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  • PGY-3 in need of advice

    Good morning everyone,

    I will be starting an IM attending position in 9 months and I am concerned about asset protection. As a resident, I have sacrificed (and will continue to do so) by not having home internet, not using the AC/heater (unless under extreme weather), and living within my means. As a result, I have amassed a nice little nest egg that I would like to protect before I become an Attending.

    This is what I was thinking of doing:

    Me -- Nevada LLC --> LLC 1 (safe assets: investment account, checking account, high yield savings account, car); LLC 2 (pension plan account: Employer 401k, roth IRA, solo 401k when I start to moonlight); LLC 3+ (unsafe assets: future home and rental properties - all under land trust and LLC)


    I will try to get the LLC language to have: Charging order protection, manager managed (I will be the manager), ability to add manager fees, ability to take loans, non-prorata distributions, operation agreement will not force distributions, no right to return capital language, restriction on transferbility, and officer appointment provision.

    Do you think this will offer good asset protection? I never studied these things. I pieced the above together after doing some research. Obviously, I will need to hire an attorney, but I am trying to learn about it now, so that if someone tries to sell me horse manure, I can spot it a mile away.

    Would anyone know what a reasonable price for a setup like that would be?

    ​​
    Last edited by Indest; 10-25-2020, 07:51 AM.

  • #2
    You already have made horse manure, all by your lonesome. But there are many firms out there willing to supply the horse, along with the board (ongoing costs) for the animal.

    Look, you are going way overboard on so much complication in regard to relatively low risk. Why do you want to live in a bubble of perceived asset protection? Please don’t overthink this. Add asset protection where you are truly exposed and use good judgment. Perhaps some of the attorneys here will step in - and shoot me down, if necessary.
    Working to protect good doctors from bad advisors. Fox & Co CPAs, Fox & Co Wealth Mgmt. 270-247-6087

    Comment


    • #3
      youre overthinking this. Get umbrella insurance for non malpractice scenarios, and get malpractice insurance for malpractice scenarios. The likelihood of a judgement above your limits is extremely rare. Also, depending on which state you live in, roth IRA, employers 401k, are already protected from creditors. Ill concede an LLC for rental property is useful.

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      • #4
        Id take it a step further.

        Store all of your assets on the dark side of the moon. They will never find them.

        Seriously, you're IM, not neurosurgery or OB. The biggest malpractice risk would be inattention to detail and/or lack of empathy. If those aren't an issue for you - live your life without constant fear. Just take reasonable and appropriate measures such as your medical/liability coverage, appropriately set up LLC entities for your business/real estate etc., 401(k) contributions, homestead exemptions in certain states, tenant by the entireties bank accounts, etc. The law already offers you these protections. You can hire an attorney if you wish, but with very little assets on the line at this point, not sure the timing is right.

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        • #5
          Honestly, that almost borders on paranoia.

          Comment


          • #6
            Originally posted by Indest View Post
            Good morning everyone,

            I will be starting an IM attending position in 9 months and I am concerned about asset protection. As a resident, I have sacrificed (and will continue to do so) by not having home internet, not using the AC/heater (unless under extreme weather), and living within my means. As a result, I have amassed a nice little nest egg that I would like to protect before I become an Attending.

            This is what I was thinking of doing:

            Me -- Nevada LLC --> LLC 1 (safe assets: investment account, checking account, high yield savings account, car); LLC 2 (pension plan account: Employer 401k, roth IRA, solo 401k when I start to moonlight); LLC 3+ (unsafe assets: future home and rental properties - all under land trust and LLC)


            I will try to get the LLC language to have: Charging order protection, manager managed (I will be the manager), ability to add manager fees, ability to take loans, non-prorata distributions, operation agreement will not force distributions, no right to return capital language, restriction on transferbility, and officer appointment provision.

            Do you think this will offer good asset protection? I never studied these things. I pieced the above together after doing some research. Obviously, I will need to hire an attorney, but I am trying to learn about it now, so that if someone tries to sell me horse manure, I can spot it a mile away.

            Would anyone know what a reasonable price for a setup like that would be?

            ​​
            https://www.whitecoatinvestor.com/fo...tice-insurance
            looks like you dont even need malpractice.....

            Comment


            • #7
              You will spend more on attorney fees than you have saved by forgoing internet and eschewing AC/heat. Unless you really enjoy not having these things (which it doesn’t seem you do, as you chose the word sacrifice), this degree of frugality probably isn’t going to do too much for you. Live a little and turn on the heat when you’re cold/the AC when you’re hot.

              Agree with billy above about sufficient asset protection.

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              • #8
                What are you protecting the money for if you're not even going to use it to buy basic human comforts?

                Comment


                • #9
                  Originally posted by Indest View Post
                  Good morning everyone,

                  I will be starting an IM attending position in 9 months and I am concerned about asset protection. As a resident, I have sacrificed (and will continue to do so) by not having home internet, not using the AC/heater (unless under extreme weather), and living within my means. As a result, I have amassed a nice little nest egg that I would like to protect before I become an Attending.

                  This is what I was thinking of doing:

                  Me -- Nevada LLC --> LLC 1 (safe assets: investment account, checking account, high yield savings account, car); LLC 2 (pension plan account: Employer 401k, roth IRA, solo 401k when I start to moonlight); LLC 3+ (unsafe assets: future home and rental properties - all under land trust and LLC)


                  I will try to get the LLC language to have: Charging order protection, manager managed (I will be the manager), ability to add manager fees, ability to take loans, non-prorata distributions, operation agreement will not force distributions, no right to return capital language, restriction on transferbility, and officer appointment provision.

                  Do you think this will offer good asset protection? I never studied these things. I pieced the above together after doing some research. Obviously, I will need to hire an attorney, but I am trying to learn about it now, so that if someone tries to sell me horse manure, I can spot it a mile away.

                  Would anyone know what a reasonable price for a setup like that would be?

                  ​​
                  This seriously sounds like a troll account... You presumably live in Nevada (I think?), and you don't use AC... or have home internet? wtf seriously bro. You're saving what, a few hundred dollars, to live like a pauper?

                  Not sure what "nice little nest egg" means, but unless you're talking at the very minimum 1M+, it's not really a nest egg.

                  Someone needs to throw some cold water on your face, so I will do it. Nix your asset protection plans (with the exception of LLC for rental home; that actually make sense). Get umbrella insurance for a few mil coverage, and focus on being a good doc.

                  Comment


                  • #10
                    Originally posted by xraygoggles View Post

                    This seriously sounds like a troll account... You presumably live in Nevada (I think?), and you don't use AC... or have home internet? wtf seriously bro. You're saving what, a few hundred dollars, to live like a pauper?

                    Not sure what "nice little nest egg" means, but unless you're talking at the very minimum 1M+, it's not really a nest egg.

                    Someone needs to throw some cold water on your face, so I will do it. Nix your asset protection plans (with the exception of LLC for rental home; that actually make sense). Get umbrella insurance for a few mil coverage, and focus on being a good doc.
                    I don't think it's a troll account; read the OP's prior posts dating back the last few years. Sounds like s/he pretty much just eats free food at his residency.

                    Sounds crazy now as someone with a "nice little nest egg," but I can relate somewhat to that mindset. I remember when I was in college I never turned the heat on, and I wouldn't turn the A/C on until the indoor temperature hit 85. It seems pretty much nuts to me now, but if I'd known then how easy it would be to get rich as a doc who saved and invested, I would have started living a little a lot sooner.

                    Comment


                    • #11
                      Originally posted by Indest View Post

                      This is what I was thinking of doing:

                      Me -- Nevada LLC --> LLC 1 (safe assets: investment account, checking account, high yield savings account, car); LLC 2 (pension plan account: Employer 401k, roth IRA, solo 401k when I start to moonlight); LLC 3+ (unsafe assets: future home and rental properties - all under land trust and LLC)


                      I will try to get the LLC language to have: Charging order protection, manager managed (I will be the manager), ability to add manager fees, ability to take loans, non-prorata distributions, operation agreement will not force distributions, no right to return capital language, restriction on transferbility, and officer appointment provision.

                      ​​
                      I am not an attorney but charging order protection does not usually help for a single owner LLC for the assets you discuss in LLC 1. Charge order protection is usually provided to protect other owners of the LLC from a claim against 1 owner.

                      In most states, many types of retirement accounts already enjoy asset protection so LLC 2 likely won't be necessary.

                      Comment


                      • #12
                        U got issues.

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