ABSTRACT
An Imprecise Science .................................................................................................................... 111 Scenario ..................................................................................................................................... 111
Introduction .................................................................................................................................... 111 Why Doctors Don’t Get Rich......................................................................................................... 111
A Late Start ............................................................................................................................... 111 Challenging Sociopolitical Environment .................................................................................. 112 Lifestyle Expectations ............................................................................................................... 112 Time and Energy ....................................................................................................................... 112 Financially Naive ...................................................................................................................... 112 Lack of Trust and Delegation .................................................................................................... 112 Too Trusting .............................................................................................................................. 112
Basic Macroeconomic Concepts .................................................................................................... 113 Federal Reserve Activities ......................................................................................................... 113 Money Supply Measures ........................................................................................................... 114 Velocity of Money ..................................................................................................................... 114 Monetary and Fiscal Policies .................................................................................................... 114 Major Economic Theories ......................................................................................................... 115
Monetarists ........................................................................................................................... 115 Keynesians ................................................................................................................................ 116 Gross Domestic and National Products..................................................................................... 116 Consumer Price Index and Producer Price Index ...................................................................... 116
Chained CPI ......................................................................................................................... 117 Producer Price Index ............................................................................................................ 117
The Business Cycle ................................................................................................................... 118 Bull and Bear Markets .............................................................................................................. 118 Whither the Bear? ..................................................................................................................... 118 Economic Indicators.................................................................................................................. 119
Basic Microeconomic Concepts .................................................................................................... 120 Short-Term Assets ..................................................................................................................... 120 Long-Term Assets ..................................................................................................................... 120 Short-Term Liabilities ............................................................................................................... 120 Long-Term Liabilities ............................................................................................................... 120
In 1972, Nobel Laureate Kenneth J. Arrow, PhD, shocked academe by identifying health economics as a separate and distinct field. Yet, the seemingly disparate insurance, tax, risk management, and financial planning principles that he also studied are just now becoming transparent to some medical professionals and their financial advisors, despite the fact that a basic, but hardly promoted, premise of this new wave financial planning era is imprecision.
