North Texas Dentistry Volume 8 Issue 3 2018 ISSUE 3 DE - Page 24

money matters Wealth Building Deferred Retirement Plan vs. Dental Service Organization By William Stukey, CPA The dental business secrets of- fered in this article are drawn from real life experience with dentists and dental consultants over the past 20 years that have led many dentists to become fi- nancially independent. We share a brief overview of these con- cepts here to help “jump start” those dentists who seek to be- come great dental business men and women developing a solid financial plan and sound means for future retirement. On a weekly basis our firm studies with some of the best tax experts in the United States to seek out ways to help our dental clients avoid and minimize taxes in order to help achieve financial independence. Overview It is nearly impossible for most dentists to retire before age 60. A dentist must es- tablish a very high investment savings plan annually. Social Security benefits also do not maximize until age 70. Strong Capital Management conducted a recent survey and asked people how prepared they are for retirement. The results showed that 59 percent of Americans expect to maintain their current lifestyles after retiring. The typical dentist in Amer- ica at age 60 has approximately $300,000 in retirement savings which is inadequate for retirement. There is a small group of dentists (most unnoticed under the radar) who amass wealth early, attain early retirement and then once again fall off the radar. Early on they mastered the dental business skill sets which are included in the precepts of the book The E-Myth Dentist (dis- cussed below) by Michael Gerber, Alan Kwong Hing and Christopher Barrow. In some cases, this small group of dentists were second or third generation dentists or they had an undergraduate degree in business. Their business coaching gave them a head start. The E-Myth Dentist book authors at- tempt to reveal the illusions and obstacles that small business owners encounter so they can, in turn, visualize how to reach 24 NORTH TEXAS DENTISTRY | www.northtexasdentistry.com their full potential as a dental business- man. Through this book dentists realize the possibilities open to them not only as dentists, but also as managers and entre- preneurs working on their practices. The E-Myth Dentist is “the conceptual road map” that outlines a solid initial plan re- flecting stability, growth and high profit potential. It offers a plan of hope which should encourage you to continue taking dental business classes, reading more books on dentistry, joining dental study groups and surrounding yourself with business professionals who continue to offer sound counsel. These dentists don’t feel their careers are un ՔQ䁡ٔɕ䁉ͥ)́Q5ɔ9Ёȁ)Q́Mх䁅])Qȁ́́ɹѡͥ́)ѥ䁅ѡɕ)ѥѡЁхձЁɅ)хɅѥѼɕɽх)ɅѥЁ܁͡Ё啅̸Q)Ё́́ѼхЁ܁Ʌѥٕ(ѡ́Ѽѡɕ啅̰ɥѡ)ɥѕЁхɕѥѡ)啅ȁѕȁ啅ȸQɕȁхд)Ʌѥٕ́ɍͥ)ѥɅѥAɍͥɅѥ)х䁄٥ѕɹѥٔ)̸͕Q䁡ٔɕѼɕЁ)) ́չхѡЁɥ)ɕЁ́ѡɕ)ݕɔɅѥ