Graduating without any debt.

[Jst213]

---

Members do not see this ad.

I will be graduating next year with no debt courtesy of a combo of dirt poor living, "cheap" dental school and parents still having money left over from what should have gone to my undergraduate education (went to a cheap state school).

My question is what would be a smart move to make right out of dental school? Go ahead and buy a practice right away? Work as an associate for a couple years and gain experience and some money to put down towards a practice then go and buy one? Any advice would be great!

 

[bjpenn]

If u know what kind of dentistry u want to practice i.e. ffs, ppo, Medicaid,

Buy an office with a doc willing to do a proper transition.

Or just find an associate job to see what you like .

Please take advantage of this GIFT you have been given.

 

[oralcare123]

You don't have to work couple of years, 6 months to a year would be enough

 

[periopocket]

Sounds like you've already ruled out doing a residency.

 

[Jst213]

Sounds like you've already ruled out doing a residency.

Actually I've strongly considered it. Currently working towards an OMFS residency but considering the difficulty of entering into those I'm preparing myself to be a GP.

 

[Promethean]

If you worked even just a year, with no debt, and continuing your frugal lifestyle, you could be in a position to just about pay cash for a practice.

Talk about sitting pretty then!

http://whitecoatinvestor.com/ This is solid advice.

 

[ysrebob]

If you worked even just a year, with no debt, and continuing your frugal lifestyle, you could be in a position to just about pay cash for a practice.

Talk about sitting pretty then!

http://whitecoatinvestor.com/ This is solid advice.

Just to put some real numbers out there...

Typical cost for a new office startup is around $450K. Would be difficult to start even a tiny office for less than 250K up front. Then it's common to lose money for the first 12-24 months of a startup, though this can be avoided with careful selection of location. A startup is definitely swimming upstream vs just buying a healthy existing office. But banks would willingly loan you enough to do this within a year or two of graduating given your lack of student debt.

Typical valuation for an existing practice is maybe 70% of annual gross (more like 100% in urban areas; less if truly rural) -- so say a purchase cost of maybe $500k for a typical small family practice not in an urban area. Banks would happily loan you this, possibly even straight out if school, if it's clear that the cash flow from the practice can cover your purchase loan payments plus any other debt service you have... here again a lack of student loans will help.

Either way, though, loans will probably be involved.

 

[ysrebob]

OP, I think it would be worth working as an associate in a well-run private practice for at least a year or so. You will learn what you do/don't want in an office, how offices run, how insurance works. get better at presenting tx plans, andmost of all continue to develop your hand skills. All this will make your transition into ownership much smoother and easier.

Since you don't gave student loans you can be a little more choosy about the job you take: it would be nice if you could work in the sort of office you'd see yourself owning, vs starting in corporate.

 

[Redtwogreen]

I'd echo what most here have said. Not a bad idea to work for someone else for 6 months - a few years, to save up some cash to buy a practice. Super jealous of your position!

 

[786783]

Id repeat what has been said, and I'm also super jealous! Start planning on what you're gonna give your parents back as presents haha.

 

[DentalAptitude]

Whatever you end up doing, save equal amounts you would have otherwise could have being paying for loans towards retirement. Once you have made substantial investments in retirement accounts, if you still have "extra" money left, invest it in yourself and your career. You are in a great position to pour money into personal development and more importantly career long investments. I'm not well versed of specifics of personal finance, but the general philosophies are easy to understand and difficult to implement. I honestly would meet with a financial planner to set yourself up for retirement, you'll be leaps and bounds ahead of the rest of us and retire earlier or work less with financial freedom.


Sent from my iPhone using SDN mobile