In the dynamic world of veterinary practice ownership, where compassion, medical care and entrepreneurship intertwine, strategic planning is crucial in achieving financial freedom. As a dedicated practice owner, you work continuously in and on what is likely your largest financial asset. As you grow your business and benefit monetarily, making sense of your financial next steps is critical. Here are seven things to look for when hiring a financial adviser.
1. Someone Who Understands Your Needs
Selecting an adviser who comprehends the nuances and expectations you have of yourself and your practice is critical. Seek someone who acknowledges the financial challenges specific to your field and discerns the distinct opportunities it affords. A tailored financial approach is key to ensuring your practice survives and thrives in the long run. Ask whether your adviser works with other veterinary practice owners.
2. Someone With Qualifications and Expertise
Credentials are the foundation of trust, particularly when you entrust someone with your financial well-being. Prioritize a financial adviser who has recognized qualifications. In this context, the certified financial planner (CFP) designation is the gold standard. A CFP professional possesses a comprehensive understanding of financial planning and is bound by a fiduciary duty to put your interests above all. Look for an adviser with this badge of distinction, ensuring a commitment to acting solely in your best interest.
3. A Fiduciary
Choosing a financial adviser who has a fiduciary responsibility puts a steadfast advocate in your corner. A fiduciary is bound by a legal and ethical obligation to place your economic well-being above all else. Without the assurance, you might work with someone bound only by a “suitability standard,” which requires fewer obligations than a fiduciary.
4. Independence
Opting for an independent adviser is another crucial aspect of securing your financial future. They aren’t beholden to a specific financial institution or product, which ensures their recommendations are based solely on your goals. Independence fosters an environment where the adviser’s interests align with yours, free from external pressures. When working with an independent professional, you can trust that recommendations are made with your unique circumstances and aspirations in mind. You win when conflicts of interest are reduced and eliminated.
5. A Veterinary Focus and Personalized Approach
Life as a veterinary practice owner isn’t a cookie-cutter situation, and your financial plan shouldn’t be, either. An adept financial adviser will invest the time to understand your personal and professional goals. Additionally, having an adviser knowledgeable about veterinary practice ownership can go a long way. Seek someone capable of crafting a financial strategy aligned precisely with your aspirations, whether it involves scaling your clinic, orchestrating a seamless retirement or optimizing your investments.
You have a right to enjoy working with a financial adviser. Make sure you have a no-obligation introductory meeting to be sure the person is a good match for your needs, values and communication style. A personalized approach can make all the difference when establishing a long-term relationship with an adviser.
6. Collaboration
As a practice owner, you know all about the multifaceted life your money can take on. That’s why you should work with a financial adviser who collaborates with the other trusted professionals in your life. Your CPA or accountant should have a working relationship with your adviser so that major decisions are reviewed from a tax-centric perspective. If you want to sell or transition out of your practice, your adviser should work alongside your attorney, practice broker or valuation expert to run scenarios that reflect your business and financial goals. As you plot your family’s future, an adviser working with an estate planning attorney often yields favorable results. Don’t let your adviser be a one-person show.
7. Transparency
Open communication forms the bedrock of a fruitful adviser-client relationship. Your chosen financial adviser should adeptly translate complex jargon into easy-to-understand insights that you can implement. A CFP professional excels in technical expertise and in articulating concepts clearly. During the initial consultation, observe how the adviser communicates and gauge the person’s genuine interest in understanding your unique circumstances.
Additionally, be sure you feel comfortable expressing yourself openly with the professional. Money touches every area of your life, and a financial advising relationship often requires a degree of vulnerability. Transparency in the relationship, scope of work and expectations is critical for both parties to be successful.
Understanding the fee structure is vital to maintaining a transparent and trustworthy relationship. A reputable financial adviser will be upfront about fees, whether they involve a percentage of assets under management, an hourly rate or a flat charge. Ensure you grasp how the compensation aligns with the services provided, fostering a clear understanding of the value you receive. I encourage you to ask how much your financial adviser is paid for services.
In the busyness of running a veterinary practice, a skilled financial adviser assumes the role of a partner, guide and confidant. The adviser’s goal should be to harmonize your financial decisions with your professional and personal goals.
By seeking the expertise of a financial adviser, you’re fostering the economic health and success of your practice and future.
HOMEGROWN ADVICE
Research has shown that households that work with a professional financial planner are more likely to make better financial decisions than those without a planner, considering portfolio risk levels, savings habits, life insurance coverage, revolving credit card balances and emergency savings. Learn more at bit.ly/46ZUAL3.