Debt Free Dr

To help other dentists obtain financial independence within 5-7 years by investing in passive real estate investments.

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DebtFreeDr

Introduction

Ever felt like the train to Wealthville has left the station without you? Well, if so, you're not alone. Let me tell you about a call I recently heard on the Dave Ramsey Show. If you've ever had fear hold you back from investing, I guarantee you have nothing on this couple.

Rather watch the video instead?

Setting the Scene

Alright, so let's set the scene. We have a couple in their mid to late 50s, married for 25 years, and getting ready to become empty nesters. They've been diligently saving for the last 20 years but felt that they missed the boat due to their huge fear of investing.

The Call on the Dave Ramsey Show

Introduction to the Couple

Let's get into it. In Richmond, Virginia, hi Lauren, welcome to the Ramsey Show.

Lauren: Hi, Dave; thank you so much for taking my call. God bless you, love what you do.

Dave: Thank you, love what you do. How can we help?

Lauren: Um, we are a happily married couple of 25 years, just about to be empty nesters, and we feel like we have missed the financial boat, so to speak. We started out ready to invest around 2001 when the tech crash happened, and so we didn’t invest in the stock market. Then, we were getting ready to invest when the 2008 real estate crash happened, and again we pulled back and did not invest. So we just stayed put and kept saving. Now all we hear is cash is trash and the American dollar is in trouble. We feel like we have missed the boat and are concerned that we missed a way to help us retire.

Current Financial Situation

Dave: How much do you have in savings?

Lauren: $2 million.

Dave: I'm absolutely amazed. So all of this money is just money you put in there because you've never really made any money on your money?

Lauren: No, we've hardly made any. We have self-laddered CDs and done some bonds.

Dave: But basically, your rates of return have sucked, and you still got to $2 million, and you're still afraid to invest?

Lauren: Yes.

Dave: But you have $2 million, so how did you miss the boat? What boat did you want to get on?

Fear of Investing

Alright, I'm going to pause right there. They pretty much set out on investing but got spooked by the 2001 tech crash and again by the 2008 real estate crash. Fast forward to today, 2024, they have $2 million, probably all in a savings or checking account. No investments, no stocks, no mutual funds, no real estate, nothing. And now they feel like they missed the boat.

Most of the doctors and dentists I coach on their finances rarely think about getting their money working for them, especially early in their careers. They focus on how much they can make and don't take into account getting their money working for them or their tax situation. They just think about paying all these taxes, which is a topic for another video.

Discussion with Dave Ramsey

Lauren: Now that our kids' college is paid for, we never took any time to plan for us, just kept our heads down and worked hard. Now, we picked our heads up.

Dave: You missed out on returns that could have turned $2 million into $4 or $6 million. But you still have $2 million, so I don’t think we can cry a river here.

Lauren: When you say $4 or $6 million, it makes me really sad.

Dave: There's no way to fix it. All you can do is think about the future. Every time you got up the courage to invest, you found a negative story that caused you to not do it. Fear. And now your new fear is the American dollar is going to pop.

Lauren: Yes.

Dave: Have you noticed that your other two fears didn’t come true?

Lauren: Yes.

Dave: The 2008 real estate crash actually had almost no lasting impact. The stock market came back, and you missed out on all of that. Even if the roller coaster screws up, you wouldn’t have ended up with nothing. I personally am not of the belief that America is coming to an end. It's up to people like you and me to make sure this nation works, not the craziness on the news cycle.

Overcoming Investment Fear

Let me give you an exercise. There are two kinds of fear: the good fear that keeps you from touching a hot stove or playing in traffic, and the false evidence appearing real kind of fear. That’s the fear you’ve been operating on. When it comes to investing, knowledge is your best defense against that type of fear.

Whether you want to educate yourself in the stock market, mutual funds, 401(k)s, bonds, options, puts, calls, or my favorite, real estate, none of that is going to appear so scary with the proper financial education. There are countless resources to help you with this. I have hundreds of articles and videos about investing in real estate, specifically real estate syndications, which are great for high-income professionals.

Getting Started with Investing

It’s not about when you start; it’s about getting started. Come up with specific goals, preferably in five-year increments. Your life changes every five years. Whether you have $2, $200, or $2 million in savings, you’ve got options. Make your money work for you.

Conclusion

My goal for you is to reach work-optional status as quickly as possible. If you've never thought about retiring early, check out this video.