check out this short video about market volatility:   https://www.forefieldkt.com/kt/htmlnl.aspx?type=fca&id=14&mid=142508&iplf=ai&ciid=0  

Check out the article from the WSJ about mutual fund fees. http://online.wsj.com/article/SB10001424052748704009804575309011863641700.html This helps explain one of the fees you typically pay when you purchase a retain mutual fund.  All funds also charge an internal management fee that is not included in the 12b-1 fee.

Income tax and practice management tips for high income earners and medical professionals: Income taxes are going up – the top marginal rate most likely will go up to 39.6% from 35%.  If given a choice, you may want to claim income this year rather than next (for bonuses, etc.). Starting in 2013, high wage earners may be subject to a surtax for Medicare of 0.9% on wages for couples over $250,000; the employee pays the entire surtax, and the surtax hits self-employed individuals as well. Unearned income (interest, dividends, rental income, royalties, etc.) is subject to an additional 3.8% tax on incomes over $250,000.  This does not include tax-exempt interest and retirement plan payouts.  This 3.8% tax will apply to ALL passive income if you reach even one dollar over the limit. Estate tax – we don’t know what is going to happen with the estate tax yet, but there is a chance that the exemption amount will drop back to $1 million and the tax rate will increase to 55%.  Even for young couples, this could play a role in the way you structure your assets, such as life insurance. Higher Premiums and taxes on health plans – the new bill will prevent insurance companies from limiting coverage and thereby increase demand for medical services without doing much to contain costs.  Starting in 2018 the bill would impose a 40% tax on insurance premiums in excess of $8,500 for individuals and $23,000 for families. For Medical Professionals: More patients will be on Medicaid which may have a lower reimbursement rate than private insurance plans.  Thus, you may need to plan for lower reimbursements in the future. Patients may put off medical care especially on services that are perceived as non-essential.  Procedures such as Laparoscopic surgery for acid reflux or surgeries to relieve pain may be put off in lieu of cheaper prescription drugs for the short-term. There could be a wave of new patients once all the provisions of the health care bill are implemented and more people are covered.  Patients who have been putting off coverage for a number of years may start going to the doctor for check-ups once they are covered.  These patients may have underlying conditions since they have put off coverage for years.  Doctors may need to plan for the influx of new patients and consider what types of health insurance, Medicaid, Medicare, etc. they want to accept. Use a Budget – this helps the physician focus on managing costs.  It will help you answer the question of “where does all the money go?” if you design the budget in a special way.  First, show the actual practice costs, then debt payments and lastly, the payments to the physician. Create a well-designed collection procedure.  Collections should be reengineered for a new age in which the patient deductibles are increasing and more of the financial burden is on the individual, rather than the insurance company.  Procedures, such as payment at the time of service should be considered so the physician isn’t forced to utilize expensive collection services.

It’s important to understand that investment diversification does not improve the portfolios' expected return, but it does reduce risk. Essentially, while you are sacrificing a very small chance of a huge reward, you are also reducing the chances of a very bad outcome and improving the odds of getting closer to the median outcome. Think of this like fire insurance on your home.  You, along with all your neighbors, pay your insurance premiums (a relatively small cash out-flow)  to transfer the risk of having your home and all its' contents completely destroyed by a fire to the insurance company.  In exchange for your cash out-flow you are reducing the bad outcome of financial devastation by fire.  Remember, paying an insurance premium doesn't reduce the probability of a fire occuring, it reduces the probability of a fire becoming economically detrimental.