Early in your career, you may feel like you have so little disposable income that you should put off financial planning. In fact, the opposite is closer to the truth: Paying down debt and managing your income during the early years is when having a strategy can make a real difference.
If you’ve been struggling with your finances, know that you’re not alone. A 2016 study by AMA Insurance found that nearly 40% of physicians say they are behind in their financial goals. The good news is that you can get back on track with the help of a financial advisor.
According to the study, 67% of doctors who used a financial advisor say they are ahead of their financial goals, while only 44% of those without an advisor were comfortable with their financial planning. But how do you know if that advisor is right for you?
“You should feel comfortable with your financial advisor, but most importantly know you can trust them because you are relying on them to do the right thing with your hard-earned money,” says PNC Wealth Director Lori Craig. Beyond comfort, however, are the essentials.
Shop around. Free consultations are an excellent way to assess a financial planner’s initial advice, demeanor and the level of detail they are willing to share to win your business. Ask for a prospectus and an itemized list of fees.
Request credentials. Financial advisors, like doctors, need to have licenses and official documentation. Look for a Registered Investment Advisor (RIA) or Certified Financial Planner™ (CFP®). These qualified individuals need to pass certification exams and ethics and background checks. You can also cross-check credentials with regulatory sites such as the Financial Industry Regulatory Authority (finra.org).
Accept no guarantees. The biggest red flag is a guarantee of a specific investment return.
Ask people you trust. Word of mouth matters. Friends, colleagues and family can be excellent resources for financial planner recommendations.
Make sure the planner is invested in you. Does the planner ask about your health? Family plans? Life insurance coverage? Your planner should be invested in your total financial health — which means more than simply handing you a huge folder of marketing materials.
Create a review process on your terms. Once you work with a planner, decide whether you will meet quarterly or semiannually. Make sure that your questions are always being answered and that you fully understand portfolio decisions.
Start Your Cash Flow Conversation
Give us a call at 1-855-PNC-CFO5 (1-855-762-2365) or fill out our simple form and a PNC Business Banking representative will get in touch with you.
Request a Contact »
AMA Insurance, 2016 [amainsure.com/2016-report-financial-preparedness-practicing-physicians-summary.html]
The third-party trademarks referenced in these articles are owned by and are the registered trademarks of their respective third-party owners. There is no affiliation, sponsorship or endorsement relationship between PNC or its affiliates and any such third party.
PNC is a registered mark of The PNC Financial Services Group, Inc. (‘‘PNC’’)
Business Insights is prepared for general information purposes by Manifest, LLC and is not intended as legal, tax or accounting advice or as recommendations to engage in any specific transaction, including with respect to any securities of PNC, and do not purport to be comprehensive. Under no circumstances should any information contained in the presentation, the webinar or the materials presented be used or considered as an offer or commitment, or a solicitation of an offer or commitment, to participate in any particular transaction or strategy or should it be considered legal advice. Any reliance upon any such information is solely and exclusively at your own risk. Please consult your own counsel, accountant or other advisor regarding your specific situation.
Neither PNC Bank nor any other subsidiary of The PNC Financial Services Group, Inc. will be responsible for any consequences of reliance upon any opinion or statement contained here, or any omission. The opinions expressed in these materials or videos are not necessarily the opinions of PNC Bank or any of its affiliates, directors, officers or employees. Banking and lending products and services, bank deposit products, and Treasury Management products and services for healthcare providers and payers are provided by PNC Bank, National Association, a wholly-owned subsidiary of PNC and Member FDIC.
Lending and leasing products and services, including card services and merchant services, as well as certain other banking products and services, may require credit approval.