There are some things that you need to know before you hire a financial advisor. It is similar to a situation when you hire a physician contract lawyer. As a doctor, you need legal advice, and you also need the financial expertise of professionals.
Today, we will show you several tips on how you can make the best decision in hiring a financial advisor. We urge you to bookmark this page to access it anytime you need it. Once you have spoken to several advisors, use this checklist as a guide to whether or not your advisor meets the desired qualifications.
1. Cost of Payment
Financial advisors charge differently. Some of them charge by the hour, and some on a project basis. A word of caution: free advice is the worst advice there is.
Some may charge by the hour, and some may also charge based on a commission. Some will also offer you services like working with a credit repair company for an extra fee.
Ask the financial advisor how much he is charging. There is no standard going rate for this. However, make sure that you pay for service or work that was actually done. The best option is to pay a flat fee.
Working with Physicians
Financial advice for physicians is a complicated thing. Do not work with someone who treats every client the same way. At best, pick a financial advisor who has worked with many physicians before.
Better yet, try to find an advisor who specializes in the financial health of doctors. Why? Because many physicians are indebted in school, you need to hire someone who knows to navigate the credit system to help them get out of this debt soon.
3. Insurance Planning
Do not just hire a financial advisor who will manage your money. Get someone who knows how you can get yourself insured.
For example, physicians who are already in their 60s have different insurance needs than those in their 20s.
It will also help if the financial advisor is well-versed in liability insurance, disability insurance, etc. This way, you can really plan your finances.
4. Planning and Methodology
Hire someone who has a system for planning and a method to manage your finances. For example, the advisor must understand the concept of risk analysis.
There are experts who can conduct macro and micro analyses of your finances. These professionals can help guide you in debt repayment and how you can make your financial health better.
Then, there are the experts who can give you meaningful advice on the status of physicians as far as their finances are concerned. These experts have a portfolio of cases and studies where they can draw decisions from real-life experiences.
Hire a financial advisor who knows the ropes. Be particular about the expertise and experience of who you hire. Preferably, choose someone who specializes in the medical industry.
Ask your financial advisor how much fee he will charge. Your best option is someone who offers his service for a flat fee.
Naomi Olson [Website • Twitter • Headshot]
I am a CFP® (Certified Financial Planner).
I have a severe phobia of bridges and dirty balance sheets.
Hobbies: blogging, meditation, and loving Bull Market (my dog).