PHYSICIANS AND FINANCIAL ADVISORS SHOULD NOT BE STRANGERS!
As a doctor, you would get a second opinion regarding a medical condition – so why not a second opinion for your financial condition???!!! The experts at Kevin MD and White Coat Investor say that "…physicians are notorious for being bad with money." But who are we to blame for that phenomenon? Here might be several reasons that have created the perfect storm.
Money and business should not be taboo subjects at medical schools, hospitals, and within their practices and healthcare groups. Doctors must manage and lead their businesses and hospitals in order to prevent their income from dropping and their work environment become more stressful, but how many are familiar with running a business operation? Younger, inexperienced doctors should not be enticed them into unfair contracts, yet how would they recognize one? Medical schools continue to increase tuition at incredible rates, enslaving clinicians to years of "indentured servitude." They persist in providing little or no high-quality financial or student-loan related advice. You would be hard pressed to find a medical school that offers an optional class on finances and the business of medicine, which would make sense in the late fourth-year curriculum. Physicians don't talk transparently to each other about money, and so many make the same financial mistakes over and over again.
Academics certainly care about educating future physicians on how to care for patients. But if future doctors feel the financial noose tightening around their necks as they suffocate in debt, how long do you think they will stick around in the field of medicine? If not taught how to budget, save, and invest their money, retirement will become a figment of their imagination.
Doctors must have the knowledge to achieve financial independence and take care of themselves so that they can take care of others.
One of the biggest problems in wealth management is commissioned salesmen parading themselves around as financial advisors. Of course some are purposely trying to exploit doctors for all they're worth, but most are simply incompetent or poorly trained (except in sales) for their advisory role. Doctors tend to shy away from these sharks and their fees, but instead of seeking out that fiduciary that truly has the knowledge and the plan to help them succeed, they unfortunately turn to a friend or family member, or worse – the Internet. Much of the financial information out there on TV, radio, newspapers, magazines, newsletters, books, and the Internet is useless at best, and will get you to make the wrong moves at worst.
Investment firms, banks, and insurance companies are always coming up with products made to be sold, designed to separate you from your hard-earned money. The vast majority of them should never be purchased. There are advisors out there giving good advice that is fee-only, bias-free, personalized to you, and academically informed. Take the time to find one – it will be easy because they are different – they listen! Listen to your goals, develop a customized plan for you and your family, and help you stay in control.
Healthcare professionals and clinicians need more than the general investment advice. Why? It takes time for them to establish their practices, higher income requires more complexity and a long term exit strategy, and job security plus a steady income stream in medicine has become a myth! But all that being said, often doctors are their own financial enemies. Spending habits are hard to break, lifestyles choices can be difficult, and budgets are often broken.
Guess what? You don't get a free pass. If you want to build wealth, you have to spend much less than you earn, do some tax planning, insure appropriately, minimize risk and invest wisely. High income will help you weather some rainy days and mistakes, but not all. You must spend time visualizing your goals and putting in the work on your business and finances to attain the level of economic success that you deserve. There is no room for ignorance, lack of discipline or attention to detail, they are your biggest enemies. Conquer them with a trusted financial advisor if you hope to find financial success.
Contact Us: The healthcare experts at Fuoco Group are more than just accountants and tax experts, we are medical practice consultants and business advisors. We understand your struggles with variable income, compliance issues, payors, and the changing landscape of medicine. Take advantage of our 20+ years of experience whether you are a physician, surgeon, chiropractor, dermatologist, dentist, podiatrist, pharmacist or other niche healthcare provider. Call toll free 855-534-2727.