by Dr David Phelps
For the last two years, I have been stating that while financial markets may continue to go up (albeit it has been much longer than I expected), we are due for a significant correction.
It's just simple math. You can't continue to add tremendous liquidity to the environment by printing fiat currency. Deficit spending is at all-time highs, yet we increased interest rates faster than ever before. Something is bound to break.
Recency Bias is Not a Good Predictor
Most prognostications are based on past models. Too many people expect the future to look like the past. Yes, you can learn from what’s happened in the past, but you can’t expect it to look exactly the same.
Past models of investing will not continue to work.
I believe we will experience, in the years and decades ahead, much more anemic growth. This anemic growth will be similar to the stagflation in the ‘70s up until the early ‘80s.
During this time, the stock market went sideways for 15-17 years. Inflation was running rampant, meaning people were losing their savings that they had worked hard for. Inflation was stealing wealth, primarily damaging the middle and lower classes.
Freedom Begins with Replacing Your Income
To free yourself from having to work and not be tied to the financial market roller coaster, you must create enough replacement income independent of the financial markets. This is the cash flow that drives your future living.
As long as we can work and make a good living, all is fine. Eventually, you don't want to rely solely upon trading your time for money.
Society has set us up to go to school, undergo training, build a career in a business or job over 30-40 years, and then retire off of the savings we’ve earned. It sounds simple, yet it only works if you manage your money well.
Well, here’s one hint this traditional model is no longer working. The average number of working years is actually increasing (dentists, on average, retire at the age of 69 since 2023). We're getting pushed to higher and higher retirement ages due to the cost of living, i.e., inflation.
Seek Control of Your Own Life
The trajectory of the markets will not continue as it has in recent years. This means it's more prudent and imperative to design a future that gives you more control.
We can't control everything, but you can learn how to make your money work for you. It’s at least as important as learning how to make the money itself.
You know how to make money. You’re a student of earning money, and without any money, there is no capital to invest.
Now it’s time to learn how to make money work for you (invest it profitably and securely). Do not just abdicate it to the financial markets like most have done in the past. That is surrendering your control over that capital.
So where do you invest it?
This is why I love tangible assets like real estate. It’s a vehicle that grants you more control and adaptability to the economic environment.
I started learning about tangible assets back when I was in college in the late 70s. It’s what set me free when my daughter was sick in the hospital ~17 years ago. It let me escape the chair.
Living with No Regret
My intention was not to quit dentistry forever. It just worked out that way. I had a great career in dentistry, but I didn't have to go back, and I love what I do today.
My goal is to help hardworking doctors, dentists, and business owners like you who have done well for their families figure out how to exit without detriment to their desired lifestyle or security.
How do you start to live your life now? We don't get these years back. Just like I would not have gotten those years back with my daughter if I hadn't made a change. That motivated me to live off the passive income that I had in real estate and exit my practice way sooner than I could’ve otherwise.
I don't want to live my life with regrets. I don't want you to live with regret, either. Our nature is to work hard. We get used to the grind. It’s beneficial in that to us. It drove you to where you are today.
But you shouldn’t need to grind away for your entire life. There are ways to get off the treadmill. You just need a guide with mile markers leading you to your finish line. I may be able to provide that for you.
Find out what we've done for hundreds of other dentists by giving them the frameworks to guide the communication between spouses and the game plan to implement into fruition. Click here to schedule your call with my team and figure out your best next steps to freedom
But you shouldn’t need to grind away for your entire life. There are ways to get off the treadmill. You just need a guide with mile markers leading you to your finish line.
To your freedom!
– David
P.S. Whenever you’re ready, here are some other ways I can help fast track you to your Freedom goal (you’re closer than you think) :
1. Schedule a Call with My Team:
If you’d like to replace your active practice income with passive investment income within 2-3 years, and you have at least $1M in available capital (can include residential/practice equity or practice sale), then schedule a call with my team. If it looks like there is a mutual fit, you’ll have the opportunity to attend one of our upcoming member events as a guest. www.freedomfounders.com/schedule
2. Become a Full-Cycle Investor:
There are many self-proclaimed genius investors today who think everything they touch turns to gold. But they’re about to learn the hard way what others have gained through “expensive” experience. I’m offering a free report on how to become a full-cycle investor, who knows how to preserve and grow capital in Up and Down markets. Will you be prepared when the inevitable recession hits? Get your free report here.
3. Get Your Free Retirement Scorecard:
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