Author Topic: Index investing vs Real Estate/P2P/websites, etc.. How much is time worth?  (Read 708 times)

Swat

  • 5 O'Clock Shadow
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I've currently been wrestling with further diversifying my overall portfolio. Currently, I do plain old vanilla investing with Vanguard index funds that is well-diversified and I will certainly stick with for the long term. I've read enough already that I feel comfortable with my plan, it is easy to do, and I can put things on autopilot with relatively minimal effort on my part. Essentially save a lot and invest according to the plan you've already established. I have no doubt that this can be a successful recipe for success and given that there isn't as much to learn about it anymore, I can spend my hours generating significant money has a well-paying physician.

On the other hand, I am now thinking about diversifying outside of just index investing. This can include Real Estate, websites/blogs, P2P lending, travel hacking, other businesses, etc... I read all over the internet about things people have done as their "side hustle"... whether that was to truly diversify or scratch an entrepreneurial itch I don't know. However, from a truly financial perspective (not trying to satisfy one's interest), does it actually make sense when you are a physician with an excellent hourly/daily rate? A couple cases to illustrate:

-Website: I follow WhiteCoatInvestor and he has admitted that for several years he didn't make any money with this blog and has only really started turning a major profit the last few years. If you were to add up all those hours that he spent from beginning to end and he worked in the ER and then invested the proceeds in Vanguard, would he have been better off. Also, he has been wildly successful as the go-to blog/website for physicians. What about some of the other blogs, for instance, that aren't #1 in their space (PoF, PassiveIncome MD, non-medicine blogs, etc...).

-Real Estate: "pro" real estate people will always mention their end of year returns and how they exceed what the stock market would have done. They talk about control over their investments, tax benefits, etc... However, how many hours are required to learn all about the nuances of real estate. Even if you aren't owning/managing a property yourself, there is still a time value learning about P2P lending, different platforms, etc... What about the additional costs of LLC, additional tax forms that your accountant charges you for preparing, etc... I don't think I've ever seen anyone try to REALISTICALLY add up all the hours (plus additional costs) that they put into an investment and calculate their hourly rate. Usually it is people who have been doing it for several years and they talk about how easy it is once everything is on autopilot. However, I usually don't see things factored into their early years, nor are they typically high earning professionals where their time could be spent elsewhere. 

Anyway, just a thought to the high income professional and was curious what people think.