Congratulations on beginning your new career.
You have already invested tremendous time and effort to position yourself for a fulfilling and successful career. With this exciting opportunity, however, comes great responsibility, long hours and both personal and business risk. That’s why it is so important to plan early and prepare accordingly.
Consider the following:
• Have you contemplated what the impact of an unexpected illness or serious disability would have on you and your family’s financial security? Your single greatest asset is your ability to earn an income. For example, if you earn $100,000 a year for thirty years, indexed at 5% annually, your total lifetime earnings would be $6,976,078.99 Protecting your earning power through disability and critical illness insurance is imperative.
• Do you have a current Will and Powers of Attorney which reflect your wishes with respect to your finances, family, and business?
• If you have business partners or other shareholders in your practice or business respectively, do you have a recently updated shareholder’s agreement that protects you and your partner’s interests in the event of a death, disability, retirement and sale of the business?
• Have you structured your business to minimize taxes?
These are just some of the important areas of discussion which should be carefully examined with your professional advisors. Ultimately, the piece of mind of knowing that your financial affairs are in excellent order will allow you to focus on growing and developing your business or professional practice with confidence.
We have enclosed a checklist that touches on a number of important planning considerations. The list is not necessarily inclusive; however, it does provide a framework that highlights critical areas of discussion.
You may also want to take our self-diagnostic test, which can provide even further insight into your overall state of planning.
“Before anything else, preparation is the key to success.” -Alexander Graham Bell