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  • jfoxcpacfp jfoxcpacfp 
    Moderator
    Status: Financial Advisor, Accountant, Small Business Owner
    Posts: 7329
    Joined: 01/09/2016

    10 Reasons Residents Should Have a Financial Planner. fwiw, I did not submit this as a self-serving story idea to PIMD ; rather, he asked me to write an article on this topic.

    Johanna Fox Turner, CPA, CFP, Fox Wealth Mgmt & Fox CPAs ~ 270-247-0555
    https://fox-cpas.com/for-doctors-only/

    #34164 Reply
    DMFA DMFA 
    Moderator
    Status: Physician
    Posts: 2126
    Joined: 06/24/2016

    I remember the first time I met with a planner.  I can’t believe how clueless I was.

    Doctors are smart people, and we have to spend a lot of money to go through med school and then make a lot of money after training, so of course we can probably get money correct…right?

    Sort of follows the Socratic paradox: those who believe they have attained wisdom are simply unaware of their own ignorance.  Or one could even cite the illusory superiority of the Dunning-Kruger effect…

    At any rate, my first meeting with a planner changed my life.  I still don’t know all the nuts-and-bolts about everything, esp what doesn’t specifically apply to me, but at least I don’t do stupid stuff with my own finances anymore.

    Everyone should do it at least once, if only to be exposed to a few simple concepts as it pertains to their lives.

    "I like money." - Frito Pendejo (Idiocracy)

    [Not a financial professional (yet), lawyer, or employee of The White Coat Investor]

    #34180 Reply
    jfoxcpacfp jfoxcpacfp 
    Moderator
    Status: Financial Advisor, Accountant, Small Business Owner
    Posts: 7329
    Joined: 01/09/2016
    I remember the first time I met with a planner.  I can’t believe how clueless I was.

    Click to expand…

    I’m struggling to imagine a clueless @dmfa

    Johanna Fox Turner, CPA, CFP, Fox Wealth Mgmt & Fox CPAs ~ 270-247-0555
    https://fox-cpas.com/for-doctors-only/

    #34183 Reply
    Avatar TheGipper 
    Participant
    Status: Physician
    Posts: 407
    Joined: 01/20/2016

    I learned the hard way, and lost a few years with expensive advisor funds, but ultimately I caught on and my suspicions led me to the Boglegeads forum and other like minded sites, and my real catch up financial education began. 🙂

    #34187 Reply
    DMFA DMFA 
    Moderator
    Status: Physician
    Posts: 2126
    Joined: 06/24/2016
    I remember the first time I met with a planner.  I can’t believe how clueless I was. 

    Click to expand…

    I’m struggling to imagine a clueless @dmfa

    Click to expand…

    My point exactly; I felt the same way, despite that I hadn’t had any financial education since my Personal Management merit badge that I blew through just to get my Eagle.  A lot of us doctors are this way, sometimes even making ourselves sound so good despite being clueless that even we ourselves believe it…and then our eyes are opened to our own ignorance, that Eureka moment hits (now I’m combining Greeks), and we’ve got a lot of damage to repair.  Happens in the ICU, happens in the bank account.

    Realizing that we’ve got to use “trust but verify” not just for hapless interns in The Unit, but even on ourselves, is a giant step to make that requires some insight.  The smartest people (not saying this is me) can do the dumbest things sometimes.

    "I like money." - Frito Pendejo (Idiocracy)

    [Not a financial professional (yet), lawyer, or employee of The White Coat Investor]

    #34191 Reply
    Avatar Antares 
    Participant
    Status: Physician
    Posts: 458
    Joined: 01/20/2016

    I remember my first experience with a financial advisor. And my second, and my third. They were all good people. But I am thankful everyday for having gained the confidence to make my own decisions, and to keep for myself the fees I used to pay. I paid to reduce anxiety. I paid because I hadn’t yet learned to stop trying to beat the market. I paid a lot, not only in fees, because the advisors all tried to be smart and recommend good investments. Inevitably these fared less well than the market did. I estimate my investable portfolio would be close to 50% higher if I had been doing what I do now — index funds, three or four fund portfolio, keep it simple and diversified, stay the course — from the time I started saving 30 years ago. I’m sure there are advisors who would have recommended this approach. It’s my own doing. I paid dearly for the education I received that ultimately lead me to being comfortable doing it myself. Glad I ultimately got here.

    #34194 Reply
    DMFA DMFA 
    Moderator
    Status: Physician
    Posts: 2126
    Joined: 06/24/2016

    I had three visits with them, six months apart.

    First visit: educational as to I had no clue how I was spending (or even how much we actually made, practically speaking, despite knowing our salaries)

    Second visit: educational as to what my financial expectations should be (i.e. don’t finance two luxury cars, a giant house, or go to Bora Bora on credit without being able to cash flow it)

    Third visit: by then I’d maxed TSP/403b/IRAs, built up emergency fund to 6 mo expenses, eliminated revolving CC debt, knocked out one student loan and refi’d another, and refi’d my awful adjustable-rate mortgage, and there wasn’t much to do except sell me things

    These guys were provided for free by my bank; they were CFPs, but again also employed by a financial institution so geared towards using their instruments.  They really were very helpful in the beginning because I was clueless and broke.

    It’s OK to need help, and it’s OK to pay a reasonable fee for it.

    "I like money." - Frito Pendejo (Idiocracy)

    [Not a financial professional (yet), lawyer, or employee of The White Coat Investor]

    #34202 Reply
    jfoxcpacfp jfoxcpacfp 
    Moderator
    Status: Financial Advisor, Accountant, Small Business Owner
    Posts: 7329
    Joined: 01/09/2016

    A portfolio and a healthy balance sheet do not translate into a plan. Financial planners are as different as fingerprints. Many, sadly, are not worth the fees they are paid (imho) and I recognize that planning is not appropriate for everybody. At the same time, it can be difficult to build the home of your dreams, even if you have all of the materials (which so many readers of this forum have), without a blueprint. Financial planning done right provides the blueprint, along with variations of that blueprint. A great financial planner gIves his clients clarity about her opportunities and alternatives. A particular investment portfolio is not the start of the plan – it is one of the results of the plan, one of many tools to be used in pursuit of building the dream home.

    Of course, “done right” is my version of excellence. I recognize that others have their own personal definitions.

    Johanna Fox Turner, CPA, CFP, Fox Wealth Mgmt & Fox CPAs ~ 270-247-0555
    https://fox-cpas.com/for-doctors-only/

    #34203 Reply

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