Best Financial Advisors for Physicians

By: Scott Sturgeon, JD, MBA, CFP®

Would you like to receive more content just like this directly to your inbox? Click here to subscribe!

In today’s complex financial world, physicians face a unique set of challenges when it comes to building & managing wealth. With high levels of student debt, unique earnings potential, and a demanding work schedule, physicians need the guidance and advice of a specialized financial advisor who understands their unique financial needs. That’s where a physician financial advisor comes in.

A physician financial advisor is versed in the unique financial needs of medical professionals. They have experience working with attendings, residents, and fellows to help them navigate the unique financial challenges they face. From finding tax efficiencies to creating a plan for retirement, a physician financial advisor can provide personalized guidance to help physicians achieve their financial goals.

At Oread Wealth Partners, we specialize in providing financial planning and investment advice to physicians & business owners (you’d be surprised how often those two overlap). As a registered investment advisor, we are committed to providing fiduciary, fee-only advice to help our clients work towards their goals and objectives. We understand that each physician and their family has unique financial needs and goals, and we work closely with our clients to create a customized financial plan that fits your unique situation.

Understanding how important it is to find a financial advisor that’s the right fit for your individual needs, we’ve put together this comprehensive guide to help you navigate the world of financial advisors and choose the one that’s right for you. 

Understanding the Different Types of Financial Advisors

The first step in finding the right financial advisor is understanding the different types that are available. The most common types of financial advisors are listed below, but it’s important to keep in mind that some financial advisors may fall into more than one of these categories:

1. Registered Investment Advisors (RIAs): These advisors are registered with the Securities and Exchange Commission (SEC) and are held to a fiduciary standard, meaning they are legally obligated to act in the best interest of their clients. RIA’s come in a variety of shapes and sizes, many of them tailored to a particular niche of clients.

2. Broker-Dealers: These advisors are typically affiliated with large financial institutions and are compensated through commissions on the products they sell, a percentage of the assets that they manage, or some combination of those. It’s important to note these types of advisors may or may not have a fiduciary duty toward the clients they work with.

3. Robo-Advisors: These advisors use algorithms to provide investment advice and management at a lower cost than traditional advisors. Based on your assets, risk tolerance, and time horizon, they may put you into portfolio mix comprised of low-cost index funds.

4. Insurance Companies: Large insurance companies may have financial advisors that place clients into various insurance products with an investment component like permanent life insurance or annuities. These types of advisors may not have a fiduciary duty towards the clients they work with or may “suspend” that duty in the process of selling a product. 

5. Trust Companies: A trust company is often tied to a larger bank, but not necessarily so. Likely serving as a fiduciary, a trust company may offer a variety of services to their clients similar to an RIA.

*Note: The titles held by advisors at any of these institution types may vary. Wealth Advisor, Financial Planner, Wealth Manager, or Financial Advisor can mean very different things between firms, even if the titles are exactly the same. That’s why it’s important to ask questions around the topics listed below as you look to work with an advisor and to evaluate their credentials, as mentioned below.

Assessing Advisor Qualifications and Credentials

Once you’ve identified the type of advisor that best fits your needs, the next step is to assess their qualifications and credentials. Look for advisors who hold industry-recognized certifications such as Certified Financial Planner (CFP), Chartered Financial Analyst (CFA), or Certified Public Accountant (CPA). These certifications require rigorous training and ongoing education, ensuring that advisors are up-to-date on the latest financial planning strategies.

Additionally, consider the advisor’s experience and track record. Ask for references and speak with past clients to get a sense of their satisfaction with the advisor’s services. You can also check their disciplinary history with the SEC or Financial Industry Regulatory Authority (FINRA) to ensure they have a clean record.

Evaluating Advisor Fees and Compensation

It’s important to understand how financial advisors are compensated, as this can impact their recommendations and whether or not they sell products like insurance or certain investments to their clients. Commission-based advisors earn a commission on the financial products they sell, while fee-only advisors may charge a percentage of the assets they manage or a flat fee for their services, but do not earn commissions on financial products.

Asking an advisor how they get paid is a great first step in determining whether their pricing structure matches what you’re looking for. When evaluating advisor fees, be sure to ask about all costs associated with their services, including management fees, trading fees, and administrative fees. Compare these fees to other advisors in your area to ensure you’re getting a competitive rate.

Evaluating Advisor Service Offerings

One of the key items to address as a doctor or physician hiring a financial advisor is to ensure you understand what the service offering you’re signing up for actually entails. Is it just investment management? Is it comprehensive financial planning and wealth management? Will they help you in planning around your taxes or work with you to establish and implement an estate plan? Will they evaluate your need for some kind of insurance coverage and advise on an amount that’s appropriate for your specific situation?

Not only should your advisor be able to articulate the variety of services they offer, they should also be able to describe several situations where they provided value to a client they’re working with. Asking “what value have your provided for clients lately?” is a good way to determine what the advisors scope of services may entail and whether it’s a good fit for your needs.

Finding the Right Financial Advisor for You

Ultimately, the right financial advisor for you will depend on your individual needs and preferences. Consider factors such as the advisor’s experience, qualifications, and compensation structure, as well as their communication style and approach to financial planning. Remember, you’re going to be telling this person some pretty personal family and financial information, so making sure you get along with them may be just as, if not more important!

At Oread Wealth Partners, we understand the unique challenges and opportunities that physicians face and help our clients make informed decisions about their finances. Whether you’re just starting out in your career or nearing retirement, we can help you create a financial plan that aligns your finances with your goals, priorities, and what’s truly important in your life.

We are committed to providing personalized, high-quality financial advice to physicians. We understand that managing your finances can be complex and time-consuming, which is why we’re here to help. With our guidance, you can feel confident that your finances are in good hands.

If you’re a physician looking for financial planning & wealth management built for you, contact us today to learn more about how we can help you achieve your financial goals.

Curious to learn more?

Subscribe To Our Newsletter Here

Schedule Time Here

 

Still curious to learn more? Check out the content below!

Physicians: Considering Locum Tenens? 3 Things Doctors Should Know…