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5 critical errors that may affect financial future in retirement.

by | Jun 30, 2022 | Articles, Tips and Tricks | 0 comments

What are the five critical errors dentists may make that may affect their financial future in retirement.?

 

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What are the five critical errors dentists may make that may affect their financial future in retirement.? First, we want to make sure you’re not an easy target for lawsuits that can vaporize your savings. Second, we want to maximize your savings without lowering your standard of living. Third, you need to pay the minimum in taxes possible, so you keep more of your hard-earned money.

Fourth, you want to be insulated from losses that can harm you financially. Fifth, you need to possibly realize an increased yield in your investments. You’ll discover in this article how you can retire – so you can do what you want, where you want when you want. This is why you’ve worked all these years. If you don’t do this, and your practice doesn’t sell, this can be challenging. You might have to practice until you can’t practice anymore.

You might not ever be able to take your family on those vacations you promised. Your spouse may get tired of waiting for you to stop putting your life on hold. Who am I and why are you reading what I wrote? I started out as a real estate agent. I hated the grind of open houses. I hated driving people around and looking at houses. I hated the phone ringing every day and buzzing all hours of the night.

I started investing my own money. I did so well that the investment firm hired me! I have a friend whose brother was a dentist, and he was referred to me. He had some unique needs that you are likely to have. I identified those needs and helped figure out how to solve them. He was so pleased he introduced me to more dentists because of the approach I created.

So I built a practice for dentists and dental professionals. I keep seeing dentists make the same mistakes. Let’s start with making sure you’re not an easy target for lawsuits. Do you know what your insurance doesn’t cover? A lot of dentists don’t have the time to go through their insurance policies with a fine-tooth comb. Are your assets held the right way? Do they each have the correct owner?

Do you have the proper asset structure? For example, in Florida, a single-member LLC doesn’t have liability protection.

Is your share of the PLLC for your practice owned by you directly? Or by a Family Limited Partnership or some other structure? You want to make sure you’re maximizing your savings without lowering your standard of living. You want to get a structure in place to put savings on autopilot without tightening your belt and eating beans and rice. Here’s a little-known secret: the rate of savings is more important than your rate of return. You want to pay the minimum tax so you keep more of your hard-earned money.

Warren Buffett pays tax at a lower tax bracket than his secretary. It’s not just the dividends he receives. Unfortunately, most CPAs are history reporters, they report taxes based on what’s already happened. That’s too late. You want to do proactive, forward tax planning that reduces your taxes ahead of time. We have seen dentist clients with seven-figure incomes with very low tax rates. You need to insulate yourself from losses that can harm you financially.

You’ve invested hundreds of thousands of dollars in your training, and your ability to practice is your biggest asset. You want to make sure no matter what happens, you’ve got money coming in. You want to possibly realize increased yield on your investments and savings without unnecessary risk. When you focus on all five of these areas, we call that financial flossing, where you get in between the cracks of your financial life. You need to find out if you have a financial fortress, or if it really is a house of cards that is one significant bill (or life event) away from falling down.

Focus on these five areas and go from chaos to clarity so you can get on the right path to keep what you deserve for all your expertise and hard work.

To watch a short video on How Dentists Can Help Protect Themselves From 5 Critical Financial Areas That May Affect Your Financial Future and Retirement go to https://financialflossing.com/dentists now.

 

 

 

 

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Glenn Vo
Author: Glenn Vo

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