17: Don’t take financial advice from people with less money than you!
I got a stinging response from one of our readers last week. It was the weekly wealth widget where I talked about how people thought that being in the equity markets was “conservative” and investing in real estate was “risky”.
She told me that all asset classes move in tandem and “don’t for one hot second think that real estate is superior. That would be wishful thinking.”
I’m not sure what a hot second is. However, I do know that cash flow investors faired extremely well in 2008. My dad increased his monthly income by over $40K per month by purchasing cash flow properties from failed flippers and speculators.
Meanwhile, other doctors I knew got their proverbial asses handed to them in the equity markets.
I also know a lot of wealthy people and I take advice from them all the time. Most of them make their money in either businesses or by investing in real assets. Outside of professional traders, I don’t know anyone who got WEALTHY investing in stocks, bonds, and mutual funds.
Listen to my interview with Richard Wilson, episode 61 of Wealth Formula Podcast. He only works with ultra high net worth people. You will find a remarkable similarity between what I preach and what he says characterizes the investing habits of those with a net worth of over $100 million.
Should you listen to me? That’s up to you. I am 43 years old. I finished my surgical training at 35 with nothing but debt and am now retired from medicine with an 8 figure net worth.
But… please don’t give me financial advice unless you’ve done better 🙂