Choosing the form and structure of one's medical practice is an important decision. Most advisers to medical practices believe that the avoidance of potential double taxation makes the S corporation the logical choice. This "conventional wisdom" overlooks the potential benefits a C corporation can offer.

"The silver lining of the financial crisis of 2008, could be a united shift back to sound financial management, forcing business owners and consumers to make important financial decisions. "

National report — The precarious U.S. economy has slashed patient spending on Aesthetic treatments, and some dermatologists say medical bookings also have declined since the stock market plummeted in the closing months of 2008.

When it comes to investing our money, human nature likes to play tricks on us. When the stock market is reaching new peaks, we can't wait to jump in. When it stumbles and falls, we stop investing — or worse, we start selling. Despite the lessons of the past, that insistent inner voice keeps urging us to follow the crowd.

As we near the end of 2008 — one of the most economically volatile years in my memory—it seems natural to wonder what the coming year will bring. Even in the most stable of economic times, predicting future developments is an unwise indulgence at best. In times like these, it's pure madness.

Too many physicians over the last decade have sought cookie-cutter asset protection plans to give them some "peace of mind" that if they ever endure an outrageous malpractice case, they won't lose everything. While we admire these doctors' commitment to pro-actively managing their risk, we have to remind doctors that all "asset protection plans" are not created equal. In fact, many will not even "work" if they ever are relied on.

In Part 1 of this article, published in Dermatology Times last month, we explained that physician families have substantially greater liability risk and retirement challenges than do so-called "average American" families. This segment will focus on tax, investment and insurance issues that affect physicians; mistakes that doctors make; and suggestions for avoiding pitfalls.

Inflation reminds me of termites: It gradually eats away from the inside of your financial portfolio — unnoticed and silent. Left alone, it can cause major structural damage, even total collapse.

Industry experts estimate that as many as 20 percent of all claims for services are returned to physicians without payment.