Dentistry Uncensored with Howard Farran
Dentistry Uncensored with Howard Farran
How to perform dentistry faster, easier, higher in quality and lower in cost.
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1129 Dr. Milan Somborac DDS Founder of Monday Morning Millionaire Program : Dentistry Uncensored with Howard Farran

1129 Dr. Milan Somborac DDS Founder of Monday Morning Millionaire Program : Dentistry Uncensored with Howard Farran

1/23/2019 10:15:13 AM   |   Comments: 0   |   Views: 251

Milan is the author of Monday Morning Millionaire and the creator of the Monday Morning Millionaire Program. He practiced dentistry for over 50 years. The Monday Morning Millionaire Program is his step-by-step process that will allow you to outperform the market and to become a confident and successful do-it-yourself (DIY) investor.

VIDEO - DUwHF #1129 - Milan Somborac


AUDIO - DUwHF #1129 - Milan Somborac

Howard: It's a huge honor for me today to be podcast interviewing Dr. Milan Somborac who was born in Belgrade and is now in Collingwood Ontario Canada. He graduated from the University of Toronto Faculty of Dentistry in 1965. He practiced dentistry for fifty five years until December 2018 and he is the founder of the Monday Morning Millionaire, how to beat Wall Street at its own game. He features a seven effective habits of successful investors. He thinks the dental profession has been over marketed and manipulated by the investment community at large and how a dentist can save hundreds of thousands of dollars over the course of their career using predictable exchange-traded funds. Did you know that you can make more money before breakfast on a Monday morning than you ever did in your best week at work if you do, most could, his wife and every Monday morning that is a holiday. He is a practicing, that is he was a practicing dentist until December 2018 and with no financial credentials but more than 50 years of stock market investing experience, this is why the website is called the "Monday Morning Millionaire" and you just go to it, it's at and he was referred to come on the show by Timothy brown. Timothy Brown, what can you say about this man Milan?

Timothy: Well you know I met him about 25 years ago when a dentist up in this community passed away and the widow contacted Milan to say you know my husband is deceased very suddenly we have to sell the practice. I'm an appraiser and broker, some of your viewers may remember me from episode 1111 that you and I did a couple of months ago in November of 18. So that's where I first met Milan but my father had known for 30 or 40 years before that. He's an exceptional individual he's a mentor to me he's an intellect I helped Milan sell his dental practice here in Collingwood Ontario about a year ago. He had a lovely building, he had a long legacy practice, he excelled at taking it over, we're hosting a big career celebration. So that's my relationship with Milan is that of a mentor, that of his appraiser and broker and were friends. So in the process of Milan to sell his dental practice, I said what are you gonna do and I think that's a question every broker asks every dentist being anybody across America or Canada doesn't matter. What are you gonna do when you sell your dental practice doctor, well Milan didn't miss a step and said well I'm gonna publish the Monday Morning Millionaire book and this is the hard copy, my company published it for Milan because I also wrote a book like you did Howard and you have a copy of my book. Our copy of that its way to you and for the viewers out there Howard, Milan and I are all going to be at the Caribbean dental program in Barbados in April 2019, so I'm plugging the Caribbean dental program for anybody watching come join Milan myself and Howard Caribbean dental program is the website April 2019.

Milan: I look forward to meeting you there

Timothy: Yeah we'll all be together, I'll finish in a minute and then it's all about Howard and Milan but this book Many dentists when they come to me late in their career, they complain that "I don't have enough to retire, what's the value of my practice, is it going to be enough for me to live a comfortable retirement" and of course I made the assumption for many years that all of these dentists had effectively saved. That they had you know, had a proper financial advice, they put their pennies aside and you know accumulated a nice IRA, here in Canada we call it an RSP same thing, tax savings that's effective retirement savings account. The sad news is that the large majority of dentists that I have worked with over the years have been in my opinion ripped off by the financial community and Milan's gonna speak very candidly and very frankly about that. Now before I hand the mic back to you Howard for Milan and to go at it, I just want to say one thing that Milan is so humble, he would not normally promote this, but I'm going to. This is a certified Guinness Book of Records certificate for placing dental implants in the oldest person in the Guinness Book of Records history and at this particular plaque the patient was 94 years of age and 354 days born June 1907. So not only is he an accomplished writer and a boss you know financial investing and advice, he's a very very accomplished dentist. One of the four canadians ever developed and fund and find develop an implant company. Just a wonderful individual, great creativity. I have about twenty five thousand dollars worth of restorative work in my mouth, yes this is the practitioner who did it for me. So that's my introduction, I want the viewers to stay in with this one. Guys you're gonna love this one although Howard you've never met this man and this is a well worth watching episode of Dentistry uncensored with Howard Farran and Dr. Milan Somborac. Have a good show.

