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IRS Tax Traps to AVOID!

IRS Tax Traps to AVOID!

Foreign Owned Property and Financial Accounts The 2016 tax deadline quickly approaching and I thought it would be appropriate to discuss a couple of lesser known tax traps that clients have been caught in by the IRS. They involve foreign owned bank accounts and foreign owned property. Even though you may not have not opened the account or purchased the property personally, you must disclose it on your taxes to avoid huge penalties from the IRS. Given that we are a country of immigrants, this most often occurs when a relative leaves you money or property abroad in the form of an inheritance. No matter how big or small, any instance of ownership requires disclosure to the IRS to be safe. The two forms below are for your reference: • Report of Foreign Bank and Financial Accounts (FBAR) • Form 8938 – Statement of Specified Foreign Financial Assets (Property) Penalties for non-disclosure typically start at $10,000 per year per incident. This means that any oversites in the past need t[...]
Emergency Medicine Residents Applying for Disability Insurance

Emergency Medicine Residents Applying for Disability Insurance

Emergency Medicine Residents Face many risks when applying for disability insurance. Some are caused by attempting to alleviate the stresses that come along with simply trying to become a physician. Consider an Emergency Medicine Resident putting in over 60 hours a week, running back and forth clad in scrubs down hospital corridors. That’s not even counting the additional hours spent studying. The most level headed individuals this would find this to be stressful. So our ER resident gets a prescription to help with stress or attention and energy levels.  Doing this can have serious side affects. Jump ahead and now the young physician is preparing to purchase his/her disability income and life protection for the first time. Now is the time that those side effects can have an impact on his/her financial plan. When applying for Disability Insurance coverage everyone will have to answer a battery of questions the most important of which are medical.   Insurance companies will require so[...]
Residents, Fellows, Disability Insurance and Personal Finance

Residents, Fellows, Disability Insurance and Personal Finance

Beginning your career as a  Resident or Fellow, means you can count on a regular salary and finally have money in your pocket. So, now you can afford that new car you've been dreaming about right? Well I don't want to be a Debbie downer but maybe you should think about some things before getting that new set of wheels. Make sure you have a grasp of you current situation First it is really important to evaluate your current expenses.  For example could that money for a new car be better spent aggressively paying down student loans? Probably and it is most likely in your best interest. Paying down debt is a smart choice. Financially speaking, placing your current responsibilities in front of your wants is always the wise decision. But lets look at the flip side of the coin. Buying a new vehicle can help with building a solid foundation of credit.  Although most banks consider residents and doctors a good risk, we all know it is difficult to buy anything without credit these days e[...]
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Residents Graduating Need Disability Insurance

Congratulations, to all graduating residents.  All those years of hard work are about to pay off.  New, exciting and challenging experience await you as you enter into the work force.  You will be faced with career challenges that you never imagined, but this is what you have worked for.  Life begins now. Just like you are preparing for your new job, now is the time to being planning for your financial future, starting with Disability Income Protection.   Are you aware that there are discounts available to you through your residency program right now?  These can drastically reduce the cost of your coverage.  I am not sure about you but anytime I can save money especially on something that I need and is ongoing, I am all in.  The savings are also applied to any future protection you add. While it may seem like something to address later, I say to you don’t wait too long.  Its like anything procrastination will only cost in the long run.  Plus, it is especially inexpensive the younger[...]
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Long Term Care Awareness Month

Not only is November the month for feasting and shopping but did you know that it is Long Term Care Awareness month. Roughly 70% of all people age 65 and older will need this protection which means that you most likely have family members that in this category. Just like Income Protection insurance, Long Term Care Insurance is cheaper the younger you are.  A disability can wreak havoc on your financial stability and so can a long term illness.  Don't let it.[...]