In July 2016, CAP announced the launch of CAPAdvantage, a suite of products, services, and educational programs dedicated to helping its physician members survive and thrive in this time of dynamic and challenging change in healthcare. Responding to intense interest among our members in financial matters, CAP will present a webinar in January titled “Your Money and Your Life.” We have been fortunate to find a partner, Hippocratic Financial Advisors, whose principals have deep and broad experience and expertise in helping physicians understand and manage their finances.
Recently, Sean O’Brien, CAP’s Vice President of Membership Programs, sat down with Ravi Davis, CFP®, senior partner in Hippocratic Financial Advisors, to talk about the company, its services, its commitment to physicians, and its partnership with CAP.
CAP: Ravi, thanks for coming by. CAP is really pleased to establish what we believe is going to be a great relationship with Hippocratic Financial Advisors.
RD: We’re excited to be part of CAPAdvantage and for the opportunity to help CAP members improve their financial lives. As a physician-specialized financial planning firm, we’ve developed an in-depth understanding of both the unique financial challenges that physicians face and the unique strategies and tools available to physicians to address them. Just as importantly, as someone who started dating my wife while she was in medical school, I’ve cultivated an organization-wide understanding of the pressures physicians face in their daily lives. The service-focused culture of our firm is built around that understanding and is reflected in our willingness to meet clients at locations convenient to them (including via Skype if distance is prohibitive) with weekend and evening appointments regularly available to accommodate busy schedules.
CAP: How did Hippocratic Financial Advisors get started – has this been your profession from the start?
RD: I’ve been fortunate to enjoy a diverse career in finance, including executive/partner positions in tax consulting, apartment building syndication, and real estate development in addition to my seven years helping physicians. In 2007-2008, my partners and I were building a high-rise on Las Vegas Boulevard when the financial crisis hit. Forced to take some focus off my business and truly analyze the personal financial advice I had been receiving for the first time, I was shocked at the poor quality and obvious conflicts of interest.
CAP: That sounds like a double whammy: your business takes a hit and your personal finances may have been taking a hit all along.
RD: It felt more like a steamroller than a hit! When I found similar issues with the advice loved ones were receiving, I decided to take a deep dive into the financial system broadly and personal finance in particular to really educate myself. Despite a professional background in finance and taxes, I was genuinely surprised at how little I really knew about each of the various areas of personal finance, much less how to integrate them into an effective financial plan. My wife had a number of additional financial challenges and products unique to physicians, yet few in her professional circle had received any sort of financial education during their training or had a good understanding of these physician-specific planning issues. Fewer still had dedicated the necessary time outside of their practices and families to truly organize and optimize their financial lives. I have three physicians in my family, in addition to my wife, and count many more among my friends. Once the depth of the need for high quality, physician-specialized financial advice became apparent, the decision to focus my practice on helping physicians came naturally.
CAP: Where, or how, does a financial advisor – you – acquire the knowledge and skills?
RD: The term "financial advisor" covers a broad range of very different providers and services. Many who use that title are simply salespeople, representing large Wall Street firms, and are there to sell that firm or bank’s product(s) or service(s) couched as financial advice. It’s important that physicians understand the difference between that type of financial advisor and a fiduciary, whose first legal duty is to the physician, not that advisor’s employer. As with the acquisition of any knowledge-based skill set, dedicated intellectual investment in your craft and extensive experience are both essential. I was a science major in college, and worked in a lab as an URSI/Merck Research Fellow. Economics and finance are not hard sciences, but I am a strong believer in the value of scientific inquiry and that perspective has served as the foundation for developing our approach to financial planning. Intuition and tips from family and friends are not reliable guides, even for the very smart and educated. I frequently have the opportunity to speak with groups and at training hospitals on financial management and planning, and the data from the academic research have proven to be a powerful tool in counteracting the reams of inappropriate financial advice doctors are subjected to on an almost daily basis through media and acquaintances. One of the greatest advantages we’ve found in working with physicians is their ability to readily assimilate information presented to them on this basis. We pro-actively engage this ability in our work with physicians, providing them with the simplified and curated information they need to help make informed financial choices.
CAP: I get the feeling you and your colleagues have a lot more to say about the basis for your work, but time is moving on and we’d like CAP members to get an idea of what Hippocratic Financial Advisors can offer them.
RD: True. As an organization, we are proud of the work that we do and the population that we serve. If I could mention one more differentiator CAP members can expect from us, it would be the warmth and service level of our staff. Here is our offering for how we will go about establishing a relationship with a CAP member physician – and his or her family. We will schedule an in-person or Skype meeting that accommodates the physician’s schedule. At this meeting, we will review and discuss each of the primary areas of the physician’s financial life and develop a series of recommendations. The meeting is entirely complimentary to CAP members and they are in no way obliged to follow our advice or meet with us again. Just using us to serve as a second opinion is completely fine.
CAP: That all sounds great…
RD: Sorry to interrupt, but I should mention we also have integrated tax and accounting and wealth management firms. In combination, we offer a truly comprehensive, integrated, and physician-specialized financial ecosystem.
CAP: Now, for the bottom line: how does Hippocratic Financial Advisors get paid?
RD: First, let me say that CAP physicians will receive a reduced rate. It depends on the services utilized, but we get paid on a fee basis with the exception of things like auto and homeowners insurance, where we’re paid on a commission basis. We charge a flat fee for the development of a financial plan that is dependent on proximity to retirement age and anticipated planning complexity – and our initial consultation is free to CAP members.
CAP: Ravi, we’re out of time, for today at least. Thanks again for speaking with us and for being a part of CAPAdvantage – joining us in our commitment to provide exceptional services and products to our members and their families. We look forward to hearing your webinar on “Your Money and Your Life” in January.
RD: Thank you, Sean, and thanks to CAP.
CAP: Watch for our webinar, “Your Money and Your Life,” coming in January. In the meantime, you may request your free copy of “The Five Most Common Financial Mistakes Physicians Make” by visiting www.CAPphysicians.com/HFA.
Carole Lambert is Vice President, Practice Optimization for CAP. Questions or comments related to this article should be directed to clambert@CAPphysicians.com.