Howard: Thanks for that intro, Milan we've met what thirty years ago I was lecturing in Toronto.

Milan: Yeah

Howard: Did I have any hair back then

Milan: I don't recall but I do recall Howard from your presentation in those days gas stations were full service there's no such a thing as a full-service gas station anymore it disappeared but you walked up to a man in the audience and you said to you "what do you do?" and he said I'm a dentist. So you can pick him out as a dentist, then so he said, you said "When you order gas, how do you ask for it?" well I say to the attendant to fill her up, okay then you walked over to lady and you said to her and "what do you do?" and she said "I'm an assistant in a dental office" so you knew to pick out an assistant in a dental office and you asked her "how do you order your gas" and she said "I say to the attendant give me twenty dollars worth of gas" She knew the amount that she could afford whereas the dentist always asked for a full tank. So that's memorable and I don't know how to tell you this without hurting your feeling but that's the only thing I remember from your lecture.

Howard: Yeah that's true, I think dentists only think in chunks like this cost a thousand or five thousand they don't understand living paycheck-to-paycheck and going to a grocery, like dentist's, when they go to grocery store they just get whatever they want and throw in the basket. They're not sitting there looking at price and I what their budget is or what they can buy or not buy.

Milan: and Wall Street  knows about that, now your viewers are dentists, all of them right, most of them...

Howard: Right

Milan: I want to ask your viewers a question right now. What percentage of dentists do you, viewers, think can retire at age 65 and maintain the living standard which they had while working... what percentage?

