Many dentists delay saving for retirement, and it’s one of the costliest mistakes they can make. Dentistry does not typically allow for large wealth accumulation at the end of a career.
As the retirement age continues to rise due to economic pressures, knowing whether you have enough to retire is scary to consider. However, financial independence at 62 or earlier is achievable if you start early, build a sound financial plan, and implement the systems and strategies that ensure the right production, the right profit, and the right level of retirement savings.
Build your practice to support your savings goals. Work backward: Determine the retirement savings required to sustain your preferred lifestyle, then calculate the production necessary to generate that level of profit.
Don’t rely solely on practice success. Practices today experience many challenges, including production swings, increased competition, declining reimbursements, and economic fluctuations. This is normal. What matters is building a clear, mathematical plan for how to accumulate wealth despite these obstacles.
Dr. Roger P. Levin is CEO of Levin Group, a leading practice management and marketing consulting firm. To contact him or to join the 40,000 dental professionals who receive his Practice Production Tip of the Day, visit LevinGroup.com or email [email protected].
The comments and observations expressed herein do not necessarily reflect the opinions of DrBicuspid.com, nor should they be construed as an endorsement or admonishment of any particular idea, vendor, or organization.
