Do You Have a Financial Plan or a Collection of Products?
Disclaimer: The information provided is for general informational purposes only and should not be considered as professional financial advice. Please consult with a financial advisor for advice specific to your situation.
One of the most common conversations I have with physicians goes something like this: should I own this type of investment account? Should I buy this insurance product? I've heard it's a good idea but I've also heard it's not, and I'm not sure what to do.
A lot of the time, the real issue isn't the individual product. It's that there's no plan connecting everything together.
In this episode:
Why physicians often end up with a collection of products rather than a plan
The FOMO and guilt that comes with feeling like you haven't figured it all out
What a plan actually does that a collection of products can't
How data-driven planning helps you figure out not just what to do, but what not to do
How the Collection Happens
There's nothing wrong with any individual product or account on its own. The issue is how most people end up with their financial landscape: they pick things up along the way.
A physician might get disability insurance during residency because it made sense at the time, even if it wasn't the most robust option available. A few years into practice they incorporate. Then they open an RRSP. Maybe they hear about the FHSA for a first home purchase. Then someone mentions a particular investment or insurance product and they wonder if they should have that too.
By the time I meet with some physicians, they've collected a number of things, some because they researched it, some because they heard it was a good idea, and some because someone who sells it told them it was. What often hasn't happened is pausing to ask: does all of this fit together? Is this building toward something?
It's like dumping a box of puzzle pieces onto a table without the cover of the box. You might have perfectly good pieces, but without knowing what the puzzle is supposed to look like, it's hard to know if they all belong or how they connect.
The FOMO and the Guilt
I spoke with a physician recently who described feeling two things: fear of missing out on something they should be doing, and guilt that they hadn't figured it all out yet. They'd been in practice long enough that they felt like they should have it sorted, but they'd simply been too busy.
That's a very common thing I hear. And it's worth saying: not having your goals concretely figured out is not a failure. Most people who come to me don't have a clear picture of exactly when they want to retire, what that looks like, or what it will cost. Helping people get to that clarity is part of the process.
What a Plan Actually Does
When someone hires me to create a plan, the first step is understanding the big picture: what's most important to this person? When would they like to retire and what does that look like? How much do they want to help their children, financially, while alive or after they're gone? Do they need to support aging parents? Do they want to slow down rather than fully stop at some point?
Once those goals are clear, the next step is looking at the data. Not rules of thumb. Not what everyone else is doing. Actual data specific to your situation that shows whether a particular product or approach makes sense given your goals and what it would cost you to go one way versus another.
One of the things people tell me after I've delivered a plan is that they can finally see the big picture and the concrete next steps, both near term and further out. But one of the more unexpected things a plan does is help eliminate the fear of missing out. A plan doesn't just tell you what makes sense to do. It also shows you what doesn't make sense to do, which means you're no longer sitting there wondering if you're missing something just because you heard someone else is doing it.
That clarity, knowing what to focus on and what to ignore, can be one of the most valuable things a plan delivers.
What to Do Next
If you feel like you've collected a bunch of financial products but aren't sure if they all belong together or fit toward a clear goal, that's exactly what a fee-based financial plan is designed to address.
If you'd like to talk through where you're at and where you want to be, book a free discovery call. The purpose of that call is to figure out whether a plan would answer your biggest questions.