L
et's talk about the vulnerability of your income.
Look, many of us went to school to get an education, so we could have the technical expertise to go out and make a good living—
—a good living with stability because, “Our skills will always be in need, right?” And for the most part, they are.
However, in these last couple of years with COVID, everybody has discovered the vulnerability of our income streams – that “trading time for dollars” can be stopped, in this case by a virus and its variants.
I think eventually this will run its course, but what it's given people is a wake-up call to understand that what you think is secure today is not as secure as you thought – whether that's your health, your ability to create income, or your investments in the stock market. The volatility that can happen quickly is something that we can't always foresee.
That's why it's important to have multiple streams of income, multiple lines in the water. You can't focus everything on the “one thing” that you do for a living. It can be the engine and the driver of course, but if you put all of your eggs in one basket, it's very limiting.
What we found in Freedom Founders, and what I know in my life from doing this for 40 years, is that when COVID hit and many of the typical lines of income (what people do for a living) were shut down for a period of time, the other lines in the water (the other streams of income we had, particularly off of real estate) continued.
That was something that showed people, “That’s why you want to build outside wealth.” But do it the right way. Build it off of assets that will actually produce real cash flow, not just growth or a promise for “someday”, but something you know that has reliable income because you need it today.
You need to have some aspect of that today, not just when you're 65 or 70. When we have a recession, a downturn, another COVID variant, whatever it's going to be, you need that secondary income to get you through the gap.
That's how you live to survive another day. You need multiple streams of income, so don't be reliant solely on the one you've got. Figure out and learn how to build those multiple streams.
Do it now, so that when you do decide to retire out of active income, you’ll already know how to do it. You’ll already have that sustainable, certain income. Then, when you do transition out of practice and out of active income, it becomes so much easier,
and you won’t be left looking over the cliff saying, “What do I do now?”
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. Get Your Free Retirement Scorecard:
Benchmark your retirement and wealth-building against hundreds of other practice professionals, and get personalized feedback on your biggest opportunities and leverage points. Go to www.FreedomFounders.com/Scorecard to take the 3 minute assessment and get your scorecard.
3. Ready to Step Away?
“How Much is Enough?” This simple question keeps hard-working professionals at the hamster wheel of active income far longer than they need to be. Watch this free training, and discover a proven model for determining how much you really need before hanging up the handpiece! www.freedomfounders.com/training
4. Apply To Visit The Mastermind:
If you’d like to join dozens of dentists, docs, and practice professionals on the fast track to Freedom (3-5 years or less), visit www.freedomfounders.com/step-1 to apply for a guest seat.
