Why Smart Doctors Invest in Real Estate?
The average retirement age of almost every profession is increasing, and for doctors, that number has gone up from age 65 for many. While the median age is nearing 66, it is no longer uncommon for doctors to stay in their practice up to age 70 and beyond. There are many contributing factors in this increase, from reduced insurance reimbursements to higher overhead costs, to regulatory compliance and taxes. Overall, something needs to change with most doctors' investment plans to better safeguard their retirement age, and traditional retirement funding strategies just aren’t cutting it. That’s where real estate investment for doctors come in.
If you go to any certified financial planner or other retirement planning expert, what you’ll find is that they all are going to be pushing the same financial strategies, and all of these are based on investment within Wall Street, often times through piling money into 401Ks – a form of kicking the tax can down the road. Howver, that “traditional” thinking is fraught with shortcomings and leaves doctors vulnerable to market volatility with little certainty and peace of mind that they will have enough to last in retirement.
Discovering Better Financial Options
It is never too late to start considering more options when it comes to your retirement future. While, as a doctor, you have 8 or more years of formal training in medicine, you have probably spent very little time on business acumen training. This isn’t necessarily your fault. Medicine is a complicated field, and you may just not have the time. They don’t teach wealth building in medical school. It’s up to you to educate yourself and find a better way. The main principle to understand is that working your practice is active income, meaning: it requires you to show up and put in the work. Whereas, with proper real estate investment for doctors, you have the opportunity to produce passive income which is not dependent on your labor (trading time for dollars). If you start early and invest strategically into cashflow producing assets, you should be able to completely replace your active income long before reaching the average retirement age.
Real estate is a great investment opportunity for smart doctors; however, you can’t just fly into it without some research and know-how—as well as the initial capital to support it. The important first step is to invest in your practice. Securing the financial stability of your practice and improving efficiency will allow you to build up the capital needed for real estate investment. Your practice should be the economic engine that fuels your investing.
Your next investment should be in yourself. Build up a network of mentors and peers with the same goal as yourself. By surrounding yourself with those that are smarter than yourself in real estate investment, you will be able to benefit from their knowledge, build up your network, and start learning the ropes from those that have taken your current path before. One of the sayings at Freedom Founders is, “your network is your net worth.”
Trying to become a “DIY” investor can lead to challenges and frustrations. Many doctors become “accidental landlords” and find themselves dealing with tenants, maintenance, and other headaches.
The key to being a truly passive investor lies in strategic collaborations with the right people. It’s all about your network.
Freedom Founders, founded by David Phelps, D.D.S., helps doctors and dentists discover what they need to do to gain a passive income that will secure their future retirement. Starting with the Freedom Blueprint, defining core beliefs and values you won’t give up for any sum of money, and determining the monthly cash flow (before tax) that is required to pay for your desired lifestyle (your “Financial Freedom Number”), we can work together to reverse engineer the specific capital asset base needed to secure your future. Through the Freedom Founders network, your capital can be deployed into a real estate investment for doctors that produces annuity income without risking the capital base.
Security in Community
Through the strength of the Freedom Founders network and community, you will find yourself more secure, and you’ll have the peace of mind of knowing that your new passive income will help build your capital to the levels needed to retire comfortably—without risky Wall Street deals or abysmally low-return “stable investments.” Discover the power of the road less taken and consider real estate investment for Doctors through Freedom Founders. Visit our website for more details.