3 Ways Physicians Passively Generate Wealth

As a physician, your job is to provide positive outcomes for patients and as you know that’s no small task. That goal is a never ending cycle of diagnosis, treatment and follow up that leaves you with very little time for much else. With the time that you do have scheduled outside of work it’s best spent with family, friends or continued engagement in a sport or other outside activity.

When it comes to generating wealth outside of your salary and benefits again your time is limited. To actively invest in the market or any other alternative investment takes time, time you don’t have. But there are physicians that are doing it and in this article we’re sharing with you exactly how they are accomplishing this goal.

Owning a Medically Associated Business

One of the most conventional ways to increase your net worth as a physician is to own a business. To ensure that this doesn’t take up a ton of your time and is truly passive you need to have a strong operations partner that keeps you out of the day to day.

In most cases the businesses that physicians choose to invest in and own are in the medical space due to them knowing the industry. Examples of the most popular types of businesses physicians invest in are listed here:

• Dialysis centers (nephrologists)
• Outpatient surgical centers (surgeons and anesthesiologists)
• Endoscopy centers (gastroenterologists)
• Imaging centers (radiologists)
• Urgent cares (emergency and primary care physicians)
• Labs (pathologists)
• Dental lab (dentists)
• Supplement business (functional medicine docs)
• Practice real estate (anybody)

With a strong management and operations team businesses like these can generate large returns for you. Although these can be great at generating passive wealth over time they are also high risk and have very high start up or acquisition costs.

Do be aware of the Stark Law regarding self referrals.

Syndicated Business Ownership

Another way that physicians are generating increased wealth passively is through a syndicated business ownership model. The idea is similar to owning the business yourself but you have none of the high costs or risk associated with being a majority owner.

This model is where you are investing into a fund that focuses on purchasing, optimizing and selling businesses to generate a return. Physicians are finding that this type of investment is the most hands off and generates the highest return on their investment.

At GenX Capital we use this investment strategy and are generating very high returns for investors.

Index Funds

Considered to be one of the safest investments available you can put your money into Index Funds as well. These have consistently increased over time, but at a much lower percentage than alternative investment such as private equity.

Every year is different and goes both up and down, but if we just look at the S&P 500 as an example it over time has consistently generated on average 10%

One source points out that “The expense ratios on good index funds have fallen so low that they now offer professional management, daily liquidity, market-matching returns, and broad diversification essentially for free”, which is a positive for investing in index funds.

While these funds are a stable and “safe” route the amount of wealth that can be generated is lower. While each of these listed routes to generating increased passive wealth for you as a physician they come with pros and cons, so you’ll have to decide what your financial goals are and what risks you’ll be willing to take to get there.

When it comes to a syndicated ownership model we are offering physicians access to our Velocity3X product that is positioned to grow your investment by 3 times over a four year period. So if your goal is to generate these types of returns over that period of time then we want to hear from you.