Most dentists don’t realize the amazing opportunities they have to invest.
The SEC (Securities and Exchange Commission) has a phrase called
“accredited investor,” which is another way of saying “high-net
worth individual” who has either earned $200,000 a year for the past 2
years if single ($300,000 a year if married), or has over $1,000,000 in assets
excluding their personal home. There is no special application or anything to
have this status. One just has to meet the definition.
So what special things can an accredited investor do? They have access to
investing in securities without needing to register with a financial agency (a
security is just a catch-all fancy way of saying “different kinds of
investments including stocks, bonds, and real estate.”). Essentially,
accredited investors are assumed to have enough money that they know what
they’re doing when it comes to investing – even in the riskier ventures.
Now this doesn’t mean that just because one has met the definition of an
accredited investor that they should just throw their money anywhere they can.
The reason the SEC restricts most people from investing in non-registered
investments in the first place is because there is risk and the SEC is trying
to protect investors with less money who may not fully appreciate that risk.
Bottom line: Education about investments is vital for the dental
professional because a large number of dentists are accredited investors and have access to investments that most folks do not have. While there is always risk,
there is a huge opportunity to use the accredited investor title to help secure
financial independence. There are tons of people out there hungry to find
accredited investors and most dentists don’t even know they are accredited
investors! My personal favorite space I plan to use this status is when investing
in large multifamily apartment buildings, but there are limitless options.