You’ve made
some money,
now how do
you keep it
safe?
by Jason T. Hirst
You work hard to make your money, and you want
to control what happens to it. But without some
careful planning, your wealth can be taken from
you – or become worthless – a lot faster than it
took to accumulate it.
Assets are subject to a host of risks, whether you
are aware of them or not. Each type of asset is subject to different forces that can reduce or eliminate
their value; however some of the most common
threats to your wealth are inflation, volatility,
catastrophe, taxes, divorce, and adverse judgments. Whether you lose your wealth due to market forces or to a lawsuit, the result is the same.
While no one single risk should be focused on to
the exclusion of others, of particular concern for
most professionals, including dentists, is the risk
of being exposed to legal judgments. As a dentist
you can be sued personally for malpractice; dentists often own some interest in real estate (and
therefore can be sued by someone injured on their
property); and as a business owner you have
employees, engage in contracts, and take on debt.
All of these things increase your risk of being the
target of a lawsuit.
32 NORTH TEXAS DENTISTRY | www.northtexasdentistry.com
MANAGING RISK
The good news is that your livelihood and your
future can be protected from these threats, and in
many cases the solution is not very difficult. A financial planner can help you to diversify your assets and
to hedge against inflation, your accountant can help
you minimize the effect of taxes, and your insurance
agent can help protect you from catastrophic loss.
Finally, an estate planner, in addition to helping you
pl