Comments on: Why most doctors aren't rich! http://7million7years.com/2008/09/22/why-most-doctors-arent-rich/ How to make 7 million in 7 years ... Sat, 11 Feb 2012 22:32:23 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Adrian http://7million7years.com/2008/09/22/why-most-doctors-arent-rich/comment-page-1/#comment-14520 Adrian Mon, 10 Jan 2011 07:22:05 +0000 http://7million7years.wordpress.com/?p=485#comment-14520 "I used the money I made as a physician as capital and reinvested all my funds into real estate and back into my small businesses." @ Dr X - Thanks for sharing ... this is indeed the formula for wealth, especially for high income professionals! “I used the money I made as a physician as capital and reinvested all my funds into real estate and back into my small businesses.”

@ Dr X – Thanks for sharing … this is indeed the formula for wealth, especially for high income professionals!

]]> By: Dr. X http://7million7years.com/2008/09/22/why-most-doctors-arent-rich/comment-page-1/#comment-14497 Dr. X Sun, 09 Jan 2011 01:25:12 +0000 http://7million7years.wordpress.com/?p=485#comment-14497 You're absolutely right but I think a professional can achieve what you have. I am/was a professional but I picked this up real fast. I remember after 8 years of a medical education and 2 years of residency i had student loans and was forced to buy a private practice in order to increase my earnings. After my first year, I learned to live well below my means. Although I had a 401k and investments, I still had debt. Luckily I was able to realize that my wife was not working. I started opening up low rate of investment, small overhead businesses through her (low - mod end nail salons and massage spas, selling items on internet, etc.). These generate so much cash it is ridiculous, cash is better than credit. So I used the money I made as a physician as capital and reinvested all my funds into real estate and back into my small businesses. Slowly I sold shares of my own medical practice and invested more into the smaller businesses with my wife. I made more doing the other stuff than I did as a doctor. Now I no longer practice medicine and have devoted my time to running my businesses. I've been doing this for over 10 years and have accumulated wealth beyond what a physician working for 10 years would make. 8 figure amount. So I know your methods work. You’re absolutely right but I think a professional can achieve what you have. I am/was a professional but I picked this up real fast. I remember after 8 years of a medical education and 2 years of residency i had student loans and was forced to buy a private practice in order to increase my earnings. After my first year, I learned to live well below my means. Although I had a 401k and investments, I still had debt. Luckily I was able to realize that my wife was not working. I started opening up low rate of investment, small overhead businesses through her (low – mod end nail salons and massage spas, selling items on internet, etc.). These generate so much cash it is ridiculous, cash is better than credit. So I used the money I made as a physician as capital and reinvested all my funds into real estate and back into my small businesses. Slowly I sold shares of my own medical practice and invested more into the smaller businesses with my wife. I made more doing the other stuff than I did as a doctor. Now I no longer practice medicine and have devoted my time to running my businesses. I’ve been doing this for over 10 years and have accumulated wealth beyond what a physician working for 10 years would make. 8 figure amount. So I know your methods work.

]]> By: The problem with Henry …- 7million7years http://7million7years.com/2008/09/22/why-most-doctors-arent-rich/comment-page-1/#comment-5389 The problem with Henry …- 7million7years Wed, 02 Jun 2010 09:19:08 +0000 http://7million7years.wordpress.com/?p=485#comment-5389 [...] Kennedy (CPA), I think erroneously, links HENRY’s to taxes then lifestyle, but (as my article some time back about doctors also said), I think it boils down to three non-tax (even though taxes hurt!) [...] [...] Kennedy (CPA), I think erroneously, links HENRY’s to taxes then lifestyle, but (as my article some time back about doctors also said), I think it boils down to three non-tax (even though taxes hurt!) [...]

]]> By: Finding your lifestyle break-even point … « How to Make 7 Million in 7 Years™ http://7million7years.com/2008/09/22/why-most-doctors-arent-rich/comment-page-1/#comment-1781 Finding your lifestyle break-even point … « How to Make 7 Million in 7 Years™ Tue, 11 Nov 2008 09:26:49 +0000 http://7million7years.wordpress.com/?p=485#comment-1781 [...] wrote a post a while ago that explained why most doctors aren’t rich … the point wasn’t to appeal to all the medico’s in our audience; it was to [...] [...] wrote a post a while ago that explained why most doctors aren’t rich … the point wasn’t to appeal to all the medico’s in our audience; it was to [...]

]]> By: Weekly Carnivals and Roundup | LivingAlmostLarge http://7million7years.com/2008/09/22/why-most-doctors-arent-rich/comment-page-1/#comment-1780 Weekly Carnivals and Roundup | LivingAlmostLarge Fri, 03 Oct 2008 16:03:03 +0000 http://7million7years.wordpress.com/?p=485#comment-1780 [...] talks about Why doctors aren’t rich, gotta agree it’s a keeping up with the Jones [...] [...] talks about Why doctors aren’t rich, gotta agree it’s a keeping up with the Jones [...]

