Money Meets Medicine Podcast
MMM #2: Would a Financial Advisor Add Value for You?
Do all doctors need a financial advisor? What does a financial advisor even do? That’s a pretty controversial topic in the world of physician finance. In the end, it depends on which of the three groups you fall into. Do you take a Do-it-yourself approach to personal finance? Perhaps, you are in the “Dot the i’s and Cross the t’s” group or the Outsource group.
Which group you belong to will determine how helpful a financial advisor would be for you. That’s what this episode is all about. So, if you are ready to dive in to find out where you belong, and if a financial advisor would add value for you – check out today’s episode.
What You’ll Learn – What Does a Financial Advisor Do?
What will you learn in the “How Financial Advisors Should Add Value” episode. Ultimately, you’ll learn all of the following, and more:
- The three different financial groups that doctors fall into: the DIY group, the Dot the i’s and cross the t’s group, or the Outsource Group.
- The four characteristics in the Gold Standard of Financial Advising.
- Depending on your financial group, how a financial advisor should add value for you.
- The 7 ways that a Vanguard study found a financial advisor can add value for you.
- Fee-only versus fee-based advising.
- What does a financial advisor do?
- Shiny Object Syndrome. And, what is it and how does it impact your finances?
Resources from the Episode:
- The Physician Philosopher’s list of Recommend Financial Advisors
- What does a financial advisor do? And, four reasons to use one.
- The Financial Fellowship at Financial Residency
- Conflicts of Interest from a Financial Advisor’s Perspective
- Why you shouldn’t trust the financial industry
This Episode’s Sponsor:
This episode’s sponsor is Larry Keller from Physician Financial Services. If you are in the need for life or disability insurance, don’t hesitate to call Larry. Multiple readers and friends have used Larry, and I’ve never heard a single complaint. I’d recommend him to you highly, and without reservation!
You can find Larry at the Physician Financial Services website; call his cell phone at (516) 677-6211. Or, you can reach him by email at [email protected].
Listener Question of the Week:
Each episode, we are going to start including listener questions as they are provided to us. So, if you have a specific question you’d like answered on the podcast reach out to us! Reach out on twitter (@TPP_MD) or email [email protected] For ryan, @physicianwealth or [email protected]
TPP
3 Comments
Submit a Comment
You might also be interested in…
Show Me the Money (In the Financial Industry)
The personal finance industry is meant to help you manage your assets, but particularly for doctors, many questions remain around what that kind of support actually means.
Does your financial advisor have your best interest at heart? Do you know how they get paid? Are they transparent in their disclosures about how their company actually works? Where are the conflicts of interest?
Because you can rest assured there are conflicts of interest. It’s just a matter of how they show up. And once you can say “Show me the money” and find them, that’s when you can make intentional, informed decisions regarding your personal finance.
In tackling this topic, we wanted to acknowledge the two main reasons you may be considering your options for charitable giving, especially as a high-earning physician.
One is that you may have religious convictions that make you feel more inclined to give. Even if you don’t hold to the same belief system that we do – specifically around tithing and the historical background of that concept – giving to your community is very valuable. Not just for the recipient, but for you, the giver.
This leads us into reason two, which is that giving money (or other valuable resources) and helping others has been shown to increase long-term satisfaction and fulfillment in your life.
There’s also a practical side of financial charitable giving to consider, which are the tax advantages you can use to create the most bang for your buck – literally.
Charitable Giving for Physicians
Does tithing or charitable giving play a part in your personal finances? Should it? As usual, we’re not shying away from taking a deep dive into a very personal topic. Personal finance is personal, maybe never more so than when it comes to deciding how you want to give back.
In tackling this topic, we wanted to acknowledge the two main reasons you may be considering your options for charitable giving, especially as a high-earning physician.
One is that you may have religious convictions that make you feel more inclined to give. Even if you don’t hold to the same belief system that we do – specifically around tithing and the historical background of that concept – giving to your community is very valuable. Not just for the recipient, but for you, the giver.
This leads us into reason two, which is that giving money (or other valuable resources) and helping others has been shown to increase long-term satisfaction and fulfillment in your life.
There’s also a practical side of financial charitable giving to consider, which are the tax advantages you can use to create the most bang for your buck – literally.
Making the Most of Your Paycheck
You’ve done it – your training is complete and now you’re finally getting a paycheck fit for an attending physician. You think, “I’ve arrived! I’m going to start making so much more money.”
Famous last words. If you’re not prepared, that is.
Seemingly unassuming, everyday expenses still have the potential to wreck your new paycheck and your budget. I’ve seen it many times over the years: you try to be careful, but you (understandably) want to enjoy your hard-earned money. Costs creep up on you, things snowball. Suddenly, your post-tax paycheck is no different than it was in residency.
You thought you knew how to spend money wisely, but now you wonder, “What was the point of all my hard work to get here?”
Don’t worry. You can still enjoy the money you make while being aware of five main money traps that a high-income earner like you could be susceptible to if you’re not paying attention.
Are you ready to live a life you love?
© 2021 The Physician Philosopher | Website by The Good Alliance
We have had a financial advisor that is fee based for about 20 years. We’ve made the rookie mistakes during our residency with an advisor that sold us annuities, VUL, etc. We left that advisor and revised investments with our current advisor. We like him and trust him; however, I’m still not sure how much we pay him.
Since my husband is 51 (physician) and I’m 49 (physician); does it make sense to NOW switch to a fee only advisor, or at some point is it “too late”? Our retirement target is 55-56 for my husband 57-59 for me.
You can look up your advisor’s fee schedule by looking up their Part 2 of their ADV brochure. Section 5 outlines the fees.
If you are paying your advisor 1% and have, let’s say, $3 million in assets that they will manage when you roll it all into an IRA when you retire… You’ll be paying them $30,000 per year. Why pay that much if you can get the same advice for $10,000 from a financial advisor AND get less conflicted advice?
There is a reason my recommended advisor list only has 4 or 5 financial planners on it … Because it is hard to find people I trust to recommend to readers who have a reasonable fee schedule and provide advice through the least conflicted model.
I’d consider making a change if your advisor works under an AUM and is going to be taking more than $10,000-$12,000 from you each year.
Hey there! What an enlightened blog! Yes! You are right that “financial advisor is a pretty controversial topic in the world of physician finance”. Thank you for sharing complete information through this amazing podcast. It will be very helpful to me. Keep posting such great posts.