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The group for which I work is now offering an "investment opportunity" to its physicians to invest in the "practice platform"
What do you guys think about this? What does this even mean?
1) Should I be viewing this as a sign of weakness? Our group is owned by a single physician with private backing. Is it worrisome the original source of funds is no longer interested in sinking their own money in and asking other investors to shoulder the burden?
2) I'm an employee. If I do decide to go through with this opportunity, what does it make me? A partner?
3) How much should I invest? This was presented to us in an open-ended manner where we could decide what sum of money we were comfortable investing. There are rumors that the initial private backing was an 8 digit sum of money. Even if I were to miraculously scrounge up $200,000, what good would that do me with so much other money at play?
4) What is the benefit here? If this isn't a publicly traded company, what kind of return on investment can I expect? Is it paid in the form of a dividend check? A larger bonus per paycheck? Has anyone had a similar experience and what was the outcome? (I do realize many of these questions should be answered by the people offering this investment opportunity but I haven't entered into any serious talks with them yet). I'm assuming this is similar to a situation where physicians have the option to become shareholders in their own hospital system?
5) Should I be avoiding investments like this if I have to ask these sorts of questions? I remember WCI saying that the more complex the investment vehicle, the more it favors the other side.
6) Is it worthwhile if I do have extra money to play with? 20% of my gross is still being locked away into low cost index funds. I am fortunate to be in a high paying specialty and my wife and I are super savers to boot. We are currently putting away 40% of our gross. 20% as mentioned above, another 20% in a taxable account that we allow ourselves to dip into should the need arise. On sheer numbers alone, would it be wise to take some of this excess and consider a higher gain, higher risk investment opportunity like the one presented before me?
(I apologize if some questions are vague. As you can imagine, this is a fairly specific opportunity that was presented to me a couple of weeks ago and I would like to preserve as much anonymity as possible)
What do you guys think about this? What does this even mean?
1) Should I be viewing this as a sign of weakness? Our group is owned by a single physician with private backing. Is it worrisome the original source of funds is no longer interested in sinking their own money in and asking other investors to shoulder the burden?
2) I'm an employee. If I do decide to go through with this opportunity, what does it make me? A partner?
3) How much should I invest? This was presented to us in an open-ended manner where we could decide what sum of money we were comfortable investing. There are rumors that the initial private backing was an 8 digit sum of money. Even if I were to miraculously scrounge up $200,000, what good would that do me with so much other money at play?
4) What is the benefit here? If this isn't a publicly traded company, what kind of return on investment can I expect? Is it paid in the form of a dividend check? A larger bonus per paycheck? Has anyone had a similar experience and what was the outcome? (I do realize many of these questions should be answered by the people offering this investment opportunity but I haven't entered into any serious talks with them yet). I'm assuming this is similar to a situation where physicians have the option to become shareholders in their own hospital system?
5) Should I be avoiding investments like this if I have to ask these sorts of questions? I remember WCI saying that the more complex the investment vehicle, the more it favors the other side.
6) Is it worthwhile if I do have extra money to play with? 20% of my gross is still being locked away into low cost index funds. I am fortunate to be in a high paying specialty and my wife and I are super savers to boot. We are currently putting away 40% of our gross. 20% as mentioned above, another 20% in a taxable account that we allow ourselves to dip into should the need arise. On sheer numbers alone, would it be wise to take some of this excess and consider a higher gain, higher risk investment opportunity like the one presented before me?
(I apologize if some questions are vague. As you can imagine, this is a fairly specific opportunity that was presented to me a couple of weeks ago and I would like to preserve as much anonymity as possible)
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