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At what age do you plan to retire from practicing Dentistry?
Ultimately, I want to reach the point of my career where I don't have to practice dentistry, but I want to.
Status: Pre-dental
Dr. Daurang, do you have your own practice(s)? If so, after how many years after your graduation did you decide to open one? I understand that your debt amount could be much less than us which gave you a much better opportunity to reach the financial goals faster but if you were going to have $430K-500K of debt after graduation, what are the things that you would have done differently?Most dentists are horrific savers so it's not a choice they can make. I am 45 and have pondered this question with myself almost everyday for the past 3 years. I initially planned on early retirement and have reached my financial goal at 45. My current nonworking passive income is more than what most dentists make so I'm not so motivated to drill and fill anymore. But I don't hate dentistry yet I don't like it either, so I work 25hr week now cause it's easy money. I have decided to delay full retirement until 50 cause I haven't decided what to do other than sleeping all day.
Man... If you have that much downtime, I need to come fly out to my old city and grab a bite with my mentor.Most dentists are horrific savers so it's not a choice they can make. I am 45 and have pondered this question with myself almost everyday for the past 3 years. I initially planned on early retirement and have reached my financial goal at 45. My current nonworking passive income is more than what most dentists make so I'm not so motivated to drill and fill anymore. But I don't hate dentistry yet I don't like it either, so I work 25hr week now cause it's easy money. I have decided to delay full retirement until 50 cause I haven't decided what to do other than sleeping all day.
Dr. Daurang, do you have your own practice(s)? If so, after how many years after your graduation did you decide to open one? I understand that your debt amount could be much less than us which gave you a much better opportunity to reach the financial goals faster but if you were going to have $430K-500K of debt after graduation, what are the things that you would have done differently?
Sorry if I asked too many questions but I really think that you are a very wise and experienced dentist after reading many of your previous posts. Also, since you are Vietnamese (I assumed), do you think it has given you the advantage to attract more VNmese patients?
I'm hoping to hear more of your experiences. Please feel free to PM me or reply to this post if you are comfortable. Thank you so much.
Thank you so much for replying to my questions! Dr. Daurang, you are officially my role model.I built my practice in 2000 as soon as I got my license. My school debt was $200k from dental and $50k from undergrad. Henry Schein lent me another $80k for construction of the practice. Yes I was crazy but it's a high risk high return concept. Dental office is the second most successful startup business so it's worth the risk. Also, the surest way to become financially independent and a millionaire is to have your own business. If I fail I can always work 9-5 for corporate for the rest of my life like everyone else.
Then came the housing crash of 2008 and all these foreclosures were selling pennies on the dollar. Previous $120k-$150k homes were selling for $25k-$40k so I bought them all with all my cash to rent out.
Only 25% of my pts are VNmese. I don't concentrate of them and I don't advertise to them or anyone else. I stopped advertising cause 95% of new patients are referrals.
Dental office is the second most successful startup business so it's worth the risk. Also, the surest way to become financially independent and a millionaire is to have your own business.
I'm retiring at 47. haha specifically at that age because I'll be 27 at graduation and want to do 20 years with the Army.
How long did it take you to get to that goal?Two more years or when my retirement plan hits 4 mil. Whichever comes first.
Ha! My accountant said exact same thing.Cold Front...what are you doing investing with Edward Jones? Are you making them rich or yourself rich?
In their 40's putting away $200k a year to catchup? They're already way ahead of the game if they can put away that much after tax! Why they need some idiot to scam them 5% right off their $200k for? Are these dentists trying to catch up to Bill Gates or Warren Buffet? NUTS!
DOW is down 300+ today? GOOD!!! I only buy stuffs on sale and the stock market is no difference. Buy good companies and it will more than likely go up within a week or two. I've made $30k this year on Apple alone just buying it on drop and selling it the following week. If it keep dropping buy some more to average out and wait it out til it rise. If you wanna retire early buy Apple stocks but don't buy Apple phone!
