Greg Smith Senior Vice President & Director of Private Client Services

As the nation’s unemployment rate increases, the state of the economy remains a top concern for Americans. The weak housing market, increased energy costs and the credit crisis continue to negatively impact the economy (and consumer confidence). Like other professions, the medical field continues to look for ways to weather the financial storm as well. While the Commerce Department’s June Quarter Gross Domestic Product (GDP), a good indicator of the country's economic health, was 3.3%, analysts are expecting the economy to be weak through the rest of 2008.

Current economic challenges often alter an individual’s short and long term investment plans. As you find yourself being impacted, it is important to discuss any potential life changes with your financial advisor in a timely manner. Just as you would recommend an annual physical to your patients, it is important to review your financial situation at least once a year with your financial advisor.

Here are a few questions to ask yourself to help identify potential crossroads that you might be experiencing:

1. 1. Windfalls? Are you receiving a partnership distribution, a large dividend, a rebate check or bonus? How you allocate those funds can have a major impact on your overall financial plan. Your financial advisor can help determine how that lump-sum can best benefit you, your family, your medical practice and your long-term financial goals.
2. Taking on debt? Are you thinking about buying that dream home, a new car or vacation property? How you decide to approach changes to your balance sheet, including financing decisions, will also impact long term objectives. Discuss all of your options with your financial advisor so you can find the best solution for your situation.
3. New dreams? It is a lot easier to dream for the future if you are financially grounded in the present. Whether you want to start your own practice or get ready for retirement, it is never too early or too late to plan for tomorrow. An annual financial check-up helps to adjust your investment and savings plans so that you are better equipped to reach your dreams.
4. Life event? Are you thinking about retirement, buying a summer home or facing college tuition in the not so distant future? Maybe you have a parent or relative who may need your assistance with long term care. Make sure to communicate these objectives with your financial advisor so that these outcomes can be included in future planning updates as well as your overall investment strategy.

When faced with life’s changes, it is important to keep your long-term financial objectives top of mind. Just as the practice of medicine is a long-term commitment, planning for your financial future should also be a life-long effort that you review at least annually. Utilize that review as a time to evaluate and adjust as necessary to reach your ultimate financial goals. Contact a financial advisor today to schedule your annual financial check-up.

Greg Smith is Senior Vice President & Director of Private Client Services for Haberer Registered Investment Advisor, Inc. He can be reached at 513-381-8200