The AMA recently released a paper (more like a survey result) of the top 6 traits of a financially prepared female physician. It probably would be the same list regardless of gender…
I do agree with most of the survey results, but I think that we can really do better. Point number 4 states that two out of three “financially prepared” doctors have a financial advisor. I also believe the converse—you do not have to have a financial advisor in order to be “financially prepared”. It certainly gives us piece of mind to have a “professional” helping us, but Jim Dahle, an ER physician who runs White Coat Investor, has been a strong DIY advocate. I am probably more on the neutral side, although I can think of a few reasons why a financial advisor might work for you:
- You work 88 hours a week as a vascular surgeon, and frankly have no time to figure out the basics of your finances.
- You want to build a nest egg, but really do not have any desire to spend any time with financials and only want to be informed of good choices you can make.
- You put all your money in a Robo-investor firm, but need someone to help guide the planning and protection aspects of your finances (insurance, trusts…etc)
The subject of financial advisors is long and can belong in a series of books, but feel free to comment if you have questions or ideas.
The fundamental tenant of being financially prepared is to have a good idea of your annual living expenses, your current income and income potential, and action plan to have adequate finances to support your future living expenses after retirement plus something extra to leave to heirs if you wish. Yes, this is a loaded condition, but I have confidence that it can be achieved (and certainly has been by others).
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If you have questions, please comment below! – Smart Money MD