Why a Doctor should begin with a “Fee-Only” financial planner and a “Comprehensive Financial Plan” before buying products?
February 14th, 2020
I typically meet doctors after they have been burned by other “advisors” who sold them products that may not have been in their best interest.
A fee-only financial planner can help physicians take a holistic view of their finances, identify goals and risk, and create a plan, to protect and grow their wealth through retirement and beyond. A fee-only planner acts in a physician’s best interests to create this plan and uses the plan to identify needs for investment and insurance products, if applicable.
Beware of commission-based advisors’ conflicts of interest
If an advisor recommends that you need $1,000,000 of life insurance and I happen to sell life insurance for a living, whose interests are being served? Can you trust that you’re getting the best product for your unique needs, or are you simply getting the product that would give your advisor the best commission? When your banker introduces you to his or her “investment specialist” whose solution to all of your investment needs is annuities that pay the bank a commission, whose needs are being served?
In the world of finance, insurance, and investments, medical practitioners hold a special place in marketing plans. As they begin their residency, regardless of their chosen field of specialization, M.D.’s are expected to have significant levels of income at some point in the future.
Insurance companies and banks are aware of this, and put forth special incentives that are not available to others in the marketplace. Some examples:
- Banks may offer 100% financing for a first home and/or loans for medical equipment.
- Insurance companies offer products such as disability insurance based upon expected future income rather than current income. This is unavailable to the general public.
Financial services for doctors is a specialized skill, and the majority of financial planners are hard pressed to address the medical market. Most planners base their fee structure on the management of portfolios, and many physicians may be years away from being able to accumulate assets. Sales professionals may base their recommendations on their own needs, rather than you and your family. We suggest your plan reflect alignment with your goals, with the plan and the need for products will flow from the plan.
Fee-only financial planners avoid conflicts of interest
Start with an advisor who is paid for planning and not for the sale of products. Begin with a “Comprehensive Financial Plan” and a “Fee-Only” financial planner whose sole source of income comes directly from his clients. The alternatives are Planners who are “Fee Based” or “Fee and Commission” hybrids. Insist on “Fee-Only” 100% of the time and, you’ll know the financial planner is looking out for your interests above his own. We act as your fiduciary in all of your dealings. This means that, by law, we must always act in your best interest. Your needs are put ahead of our own.
An Investment Advisor you can trust.
Give me a call. There are no fees for the initial meeting. Let’s meet to see if I can be of help and if we are comfortable with each other. Let me begin to assist in improving your current and future lifestyle while you spend your time providing preventive care for your patients.
Shore Financial is a fee-only, tax-focused financial planning firm located in Monmouth Beach, NJ.
Joseph Vecchio CPA, CFP®, MBA is the firm’s President and has dedicated his professional life to the finance and accounting professions.
Joe believes that people are being exploited by financial salespeople who are merely motivated by quotas, product sales and commission-based income! Shore Financial Planning was founded to provide peace of mind through conflict-free, value-added advice.
When you work with Shore Financial Planning, the financial advice we provide is ALWAYS in your best interest.
As a Certified Financial Advisor, NAPFA Professional, and Fiduciary Advisor, Joseph Vecchio offers unbiased and conflict-free financial advice & retirement planning services.