If you are lucky to be earning a high annual income but you are unhappy with your returns, here are some tips for making 2017 your Financial Recovery Year!
Change your thinking. If you are a doctor that may be difficult because you have had so little time to even contemplate money matters. So, do a year-end review. What is bothering you about your financial snapshot? Is there a smile on your face or a grimace?
Reject convention. We may not know it, but we have been brain washed into believing if we have a retirement account, hire a broker and invest a little each month we’ll have a fine retirement. Not likely. Paper assets often under-perform, whereas hard assets — multifamily and commercial real estate, gold, silver, land, etc. — provide steady returns.
Improve your tax burden. Some doctors and other professionals reject real estate because it sounds too complicated. Also, they think it means buying a lot of single-family homes, and then getting midnight calls to fix the plumbing. Not true. Invest in the right kind of property and you will enjoy amazing tax benefits that allow you invest more pre-taxed money in more property. This cycle of smart use of capital expands your net worth to dimensions you’ve only dreamed of.
Sketch a “retire” early plan. If you love your work you may not be ready to retire. That’s cool. Rethink the meaning of retirement. Many younger doctors and professionals don’t want to wait till 65 to rest and recreate. They want time now while they are still vigorous. Start taking modest pieces of time — early retirement — away from work to recharge and reconsider your path to fulfillment.
Work with a mentor. I am a former full-time ER doctor who now manages a network of micro-hospitals. The new arrangement is demanding but allows me to plan my time, unlike my years as an ER physician. By taking command of my schedule, I was able to co-found an asset management firm that teachers doctors and other professionals how real estate can make good use of high-end earnings. Let’s talk. My goal in 2017 is to help as many doctors as I can improve their financial wellbeing.
Add the “right” kind of debt to your financial plan. Again, we’ve been brainwashed into thinking we must buy a home. I love my home. But my home is not an investment, it is a liability. To offset the mortgage (a big debt for most families) I buy property that pays me a monthly dividend. Yes, I’m holding the mortgage (with other investors) but it making me money. A single-family home only makes a profit — you home — upon sale of property. But you need some place to live, right? Add debt that is an asset, not a liability.
Get your “significant other” involved. I could not fully operate as a professional real estate investor without the support, partnership and hard work of my wife, Micaela. My free guidebook here on this site will help you save a lot of money and enjoy big tax breaks once your wife or husband is involved.
Believe there is a way to change. Nothing happens overnight — except a revelation, which occurs at the speed of light. Imagine, first, what might be. Then find a way to make it happen, even if you believe your debt is to deep to give you leeway. You’d be surprised. Much can happen in 2017. But only if you believe in change, and want to embrace it.
Don’t miss my 2017 Passive Income Speaking tour. If you lead an institution, school or professional group and would like me visit with a Freedom in the Black presentation for expanding net worth, please contact me soon.
Happy New Year! Be well and prosper.
P.S. You’re smart. You can learn this stuff. I did. I’m here to help.