5 Things Doctors Should Consider when Choosing A Financial Planner

financial planner

In today’s kind of world with lots of noise around, when every second person claims to be an expert, with newspapers and media channels bombarding news every minute to gain attention and you get notifications every now and then on your mobile apps…you will definitely need someone to help you make sense of all this. 

It would be dangerous to start believing that you have also become an expert with all this information in your hand.

Especially, when it is the question of your financial future. It is equally not wise to rely on the software programs or computer algorithms that many fintech companies offer these days in the name of low-cost / No cost advice.  

Financial Planning is a Responsible and fiduciary profession just like doctors. Financial Planners can’t just advice like that. Every advice needs to be backed by sound rationale and as per the suitability of the client. These are SEBI registered Advisors who diagnose first and prescribe later. However, every advisor you meet may not be SEBI registered, but then that person may not be an advisor even.

This is where the question is to choose a financial planner, it always has to be backed by a proper thought on its WHY. 

5 Things to Consider when Choosing a Financial Planner for Doctors

Professional Qualifications

Yes, Qualification matters. Like MBBS is not enough to start practicing, but you need a post-graduation, specialization and sometimes super specialization which adds to more learning and authority on your subject, same way just regular Industry exams are not enough in financial planning. The Advisor needs to be educationally and professionally qualified with Post graduation + CFP/CWM/NISM or any other exam approved by SEBI.

These restriction does not apply to banker Insurance agents or even Mutual funds agent. These are only for SEBI Registered Investment advisors.

SEBI Registered

Registration with Regulator is a must if you really seek out a conflict-of-Interest Advisory. Doctors are busy professionals, so in order not to get misled and get a piece of genuine advice for your financial future, you should not take chance and deal only with SEBI registered Investment advisors. These are fee-only practitioners who do not earn from product manufacturers but charge fees directly to the clients. This will ensure unbiased advice.

And do not worry, they advise on low-cost products only, so there’s no way you will be paying high to them. It’s just their services are more transparent and Trustworthy. 

Also Read: 4 Ways on How to Choose the Best Financial Advisor

Experience with Doctors’ Financial Planning

Experience comes when you have dealt with many different profiles. Experience comes when you have dealt with many different products. And yes, when you are in this field for multiple years, you are expected to have dealt with both. Bookish knowledge is not enough. Moreover, the way the financial planning field has grown is no longer limited to numbers, senior planners in the industry are connecting psychology to money management. Returns come from process and not from products and to ensure the process, one needs to manage the investor’s behavior well. 

They say the more experienced the doctors are less they treat you with Medicines. So goes with investments. Therefore, when looking for a Financial Planner for Doctors always choose a reliable, experienced, and trustworthy advisor. 

No Commission-based Products

Back door earning always creates conflict. If an advisor earns from the product manufacturer, then he/she will be working for them, not for you. In all professionals this practice is rampant. There are many stories of doctors tying up with Medical representatives and prescribing only a specific company’s medicine and earning a lot through the back door.

Will you trust that, Doctor? Slowly you will start losing the professional, if he keeps prescribing you unnecessary diagnostic tests, just because he/she is having cut from that laboratory.

So is in the financial planning profession. You need to be sure that the advisor is Fee only and does not earn from anywhere else. SEBI registration takes care of this to some extent, but still, if your advisor is corporate then SEBI has allowed commission earning too.

Goal-based Financial Planning

The advisor should have a process-oriented approach. There has to be some system, on the basis of which advice is given. A proper Risk profiling for suitable Asset Allocation. Goal based approach for long- and short-term investments, also helps. There should be a regular review mechanism, a structured Investment Policy statement tells the philosophy of the advisor.

Our Top Pick for Financial Planning for Doctors 

Here I take this opportunity to Introduce Drgoodmoney.com; This blog is meant for Financial Planning for doctors. The blogger Manikaran Singal is a CFP, CTEP, and SEBI registered Investment advisor. He is having 17+ years of experience and serves clients from many different countries. Among doctors he has young and senior doctors, facing different challenges and has different requirements. As no one size fits all, so he customizes financial plans for them and which adds to his experience. The thought behind drgoodmoney.com is to encourage doctors to follow a process-oriented approach in their financial management, and ask the right questions so as not to get misled.

Summing Up

Doctors are busy professionals. And they are being approached by many unprofessionals, and they sell them many unwanted products. Financial planning is not about buying products or making investments, but to organize oneself and achieving financial goals comfortably. And Since this is a question of your financial future, a certified and Registered advisor will be of help. Follow the above-mentioned parameters to select a suitable one for you.

JustGetBloggingAdmin

Learn More →