When you’re practicing dentistry, preparing for retirement can be a nerve-racking topic.
Most dentists are just too darn busy to give it a lot of thought before it’s too late. Other dentists are simply relying on the sale of their practice to fund everything. And that’s an even bigger problem.
Because if you crunch the numbers, you realize that even selling your practice for something like $2 million (which few practices will sell for) can leave you eating peanut butter and jelly sandwiches for the rest of your days.
Between paying off any debt you’ve got AND paying Uncle Sam, you can watch that pile of money get cut WAY down.
But let’s say you’re fortunate and have little debt, maybe a few hundred thousand. You pay that off, you take care of the tax liability, whatever that is, and you’re left with $1.5 million.
Then let’s say you completely LUCK OUT and figure out how to get 10% on your money each year (this is never going to happen, by the way).
You will live out the rest of your days on $150K per year. You’re not in the poor house, but your 30 years of HARD work didn’t exactly prepare you to live on easy street either.
The nerve-racking part is that you’re not going to get 10% on your money. So let’s say you get 5%. Now you’re living on $75K per year.
For most dentists, this will require a MAJOR downgrade in lifestyle. Certainly not the retirement dream most of us carry in our heads while we’re bending over a chair for 30 years.
Believe it or not, this is not good or bad. Building a successful practice is very valuable, provided your head is screwed on straight about how to leverage it.
Dentistry is a very effective way to generate CASH. It is not an effective way to generate wealth. You generally need an ASSET that doesn’t require you to build real wealth.
That’s why, many times when we’re talking to prospective members of the Dental Sleep MBA™ program, we actually advise AGAINST selling the practice. Often times, it’s simply smarter to keep it churning out cash that can be put to better use.
We have three Introduction to Dental Sleep MBA™ events this year (the 2020 event schedule is coming soon). If you want to explore a way to turn the money from your dental practice into something that actually CAN realistically end up creating real wealth, you should be there.