review of the fine print of the policy.
6 Investing—Simple Is Smart
If you like to watch CNBC, read The Wall Street Journal, study the markets, explore various investment options, and play with individual stocks, then by all means, do so at your own financial risk. The likelihood that you will beat the averages is remote when even the best financial gurus in the country have difficulty consistently beating a mix of 60/40 of low-cost index funds in stocks and bonds.
The vast majority of investors will be well-served by the following guidelines: 1) keep it simple, 2) stick with very-low-cost index funds or exchange-traded funds from large discount brokerage firms, and 3) block out the noise of the talking heads on the financial shows. Be skeptical of all advice. Have some exposure to the U.S. stock market and the bond market, and mix in a little international exposure. The exact mix will vary depending on your age and risk tolerance. Adjust your asset allocation yearly. Don’t try to be a market timer. You won’t hit a home run every year with this plan, but you won’t strike out either. Over the long haul, there is good evidence that this type of investment plan is the wisest course for most investors. Invest your money; don’t gamble with it.
This area is filled with sharks and con artists eager to separate you from your money. Some do it legally (with outrageous fees while providing no added value), and some belong in prison. Rick Ferri, a leading expert on exchange-traded funds, warns, “Many Wall Street firms exist to make money from you, not for you.” Certainly there are countless ethical and reliable practitioners in the field, so “doctor, beware.”
Dr. Segan is an emergency medicine physician and attorney based in Woodmere, New York.
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