]]> By: Money Hacks Carnival #32 at The Financial Blogger | Money Hackers Network http://7million7years.com/2008/09/22/why-most-doctors-arent-rich/comment-page-1/#comment-1778 Money Hacks Carnival #32 at The Financial Blogger | Money Hackers Network Thu, 02 Oct 2008 00:43:40 +0000 http://7million7years.wordpress.com/?p=485#comment-1778 [...] presents Why most doctors aren?t rich! posted at How to Make 7 Million in 7 [...] [...] presents Why most doctors aren?t rich! posted at How to Make 7 Million in 7 [...]

]]> By: The Financial Blogger | Money Hacks Carnival #32 - Have You Ever Edition http://7million7years.com/2008/09/22/why-most-doctors-arent-rich/comment-page-1/#comment-1779 The Financial Blogger | Money Hacks Carnival #32 - Have You Ever Edition Wed, 01 Oct 2008 10:02:07 +0000 http://7million7years.wordpress.com/?p=485#comment-1779 [...] presents Why most doctors aren?t rich! posted at How to Make 7 Million in 7 [...] [...] presents Why most doctors aren?t rich! posted at How to Make 7 Million in 7 [...]

]]> By: AJC http://7million7years.com/2008/09/22/why-most-doctors-arent-rich/comment-page-1/#comment-1777 AJC Sat, 27 Sep 2008 19:05:18 +0000 http://7million7years.wordpress.com/?p=485#comment-1777 @ Jeff - The point wasn't mathematical (although, if you plug the start/end numbers and number of periods into a compound growth rate calculator you should get my number - or yours - depending upon who did/didn't make a calculation error) it was 'real life'. Which means that Scott, in particular, recounted to me the story of his boss who owned a few practices (and the property that they ran from) eventually selling them to the doctors working there, yet he didn't achieve the stratospheric financial heights that one would intuitively expect. Thanks for your comments; you have inspired me to do a f/u post ... @ Jeff – The point wasn’t mathematical (although, if you plug the start/end numbers and number of periods into a compound growth rate calculator you should get my number – or yours – depending upon who did/didn’t make a calculation error) it was ‘real life’.

Which means that Scott, in particular, recounted to me the story of his boss who owned a few practices (and the property that they ran from) eventually selling them to the doctors working there, yet he didn’t achieve the stratospheric financial heights that one would intuitively expect.

Thanks for your comments; you have inspired me to do a f/u post …

]]> By: Jeff http://7million7years.com/2008/09/22/why-most-doctors-arent-rich/comment-page-1/#comment-1776 Jeff Sat, 27 Sep 2008 18:28:28 +0000 http://7million7years.wordpress.com/?p=485#comment-1776 @AJC - "I didn’t mention adding $150k a year AFTER TAX into the mix (I think that was you?) … but doesn’t it sound like an awful lot to you?" Of course you didn't...that was my point. Your analysis failed to consider Scott's ability to incrementally contribute money from his income over the 10 year period. I just thought it was odd that you left it out, since the mantra of this blog (at least in the beginning--money 101 and early 201 stages) is to save as much of your income and invest it. Why wouldn't Scott be able to follow this advice? ...and more importantly, how would incremental contributions affect Scott's ability to reach his goals? Also, I bet the doctor making $700k per year in your example isn't having a hard time investing $150k/year after tax. Why couldn't a professional making $350k+/per invest $150k/year after tax (assuming they were following your money 101 steps)? Also, I can't figure out how you got 67%...I've run the numbers and come up with ~58.5%. Can you please explain how you came to that number? @AJC -

“I didn’t mention adding $150k a year AFTER TAX into the mix (I think that was you?) … but doesn’t it sound like an awful lot to you?”

Of course you didn’t…that was my point. Your analysis failed to consider Scott’s ability to incrementally contribute money from his income over the 10 year period. I just thought it was odd that you left it out, since the mantra of this blog (at least in the beginning–money 101 and early 201 stages) is to save as much of your income and invest it. Why wouldn’t Scott be able to follow this advice? …and more importantly, how would incremental contributions affect Scott’s ability to reach his goals?

Also, I bet the doctor making $700k per year in your example isn’t having a hard time investing $150k/year after tax. Why couldn’t a professional making $350k+/per invest $150k/year after tax (assuming they were following your money 101 steps)?

Also, I can’t figure out how you got 67%…I’ve run the numbers and come up with ~58.5%. Can you please explain how you came to that number?

]]> By: Time for Money: a Bad Trade? « How to Make 7 Million in 7 Years™ http://7million7years.com/2008/09/22/why-most-doctors-arent-rich/comment-page-1/#comment-1775 Time for Money: a Bad Trade? « How to Make 7 Million in 7 Years™ Fri, 26 Sep 2008 19:03:10 +0000 http://7million7years.wordpress.com/?p=485#comment-1775 [...] smart and realize this, and spend as much time investing as they do earning (Scott shared a good example of a doctor who invested in real-estate and in setting up - then selling - practices). They can [...] [...] smart and realize this, and spend as much time investing as they do earning (Scott shared a good example of a doctor who invested in real-estate and in setting up – then selling – practices). They can [...]

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