Physicians - Are you stress testing your wealth strategies?
Q&A: TransitioNext Advisors’ Keven Prather on Stress Testing Your Wealth Strategies
As freelance medical providers, financial planning and decision making are critical to growing and protecting your investments. Hyr Medical recently announced its new strategic alliance with TransitioNext Advisors, a financial planning and business transition specialist firm based in Cleveland, Ohio. This new alliance offers access to a range of planning, insurance, and retirement strategies as a part of Hyr’s Benefits Program that are available to Hyr’s physicians.
Hyr Medical chatted with Keven Prather, Partner and Financial Planner at TransitioNext Advisors, to learn more about the importance of stress testing your wealth strategies when making decisions about your money.
Hyr: What is stress testing?
Keven: Stress testing is a process that carefully examines your current wealth planning strategies to assess the likelihood that they’ll deliver the results you expect them to in various environments and situations.
Hyr: Who has stress tests conducted most commonly?
Keven: The Super Rich (people with a net worth of $500 million or more) often have stress tests conducted because the tests enable them to make smart decisions, to verify that they likely will get what they want and to confirm they are dealing with the right professionals. They can also be effective at identifying potential big problems—or possible huge mistakes—so changes can be made proactively.
Hyr: So, do you need to be outrageously wealthy to benefit from a stress test?
Keven: No. In fact, we believe it should be part of most people’s due process when vetting financial plans, products, and services. In addition to identifying potential missteps in an existing plan or service, it may be able to deliver a sense of confidence to the client when the test confirms that a plan is indeed on track
Hyr: What steps are included in stress testing?
Keven: A stress test often follows a defined process involving four main steps: profiling, solution evaluation, analytic comparison, and recommendations. The process starts with discovery, and then once there is clarity about goals, objectives, concerns, and limitations, various strategies or products can be evaluated. Based on that evaluation, side-by-side analytics might be used to compare alternative solutions. At the conclusion of stress testing, recommendations are presented and considered, and the next course of action is decided on.
Hyr: How common are stress tests?
Keven: It’s reasonable to expect stress testing to garner more interest and attention among clients and their financial professionals. Once considered a feature available mainly to the wealthiest, stress testing is increasingly being offered to a broader range of individuals and families. As a result, you may have an opportunity to put your financial and legal strategies and plans through their paces and determine if they’re set up to deliver the results you want.
Learn more about Keven Prather, CFBS and TransitioNext Advisors
Keven P. Prather is a registered representative of and offers securities and investment advisory services through MML Investors Services, LLC. Member SIPC. www.SIPC.org. TransitioNext Advisors® and Hyr Medical are not subsidiaries or affiliates of MML Investors Services, LLC, or it affiliated companies. OSJ: 2012 W. 25th St., Suite 900, Cleveland, Ohio 44113. 216-621-5680.
The views and opinions expressed are those of Keven Prather and not necessarily those of MML Investors Services, LLC. CRN202410-993263