Retirement Planning for Registered Dietitians: Invest in a 401(k) or Real Estate?

by | Jun 15, 2023

Whether you’re a Registered Dietitian working for someone else in a clinic or you have your own online dietitian coaching business, it’s important to plan ahead for retirement. But how exactly should you do that? Invest in a 401(k)? Invest in real estate? Put your money into something else?

As a Registered Dietitian myself, I’ve been exactly where you are. I’ve worked long, hard hours for someone else. And, I’ve worked long, hard hours in my own dietitian nutrition coaching business.

Along the way, I’ve learned some valuable money management skills that not only propelled my business forward, but also set my wife and I up for financial freedom. Perhaps one of the biggest decisions we made along the way was to NO LONGER invest in a 401(k) but rather, invest in real estate. Today, I’m going to share with you the top 5 considerations that helped us with that decision.

5 Reasons Why I DON’T Invest in a 401(k) and I Invest in Real Estate Instead

1. Real estate is tangible.

When you go out and buy a piece of property, you can see it, touch it, and experience it. It’s a tangible asset that you can control. On the other hand, when you invest in a 401(k), it’s more ambiguous in nature. The money you invest goes into a pool of funds you never physically see or touch.

2. Real estate investing provides a passive income opportunity.

You may love working as a Registered Dietitian right now. But do you want to ALWAYS work for money? That’s what will happen if you only focus on earned income.

With passive income, however, there’s initial work that must be done, such as buying a rental property. But once the initial setup is in place, you can continue to enjoy income month after month, year after year, with very little work.

Along this same line of thought, real estate investments like rental properties also produce cash flow, something you don’t get when you invest in a 401(k). That means you can enjoy higher income potential NOW but also in retirement.

3. Leverage someone else’s money to buy an appreciable asset.

When you invest in a 401(k), the amount you can invest is limited by the government as well as your own income. With real estate investing, you can leverage the bank’s money, in the form of a mortgage, to purchase an asset worth far more than your original investment.

This asset also appreciates in value, with real estate often outperforming inflation rates or other investment rates.

4. Real estate investing allows you to take advantage of tax benefits.

Did you know that rental income is usually taxed at a lower rate than ordinary earned income? This means that having rental properties could save you a significant amount of money in income taxes. You can also deduct related expenses such as mortgage and operating costs, property taxes, and more.

5. Build an inflation hedge AND generational wealth with real estate investing.

Real estate can be passed down from generation to generation, offering you the opportunity to create a family legacy. It also performs well in terms of inflation, with property values and rental rates typically rising along WITH the cost of living. This preserves your purchasing power and can help prevent losing money on your investment.

Want to learn more about my take on real estate investing vs. a 401(k)? Watch this video: Is Real Estate Better Than 401(k) Investing?

Should YOU Invest in a 401(k) or Real Estate?

Ultimately, the answer to this question depends on your specific circumstances, money goals, and retirement plans. For example, if you’re a Registered Dietitian working for someone else, you may have the option of an employer match with a 401(k). In this case, you might choose to invest in a 401(k) to take advantage of free money. But, this doesn’t mean you couldn’t ALSO invest in real estate!

If you’d like help growing your registered dietitian business so you can earn more and invest more, let me know! I’ve helped thousands of people just like you increase their earning potential, build their businesses, and get on the road toward financial freedom. Apply for private coaching today and let’s level up your business!

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