Howard:  Well I would guess I would guess it's probably only 3%

Milan: Very good Howard, the American Dental Association has published figures recently and you're just about bang right. 4% conformers, 96% of dentists according to the American Dental Association cannot retire at age 65 and maintain the living standard that they maintained while working. Now for Canadian dentist, the figure is probably the same although I haven't been able to dig it up. So why is this feasible, well whole lot of reasons but about 80 years ago or so there was a young man who inherited a lot of money. So he went to Wall Street to have it invested and so he was being squired around by a broker who was hoping for his business and the broker showed him this part of Wall Street and that part of Wall Street and there's a yacht club in a further Wall Street. So the broker said and now this is JP Morgan's yacht and this is Jesse Livermore's yacht on and on he went like that and the man said and "where are the customers yachts", where are the customers yachts. Now let's fast-forward by about 40 years, KKR bought Nabisco and one of the key figures involved in there was explaining to his wife how Wall Street works. So he said to her there are three rules on Wall Street, rule number one is never follow the rules, rule number two is never pay a rule, number three is always lie. Nothing had changed from the days that the young man said where are the customers yachts. RIght about the same time as this KKR event took place the Harvard Business Review published a study showing that 10% of Wall Street people are psychopaths, 10% are Psychopaths. They're all Bernie Madoff's or Bernie Madoff wannabes and in the general population 1% of people show some psychopathy tendencies. So that's the environment that we're working now right. About the same time that the Harvard Business Review published this paper on psychopathy on Wall Street, Lewis, Michael Lewis, yeah wrote a book called The Big Short and the opening line in The Big Short very well-written book, popular book, the opening line is to this day I don't understand the willingness of a bank to pay me hundreds of thousands of  dollars to dispense investment advice to adults. I was 24 years old never run a business didn't know how to read a financial statement, had no interest in stocks or bonds which direction they moved, I never even owned a bank account. That's what's happening on Wall Street, so these are the people, the psychopaths who are targeting us in dentistry because the way we buy gas we say fill her up and we never look at the price of groceries where we gotta buy shopping. So they know that we make money and also in dentistry, success in dentistry to a large extent depends on trust. We have to trust the patients, they have to trust us, if they don't trust that they go to somebody they do trust. So we see the world as we are and not as it is. These dentistry are trusting people and the psychopaths on Wall Street know that, so they target us because we got an income and because we're trusting people and so they develop systems which allow them to make incredible sums of money. When I graduated in 1965 in Canada the top earning netest incomes equaled the top earning bankers incomes today. Some fifty years later a top earning banker in Canada makes in two weeks what takes a top earning dentist a whole year to make. I'm not sure what the figures are exactly in the United States would they be very or maybe very similar. So now what do we have to do is develop habits which work, you know. The stock market actually has five major that is one is the returns are good there was from a Swiss bank report on the performance of investments over a hundred year period at the very top where securities marketable securities and that included things like stamps and gold and platinum and diamonds and Y and violins I saw the top was securities, was investing in the market that was number one. So that's one of the appeals or investing in the market if you do it correctly. The other one is absolute liquidity if you want to sell something you can sell it in a fraction of a second an astounding thing to watch your order go through you place an order with a broker it's filled seconds later, absolute liquidity. The third huge benefit is quoted prices to the second you don't need a Tim Brown to appraise your practice, you again instantly to the second what that security is worth and the total liquidity quoted prices and the record-keeping. We're all very bad in record-keeping, one of the best ways to make money in any investment is to keep lousy records. The broker provides because the law requires it very accurate records so those things make investing in the stock market appealing but it also draws the psychopaths the con artists to take advantage of trusting people. So you invest in the stock market, now the rules of the habits of highly effective investors and i see six habits that work really well. The first one is you gotta say you can have a savings program in place because without it the other five just don't do anything for you. So the savings program is somebody start saving early life say in their 20s or 30s they need to save about 10% annually of their retirement time and they will have enough to live the way they live while work if they start later in their 30s or 40s they got that saved 30 40 % if they get into their 40s or 50s by the time they start saving they gotta say almost 50 percent of their income to be able to live in retirement the way they were able to live while working. So that's the second issue that is important sorry the first issue the first issues gotta save. The second one is do it yourself because people have so many ways to bury their fees and their commissions that it's an astounding thing so if you do it yourself over the course of a lifetime. I bought a Tesla Model S fully loaded with the money I saved by investing myself. So I'm saying to my colleagues, you can save a year's worth of income by investing yourself so that's the second one. The third one is don't big stocks by the American economy as a whole American economy because it's the strongest economy in the history of mankind and you can buy the American economy as a whole by buying an exchange-traded fund which mirrors the S&P; 500 and I wouldn't be surprised that some of your viewers don't know that the S&P; 500 the 500 largest stocks which really the performance of the S&P; 500 mirrors the American economy as a whole. What about the Chinese economy, well you can't trust their records as The Economist a widely respected publication and the communist regimes in the world history of having no respect for private property. They confiscate when they feel like confiscating, so stick with the United States. The third a point the habit is don't try and tie markets, buy and hold.  American economy buy and hold. The fourth is rebalance; have large cash percentage investable money, should be in cash, a money market cash. Well the other 50% is invested in exchange-traded funds so that when the market tanks as it happens to be the doing now you got enough money and the last one is avoid complexity.L.D. Pankey, most of your viewers would know who L.D. Pankey is, most of your Howard, Buffett is Warren Buffett took a program at Columbia University that was run by Graham, Benjamin Graham and L.D. Pankey took the same program maybe ten years earlier so because he was older than Buffett and he recommended Pankey. This ratio of let's say 50/50 could be 60/40 so on depending on personal attitudes. When the market drops 10 percent Pankey said put 1/3 of your money into it if it drops another 10% put all of your money into it and if it drops another 10% borrow to buy bargains because, because price really is the main risk. If the price is low enough you're limited lot of risk L.D. Pankey, 10% put a 3rd of money in there, 20% drop with all of it in, 30% are put in a borrow money. So now I've talked a lot your turn to ask some questions.

