Mitigating the Risk of Unexpected Events

A sound risk management strategy provides doctors with the peace of mind to focus on patient care, confident in the knowledge that the most suitable mechanisms have been put in place to secure future practice income in the case of unexpected events. Risk management makes strategic use of insurance as a vital component of a truly integrated financial plan, which also maximizes your insurance purchasing power.

GP employs an unbiased approach to evaluating insurance options and providers, seeking to identify the appropriate solutions for your unique personal, practice and investment needs. We offer whole and universal life, disability and long-term care insurance. To mitigate the risk of outliving your retirement accumulation, we also make available fixed-rate annuities and bond or equity-indexed annuities that are backed by the full faith and credit of the insurance company.

The Right Plan, the Right Way

Multitudes of insurance companies and specialists can offer you a menu of plans that cover the spectrum of insurance options. What sets GP apart is our experience serving doctors, allowing us to recommend the appropriate coverage and supplemental programs for your age group and specialty. Best of all, our expertise will help guide the purchase of policies that:

  • can be funded with pre-tax dollars - making the most of your earnings
  • offer the benefit of return of premium - giving you cash back or the opportunity to re-invest (pay future premiums)
  • earn incremental income toward your retirement - moving you closer to financial independence

While the majority of plan contributions must be used to generate retirement income, qualified retirement plans may also use a portion of deductible contributions for the purchase of life insurance subject to the limitations of Revenue Ruling 74-307. All of these options are explored within the Guidant Planning process to accomplish your specific goals. We presently maintain relationships with several national insurers and are consistently reviewing the merits of other providers to ensure we continue to meet the needs of its doctor clients as situations change.

Securing the Future

As a doctor, you represent the lifeblood of your practice in many ways. You are the healer to patients…the mentor to associates and students…and equally as important, you are a primary provider, and sometimes the only source, of income.

The inability to perform puts your practice and your financial future in jeopardy. GP believes that a carefully architected risk management plan can help protect the value of your business and family members in the event of untimely, pre-retirement disability or death.

Internal Revenue Code Section 79


Tax-Advantaged Benefit Plans for Doctors and Staff

Through financial planning due diligence, you are most likely already taking advantage of wealth accumulation and preservation options-contributing up to $200,000 or more in IRS-approved qualified retirement plans with tax-deductible dollars. However, as a high-income doctor, you probably still have surplus net-practice-earnings that are being lost to taxes unnecessarily.

Picture yourself lighting a match to a pile of money everyday-that's what could happen if you fail to follow an integrated financial strategy. GP can show you how to effectively manage your financial life in its totality, avoiding excess risk, maximizing allowable deductions and protecting income and savings from unexpected events.

Tax-Favored Benefit Plans

Internal Revenue Code Section 79 allows professional practices established as C Corporations to offer a specially designed series of benefits for both doctors and their employees on a tax-deductible basis, including group term life insurance and supplemental retirement funding. Section 79 programs are not subject to qualified plan contribution limitations, and can therefore function as an extension of your existing programs to create incremental tax-advantaged savings. In addition, Section 79 can provide liquidity for estate tax purposes or charitable gifts for value system endowment.

Integrated Financial Planning for Doctors

A Section 79 program can function as a powerful financial planning tool, providing supplemental retirement dollars, survivorship benefits, and a more robust and affordable package for employees. Talk to us about how this and other components of an integrated financial strategy can help keep you from lighting a match to hundreds of thousands of dollars-in the form of unnecessary taxes and improper business structure-throughout your career.

How You Qualify

Section 79 Plans are available to:

  • Owners and employees of a C Corporation
  • Owners and employees of a LLC taxed as a C Corporation
  • Owners and employees who hold 2% or less of pass-through entities stock

If you don't qualify for a Section 79 Plan because your practice is not a C Corporation, talk to us about how to select and establish the most appropriate tax-reporting structure for your financial needs and goals.

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