Percentage Costs of Retirement and Insurance costs

[DMD_DREAMING]

I have a business type question concerning the percentage cost of retirement and insurance on the bottom line of a dentist's take home pay. Is that normally taken out of the business overhead or does it come off of the take home pay after the overhead has been deducted? I am curious to see how much costs are associated with providing for your own insurance and retirement. Thanks,

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[toothcaries]

I have a business type question concerning the percentage cost of retirement and insurance on the bottom line of a dentist's take home pay. Is that normally taken out of the business overhead or does it come off of the take home pay after the overhead has been deducted? I am curious to see how much costs are associated with providing for your own insurance and retirement. Thanks,

i could be wrong..
but malpract is a cost of doing business (overhead)

..retirement is not a cost of doing business.


classics such as 'the richest man in babylon' and 'the millionaire next door' stress "paying yourself" 10% min of your income...
i tend to agree.


personally i'd put away 20% of your take home.
..but then again, my biggest bills are for corona and new chew toys for my pup..

 

[trypmo]

Mmmmmmmm... corona....

 

[Gutta Percha]

The percentage of malpractice ins. is low compared to average production of 550k, the maximum I will pay will be 2900/year at least thats what they tell me now. Retirement is your guess. As long as you have your own practice and fund a keogh (and I think sep-ira) you can put away 40k tax free. So if you make 200k and put 40k of that into a retirement acct. you are only taxed on 160k. However, you must provide a similar retirement acct. for your employees. Or you can do a traditional 401K. If you provide healthcare ins. for your employees that is another matter altogether.