Dentists enter the workforce four to five years later than many of their contemporaries, increasing their student loan debt and delaying income generation. The hope, of course, is that your practice will create the opportunity for financial security and a comfortable retirement. However, many dentists do not recognize that wealth accumulation is not automatic. There are certain trends to understand and steps to take to ensure an excellent financial future.
Build your savings. By designing a plan to save a specific amount of money annually, investing that money -- both as an individual and in tax-beneficial retirement programs -- you can build a nest egg that benefits from more years of compound interest.
Don't forget that your practice is still your best source of income. If you want to accelerate wealth accumulation as a dentist, the single best and safest approach is to increase practice production and practice profitability.
Dr. Roger P. Levin is CEO of Levin Group, a leading practice management and marketing consulting firm. To contact him or to join the 40,000 dental professionals who receive his Practice Production Tip of the Day, visit LevinGroup.com or email [email protected].
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