Are you concerned about being prepared for retirement? Or if you are early in your career, maybe retirement isn’t even on the radar screen yet; but paying student loans, raising families and running a practice are up close and personal. Surveys tell us a majority of physicians and providers do have some concern(s) about their financial well being¹. They also tend to have little time to educate themselves and address those concerns. Increased regulation and reduced reimbursements contribute to more pressures which may squeeze out paying as much attention to areas like estate planning, asset protection, insurance, debt management, and so on². This is where professional financial advice comes in.
According to former internal medicine physician, Joel Greenwald, MD, CFP, some of those physicians who are not concerned about finances are overconfident and should be taking action and making plans for their financial future³. Greenwald, a Certified Financial Planner, has worked with physicians and dentists the past 16 years. Not surprisingly, he and others providing financial advice recommend working with a professional; but not just anyone.
Financial advice provided by someone who can address the unique needs of a physician or provider. These include four primary areas which differ from the average American4. First, physician training is very lengthy, therefore significant earnings are not seen as quickly as with other types of work. This means a shorter time frame in which to amass necessary retirement savings. Second is investment complexity. With higher income and assets, more complex strategies are typically needed. Third is asset protection. Professional liability and other risks need to be addressed; and lastly, societal pressures and delaying gratification during training may lead to overspending. A financial advisor can help look at a realistic budget related to financial goals.
Robin Robertson, a senior wealth advisor with over 30 years’ experience and specializing with physician clients provides tips to finding a financial advisor who can appreciate and help with the challenges specific to the physician5.
Even when working with a financial advisor, it pays to increase your own knowledge of finances7. Having an understanding of where you are financially, what you are investing in, how you are protected, and so on, will make you a better client and help get rid of some of the stress and worry which may accompany these concerns. The following resources provide a quick way to begin enhancing your knowledge and addressing your financial future.
Are you struggling to address areas of financial well being? We are available to help anytime, day or night. As part of the Physician Well Being Resources program and Employee Assistance Program (EAP) from VITAL WorkLife, members have access to telephonic discussions with financial consultants who can provide solid advice on developing a financial plan to achieve defined goals. Financial consultants are available Monday through Friday from 8:00 am to 9:00 pm local time (within the continental US). If, after speaking with a financial consultant, issue resolution requires additional preparation, planning, or more specialized financial assistance, the financial consultant will assist with a referral. There is no limit to the length of the consultation or restrictions on repeated use of the service.
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12016 report on US physicians' financial preparedness. AMA Insurance. https://www.amainsure.com/reports/2016-financial-preparedness-practicing-physicians/index.html?page=1
2, 4 Rose R. Reimbursement and financial planning for physicians. Physicians Practice. Published August 25, 2017. http://www.physicianspractice.com/reimbursement-and-financial-planning-physicians
3, 6, 7 Hurt J. How physicians can choose the right financial adviser. Medical Economics. Published December 7, 2016. http://medicaleconomics.modernmedicine.com/medical-economics/news/how-physicians-can-choose-right-financial-adviser
5 5 ways to partner with a physician-friendly financial advisor. AMA Wire. Published October 20, 2016. https://wire.ama-assn.org/practice-management/5-ways-partner-physician-friendly-financial-advisor