The ophthalmic world recently lost one of its leading young surgeons: William J. Lahners, MD, a good friend and former colleague of mine. His early departure from this world gave me great pause.

While Dr. Lahners was the ultimate planner and had everything perfectly in place, not everyone is as prepared. So, I reached out to Patrick D. Runyen, CPA/PFS, CFP, of Modera Wealth Management to help me put together a checklist of to-dos for ophthalmic surgeons to help prepare for the worst-case scenario of death or disability.

1. START WITH PRACTICE/SURGICAL FACILITY

Many ophthalmologists have a tremendous amount of their net worth wrapped up in their practices and surgical facilities. For most surgeons, this is the source of most of their income. It is of utmost importance that your spouse, partner, attorney and fiduciary advisor have a thorough understanding of the following documents:

• Employment agreements. How will income due be distributed upon death or disability? In the event of long- or short-term disability, how can the employment agreement be terminated? Also, does the employment agreement include death and disability benefits?
• Shareholder agreements. In the event of death or disability, what are the buy/sell provisions of the company stock? Are “key-man” policies in place that will pay proceeds to the company or death and disability policies that will pay to you or your beneficiaries? What are the terms of those policies?
• Property partnership agreements. In the event you and/or your partners own real estate, how will the buy/sell provisions of those agreements work and how will any proceeds be paid to you or your beneficiaries?

2. THE PERSONAL SIDE OF FINANCIAL PLANNING

This is where you need to involve your team. Think of this team as your personal financial board of directors: your attorney, your CPA and your financial planner and financial fiduciary. You should plan to have annual reviews of your personal financial plan at a minimum, preferably on a quarterly basis, and involve your spouse or partner. Update your financial plan regularly, and keep it organized as your life goals and financial position shift over time. Your plan should address the following:

• Letter of instruction/financial checklist:

1. Net worth statement — a listing of all assets and debts
2. Listing of accounts owned and online login information — share this information securely

• Long-term projections:

1. Pending and saving information
2. Goals, such as children’s education, retirement, charitable contributions
3. Stress test using statistical modeling, such as Monte Carlo simulations

• Investments:

1. Investment allocation should be an output of you meeting your goals and risk tolerance
2. Consider the cost, diversification and tax benefits of your investments

• Life insurance:

1. Enough to replace earnings and savings
2. Proper policy structure — term vs permanent

• Disability insurance:

1. Both short-term and long-term
2. Enough to replace missed earnings

• Estate planning:

1. Beneficiary designations on retirement accounts, insurance, etc.
2. Documents — will and/or trusts, powers of attorney, health-care directives
3. Guardians for minor children

• Tax planning:

1. Understanding the tax treatment of each account you own
2. Seeking out opportunities for proactive tax planning

CONCLUSION

As they say, don’t blink — time goes faster than we think. I urge all clients to proactively plan for their financial future and the worst-case scenario, and I encourage you to do the same. OM

In loving memory of William J. Lahners, MD.

James D. Dawes, MHA, CMPE, COE, is president and CEO of the J. Dawes Group.