ABSTRACT
This chapter covers several common financial mistakes that therapists in private practice make. Notice that they all derive from failing to think about the financial dimension as a good employer would. A good employer would provide a sound retirement package from the business' revenue stream, she would not spend all the business' revenues on salary. She would be prudent in the investment policies of the retirement plan, and would make sure to obtain adequate insurance along with setting up a business structure that minimizes taxation. These considerations would simply be fundamental to doing business in a professional way. Disability insurance provides income replacement in the event of debilitating illness or injury. This type of insurance may be unpleasant to think about. Every practitioner carries professional liability insurance from internship onward. The topic of life insurance is a complex one. Asset allocation does not guarantee a profit or protection from losses in a declining market.
