Aside from spending less than you make, diversifying your assets help minimize your chances of losing your hard earned cash. As doctors, we’ve worked hard to command a good income and are unfortunately also at higher risk of losing it all. Since we can’t accurately predict the future, the next best thing to preserve our wealth is to store it in various vehicles:
- rental homes
- life insurance
- under the mattress
- retirement accounts (IRA, 401k/403b/pensions)
- collectibles (cars, baseball cards…etc)
We’ll discuss the merits of each of these vehicles in future posts. Hopefully this post doesn’t convey any new information to my readers, but many of our colleagues do not actively think of this.