Return on investment

[vaio]

I'm currently in the process of gaining admission to dental school for the '06 cycle. I was looking into different schools and their costs/fees, and they range anywhere from 150K upto 300K. With such imensely high fees, do you think once one is a practicing dentist, he/she will get a good return on his/her investment(dental education fees), to pay off so much and make some money/profit? I had a conversation on this with one of my friends whose a financial analyst and he has me all freaked out

 

[Periogod]

I'm currently in the process of gaining admission to dental school for the '06 cycle. I was looking into different schools and their costs/fees, and they range anywhere from 150K upto 300K. With such imensely high fees, do you think once one is a practicing dentist, he/she will get a good return on his/her investment(dental education fees), to pay off so much and make some money/profit? I had a conversation on this with one of my friends whose a financial analyst and he has me all freaked out

Nope. Every dentist that has ever gone through school has had to declare bankruptcy. Dentists make no money, it all goes to student loans and these last for 30 years. Its only after these 30 years of paying back your loans (if your still alive) that you will turn a profit. The problem though is then you have to start paying off those loans you had to take out to purchase your practice so you might as well plan to work until your dead. Its a vicous cycle and I am married to a dentist so its twice as bad for us. You should feel very sorry for me and my finacial woes.

 

[vaio]

Nope. Every dentist that has ever gone through school has had to declare bankruptcy. Dentists make no money, it all goes to student loans and these last for 30 years. Its only after these 30 years of paying back your loans (if your still alive) that you will turn a profit. The problem though is then you have to start paying off those loans you had to take out to purchase your practice so you might as well plan to work until your dead. Its a vicous cycle and I am married to a dentist so its twice as bad for us. You should feel very sorry for me and my finacial woes.

 

[Rezdawg]

If you make 150,000 a year for 30 years, then you have accumulated 4.5 million dollars off of your school tuition (150,000-300,000).

Good returns.

 

[drhobie7]

A few months ago I was at a bar and some tool of a CPA tried to tell me this was a horrible time to be a dentist, that competition was so high I could never make a decent living. I looked at him like the alien he was and walked away. Either he had no concept of what he was talking about or he was bitter about the fantastic future we have and was pissed off he had to spend his days in accountant boredom.

 

[Periogod]

If you make 150,000 a year for 30 years, then you have accumulated 4.5 million dollars off of your school tuition (150,000-300,000).

Good returns.

This is not exactly true. If you make $150,000 a year, you're only seeing about 2/3rds (this is being generous) after taxes ($3 mill over 30 years). Not to mention your $200,000 school loan turns into $420,000 of payments. But that still leaves around $2.5 mill to play with and if you're a halfway decent businessman and invest your money well I don't think you'll be on the street begging for change.

 

[Yah-E]

Either he had no concept of what he was talking about or he was bitter about the fantastic future we have and was pissed off he had to spend his days in accountant boredom.

Definitely the latter.

 

[Rezdawg]

This is not exactly true. If you make $150,000 a year, you're only seeing about 2/3rds (this is being generous) after taxes ($3 mill over 30 years). Not to mention your $200,000 school loan turns into $420,000 of payments. But that still leaves around $2.5 mill to play with and if you're a halfway decent businessman and invest your money well I don't think you'll be on the street begging for change.

True, but I also plan on averaging over $150,000 a year over my lifetime...I was lowballing it on purpose.