Have you ever worked a shift where nothing clicked? The CT scanner was
down. On call docs refused to admit patients. The nurses couldn’t get
IVs. You felt helpless and couldn’t control anything. You might feel the
same way with your investment portfolio.
Despite the headlines, it’s been a solid year for investing. In fact, if you’ve been investing and you don’t have a far higher portfolio value now than you did two years ago, you may be in serious need of a new investment plan.
Part IV, In which we look at an example group and provide some benchmarks for guiding your own group’s discussion of administrative compensation.
If you want to get a handle on your finances, simplify your life by
cutting out the excess investments, advisors and fees that are weighing
The fee and payment system in medicine is a big black box. Patients
don’t know the true costs of medical care and we have no clue what bill
the patient gets when we order all those tests. There’s a black box with
financial advisors also: fees. I have not yet met a physician who knows
exactly what fees he’s paying to his financial advisor.
A very busy emergency physician, Dr. Smith turned to a financial advisor
– Frank – to handle his investments. Initially Dr. Smith was happy, but
eventually realized he didn’t understand the investment strategy.
No question generates more angst or consumes more discussion for a
democratic emergency medicine (EM) group than how much to pay for
practice leadership and administration. In the typical democratic EM
group, every dollar of proposed leadership or practice management
expenditure is challenged and every dollar of approved expenditure is
resented to one degree or another.
In financial advising, the magic “F” word is “fiduciary.” If your advisor doesn’t use this word, watch your back.
Want to manage your wealth like a pro? Start by checking your ego at the
door and avoiding these five classic financial planning pitfalls.
Recap from last month: Dr. Smith, a 45 year old emergency physician with
a $500,000 investment portfolio, didn’t have time to manage his
investments and hired Frank, a financial advisor at a big brokerage
firm. To continue the story, upon transferring his portfolio to Frank’s
firm, Frank tells Dr. Smith that after thorough research he uses only
the best money managers.