Thanks for signing up for your Free Report "5 Big Ways Your Financial Advisor May Not Be Acting In Your Best Interests" and my weekly "No BS" financial lessons to start making work optional!
Please read the overview below and scroll down for today's intro lesson
Today's session is an introduction and I'm going to show you the difference between a financial advisor who is a fiduciary and acts in your best interests versus a financial advisor who is not a fiduciary and does not act in your best interests. I'm also going discuss the importance of money and how financial mistakes -- including hiring a financial advisor who does not put you first -- negatively impact the other important aspects of your life.
First, I'd like to take a moment and introduce myself and and go over the course and the weekly financial lessons so that we are crystal clear on what to expect.
I'm Setu Mazumdar, MD, CFP®, and I help doctors all over the country with financial planning and investment management so they can live on their own terms again. I retired from practicing medicine before age 40, and now I help doctors achieve financial independence.
I'm downright angry that many financial advisors give poor advice to doctors. That's why I created the report I'm about to share with you.
And boy is it an eye-opener!
Most advisors don't want you to know the information I'm going to share with you so I hope you're buckled in!
Ok, let's go over the 5 day course. It's a combination of short videos and associated articles. Every day for the next 5 days I'm going to send you an email which has a link that will take you to a page that has an article (and perhaps ashort video) where I will discuss one big way that your financial advisor might not be watching out for you. Each day through the video and report, I'm going to give you some action items so that you can start getting your finances and investments in order.
After the 5 day course, you're going to receive weekly financial lessons from me. By that I mean that you'll get short emails from me that discuss a specific financial or investment lesson about 1-3 times per week. Sometimes it will be all in the email. Other times I'll share with you more videos I've created for you. Sometimes I'll send you audios or articles.
My style is a bit different than what you can expect from other financial planners. I don't like to sugarcoat what I say with a bunch of BS. Instead I say it like it is. This isn't done to offend you. Instead my goal is to help you, and in order to do that, you've got the hear the truth -- the brutal truth. Sort of like a personal trainer at a gym. I want to whip you into financial shape, but at times you may feel uncomfortable.
If you ever want to unsubscribe (gasp!) from receiving emails from me, just simply click the unsubscribe link at the bottom of my emails. While I'd hate to see you go, I understand this isn't for everyone. It's only for physicians who place a priority on their finances and are committed to getting results. If that's you then you've come to the right place.
Finally, if you are truly serious about catapulting yourself to the next level and getting your finances and investments in order, then I strongly recommend you set up your Free Financial Coaching Session. It's at least a $1,000 value and you can set up with me by clicking the button below.
Just select a day and time convenient for you, and I'll send you a confirmation email. In the email I'll also send you a short 5 minute questionnaire that will make our session even more productive. The Financial Coaching Session is completely confidential and I think you'll get tremendous value from it.
Let's Get Started!
Your financial advisor probably doesn’t want you to see this report. There’s a good reason for that! What I’m about to share with you is something a bit taboo...something most advisors don’t want you to know.
Because your financial advisor’s livelihood may depend on you NOT knowing this information.
You see, many financial advisors do NOT act in your best interests.
But your livelihood -- and your retirement and whatever else is important to you in your life -- partly depends on you knowing this information!
Do you already sense the conflict between you and financial advisors?
If you want to know what goes on behind the scenes when you hire a financial advisor who does not act in your best interests...
If you want to know how much that mistake can cost you...
If you want to know how to fix that mistake....
If you want to know the benefits of hiring a financial advisor who is one of you and who puts you first...
If you want to know how to take control of your financial life...
Then read this report because it’s an eye opener, and it reveals vital information you need to know, and it’s based on me personally reviewing literally hundreds of physicians finances and investments.
Before we get started, let’s answer a question you might have:
Why Should You Care About This?
I mean does it really matter whether your financial advisor acts in your best interests? I know that sounds like a rhetorical question, but I meet physicians all the time who continue working with financial advisors who don’t put them first.
Let’s back up a little bit to show you why this is so important.
If you list the most important things in your life, I bet you they would be some or all of the following (in no particular order):
Money has a direct and indirect impact on on ALL other aspects of your life. It’s not that money is necessarily the most important--that’s a personal preference--rather, it’s that money allows you to do the other things in life that are meaningful to you.
Big financial mistakes can have a deep negative impact on the other parts of your life that you value.
Hiring a financial advisor has an impact on the money part of your life, and because money has an impact on the other major parts of your life, hiring the wrong financial advisor -- someone who does not act in your best interests -- can negatively impact everything else that is important to you.
Look, you’ve already got a lot of challenges practicing medicine today. Here’s just some of the chatter I’m hearing from physicians:
“I’ve lost my autonomy in medicine and feel like I have no control in my professional life.”
“I was never educated about handling my personal finances and investment in medical school or residency and I feel lost.”
“I’m concerned that my pay will continue to go down in medicine with all the new measures to curb health care costs.”
“I’m seeing more and more patients every year and I’m getting burned out.”
