This podcast discusses high yield savings accounts, the importance of writing down your financial plan, starting a 529 plan as an older parent, mortgage decisions, responding to criticism, and real estate investment strategies. It also touches on career goals, financial literacy, and the benefits of locum tenens. The episode highlights the evolution of career objectives, financial advice critiques, and diversifying income sources.
MLG Capital prioritizes risk management in real estate investments with fixed-rate debt.
MLG Capital offers flexible fund structures for diverse investor preferences and goals.
Having a written financial plan aids in identifying gaps and committing to financial goals.
Deep dives
Management's Approach to Debt and Risk
MLG Capital prioritizes managing risk by using fixed-rate debt to eliminate interest rate risk in their real estate investments. They aim to focus on growing property value and income while minimizing debt-related vulnerabilities, emphasizing a conservative approach to debt leverage and mitigating potential challenges posed by floating-rate debt.
Investment Fund Structures and Tax Considerations
MLG Capital offers two fund structures: a K-1 structure that maximizes pass-through depreciation benefits for investors, and a dividend fund structure that simplifies distributions for those investing through retirement accounts. The choice between these structures depends on individual tax situations, investment amounts, and strategies, providing flexibility for investors with diverse preferences and financial goals.
Fund Six Investment Details and Return Targets
Fund Six by MLG Capital targets all-in returns between 11% to 15% through a three-tiered waterfall structure. Investors receive an 8% accrued preferred return, compounded until fully paid, prioritizing their current income needs. The fund emphasizes a complete return of investors' capital within 6 to 8 years, with net cash flow distributed to investors first until they achieve the preferred return and capital return targets, followed by profit sharing as per the agreed-upon split with the fund manager.
Importance of Having a Written Financial Plan
Having a written financial plan is crucial as it helps expose gaps in knowledge and thinking. By writing down the plan, individuals can identify areas such as estate planning or portfolio rebalancing that may require attention. Additionally, a written plan serves as a commitment to the financial process, ensuring that individuals revisit and adhere to their financial goals over time. Despite potential initial hesitance, the act of documenting a financial plan can lead to long-term financial stability and informed decision-making.
Considering Funding College Education for Children
When strategizing college savings, it is essential to evaluate various options, especially for individuals in academic positions offering tuition benefits. While 529 plans are common, considering alternative savings methods like taxable accounts or UTMA accounts can offer flexibility and control over funds. Prioritizing retirement savings over college funding is recommended, as retirement contributions often yield better tax benefits and financial security. Ultimately, tailoring the approach to unique family situations and financial goals is vital for effective college planning and wealth management.
Today we are answering your questions about high yield savings accounts, why you actually need to write down your financial plan instead of just having it in your head, wether or not you should start a 529 if you are going to be an older parent when your kid goes to college, and if you should take out a mortgage when buying a house or raid your taxable account to pay cash and avoid a high interest rate. Dr. Dahle also responds to some criticism directed at WCI. Finally, we have our friends from MLG Capital on to tell us about their current real estate offerings.
Healthcare is changing, and so are you. Your current career goals are probably different than they were five years ago, and you probably have questions about how to achieve them. Consider locum tenens as a solution. Locumstory.com has all the information you need to learn more about the benefits of locums and how it can work for you. On the Locumstory podcast you can find expert interviews with physicians who’ve worked locum tenens firsthand and share what their experience was like along with advice for others looking to do the same. Tune in to The Locumstory Podcast on Spotify, Apple, or Google podcasts.
The White Coat Investor has been helping doctors with their money since 2011. Our free financial planning resource covers a variety of topics from doctor mortgage loans and refinancing medical school loans to physician disability insurance and malpractice insurance. Learn about loan refinancing or consolidation, explore new investment strategies, and discover loan programs specifically aimed at helping doctors. If you're a high-income professional and ready to get a "fair shake" on Wall Street, The White Coat Investor is for you!