Why More Physicians are Turning to Private Investments

Only 6 percent of doctors are happy with their jobs, according to one survey.

It isn’t until after spending years in medical school to earn their degrees, biding their time in residencies, and finally taking the requisite board exams that many physicians will enter the full-time workforce and start making the big bucks.

However, a number of doctors face the cold reality that being a physician is not all that it’s cracked up to be.

Sure they make good money, but they work long hours. The burden of student loans, credit card debt, and payments on new houses and cars cut into their income and make it hard for many to grow their wealth.

Just like humans who grow older and face the reality of our mortality, physicians that get further into their careers start to face the reality of their unpreparedness for retirement.

They have been making good money, but they are not in a position to walk away on their terms. Heeding the advice of veteran doctors who came before them and are facing issues such as caps on fees and services due to government regulation and insurance changes, more and more physicians are turning to passive income opportunities to grow wealth.

After watching crisis after crisis such as the Global Financial Crisis and the recent COVID-19 crisis erode their 401k’s and IRA’s, physicians are turning to alternative investment classes shielded from Wall Street volatility to grow and preserve wealth.

Their alternative investment class of choice is private investment funds that offer cash flow and appreciation – all backed by a tangible asset.

Private equity, commodities, energy, commercial real estate, and agriculture opportunities that offer cash flow, capital growth, and preservation are prime examples of assets consistent with the personal and investment objectives of physicians.

These include:​

  • Taking control of their schedules. By being able to take more time off without worrying about income.
  • Freedom from worry of how government and insurance company policies will affect their practice and incomes.
  • Less worry over lawsuits and other legal ramifications of practicing medicine.
  • Wanting to leave a legacy and provide generational wealth that will last across multiple generations.
  • Having more time and resources to serve others by contributing to charities and worthy causes.
  • To find satisfaction and happiness in building other businesses and partnerships outside of medicine.

Besides immunity to economic downturns and inflation, private investments offer investors higher returns at lower risk than public options.

Private investments also offer investors the ability to diversify in ways public equities cannot.

Since physicians don’t have the time to become experts in a particular asset class, they leverage the expertise of others to pick and choose from the best of the best in terms of management, asset classes, and geographic locations to maximize gains on their investments.

Private investments allow investors to diversify across a variety of attributes, including:​

  • Alternative Class
  • Stage of Development
  • Security Type
  • Type of Return
  • Holding Period
  • Geographic Location

Multiple levels of diversification ensure that continued cash flow and growth even as specific asset segments or geographic locations suffer setbacks.

Unlike public equities, where stocks rise and fall like a herd, the chances that every asset class and geographic location in the private investment sector will suffer a downturn at the same time is highly unlikely.

By leveraging the expertise of others and partnering with private investment funds, physicians can continue doing what they do best while building and preserving wealth on the shoulders of those with more experience and pooled capital to provide cash flow and appreciation with downside protection from a tangible asset.

Letting someone else do the heavy lifting frees physicians from having to learn about and manage particular asset classes on their own while reaping the benefits of an alternative asset class that provides above-market returns with less volatility.

That is why more and more physicians are turning to private investments to meet their financial objectives.