Support our online development, and advance our onground research initiatives in free market economics, as we seek to showcase the brightest Next-Gen minds.
THE ME-P DISCLAIMER: Posts, comments and opinions do not necessarily represent iMBA, Inc., but become our property after submission. Copyright © 2006 to-date. iMBA, Inc allows colleges, universities, medical and financial professionals and related clinics, hospitals and non-profit healthcare organizations to distribute our proprietary essays, photos, videos, audios and other documents; etc. However, please review copyright and usage information for each individual asset before submission to us, and/or placement on your publication or web site. Attestation references, citations and/or back-links are required. All other assets are property of the individual copyright holder.
| Salary versus a “Seat at the Table” | |
 |
|
Currently, there is much buzz in healthcare about physicians looking to take on greater leadership roles and move beyond traditional patient care responsibilities. And, there are many doctors with the inclination and ability to rise to the occasion; despite diminished salaries, fringe benefits and other financial incentives going forward in the era of health care reform.
The Financial Services Industry
But, is this the case in the [reforming] financial services sector in the era of Dodd-Frank, etc? Of course, physicians are a special class of “learned” professionals, and Registered Representatives [RRs], stock-brokers and/or related financial advisors [FAs]; not so much!
And so, do you think FAs are willing to delay immediate compensation gratification for a “seat at the leadership” table in their respective industry sub-sectors?
IOW: Are FAs willing to accept “purpose-over-pay” like some doctors and physician executives, today?
Speaker: If you need a moderator or speaker for an upcoming event, Dr. David E. Marcinko; MBA – Publisher-in-Chief of the Medical Executive-Post – is available for seminar or speaking engagements. Contact: MarcinkoAdvisors@msn.com
Share this:
Filed under: "Advisors Only", Voting Polls | Tagged: "Purpose over Pay" for financial advisors, financial advisor compensation, financial advisors, RRs, stock broker salary |
The Leading Business Education Network for Doctors, Financial Advisors and Health Industry Consultants 
Dodd-Frank will have limited success in the reform of the financial services industry as long as the players remain brutally conflicted in their ability to give honest, trustworthy care and advice. Washington DC lobby groups that represent a large portion of financial advisors (Insurance agents and national brokerage houses) continue to insist that a financial advisor (FA) can be a commissioned salesperson and still be a trusted fiduciary. Can you imagine Physicians as commissioned salespeople?
In the United States, there are no set standards or qualifications to be a “financial advisor” or a “financial planner.” All physicians in the United States have standard qualification requirements and rigid certification tests they must pass.
Organizations such as the Financial Planning Association (FPA) and the National Association of Personal Financial Advisors (NAPFA) are putting up a good fight in the battle to make financial advisory a respected profession, much to the displeasure of some sizable opponents and corporations. The debate over who is a true fiduciary is at the center of this skirmish. Many large participants are unwilling or unable to change how their investment products are delivered, and find it easier to rationalize common sense, twist the meaning of words, and spend more money on their lobby groups and mind numbing advertising.
Changing one’s business model from a commission or fee-based to a “fee-only” is difficult for a financial advisor to do. I know. I went “fee-only” last year after being totally enmeshed in the commission/fee-based model since 1989. I kissed away a healthy 5 figure dollar amount of retaining commissions (also known as 12b-1 fees) that I received annually from prior investment sales. A noticeable pickup however in new business from individuals that are seeking a fee-only advisor has been refreshing. Central to the fee-only paradigm is the concept that one works with other skilled and knowledgeable professionals in order to serve the client in the best way possible. This includes using low-load insurance products and using outside insurance specialists that do not work for a large commission in helping the clients cover their risk issues in the best and most affordable way possible. Can you imagine needing major heart surgery and your Primary Care Physician insisting on performing the operation? Of course not.
Physicians are a special class of “learned”professionals, and until FA’s are willing to accept “purpose-over-pay” like some doctors and physician executives have – and are willing to delay immediate compensation gratification – then we will get what we deserve: A distrusting public and a sales job.
David K. Luke, MIM
Financial Advisor – Fee Only
LikeLike