In the medical field, it is not uncommon for patients and physicians to seek a second opinion. After all, there are times when a second opinion is needed to confirm a diagnosis and treatment plan or to offer an alternative diagnosis or treatment approach. Additionally, an important skill for any good physician is to know and understand one's limitations. Dermatologists do not repair hernias and cardiologists do not read knee MRI's.
So why would a medical student or resident with a huge amount of educational debt, not seek financial direction from a professional? Listed below are several pitfalls I could identify that prevent medical trainees from turning to professional financial advice:
- Financial advisers are only for the rich.
- Financial advisers would cost too much money.
- Financial advisers just want to sell me unnecessary insurance policies.
- Smart and educated individuals can manage their own finances.
Now let's break it down:
Financial advisers are only for the rich: I remember while driving to medical school I would sometimes pass panhandlers and think to myself, I probably have less money and more debt to my name than that guy with his cardboard sign, "will work for food." The training to become a physician requires huge investments of time and money. Far from being financially rich, medical students and residents are rich with debt and rich with potential. It is this huge debt and potential earning power that complicates finances enough to warrant professional advice.
Financial advisers would cost too much money: Think of LeBron James during his high school years and everyone wanting to board the Lebron James express hoping to hit the jackpot. Similarly, there are plenty of advisers out there who are willing to work with medical students and residents at discounted rates or even for free, with the understanding that
your future increase in income may provide a future increase in the
adviser's income as well.
Financial advisers just want to sell me unnecessary insurance policies: There is no question, medical trainees need to be adequately insured to
protect your most valuable asset-- yourself! Unfortunately, advisers looking for a quick and easy sell may take advantage of this necessary need, but then try to sell unnecessary bloated and expensive insurance policies without much concern for your financial well being. Therefore, finding the right financial adviser with a history of positive experiences working with medical trainees and a good understanding of the medical residents unique financial situation is vital.
Smart, educated, and capable individuals can manage their own finances: Eight years of higher education consisting of courses such as physics, biochemistry, embryology, and anatomy does not equate to anything resembling a knowledge in finances. Jonathan Clements in a Wall Street Journal article stated, “
If you want to see the greatest threat to your financial future, go home and take a look in the mirror." This topic is so well realized, there is an entire book entitled, "
Why Smart People Make Big Money Mistakes And How To Correct Them: Lessons From The New Science Of Behavioral Economics" by Belsky and Gilovich, which I recommend.
In conclusion, as a physician, you would not hesitate to refer to, or consult a specialist such as an orthopod, cardiologist, interventional radiologist or oncologist under the appropriate circumstances. Realize that as a medical trainee you have limitations that despite your high SAT, MCAT, or USMLE board scores, managing money and debt is outside your specialization and you may need a financial second opinion from an adviser to help avoid costly financial mistakes further down the road.