Value tradeoffs

[topalpha]

Hello All.
I was having casual chat with a Dr. Dentist (a known acquaintance - not a friend but certainly not a stranger) when Dr. suggested I should take up dentistry. I have an undergrad in electrical engg with solid background in chemistry&math. Not so much in biology. Dr. suggested I can bridge it by taking biology classes. Now I also have a masters degree from MIT in computer science and have been a software professional for 15 years. (Yes, my science background is rusty, though).
I love learning and have hit a point of diminishing returns in my current profession. So if I forgo 150K USD salary for 4 years at early 40's, when will I breakeven if I practice in a place like Boston/chicago/Seattle type of area (giving an idea of population density). Dr. earns 800k USD per annum and has own practice. Suggestion was I can breakeven in 2-3 years taking lost salary into account and the debt I would accrue.
Any thoughts would be appreciated. You can communicate with me at [email protected]
Please help!
Thank you.

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[rbmdmd]

1 yr to take biology classes, 1 yr to apply and hopefully get in, 4 yrs of school plus school debt which varies….you won't break even in 2-3 yrs and you prob won't make 800k in the first 5 yrs of practicing if ever doing general. If that guy is supposedly earning 800k/yr, he is producing approx 1.7 million…lets say you want to buy his practice…it would sell for approx 1.1 million (~70%). A loan for 1 million is I'm guessing about $13k a month with 6% rate. This payment on top of say a student loan payment of $300k which could be another few thousand a month is risky which is why i wouldn't even think the bank would do the loan. If you don't buy a practice you won't make nearly as much and prob not much over $200k/yr. With owning a practice also comes rent or whatever it is to own the building. I'd sit down and have a reality check convo with another dentist bc there are many more scenarios that can play out

 

[Pedo86]

Dr. Dentist is in the top 1% of all dentists if he earns that much. Look at the average salary of a dentist to get an actual ballpark. And while I am on the topic of baseball, you cannot hit a home run every single at-bat, so you must temper your expectations from Dr. Dentist and come back to the real world. Dentistry is a great profession, but it is still work.

 

[chill45]

Unfortunately the fact that he or she makes that much is skewing your mind greatly. If you already make 150k a year then taking four years away from that along with 300k+ debt you are talking over a million dollar swing in the negative by the time interest starts accruing. Real expectations of a salary right out of school is 100-140 for the first few years. Plus all of your pre-reqs generally have to be within the past 5 years, so assuming you would have to take them all over again that's another 2 years full time at the ole undergrad. Not trying to turn you away from it if it's something you think you'll love, but for that much of a swing in money you would have to postpone retirement by 20 years and still may not be ahead of where you'd be if you stayed where you're at.

 

[BitD3nt]

Dude, you are 40 and making $150k. I don't see a reason why you can't get to $200k in 5 yrs and stay at that level for another 15 yrs. Ultimately, if you've made the right financial choices in life you should be worth north of half a million dollars now if not more. If you keep making the right choices over the next 20 yrs you should be set for a very decent retirement by the time you are eligible for AARP membership. If you go the dental route it will take you about 6 yrs to get the DDS (age 46). If you can beat your current financial projection with a DDS start salary of $150k with 4% growth rate in perpetuity for 20 yrs after the DDS then I'll say go for it. But I honestly don't see how you can make the math work. In summary, you are better off making the most of your current situation and improving on your financial management skills. On the alternative, if you have looked at your current situation and reasonably determined that you will soon lose your job and your next gig will be with a 30% pay cut and subsequently endure a 2%/yr in pay cuts for the rest of your 20-25 productive years then you will be better off jumping ship man. Goodluck!

 

[herkulis]

http://improvingsoftware.com/2009/05/19/programmers-before-you-turn-40-get-a-plan-b/