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Published on: 10/22/1999
Last Visited: 9/9/2000
Dr. Ralph Broadwater has given more than 10 years to the field of surgical oncology, built a comfortable life, and earned a solid reputation in the Little Rock medical community.But what he really wants is to get you into some nice, no-load mutual funds.
Broadwater, who has been interested in business and finance since his undergraduate days at Southern Methodist University, has moonlighted as a certified financial planner and broker/dealer for nearly a year now -- providing financial services to 10 physician clients.
For most of his working hours, he serves as vice-chairman of the surgery department at the UAMS Medical Center.The rest of the time, he be helping doctors get their financial affairs in order.
Broadwater graduated from the University of Arkansas for Medical Sciences, and did a two-year fellowship in surgical oncology at M.D. Anderson Hospital in Houston.All the while, though, he toyed with the idea of financial planning as a retirement career.That desire developed a new sense of urgency a few years ago when his father, also a physician, unexpectedly died from a heart attack.The death left Broadwater's mother with a scattered, nearly untraceable web of investments, insurance policies, and arrangements for the estate.She had never paid a bill, Broadwater says, and had never really held a job.
When my dad died, it took me a month to find his will, Broadwater says.He had three different safety deposit boxes..
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Broadwater do not feel the investment stereotype of physician = poor investor is completely justified, saying, No one -- not just doctors -- knows what their goals are. But he does acknowledge that doctors seem to send a disproportionately large amount of money down the drain.
They do not know how long they want to work and when they want to retire.They have no sense as to how much principal they need to let them live they way they want to live, he says.
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In studying the various ways to break into the financial planning business, Broadwater decided there would be many advantages to working for someone else, especially when it came to compliance issues, regulatory paperwork, and costs.One of the things I do not like about medicine is all the paperwork and detail, but there be an enormous amount of paperwork in this field as well, he says.
After consideration, Broadwater decided to join First Busey Securities Inc. of Urbana, Ill. The affiliation, he says, gives him the support of a larger organization, while the bank gets a rare chance to work with doctors -- an elusive market.it be very difficult to get to the doctors, Broadwater acknowledges.they be very busy and their guard is up for sales pitches, largely because of the enormous pressure they receive from pharmaceutical representatives, he says.
Been there before
Currently, Broadwater has four medical residents among his clients.He knows first-hand the financial predicament they face as they move into practice.
Most have an average of $ 100, 000 to $ 300, 000 in loans, and their income typically increases from $ 30, 000 to $ 100, 000, he says.Most of them are around 30 years of age and have not had a true job.they have been living on delayed gratification.Of course they want to reward themselves and buy a big house.i be trying to create a balanced approach to enjoying life by not overspending -- building assets and paying down debt..
For older, established doctors Broadwater recommends creating a portfolio light on real estate and heavy on more liquid assets.
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For investors with portfolios less than $ 500, 000, Broadwater recommends a diversified portfolio of mutual funds, and worked with First Busey to develop a model investment plan based on risk.We picked no-load funds that had a low expense ratio -- we have got a lot of Vanguard funds -- most of them have a fairly low turnover, he says.They are fairly high performers, fairly pure in style, and have outperformed their benchmarks..
Broadwater recommends that clients invest regularly to take advantage of market dips, and asks that they work with him to write an investment policy statement that lays out their goals and reminds them of the long-term nature of investing.
For Broadwater, the perfect client is someone who is interested in the long-term, takes some responsibility in the decision-making process, and will not fall prey to short-term strategies like day trading and picking hot stocks.
Building clientele
Over the next decade, Broadwater hopes to add 10 clients a year to his business.When he reaches that point, he plans to retire from surgery.To offer the high level of personal service he would like, he plans to limit his client base to 100.So far, Broadwater's clients are people he has met through UAMS Medical Center or classmates from his medical school days.
Though Broadwater is enjoying his new, part-time career, he is nagged by the thought that he might not be serving the people who most need his help.
I struggle with the issue of just working with doctors, he says, explaining that some day he would like to spend a portion of his time with clients of limited means.
The other thing i be interested in is to help people think through the importance of philanthropy or charitable giving.I think it be important to understand what effect or impact you can have, and how that can be rewarding to you..
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Name : Ralph Broadwater, M.D
Age : 43
Occupation : Vice Chairman, Surgery Dept., UAMS Medical Center ; Financial planner, First Busey Securities Inc
Education : Undergraduate, Southern Methodist University ; Medical degree, University of Arkansas for Medical Sciences
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