Quite often, financial advisors call themselves financial doctors under the belief that just as medical doctors look after the health issues of their patients, financial advisors take care of financial issues of their clients. A few years back, even I believed that a financial advisor could be called as a financial doctor, only to realize later that the scope/services offered by a financial advisor is much bigger, more long lasting and important than a doctor.
Educational qualification: Aspirants work hard for years to acquire prestigious degrees like MBBS or MD/MS. Thus, calling ourselves a doctors casually is an injustice to medical professionals, considering how easy it is to become an advisor. Thus, I believe that financial advisors can’t call themselves financial doctors.
Having said that, the scope of work of a financial advisor is much bigger and important. A financial advisor’s role cannot be just limited just to being a doctor.
Here’s why:
Tracking: The relationship with a doctor is transactional, no matter how old the relationship is. People visit the doctor only when they have an ailment. Nowadays, with the concept of family doctor fading away, doctors rarely keep a track of patient’s history whereas a good financial advisor keeps all client records and advice clients on a regular basis.
Expectations: People seek a financial advisor’s advice not just on their finances but on a number of other things too. For instance, a patient doesn’t seek doctor’s advice on whether he/she should take up a job offer or to find out about the best school for their kids.
Multiple responsibilities: Doctors are identified by their specialization: Pediatrician, Gynecologist, Ophthalmologist, Oncologist, Dietician, etc. People don’t expect a pediatrician to perform the role of a Gynecologist. In contrast, advisors specialize in multiple areas/products – mutual funds, insurance, fixed income, direct equity, taxation, etc. Also, advisors hand hold clients and become their friend, philosopher and guide.
Other than being an extended family member, an advisor is a comprehensive package possessing the skills of an Architect, Engineer, Doctor, Psychologist and a philosopher.
Don’t limit the scope of a financial advisor by calling them financial doctors.
The views expressed in this article are solely of the author and do not necessarily reflect the views of Cafemutual.