“I stay awake at night thinking about which patient is going to sue me next.”
“I’m sick of all the ridiculous regulations I have to follow and paying all these taxes because other people think I make too much money even though I don’t feel rich.”
“If I had enough money I would reduce my work hours or even quit practicing medicine altogether.”
Those are all legitimate concerns, but the odd thing I’ve found is that many physicians don’t realize that the key to solving those frustrations is to get the money part of your life in order. And remember part of the money “equation” is to make sure you work with the right type of financial advisor -- one who puts you first.
The "F" Word Your Advisor Is Afraid To Use
As physicians, when we treat patients we are legally and ethically required to act in their best interests above our own. In other words we have to put their interests first.
It’s called the fiduciary standard--we act in utmost good faith to our patients.
One translation of the Hippocratic Oath states “In every house where I come I will enter only for the good of my patients.”
Unfortunately many financial advisors are NOT required to act in your best interests and are NOT fiduciaries. And guess what? It’s perfectly legal. It’s even written in law.
It’s as if many financial advisors have taken the “Hypo-critic Oath.” Perhaps they should say “In a client’s finances that I manage, I will do so only for my own good.”
These advisors work at brokerage firms, insurance firms, banks, and other institutions. Even many who call themselves independent can give you the illusion that they are acting in your best interest. Here’s how the relationship works between you and many financial advisors:
The advisor sells you products: mutual funds, life insurance, and other financial products. On the surface it looks like you’re not paying any fees. But the fee is buried within the product sold to you. The mutual fund company, insurance company, bank, or brokerage firm then pays a commission to the advisor, but you’ll never see it.
When you hire a financial advisor who is NOT a fiduciary and who is NOT required to act in your best interests, here is what that really means:
- He does NOT have undivided loyalty to you
- He is NOT required to act in your best interests
- He may NOT fully disclose all methods and amount of compensation
- He may NOT fully disclose conflicts of interest
Why would you ever hire such a person to manage your hard earned money?
Think of it this way. Suppose you have a choice between two drugs-- drug A and drug B. Suppose the way you’re paid as a physician is based on which drug you prescribe a patient and suppose drug A pays you more than drug B. Which drug will you prescribe the patient?
Well, it’s human nature to disregard which drug is more appropriate for the patient and instead focus on which drug will pay you more, right?
Now I know what you’re thinking: “I would never do that!”
And I agree that as physicians we don’t do that.
But listen up. In the financial services industry it’s very common for financial advisors to do this to you!
What if you did that to a patient? What if you went up to a patient and said “I refuse to give you this treatment even though it’s better for you because it doesn’t pay me as much as this other treatment that’s more harmful to you.”
Is that how you’d want to be treat your patients?
Is that how you want your financial advisor to treat you?
IF YOU’VE HIRED A FINANCIAL ADVISOR, DO NOT LET THIS HAPPEN TO YOU!
You need to make absolutely sure that your financial advisor adheres to a fiduciary standard. Make him sign a fiduciary oath stating that he will act in your best interest and put YOU first not himself.
Here’s the way it should work:
It should be clear cut. The financial advisor you hire should provide you with objective advice in your best interests, and you pay the advisor a fee.
And that’s it.
No one else should be involved in that transaction.
It’s about as clear cut as it can get.
That’s how I serve my physician clients and that’s how the financial advisor you hire should serve you.
So how do you know if your financial advisor is a true fiduciary and is acting in your best interest?
Do This Next:
Ask your current financial advisor or any advisor whom you are considering to sign a written oath stating that he is a fiduciary -- I bet you this request alone will make many advisors soil their pants! Make sure he is a Registered Investment Advisor (RIA) who is legally required to put your best interests first. Make sure the fee he charges you is completely transparent. Have him list ALL fees that go him if you become a client. You should be getting an invoice from him periodically -- usually every 3 months. Ask him outright if he is paid any money from any mutual fund companies, insurance companies, banks, brokerage firms, or other entities when providing advice to you.
If he is not a fiduciary, not an RIA, not legally required to put your interests first, not transparent about fees and how he is paid, or if he’s simply not completely straightforward when answering your questions, then you should start looking elsewhere.
It’s your hard earned money. You have the right to fire your current advisor and make a switch to someone else who puts you first.
[In full disclosure, my firm is a Registered Investment Advisor and adheres to a fiduciary standard. I manage investment portfolios for my clients and provide financial and investment advice for a fee. The clients pay me a fee directly and I do not sell any investment or financial products. I am not paid by any mutual fund company, insurance company, bank or brokerage firm. I will sign a written fiduciary oath ]
That's it for today's introductory lesson. Over the next several sessions I’m going to show you 5 ways your financial advisor may not be acting in your best interests. I’m also going to give you concrete examples based on finances I’ve reviewed for physicians. Stay tuned for that in the next part of the report!
Talk to you soon.
Making Work Optional For Doctors,
Setu Mazumdar, MD, CFP®
The Financial Planner For Doctors