Dr. Giordano said financial independence refers to daily living expenses being covered by investment drawdowns or cash flow.
“Covering these expenses translates to a feeling of liberation,” Dr. Giordano wrote. “We no longer feel beholden to our job to make ends meet and provide for our families. The key is to create a plan and take the initiative to put ourselves on this path as early in our careers as possible.”
Dr. Giordano explained different methods physicians could seek to achieve independence, such as maximizing traditional equities investing in pre-tax retirement accounts. He suggested a quicker way to do so is to combine the traditional approach with passive real estate syndications.
“Although past performance does not indicate future outcomes, an average real estate syndication investment may offer an average return in the 11-13 percent range annually,” he wrote. “When investing a portion of disposable income into syndication deals, it allows one to cut the time horizon to financial independence. In addition to the expected returns, there are tax benefits such as depreciation, and earnings from these deals that often can be offset by the losses.”
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