mkintxParticipantStatus: PhysicianPosts: 35Joined: 01/08/2016
Quite a career niche. I wonder if there is a similar opportunity for someone to help all of the physicians who have been swindled by “advisors” over the years. This forum is geared toward those who heal ourselves, but there are many others out there.IntensiveCareBearParticipantStatus: PhysicianPosts: 137Joined: 12/22/2018
It is not so much a lack of financial education but a lack of basic sales skills. Those are the most important skills in all of life.
Sales skill lets you sell ideas, sell products, make friends, get women, flatter people, lift others’ mood, etc. It helps with family, at work, in dating, and everywhere else.
Most importantly, it lets you see the angle of the “helpers”… which is always to help themselves. If your Jedi skils are better, you see right through them. If you aren’t even aware of the game, you will be bamboozled 800% of the time. That is what happens to young pro athletes; they are humpback whales in a barrel to predatory salesmen/advisors with high level skill. On the other hand, it is pretty hard to take a vet salesman’s money… he will smell a rat, even if his math and financial IQ isn’t particularly high.
These athletes are a very easy target, but while high profile, they are far from unique. Too many people earnestly believe that bankers, their employer/manager/boss, insurance salesmen, realtors, drug reps, credit cards, etc actually are on their team or have their best interests at heart. Those people see “dream job” or “my buddy the attorney” or “looking out for me” when they’re really just dealing with salesmen who see a paycheck. Nonetheless, people consistently let their guard down if good sales skill builds a bit of rapport. It’s sad that people fall for the tactics daily. I think it’s a remnant from a time when people lived in small groups and you could actually trust one another (they want to welcome the salesman into their trusted group due to his charm), but in today’s anonymous society where those groups don’t really exist, it is ignorant and pathetic and downright dangerous to behave that way.
I’m not saying you can’t create win-win situations with skilled people or that no salesmen have high quality or reasonably priced products/services, but people tend to settle in two camps: trust nobody or trust basically everybody (esp trusting of those with decent sales skill). The correct answer is obviously to find the middle ground by realizing everyone’s a wolf (whether they’re in your group or not) and you’re a wolf too… but wolves can cooperate. It is fine to hire an accountant or consult a CFP, but their rates should be regularly checked to be competitive and if they start to segue from your agenda into the certain brands of insurance or mutual funds… next. We all have to use banks and brokerages, but there is no need for allegiance… if fees go up or service flounder, next.
…I seldom see docs make the truly horrific financial disasters that athletes or lottery winners tend to make (casino, restaurant, car dealership, etc large investments), and those are the big fish the attorney in this article is trying to get piece$ of. He wants giant and clear targets for big settlements once or twice a year. It is a cool niche; I agree. He must have been buddy-buddy with a lot of sports agents growing up.
MDs just aren’t in the situation of having massive money windfalls incoming for a short time that they will tend to squander mainly into the same place/person… most MDs just have large checks coming in, yet some think those will keep increasing or keep coming in forever. I don’t think there would be much profit for attorneys to try to get money from docs who mis-managed finances. What would he do? Sue the realtor who sold a guy a 1.5M house when he needed 0.5M? Sue the broker or lender or credit card for 1.5% too high on rates or too low on returns? It would be tough. Suing the boat or Porche dealership wouldn’t be worth the time… and probably wouldn’t work. The doc problems are usually fairly gradual manufactured crises… the whole airplane veering a couple degrees off course and ending up 3 states east of landing cliche.
Docs just tend to make the minor slip-ups here and there, like too low a savings rate, absurd amounts of insurance, or high ERs on funds or stagnant funds. The most common doc mistake is certainly too much house or wife lifestyle (which almost invariably intertwines with house selection). That is the same for most males… but docs just do it on a bigger level. Occasionally, it is excess spending on expensive toys/vacas. In the internet info age, there is no reason not to DIY most basic financial stuff or stuff you are interested in… and check reputation and competitor rates on the financial products/services you decide to hire out. It is pretty common sense.jfoxcpacfpModeratorStatus: Financial Advisor, Accountant, Small Business OwnerPosts: 7326Joined: 01/09/2016
And…sometimes…a very few rare docs may even have to worry about too much husband lifestyle. Golly gee, imagine that 😉
Johanna Fox Turner, CPA, CFP, Fox Wealth Mgmt & Fox CPAs ~ 270-247-0555