Millions of Dollars But Very Little to Show
often hear longtime dentists asking: Do I have enough investable assets to transition out of my practice?
Do I have enough to support my family’s lifestyle, based on the number of years I expect to live?
Many of these hardworking professionals appear successful on the surface – living in nice communities, and putting their children through higher education. But they’re only focused on the here and now – the short game.
What’s not looked at as often is what I call “future bank”: Your future income based on wealth accumulated over the years.
Most professional practice owners have had millions of dollars flow through their hands. Money comes into the practice, and many people have their hands out to take it – vendors, landlords, utility and insurance companies, and of course the tax man. After you’ve paid for licensing, staff, payroll, and overhead, you get what’s left.
After that, paying for your own lifestyle takes a pretty good chunk for most people. Then you’re supposed to take what’s left over (if any) and start making it work for you, building up retirement income and accumulating. However, that is not going to produce the lifestyle most of these people have become accustomed to.
The problem is never having a real plan for building wealth that turns into cash flow.
True wealth (freedom) isn’t created through having a high income – it’s created through having assets that produce income even when you’re not working.
I’m not a big fan of 401(k)s, cash balance plans, etc. – all those tax deferral schemes that save you money today, but produce no “future bank” on the back end. It’s an unpredictable accumulation game, and very few ever reach that accumulation number.
For most hardworking people still trading time for dollars, alternative investments such as Real Estate have the ability to take the capital one has, leverage it up, and multiply it over the years. The compounding effect can turn it into serious money.
But many people wait too long, and when they’re ready to “retire”, they’re looking for answers that just aren’t there. The lesson here is to start acquiring those capital investments as soon as possible, so you can get your investments working as hard for you as you do for them.
P.S. If you’d like to learn more, join me for a free live webclass I’m hosting this Thursday on creating a financial “Plan B”: www.freedomfounders.com/webclass
P.P.S. Whenever you’re ready, here are some other ways I can help fast track you to your Freedom goal (you’re closer than you think) :
1. Schedule a Call with Me:
If you’d like to replace your active practice income with passive investment income within 2-3 years, and you have at least $1M in available capital, then click the link to schedule a quick call with my team. If it looks like there is a mutual fit, you’ll have the opportunity to schedule a call with me directly. www.freedomfounders.com/schedule
2. Get Your Free Retirement Scorecard:
Benchmark your retirement and wealth-building against hundreds of other practice professionals, and get personalized feedback on your biggest opportunities and leverage points. Go to www.FreedomFounders.com/Scorecard to take the 3 minute assessment and get your scorecard.
3. Ready to Step Away?
“How Much is Enough?” This simple question keeps hard-working professionals at the hamster wheel of active income far longer than they need to be. Watch this free training, and discover a proven model for determining how much you really need before hanging up the handpiece! www.freedomfounders.com/training