Guidance for a future physician towards growing passive income

Guidance for a future physician towards growing passive income

Member since 2021 · 2 posts · 1 vote

Hello all, 

I'd like to preface by saying I've always been an incessant planner, so if this bugs you, I totally understand and feel free to keep scrolling. I am 21 and was accepted into medical school and will start this summer. I've been fortunate enough to receive full rides for both undergrad and medical school, which will allow me to graduate medical school with 0 debt to my name. Although attending physician salary is 10-12 years away, I want to learn as much as possible about investing so I'm fully prepared to make the most of my advantageous situation. I've done several rough calculations (obviously no one can predict the future of medicine, or anything for that matter) and my take home once I am an attending for all the specialties of interest to me will be about 150-200k after taxes, living expenses, and maxed out 401k and Roth IRA contributions. I.e., starting at 30-32 years old, I will have 150-200k per year to invest and no debt. Additionally, my household income during residency will be ~120k for 4-6 years prior to becoming an attending depending on residency length. I am passionate about medicine and it is a job I know I will enjoy. However, I want to set myself up for success via passive income real estate streams as fast as possible so if I want to work less, want to travel more and work part time, do charity work, side businesses, etc., I will have the option to do so. Essentially, I want freedom. My goal is to have passive income streams at 200k/yr by 45. Adjusting for inflation, that should allow me and my family to have a comfortable life without having the pressure of NEEDING to work, persay. How would you advise going about this, what resources do you recommend I study and look into, etc.?

thank you!

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  • Rental Property Investor · RVA · Member since 2016 · 5k+ posts · 4k+ votes
    5y

    There are a bunch of physician-centric personal finance thought leaders you can start to follow. I've talked with a few, including Leif Dahleen (Physician on FIRE), Pranay Parikh (man behind the scenes on a major doc-related personal finance brand), Vanessa Peters, Doc G, Nisha Mehta, Dawn Baker, and a few others.

    Generally speaking a lot of the advice boils down to:

    1) Do not let your lifestyle inflate like your colleagues' inevitably do when they get out of residency

    2) Manage your med school debt & keep it minimal (you have that handled!)

    Good on you. Be patient (heh). When you and your colleagues start making $500k and you see many of them immediately inflate their lifestyles, keep your eyes on the prize. Live modestly and invest like crazy and you'll be very far ahead. Manage your lifestyle and invest everything you can early on, because time is your friend. But only if you use it.

    Also consider joining FatFIRE groups.

  • Minneapolis, MN · Member since 2020 · 61 posts · 56 votes
    5y

    @Jim Jones

    First off, congrats! Not many can say they have 0 debt for medical school. If you want to make that passive income goal happen, I fully expect you will be able to pull that off. My only piece of advice would be to.... stay out of debt!!! With someone earning as much as you will be, you’ll have no problem paying for your real estate in cash. I firmly believe the fastest way to wealth is to run from debt!! I’ll probably get skewered for suggesting that on this site, and that’s completely fine by me. If you live way below your means (for you that’s probably still a very comfortable life) you can buy several houses cash in very little time.

  • Member since 2021 · 2 posts · 1 vote
    5y

    Thank you both for the advice and replies! I will look into those people you mentioned, Taylor. 

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