If you are deciding to invest in anything your decision should always be based on a risk v return formula. The higher the risk the higher the return. Nothing in life is a guarantee.
The trick is the more you know and understand what it is you are investing in and how it works the more you can lower the risk and therefore can enjoy higher returns.
To find out if your practice is an investment download this article in the Medical Journal of Australia Your Practice as an Investment Your Practice as an Investment February 2011.
The real secret is you must be interested, committed and patient to any investment class you are comfortable with. Most importantly consider your options and be realistic about your returns and the risks involved. The more proactive you are the more your money will work for you and not the other way around.
David Dahm You Tube video coming check out our Webinar Events that covers this topic
So is your practice really a good investment?
Download an interview the Medical Journal of Australia did with Health and Life CEO & Founder David Dahm.
Are you really prepared to do what it takes to achieve what you want and understand there is a threshold if you set it? The bottom line is the higher the risk, the higher the return. You need to find your comfort zone (appetite for risk) or your adjust your expectations so your financial capability meets your needs. Remember the key is to identify a high return and manage the risk by making yourself financially literate.
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Knowing how much you need to live and retire is one thing. The other is understanding how to protect your hard earned savings, so your money works for you and not the other way around. The Global Financial crisis taught us to be more careful. Our “golden rule” is don’t invest in anything you do not understand or control.
For Managing Risks read on.
Chartered Accountant, Chartered Tax Adviser, Registered Tax Agent, Former AGPAL Surveyor 10 years of service
David Dahm is CEO and founder of the national medical and healthcare chartered accounting firm Health and Life and global Founder and CEO of the not for profit project the International Healthcare Standards and Ethics Board (www.ihseb.org)
After a serious work related car accident in 1989, and nine operations later I continue to be a patient and provider advocate. I enter my third decade as a national Chartered Accountant for Medical and Healthcare practices in Australia. I am a former 10-year Australian General Practice Accreditation surveyor. I come from a medico family. I have served on the AAPM national Board and was the inaugural national Chair of the Certified Practice Manager CPM post nominal. I continue to provide accounting tax and practice management advice to many practices all over Australia.
You know who you are and I thank you for this real honour and privilege to serve you and your community through you. Note, I am not a lawyer please seek appropriate legal and accounting advice. This information is for general information and discussion only.