M.D. End of Year Message
M.D. Personal Journal
I started this blog three months ago as an informational resource for physicians and other high income earners. There is a plethora of blogs and articles on stocks, bonds, and mutual funds, (and a surprising number on frugality), but not too many voices on “alternative investments” from a personal, non-professional investor point of view. I knew there were other investors out there that were interested in diversifying their assets outside of conventional retail investments so that prompted me to start this blog and share my experiences.
Stocks are reaching all time highs. The CAPE ratio is currently sitting at 32, placing it at the same level as in 1929 before the Great Depression. The only time it’s been higher was right before the DotCom Crash. Of course past performance is no guarantee of future results. But what is certain is a correction will occur. Exactly when and how big is anyone’s guess.
For years, I followed conventional wisdom. Sacred cows, if you will.
“Buy index funds.” “Dollar cost average.” “You must be in stocks to beat inflation.” “Diversify 90/10, 80/20, 70/30, 60/40.”
The fact is Wall Street and the financial media beat this drum of “conventional” investing into our brains and most people don’t know any better. When was the last time you read an article in Kiplinger or Money magazine about alternatives like real estate investing? And I’m not talking about REITs. Or a self-directed IRA/401K? Or commercial real estate syndication? Apartment buildings? It’s simply not in mainstream media. The big institutional players like private equity, REITs, endowments, and insurance companies all invest in alternatives. In the past, the small private investor lacked access to these opportunities, but now, with the passage of the JOBS Act, these opportunities are more accessible.
Real estate is a hard, tangible asset. For me, the financials of real estate are easier to understand and more intuitive than paper assets. A crash is coming and I want to mitigate some of the potential damage while earning a prudent risk-adjusted return.
In the upcoming year, I will continue to share my investments in commercial real estate. Office, multifamily, self-storage, hotel, retail, land, industrial, senior housing; that’s just a taste of what’s to come. As I present each one, I will post them on my ‘Real Estate Portfolio’ tab.
This blog has been an enjoyable creative outlet for me. For a physician, very little creativity is allowed in the workplace. It’s all about conforming to standard of care. I often post comments on other blogs, but it’s not the same as having my own platform to write about whatever I want whenever I want. I will also continue to write about mindset, doctoring, travel, and family life. Stay tuned.
I want to thank all the readers who have found me and for supporting my endeavor. Please continue to spread the word and follow me on Twitter.
Tax reform is the big news this week. Here are some articles I found to be insightful.
Investopedia: Trump’s Tax Reform Plan
Michael Kitces’ Individual Tax Planning Under the Tax Cuts and Jobs Act of 2017
Physician on Fire’s Tax Reform! How Physicians and the Self-Employed Are Affected
In the personal finance blogosphere, there was major news. ESI bought Rockstar Finance.
ESI’s announcement- Why I Bought Rockstar Finance
J Money’s take. The Future of Rockstar Finance
Happy Holidays and Have a Prosperous New Year!
Invest In Life