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I agree with FA1, don’t try to interpret it. That’s a recipe for disaster. Use this as an opportunity to gain some currency with a Business Attorney that could be a referral source. Most will review at no cost.
They’re paying him 90k a month right out of residency? That seems a stretch
I know many say Doctors are a pain in the butt bc they think they are so smart they know about everything but I’m new and need clients and I also truly want to help this person navigate this life transition. So please no “run away now” comments 😬 My questions are:
1) what should I be reading up on/learning that is specific to high earning physicians? He said he’ll have to establish an LLC which is great news bc I think we’ll be able to contribute more than 401(k)/403(b) max limits by establishing another type of qualified savings plan.
2) he knows I’m not a lawyer but asked me to review his contract just to see if anything jumps out. The contract has a lot of stipends, moving expenses, bonuses, and a monthly collection guarantee(ie what they will pay him...$90k a MONTH btw 🤑). That’s all fine but in the contract it is all referred to as being part of a “note” he will have to pay back. When he explained it to me it sounded like a “draw” that is commonly used in our industry. I guess that makes sense that he be required to “pay back” the monthly “salary” if he’s bringing in more but why would the stipend, the moving expenses, and the bonus all be required to be paid back? I know I’m new and don’t have a lot of experience with doctors but in general I feel like moving expenses, bonuses, etc are meant to be a perk to the employee as an incentive to enter into that contract that does not need to be paid back. Any insight on this?
If you’re not fluent in the legal language of the contract, I wouldn’t make an opinion on it. If you interpret it incorrectly and the doc makes a decision based on that opinion, it could get ugly very quickly.
That neurosurgeon is going to have loans up he wazoo. Have a lawyer read the contract but it should be a lawyer from your network. Ask the client if it’s ok if you share it with an attorney you work closely with for his opinion. Hopefully you know several attorneys already bc our work is aligned. It might take a good attorney 5 mins to reAd the template contract of your client to break it down in laymen’s terms and point out the pitfalls if any. We are not lawyers but we do get paid to think for a living as do they. Maybe the neurosurgeon was giving you this to see how you handle a situation like this. That’s what it means to be an adviser
Yeah... I wouldn’t be interpreting someone contract. Too much liability.