For doctors who have demanding schedules but also have high incomes, choosing the right investments is crucial to build long-term wealth while still enjoying life. Doctors need to find assets that provide strong returns without requiring full-time management. Here are some of the best options that allow doctors to invest passively and maximize returns.
Index funds provide market returns with minimal time input
Index funds like Vanguard’s S&P 500 fund track market performance while requiring almost no active management. Doctors can automate contributions and gain broad exposure to stocks. The key is choosing a low-fee fund for optimal returns. Index investing allows earning stock market gains without picking individual stocks.
Real estate investing generates cash flow with property managers
Doctors can purchase rental properties to earn passive income, but hiring a property manager handles tenant issues. The real estate market has provided strong long-term returns, and rental income can offset the costs of owning. Doctors can start small with a single property, or use REITs to gain diversified real estate exposure.
Private equity taps into high-growth potential with pooled funds
Private equity allows investing in non-public companies with potential for huge growth. Doctors can access private equity through funds that provide professional management. The long fund lifetimes mean limited liquidity, but outsized returns compared to public markets are possible over time.
Hire a wealth manager for fully passive investment
For doctors without time or interest in managing money, hiring a trusted wealth manager allows fully passive investing. The advisor handles asset allocation, rebalancing, tax strategy and more. Doctors avoid involvement beyond setting goals and parameters. But costs and advisor skill must be evaluated.
Doctors have many options like index funds, real estate, and private equity to earn strong investment returns with minimal time commitment. The key is choosing assets that fit your schedule and goals. Work with a fee-only advisor if you want fully passive management.