My exact thoughts. You can't save save save, then put it into vehicles that give you less control, specially with fees that's higher than your city and state taxes.In their 40's putting away $200k a year to catchup? They're already way ahead of the game if they can put away that much after tax! Why they need some idiot to scam them 5% right off their $200k for? Are these dentists trying to catch up to Bill Gates or Warren Buffet? NUTS!
DOW is down 300+ today? GOOD!!! I only buy stuffs on sale and the stock market is no difference. Buy good companies and it will more than likely go up within a week or two. I've made $30k this year on Apple alone just buying it on drop and selling it the following week. If it keep dropping buy some more to average out and wait it out til it rise. If you wanna retire early buy Apple stocks but don't buy Apple phone!
My exact thoughts. You can't save save save, then put it into vehicles that give you less control, specially with fees that's higher than your city and state taxes.
I think passive income and paying off debt is way to go. So far I have a goal of growing my business 10% a year in profits (which is about $60k a year) - which is normal rate for an office that has potential for growth. Plus cutting debt related expenses/payments at a rate of $60k a year, which can only go for so long, but leads to lower overhead. That's a total of $120k a year more in 2015 take home from my 2014 income. To me, it is better rate of return than investing in retirement accounts in the short and long term.
This will soon equate to zero student debt, mortgage and practices paid off, auto paid off, real estate investments that has lower debt.... That's a tangible multi-million networth by retirement age, and most of it is appreciating with time, maybe at a better pace than retirement accounts.
It's not fun to worry all the time about keeping your income up. After refinancing and paying down debts for the past few years, that was a better feeling than making more money and getting taxed a lot. I would rather work less and make less and enjoy everything else there is to life. That's the dream "feeling".
2013: Worked 6 days a week.
2014: 5 days a week.
2015: 4.5 a week. (5 years out of school).
2016-2020: 4 days a week.
This is pre-tax savings through debt reduction/expenses and business growth take home. Let's assume $120k each year of savings in the following example.Is the 120k take home before or after taxes?
I'm not 100% against security investments, but I truly believe in tangible investment as a better option personally. You have more control of your portfolio, and not subject to retirement accounts' age limits, taxes, penalties and fees to get passive income. You can always sell your real estate investments before you turn 59 and pay capital gain taxes at 15%, versus waiting until age 59 to withdraw your IRA at 20%+ tax rate and face additional fees on the way.Are you saying that you don't invest in securities at all? I think this is flawed because capital is aligned with governmental power and market forces; why wound't you want to align your financial interest with them? I understand avoiding high fees but there are a lot of firms like Vanguard that offer no-load funds for you to invest in and avoid them. Think about it this way - would you like to directly benefit from the effects of globalization, automation, and regulatory capture or do you want to suffer from it? This is all without considering compounding interests etc.
By avoiding securities all I see downside. Indeed, every other investments you've mentioned are exposed, albeit more indirectly, to much of the same risks, market forces, or corrections. Although, I think a strong case can be made for diversification outside of securities and obtaining other forms of passive income.
I'm not 100% against security investments, but I truly believe in tangible investment as a better option personally. You have more control of your portfolio, and not subject to retirement accounts' age limits, taxes, penalties and fees to get passive income. You can always sell your real estate investments before you turn 59 and pay capital gain taxes at 15%, versus waiting until age 59 to withdraw your IRA at 20%+ tax rate and face additional fees on the way.
At what age do you plan to retire from practicing Dentistry?
How many negative markets can we experience in a life time? I have only seen one (2008), and if it happens like the last one, it could last a decade.It's not quite that simple. When you sell your real estate you also pay your depreciation recapture which will wipe out of your gain. If you're in high tax bracket, IRA will save you 40% tax ($20k) on that $53,000 annual deposit plus the money is fully protected from creditors/lawsuits. You don't need that money until 59 anyway so keep as cash and buy when the market crash like me. My point is you gotta be well diversified to take advantage of negative market and gubmint changes.