In a previous blog post (Click here: Why Doctors Should Work Less Now), I showed you the incredible investment returns physicians should have gotten over the past five years and why a doctor's retirement portfolio should be zooming along to the point that you don't have to work as hard anymore.
I'm sure their will be naysayers who dismiss my analysis as fantasy. After all, in that analysis didn't I start at the bottom of the market, and isn't that unfair?
OK, no problem. The analysis in this article will cruch your doubts altogether.
Let’s do the same analysis again, except this time you are going to be the unluckiest investor on the planet. You invested your money in November 2007 right before the market crash, and you contributed your annual $50,000 at the beginning of November 2007. Again let’s start out with $0, $500,000, and $1 million for the early, mid, and late career physicians respectively. Each physician has the same portfolio mix as before.
Here’s where you should be now:
What this means is that not only should you have recovered all of your losses during the market crash, but you should have gotten a decent rate of return even if you timed the market exactly wrong.
No matter which way you look at it or which part of your career you’re at, you should be strutting into your clinic or the hospital with your head held high. The onslaught of patient satisfaction scores, ICD-10 codes, electronic medical records, increasing patient volumes, and other challenges we face in medicine should not affect you as much because your financial fortress should be really strong by now.
You can cut down on your workload and live a little, or you can give it up altogether if you want. If you can’t, then figure out why you missed these returns that were offered to you.
Common reasons why you or your financial advisor did not capture these returns include:
- You bailed out of the market as it crashed
- You weren’t in the market for all of the huge upswing
- You didn’t continue saving as the market dropped
- You don’t have a solid investment plan
- You made big investment mistakes managing your portfolio by yourself
- Your financial advisor was “gambling” with your money not investing
- A combination of the above
If you want to fix these problems and have a solid investment plan going forward, start here: