Giving back to health care providers through financial advice

The Covid pandemic highlighted the need for more physicians and health care professionals around the world.

Erika Safran, founder of Safran Wealth Advisors, knows this all too well. As part of her niche, she’s an advisor that health care professionals seek out and rely on for financial planning.

After all, there’s a reason she was recognized as a leading adviser in Medical Economics and included in its annual list of Best Financial Advisers for Doctors.

“The organic growth of the area really began from one client,” Safran says. “And one client who we worked well with recommended us to an associate, and then another associate. It’s not to say that the bulk of our client base are medical professionals, it’s just an area that I enjoy.”

Safran, who’s based in New York City, added that she likes the people in the health care industry and has an appreciation for the way doctors think. “They’re super smart and super busy … their need to delegate, and the responsibility that they put upon us, I appreciate it.”

When it comes to an advisor’s niche, Safran thinks some firms, whether they’re small or large, make a concerted effort to focus on a particular niche because that’s where they feel opportunity lies.

“I wasn’t so much being opportunistic as much as I was enjoying what I was doing and so I allowed it to grow in the direction that it took me. Is that excellent business planning? I don’t know,” she said.

“I was told once by business coaches that, without question, focus on a niche, but that doesn’t mean that you should put all other clients off your radar,” Safran added. “Focus on what you enjoy doing, but serve the other clients as well, who you want to work with. So, that’s how that really developed.”

Safran serves roughly 14 clients in the health care profession who are in their early to mid-50s or coming out of medical school. Her ultimate goal, she says, is to help build the individual’s wealth.

“We do that by helping them select the investments that are commensurate to their risk profile and the rest of their portfolio and their retirement plan,” Safran says.

As for independent physicians who might be opening their practice for the first time, Safran noted they’re just like any other business owner.

“You have to establish your employees, you have to establish your payroll, you have to establish your retirement plan. Who’s going to do your books for you? As brilliant as anyone might be, you don’t know what you don’t know. It’s not because it has nothing to do with your qualifications in your career. It’s just that managing a business, your retirement plans and the financial aspects, may not be top of mind.”

Because the health care industry doesn’t have to deal with financial life decisions, the other aspect of Safran’s work is looking at the core holistic, financial plan and portfolio management strategies with her clients.

“Looking at cash flow, what is your tax situation? What are your objectives, who are you gifting to? What is the size of your estate? What are the estates? What are the actions that you need to take to protect your estate, to reduce taxes on your estate, depending on your wealth level?” she typically asks her clients.

Ultimately, Safran enjoys working with doctors and health care professionals simply because the wealth management industry and health care industries are vastly different.

“I enjoy time that I put in when there’s an opportunity to solve a problem, and I find that with medical professionals, as well as business owners, there’s a lot of opportunities to add value, and I enjoy that,” Safran said.

“I enjoy something that is so apparent, that is obvious to me but is invaluable to the client. I don’t know, it’s the sweet spot. Financial management, especially in the medical field, is super valuable.”

Name: Erika Safran
Position: Founder
Company: Safran Wealth Advisors
Founded: 2009
AUM: Approximately $125 million