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…
Greed, FOMO, and Bad Investments
Despite our best intentions, certain emotions can keep us from building wealth. After many years arming physicians with the information they need to achieve financial wellness, I had a significant realization.
Information is one thing – behavior is another.
As the saying goes, money is 80% behavior and only 20% math.
Not only do I want to share important information about personal finance, I also want to help you recognize how certain behaviors can (and do) affect your finances.
Drawing from one of the classic books about investing, let’s go over five common behaviors that could be keeping you from achieving your financial goals.
How Doctors Can Get Good Financial Advice
Many doctors and high-income professionals hire financial advisors for any number of reasons. Either they’re too busy to handle their finances themselves, they don’t really know how to invest, or they want an expert on their side to make sure they’re on the right track.
So allow me to say from the start: I’m not against financial advisors, but I am against doctors (or anyone, really) being overcharged for bad advice.
There’s no shame in asking for help – you just want to get the help you need at a fair price.
You should be equipped enough to vet and evaluate your financial advisor so you’ll know whether they’re working well on your behalf. How can you be as confident as possible they’re acting in your best interest? This episode will help you find out.
Dr. Peter Kim and Physician Entrepreneurship
Have you ever thought about using real estate to reach financial independence, but you didn’t want to be a landlord?
Recently I sat down with one of my good friends and one of the OG partners of The Physician Philosopher. He’s an anesthesiologist, husband, father, entrepreneur, as well as a real estate and physician side gig guru – of course, I’m talking about Dr. Peter Kim.
One of the interesting things about Peter’s story is his transition from full-time practice as an OB anesthesiologist to stepping away from medicine and going part-time, to now his being on sabbatical. He’s not sure if that’s a permanent sabbatical or not, so we got to explore his thought process on that and his story.
So let’s dive into this discussion with Dr. Peter Kim and the intersection of all things entrepreneurship, side gigs, medicine, money, and real estate.
Need help getting disability insurance or student loan help from a company built by doctors, for doctors? Make sure to check out HelloAttend.com
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.