Sand Dollar MD Planning

Wealth Creation

The Sand Dollar MD Planning approach consists of three interrelated components - wealth creation, estate planning and asset-protection. One of the primary ways physicians create wealth is through their profession. We try and serve as a resource for physicians to empower them to make their practices as lucrative as possible. Our core specialty is to help physicians save and invest. Establishing a financial and investment plan is imperative to optimize wealth creation. We see financial planning as a fluid and continuous process.

As a first step in creating investment wealth Detlefsen Nel & Associates consults with physicians regarding the appropriate retirement planning vehicle. The initial choice is usually between a Qualified Plan and another tax-sheltered option (like a SEP-IRA or a SIMPLE-IRA). In terms of Qualified Plans there are two categories, namely Defined-Benefit Plans and Defined-Contribution Plans.

Defined-Benefit Plans

  1. Defined-benefit pension plan
  2. Cash-balance pension plan

Defined-Contribution Plans

  1. Money-purchase pension plan
  2. Target-benefit pension plan
  3. Profit-sharing plan
  4. 401(k) plan
  5. Stock bonus plan
  6. ESOP (Employee stock option plan)

Once the appropriate retirement vehicle is selected we consider non-qualified (i.e. taxable) investment vehicles where necessary.

The second step is to implement a physician's financial plan through the selection of investments. As an independent firm Detlefsen Nel works with a wide array of financial services firms - fee-based money managers for Separately Managed Accounts (SMA's), all the prominent mutual fund companies, a variety of highly rated insurance companies, private equity firms, and a number of real estate investment companies. We offer unique investment strategies to help our clients achieve the growth they need, while trying to protect their investment assets.

We work closely with physicians CPA's and attorneys in constructing investment portfolios. We also have CPA's and attorneys available if physician clients have a need. However, we are extremely sensitive to our clients' existing relationships, and pride ourselves in forging excellent relationships with our clients' professionals of choice.

Our investment approach to wealth creation is pragmatic and we are no true believer in only one school of thought. The approach we select is based on the unique circumstances specific to each physician-client. The strategies we use are, inter alia, modern portfolio theory's asset allocation, tactical and dynamic asset allocation, Diversification Protection Strategies through multiple insurance contracts, non-traded Real Estate Investment Trusts, index investing, and combinations of fundamental and quantitative strategies.

In some instances we provide consulting services (hourly or on retainer) to physicians with established financial advisory relationships or who have self directed investment accounts.

Finally, it is important to note that wealth creation entails more than investment returns. There are many non-investment strategies physicians could consider, for instance:

  • Utilizing captive insurance companies to manage liability.
  • Deferred compensation programs.
  • Contingent swaps to convert ordinary income into capital gains.
  • Dormant asset financing.
  • Synthetic asset strategies.
  • Tax-favored programs that shift money and benefits from the practice to the individual.

The following websites can serve as useful resources: