Building generational wealth isn’t just about earning a high income—it’s about making smart, well-informed decisions with your capital over time. That requires more than generic advice and traditional “set it and forget it” investing. It requires education, strategy, and most importantly, access to the right experts in specialized areas of the market.
This episode gives a behind-the-scenes look at how Terra Firma evaluates and selects trusted partners—specifically in the world of oil and gas—and why due diligence and alignment matter so much when doctors start investing in alternative assets.
Why Terra Firma Prioritizes Education First
One of the biggest challenges for high-income professionals is that they often see investment opportunities online or through peers, but they don’t have the context to evaluate them properly. The difference between a good opportunity and a costly mistake usually comes down to:
- understanding risk
- knowing where an investment fits in your overall strategy
- recognizing misaligned incentives
- having clarity on what the tax code actually rewards
Terra Firma’s approach is to educate members first—so they can understand what’s possible, avoid hype-driven decisions, and implement strategies with confidence.
Oil and Gas as an Alternative Asset
Oil and gas is often misunderstood. Many people assume it’s automatically “high risk,” but the reality is more nuanced. Like any asset class, oil and gas has a wide range of risk profiles depending on what type of project you invest in and how it is structured.
A key concept discussed in this episode is that oil and gas can serve two distinct purposes:
- Investment potential as an alternative, uncorrelated asset
- Tax strategy potential when structured correctly
That “two-fold” value is what makes it especially relevant for high earners looking to reduce tax liability while also building wealth outside of traditional markets.
Understanding the Structure: Working Interest vs. Royalty Interest
Not all oil and gas investments are structured the same way, and that structure determines both risk and tax treatment.
A simplified overview:
- Royalty interest typically receives a portion of revenue “off the top” without paying operating costs or drilling expenses.
- Working interest participates more directly in the economics of drilling, including costs and potential upside.
From a tax strategy standpoint, the episode highlights that significant upfront tax benefits are generally associated with working interest in wells that are being drilled (or about to be drilled)—which is why structure matters so much.
Risk Management Matters More Than “The Asset”
A common mistake investors make is judging risk by labels:
- “Oil and gas is risky.”
- “Real estate is safe.”
- “Stocks always go up.”
In reality, risk comes from the details: underwriting, operational execution, leverage, project type, and incentives.
Terra Firma emphasizes wealth building as a process of risk management, not guesswork. The goal is not to eliminate risk entirely, but to:
- understand it clearly
- reduce avoidable risks
- diversify intelligently across asset types
- increase predictability wherever possible
Tiered Strategy: Avoiding Speculative Projects
In oil and gas, the risk profile of a project can vary dramatically based on whether it is exploratory or based in proven production areas.
A disciplined approach focuses on:
- investing in projects located where extensive drilling history and data already exist
- prioritizing “de-risked” opportunities rather than speculative exploration
- using existing field data to reduce uncertainty around costs, production, and expected returns
This type of underwriting is fundamentally different than betting on unknown outcomes.
The Real Due Diligence Doctors Should Do Before Private Placements
One of the most practical parts of this episode is the reminder that private investments require a higher level of investor responsibility—especially accredited investors exploring alternative assets.
A key takeaway is that the best place to start is not the marketing pitch, but the documentation:
- Read the private placement documents.
- Pay close attention to the fee structure.
- Look for clarity, transparency, and alignment.
A major red flag is when a deal is designed so that the sponsor wins upfront regardless of how the investment performs long-term. When incentives are misaligned, performance can become secondary—and that’s a dangerous place for investors to be.
Why Partner Alignment Is a Non-Negotiable
Terra Firma’s partner selection process is built around alignment:
- shared philosophy
- transparency
- willingness to educate
- accessible communication when members need clarity
- a structure where the partner’s success is tied to members getting real value
This matters because alternative investments are not “plug and play.” They must fit inside a broader strategy that includes tax planning, portfolio construction, risk management, and long-term goals.
The Bigger Wealth Strategy: Uncorrelated Assets and Portfolio Efficiency
For many doctors, most investable dollars are concentrated in traditional markets because that’s where conventional advisors funnel capital—stocks, bonds, mutual funds, and retirement accounts.
A core strategy discussed here is using alternative assets as part of a broader portfolio design to:
- reduce correlation risk
- diversify income sources
- improve long-term resilience
- open up additional tax planning opportunities
The goal is not to replace traditional investing—it’s to build a more complete, better-balanced wealth plan.
Final Thoughts
This episode highlights a core principle: wealth building isn’t about chasing the next “hot” investment. It’s about making educated decisions, choosing aligned partners, managing risk intelligently, and using the tax code the way it was designed to be used.
For high-income doctors, this combination—education + strategy + vetted relationships—can be the difference between slowly accumulating wealth and accelerating toward financial freedom with confidence.
If you’d like to learn more about this topic, watch our episode of Wealth Mavericks where we discuss this further: https://youtu.be/H-pUD3gVRGA?si=azufV2dmFyUlpepF