Doctors have a disadvantage when it comes to starting a profession. Medical practitioners begin earning when they are almost 30 years old, even though most people start working in their early twenties. This is due to a lengthy training period.
Paying off student loans, starting a family, and establishing a practice are part of the early learning phase. Unfortunately, a doctor’s financial situation is influenced by late starts and extended unpredictable work hours. As a result, they don’t have a lot of time to focus on financial planning.
However, if you are a doctor and looking for some investment advice, this blog is certainly for you.
1. Savings Account with a High Yield
This one may appear straightforward, but only because it is. You can make a surprising amount of extra money by moving your funds from a traditional, brick-and-mortar bank with a low-interest rate to a high-yield savings account online over time. In addition, online banks, like traditional brick-and-mortar banks, are FDIC-insured, so your money is safe.
2. Portfolio of Dividend-Paying Investments
Create a dividend-paying investment portfolio (stocks, bonds, and mutual funds). Dividends are payments made by corporations to their shareholders as a percentage of their profits. They’re frequently handed out on a quarterly basis. If you already have an investment portfolio, now is the time to review which stocks, bonds, and mutual funds you possess. Those who pay a dividend will experience regular returns.
3. Have Your Own Rental Property
This one appears to be quite simple on the surface — simply purchase a house, find a renter, and generate cash flow as your income surpasses your expenses. The initial investment may be high, and it may take more time than other items on the list, but the reward can be substantial and continue for many years. This idea of real estate investing for doctors is one of the most prevalent revenue-generating methods. If you plan to buy your property, it’s always advisable to consult real estate firms like MarketSpace Capital.
4. Peer-to-Peer Lending
This approach uses web-based services like Lending Club and Prosper (two of the best), which connect consumers seeking loans with people prepared to lend. In this instance, lenders are essentially functioning as a bank.
Basically, folks who need money will create an account on the site. The debtors are then assigned to a category and assigned a “rating” depending on their credit history and interest rate. As an investor, you will contribute funds to these loans, which will later be repaid at a predetermined interest rate. So invest and see your monthly interest payments arrive in your bank account.
5. Real estate Crowdfunding
Crowdfunding is a very new way to invest, having only been around for a few years. Most people are familiar with crowdfunding sites like Kickstarter and GoFundMe, and real estate has a similar premise. Developers are always on the lookout for new methods to fund their initiatives. Investors can access these properties through numerous online platforms and choose to invest in residential and commercial real estate.
Hope you found this blog insightful!