Dentists have a very distinctive pathway to wealth accumulation. With careful planning, most dentists can accumulate wealth, have excellent financial careers, become financially independent at a reasonable age, and be protected financially.
Save the right amount every year. How much should each dentist save annually? That varies based on each dentist’s goals, lifestyle, desires, targeted retirement age, etc. However, I would suggest an excellent idea is to increase the amount of income saved each year.
Don’t make significant financial mistakes. Dentists are highly intelligent individuals, and some begin to believe that they can match the financial experts when it comes to investments or what they read about in the paper or hear in the news. One rule of thumb is to never put more than 10% of your net worth into any one investment. Although this is not set in stone and is merely an opinion, it can prevent many dentists from experiencing significant losses.
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].
The comments and observations expressed herein do not necessarily reflect the opinions of DrBicuspid.com, nor should they be construed as an endorsement or admonishment of any particular idea, vendor, or organization.
