#276 Is a Financial Advisor Worth It? What Doctors Need to Know Before Hiring One ft. Peter Kim, MD

Do You Really Need a Financial Advisor?

Peter begins by asking the question many doctors think about: should you hire a financial advisor or manage your money yourself? He says the goal is to look at both sides and show how to stay in control either way.

Doctors are trained to care for patients, not to manage investments or plan for retirement. With long hours and busy lives, it can feel easier to hand money decisions to someone else. People hire advisors to avoid mistakes, have a solid retirement plan, make smart investments, or save time.

A good advisor can help with planning, investments, taxes, estate planning, and insurance. But not all advisors offer the same services or have the same skill level.

Peter once believed advisors were unnecessary after reading DIY finance advice online. That changed when he heard stories of doctors who lost money because they went it alone.

A Colleague’s Costly Lesson

Peter tells the story of a senior anesthesiologist close to retirement who admitted he was not sure he had enough saved. This surprised Peter.

The doctor had always managed his own finances. He chased hot stocks, invested in trendy medical tech without much research, avoided real estate, and never built other income streams.

Peter saw that intelligence was not the issue. Without guidance, his colleague made choices that hurt his financial security. A good advisor might have prevented some of these mistakes.

This made Peter realize advisors are not always necessary but can be valuable in the right situation.

When Hiring One Makes Sense

Peter explains when an advisor might be worth it. Examples include starting a career, getting close to retirement, starting a business, feeling overwhelmed, or knowing you take big risks.

Sometimes the biggest benefit is avoiding a major mistake. One prevented loss can save more than the cost of an advisor.

Peter admits he has made poor investments. Looking back, he would have paid for help in certain situations.

He warns against advisors who push products for commission or encourage you to hand over all control. You should always learn the basics and stay involved.

Three Questions to Ask First

Peter gives three questions to ask before hiring an advisor.

1. Do you work with physicians? Doctors have unique timelines, debt, and wealth-building years.

2. Are you a fiduciary all the time? They must put your interests first in all situations.

3. How do you get paid? Fees, commissions, or a percentage of assets create different incentives.

He warns about advisors who discourage real estate simply because they do not benefit from it. Look for someone who is open to your interests and builds a custom plan for you.

The Final Takeaway

Peter ends by saying the choice to hire an advisor depends on your goals, available time, willingness to learn, and comfort with risk.

Even if you work with an advisor, you should never hand over complete control of your money. Learn the basics of finance, stay engaged, review your reports, and meet regularly. This keeps you informed and in charge of your future.

He reminds listeners that an advisor is not a lifelong requirement. You can use one early on to get set up, then manage things yourself. Or you can go without one for years and bring one in when you face a major transition or want a second opinion.

Peter shares that he has worked with advisors on and off and found the experience valuable. Even when he disagreed, the discussions forced him to think more clearly about his goals and strategies. Hearing another perspective helped him confirm what he truly wanted.

He closes by encouraging listeners to share the episode with anyone wrestling with the same question. His final reminder is that this decision is more nuanced than most people think. The best approach is the one that keeps you confident, informed, and moving toward financial freedom.

As he says,

“Regardless of whether you hire one or not, my advice is never outsource ownership over your funds… Stay engaged… Meet with them regularly… Do not ignore the reports… That counterpoint actually helps you realize what you really need or want and whether you really understand what you are doing.”