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Posted by DarkProtoman on May 8, 2007, 5:07 am
Hi! I'm a physician, and I'm trying to earn a 2% monthly ROI. I opeate
a "concierge medical practice", and I charge each of my patients a
retainer of $3000/year. I currently have 600 patients, so I'm earning
$150,000/month. I'm thinking of living on only $20,000 of that, and
putting the rest in the care of a financial manager. I want to have a
comfortable retirement and something to pass on to my kids. I plan on
retiring by age 70. I'm currently 38. I'd like to earn a 2% monthly
ROI by using stocks, bonds, real estate, precious metals, and
derivatives. Any idea how I could do this? Thanks!!!!!
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Posted by joetaxpayer on May 8, 2007, 8:09 am
DarkProtoman wrote:
> Hi! I'm a physician, and I'm trying to earn a 2% monthly ROI. I opeate
> a "concierge medical practice", and I charge each of my patients a
> retainer of $3000/year. I currently have 600 patients, so I'm earning
> $150,000/month. I'm thinking of living on only $20,000 of that, and
> putting the rest in the care of a financial manager. I want to have a
> comfortable retirement and something to pass on to my kids. I plan on
> retiring by age 70. I'm currently 38. I'd like to earn a 2% monthly
> ROI by using stocks, bonds, real estate, precious metals, and
> derivatives. Any idea how I could do this? Thanks!!!!!
There is no way that I know to "invest" money to get that type of
return. There are businesses one can start that might yield such a
return, or may fail. Current market forecasts suggest a 10 yr horizen
will return 8-10%/yr, and any manager who guarantees you more than that
is as likely to lose your money instead of meet these goals. By the way,
why do you think you need such a return?
Saving $80k/mo at 8% per year return and you will have, ahem, $192
million at age 70. You'd be in a position to spend $8M/yr, more than
twice an inflation adjusted final income of about $3M, of which you'd
have only lived on a small fraction, anyway.
With such a high saving rate, there's no need to go into high risk
investments.
JOE
JoeTaxpayer.com
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Posted by Mark Bole on May 8, 2007, 10:30 am
DarkProtoman wrote:
> Hi! I'm a physician, and I'm trying to earn a 2% monthly ROI. I opeate
> a "concierge medical practice", and I charge each of my patients a
> retainer of $3000/year. I currently have 600 patients, so I'm earning
> $150,000/month. I'm thinking of living on only $20,000 of that, and
> putting the rest in the care of a financial manager. I want to have a
> comfortable retirement and something to pass on to my kids. I plan on
> retiring by age 70. I'm currently 38.
I think it's a safe bet that one or more health insurance laws will be
passed in the next 30 years that will significantly change your business
model. Not to mention the naturally declining health of your client
base as they age...
Your gross revenue may be $150K/month, but don't you have any expenses?
Don't you have to pay some taxes on your profit? (Although
interestingly, it seems this type of practice is largely found in
Seattle and Florida, two areas with no state income tax).
A quick internet search of "concierge medical practice" shows that your
story is much more the exception than the rule. So, not only is 2%
monthly ROI unrealistic in any case, but your own income projections
should allow for a lot of volatility.
-Mark Bole
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Posted by on May 8, 2007, 10:30 am
> Hi! I'm a physician, and I'm trying to earn a 2% monthly ROI. I opeate
> a "concierge medical practice", and I charge each of my patients a
> retainer of $3000/year. I currently have 600 patients, so I'm earning
> $150,000/month. I'm thinking of living on only $20,000 of that, and
> putting the rest in the care of a financial manager. I want to have a
> comfortable retirement and something to pass on to my kids. I plan on
> retiring by age 70. I'm currently 38. I'd like to earn a 2% monthly
> ROI by using stocks, bonds, real estate, precious metals, and
> derivatives. Any idea how I could do this? Thanks!!!!!
A 20% annual Return On Equity in Real Estate is no big deal. If you
put down 20%, break even cash flow and have a leverage of 5 and get a
4% appreciation you are there. The relentless 3% inflation works in
your favor for rent increases. This is a lot of paperwork and keeping
track of rent checks and HOA fees. I suggest you marry a real estate
agent/property manager/accountant who can qualify as a Real Estate
Professional. Ask that nice lady with the Indian accent the next time
you call tech support :) You won't be limited to the $25,000 maximum
loss per year against ordinary income. You've got lot's of income.
You could leverage some properties really big now, get a big deduction
now and get the income in the form of low tax long term capital gains
later. You want to push your income to later years as part of your
strategy anyway. Wifey will end up earning more money than you.
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Posted by Will Trice on May 8, 2007, 1:37 pm
camgere@earthlink.net wrote:
>
>>Hi! I'm a physician, and I'm trying to earn a 2% monthly ROI.
> A 20% annual Return On Equity in Real Estate is no big deal. If you
> put down 20%, break even cash flow and have a leverage of 5 and get a
> 4% appreciation you are there.
First, 20% doesn't get to the OP's goal. Second, you make it sound a
lot easier than it is. Third, this rate of return is only sustainable
if you continually refinance and keep your leverage (and risk) high,
otherwise your return drops rapidly over time.
-Will
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