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Consolidated Planning

Should physicians and other high net worth, high income professionals hire a financial advisor? 

The answer to that question depends to a great deal on the doctor answering the question; their definition of a financial advisor, investment advisor or financial planner; their competence in managing their own assets and their desire to do so.

The answer to that question depends to a great deal on the doctor answering the question; their definition of a financial advisor, investment advisor or financial planner; their competence in managing their own assets and their desire to do so.

Young Physicians, Residents and Fellows

At one end of the spectrum we find young physicians who have recently completed their residency or fellowship.  They have signed a lucrative employment contract but they are carrying a small mountain of medical education debt.  They have spent many years investing in their career.  They have left their training as excellent clinicians, well trained diagnosticians, but are marginal business persons and terrible financial planners.  And often these healthcare professionals in the greatest need of competent advice are the least desirable of clients for many financial advisors.  They simply don’t yet fit the average investor’s profile.  MD Preferred Services goes to great lengths to find advisors who enthusiastically accept young physicians as clients; understand their special needs; and are not deterred by their relatively low net worth due in large part to their medical education debt.  The preferred advisors in our national database all accept newly minted physicians.

Practicing Physicians

A surprisingly large number of established physicians, who should know better, continue to manage their own financial affairs.  These MD’s should ask themselves several telling questions.

  • How’s it going?  Would you objectively describe yourself as a sophisticated investor on a par with your competence in your chosen medical specialty? Are you disciplined in your investing?
  • Is your current investing activity integrated into a comprehensive financial plan that will provide you with the life after work that you desire?
  • Do you enjoy managing your own assets?  Are you comfortable with the time you spend?
  • Do you accept advice from nonprofessionals, family, friends and colleagues?

For a successful practicing physician, access to a financial advisor database populated with pre-screened financial advisors for doctors offering preferred financial services can dramatically reduce the due diligence process.  Even for those who are comfortable with managing their own investments, a professionally prepared, comprehensive financial plan can be prepared for a fair, flat or hourly rate.  Many physicians prefer a fee for service only advisor such as those who are members of the National Association of Personal Financial Advisors (NAPFA).   These plans should include how to finish off your student loans, what sort of insurance should you have and at what cost, how to save effectively and work from a structured budget, where to put your savings, how to diversify effectively, when to take social security, how to manage your taxes and so much more.

Is there investment after retirement?  Many senior physicians approach retirement with no specific plans to alter their investments and savings plans.  There is indeed investing after retirement and in many ways it is even more vital to forge a trusting relationship with a financial advisor for doctors that is prepared to spend some face time with you to make sure that you don’t outlive your retirement fund and that you don’t short change your retirement by being overly frugal and cautious.  

In every case, MD Preferred Services is committed to helping doctors and other medical professionals find preferred financial planners offering a broad range of specialized financial services for doctors.  Our indexed financial advisor database is easy to use and is completely confidential in that any contact with a listed financial advisor will be initiated by the physician.  An MD advisor is the right prescription for physicians planning a secure future for themselves and their family.