Howard: Well ok, so most of the people who listen to podcasts are young, right and they're gonna, I know how they think cuz I talk to them every day and they're gonna think well I graduated $400,000 of student loans so I'm not gonna invest money, I'm gonna try to pay down my student loans. What do you say to you a 25 year old who doesn't know if she should take that extra paycheck and pay down student loans or invest in at the S&P; 500 exchange-traded fund?

Milan: That's a tough question to answer, the answer for that really is that the time value money is such that it's a miracle Albert Einstein called it a miracle of the world by value of money compound interest, so that if you invest a certain amount of money today and let it grow throughout entire career that'll carry or thirty four years or so it'll really do this exponentially so that the individuals who are carrying that kind of debt should pay down debt and save some at the same time say 50/50. Because the debt which we all have to incur partly to pay off our student loans and most people are working for corporations but in the United States that's happening in Canada too, but people who start at their own practice, you can't start a basic practice with two chairs and eight hundred square feet around a half a million dollars, it's a lot of debt but it has a limited, it's also going to be paid off in seven years or ten years or so where is the savings take a long time to accumulate in to grow. So the answer to your question really is I would take half half. Half to service that debt, also depends on the interest rate of debt right now interest rates are low and that is much easier to carry. When I bought my office about thirty five years ago interest rates were twenty percent.

Howard: 1980, well what year was that when you bought your office, I mean interest rates were 20.5% in 1980.

Milan: 1980 right, yeah that's right that's right yeah but I said it's a tool, the office is a tool for making money and it worth incurring that kind of debt at that kind of interest rate so interest rates now are so low that it's worthwhile if the risk is significantly reduced

Howard: What year were you born

Milan: In 1940

Howard: So from nineteen forty let's just say this is 2020 because you can see clearly with 2020 in forty to twenty in eighty years, when do you think the worst economic times were in your life was it 1980 when interest rates were twenty one percent?

Milan: In 1987 was a stock market crash which was bigger than the one that we just experienced in 2008 2009, 1987 and I forgotten how much the market tanked but it tanks hugely now.

Howard: 25% in one day. Iit was on Black Monday in October, I graduated in May 11 87 and then Black Monday was in October and a scary thought opening up an office after that tanked, I thought oh my god did I make a bad decision.

Milan: That devastated a lot of people. I happen to be very lucky Howard, in those days you couldn't create it as quickly as you can today. So the Friday before I entirely got out of market because I was visiting my daughter who was going to school at Interlochen, that school there thats in the north, northern Michigan. So I went to visit her inside, just got out of the market because I was feeling nervous. Talk about a stroke of luck because then the market tanked on Monday in 1987 that was entirely cash, it was able to buy bargain for that that was entirely luck you know.

Howard: Well I got, I don't like to tell this story because when you tell this story people are gonna think well this isn't true this is crazy whatever but you know March of 2000 I call that the y2k crash, you know from 87 to March 2000, the internet bubble. A lot of people call it the internet bubble, I don't really call it the Internet bubble. I call it the March 2000 because everybody was over investing and over and buying because they're trying to get their computers compliant for the year 2000 because the same membrane space they had two years four digits. So at 99 with the next year 00 and your computer would think was 1900. So everybody was buying hardware, software, everything imaginable and then after March and then after the 2000 everybody was done. There was no more real aggregate demand for all this stuff and it took about till March before everybody realized this game's over in the crash but I actually got out in November and I'll tell you why I got out in November and the same thing happened to me on this last one. Apple at that time the four big stocks, were Cisco, Dell, Microsoft and Intel and they called Intel, Windows and Microsoft and what I thought was amazing was that they all kept doubling, doubling, doubling from 93 to 2000. As I was sitting their one night in my office and I realized if these stocks all double again they'll be worth a trillion dollars and then I got a list of the country's GDP and at the time you know like right now the United States GDP is like 19 trillion, I think back then it was like 12 but the bottom the last trillion-dollar company was cut GDP was Italy and it was worth 1 trillion and I was looking at my little Cisco router blinking and I thought is this thing really worth Italy I mean Italy's got 75 million people they got Rome they got...

