In my opinion, this is where many physicians get screwed over. Literally losing hundreds of thousands, and in some cases, millions of dollars. On the other hand, illiquid investments are where many physicians make out like bandits and multiply their wealth many times.
They go and they have this beautiful rose of their savings and then they go and invest in something that freezes it up in a weird illiquid investment.
One of the best pieces that I absolutely agree with is creating multiple streams of income. Don’t just rely on your portfolio to create wealth!
Where I see doctors messing up is where they hand the keys over to someone else and they don’t know anything about the investment opportunity — they may not even understand the concept that they invest in and how it could make money or even worse, lose loads of money.
Know the business in-and-out. Understand what it would take to be profitable. Demand a rate of return from the investment in the form of cash flow. Know the customer.