Every doctor needs to have a good physician financial advisor. There are a lot of planners to choose from. This can make it difficult to choose the right financial advisor. We will round up a few important tips to help you choose the right financial advisor.
Why do doctors need to work with a financial advisor?
It is important to have a look at why you should consider hiring a financial advisors in the first place. The main role of an advisor is to assess the financial goals and needs of a client and give the best advice on topics such as tax strategies, investments and debt repayment. A lot of people think about hiring an advisor once they can put away 20% of their income into savings. This is a good benchmark to go for.
Check the credentials of the advisor
You should check the credentials of an advisor to ensure you choose the right one for your needs. Some people choose a robo advisor but that is not reliable if you want advanced services. You should choose someone who is legally obligated to act in your best interest. You should choose someone with solid credentials such as a certified financial planner, a chartered financial analyst and so on. You will want to choose someone who can offer the right investment advice for physicians and know the latest retirement and tax laws through continuing education.
Know the fee structure
You need to pay for financial advice from a good planner. There could be some conflicts of interest going on if the services are free. This could mean that the planner does not have your best interests in mind. You will want to know if your financial planner will get a commission on stock transactions, insurance sales and so on. This can be a major red flag. Finding a fee-only financial advisors can help you save a lot of money and understand what you will be charged in advance.
Shop around
You will have a long-term relationship with your financial advisor. It is best that you choose someone you like. You should ensure that the person you choose is either someone who specializes in the services you need or a generalist. You need to take your time to talk to a few planners and a few firms to ensure you choose the right fit for your needs.
Know the red flags
You should know the red flags when choosing a physician financial advisor. A good partnership between a doctor and an advisor starts with good communication. The financial advisor should know the goals of the doctor and the doctor should trust the financial advisor. Not every financial advisor is right for every doctor. Avoid choosing someone who doesn’t consider your goals. Avoid an advisor that doesn’t pick up your calls or return your missed calls.
