Our thoughts on financial planning for doctors have always been about getting the next generation set up, with control and choice over how they live their lives.

It’s now moving on to the generation after that. This is an extract from a recent piece I wrote:

Some thoughts

The Australian property market has averaged 10.5% over the last twenty years, and the Australian share market has averaged 8.5% over the last twenty years. You can read about this here: Russell ASX Long Term Investment Report 2016.

The Sydney and Melbourne property markets have done better than 10.5%.

The 2016 figures seem to be pretty much on track with these long term averages and I doubt the 2017 edition of this report will be much different. The take away is this: “although short term performance can be all over the shop, long term performance is stable and predictable, and conservatively growth assets will generate at least an 8% pa long term return”.

The ABS says that the average Australian household earned about $1,000 a week in 2014, and the average Australian household wealth was about $800,000. You can add about say 10% to get 2016/17 equivalents. Call it an average household income of $1,100 and an average household wealth of about $900,00. You can read about this here: Link to ABS website. You are in the top few % of household incomes and household wealth.

At age 55, and nearly 56, my thoughts as to the purpose of wealth are changing. I expect yours are too.

I always thought the purpose of wealth was to set the next generation up by transmitting the benefits of wealth, ie independence, control and choice, to your children. But as I get older I am seeing further, and have become convinced that for most doctor it’s not just the children. It’s the grand-children too, as un-born as they may be. Your grand-kids will still be alive in 2116. It’s a sobering thought, and we explore it here: From 100 years ago, with 199 years to go.

You should read this article carefully. It applies to you.

Once you throw your mind out 100 years investing becomes simple. It involves getting the investment structure correct and getting the investments correct. 

Once you have maxed out your SMSF the correct investment structure looks like this:


And the correct investments are well located property in Sydney and Melbourne, and blue chip shares like BHP Billington, ANZ, CBA, Westfarmers and Australian based index funds and ETFs.

Ask yourself this question: is the investment probably going to pay income every year and will it probably still be around in 100 years. If the answer to both questions is “yes” then buy it and never sell it.

The idea is its still there in 100 years. Generating income and cash for your grand-kids, and their grand-kids.

I look forward to catching up.