Milan: Italy is one of the g8 nations

Howard: I'm like I don't care what anybody says this router does not equal the, who would trade this router for Italy nobody would and so I got really nervous and then the next day my yard man rang on the doorbell and I thought why is he ringing the doorbell, I pay him first the first Monday of the month and so I didn't know what was going on and he gave me a little post-it note and it was this size. It said STF, I said what is this? He said, well you know, you've been very good to me and he goes, I like you a lot and this is a stock tip because this stock is going to double. I thought oh my god is this an investment house or a casino, when you're when your landscape or Mario is giving you a stock tip and he thinks it's gonna double I said Cisco's not worth a trillion dollars and it's not worth Italy and and my landscaper is trading it like a casino. So I got out in November and it continued to go up and up and up but then a third of a year later in March it completely tanked. So what would you be telling, I mean just a couple months ago Apple was worth a trillion and when it got worth a trillion I was telling all my boys that story again. I said you know what, I don't really know if worth a trillion dollars and before you know it it's down 25%. I almost wonder if a trillion dollar valuation is some kind of a glass ceiling

Milan: Well Howard you know, your not only sharp in dentistry and with your MBA, you're also doing really well very well with your reasoning. The high tech stock collapse in the year 2000 was really mostly the Nasdaq, all the stocks that you named were listed on the Nasdaq I don't think that the Dow Jones did as badly but it did badly because rising tide crazy lifts all boats and a falling tide all boats go go down for so yeah you're right. You know interestingly Tesla for example now the valuation of Tesla which makes fewer cars in a year the General Motors does in a day is greater than General Motors. So the market is gone insane and that happens a lot. Now they talk about the efficient market but there are exceptions to the efficiency. Efficient market says that all knowledge about any company is available to everybody equally so therefore you can't beat the market and over the course of time say a market cycle a market cycle is roughly five years you can't beat the market and the very few people who do. It is difficult to differentiate whether they did it by luck or whether they did it by skill. Warren Buffett himself was recognized as a very skillful investor now is advising people to buy the American economy as a whole by buying an exchange-traded index fund which reflects and mirrors the S&P; 500 and there would be the spider s.p.y. is the market symbol and voo ivv those are market symbols of three or four. There are actually over more exchange-traded funds now that their stocks but only 3 or 4 reflect the American economy as a whole by mirroring the S&P; 500 and those are the ones that we invented. You should be buying and holding not dining but picking stocks. The only way to beat the market is to break the rules which I just mentioned save by the American economy hold on time markets, the rebalance regulars be and avoid complexity. You got to break those, so I have a what I call a fun portfolio. Our members Monday Morning Millionaire members, I recommend that they have a core portfolio in which they follow these rules carefully and they will wind up making about 7% after inflation and that's enough to retire on when retirement time comes 30, 40 years after graduation. So if you want a gamble you can either go to Las Vegas so you can stay home and have what I call a fun portfolio where you break some of these rules. Now boy have I taking a kicking in my fun portfolio because I bought ad via Abbott Laboratories they make some of the scalpels that we use for instance they are very small very small company they're actually what's called dividend aristocrat. Dividend aristocrats have been paying an increasing dividend for over 25 years and there wouldn't be 30 of them in the S&P;500, NabV is one of those so I bought it and guess what I bought it at the top and the reason I brought it was because I'm involved in auctions, it puts the calls and that's kind of a fun thing and fun portfolio. The money I need input is nowhere near the money that I lost my buying but it's my fun portfolio it's 5% of my investment. So that's what I recommend for our data center, so would you say about, about Apple. Another rules is don't pick stocks. You must look when you buy, Apple you're picking the stock, when you buy Tesla you're picking the stocks.

Howard: You know the sharp minds though can spot irrational exuberance. I mean like you were saying Tesla was worth more than GM and Tesla makes in a year what GM makes in a week in cars obviously something's not right.  Just a little while at the top of the bubble I was telling everybody my lecture said how could Netflix be the same value of Disney, have you ever gone to a Netflix theme park and have you ever heard of Disneyland, Disneyworld, Disney cruise. They own little things that you never heard of like ABC, ESPN. I mean some things you just look at it you say this is irrational exuberance.

Milan: That's right, that's a term that was going by good I think Alan Greenspan irrational exuberance and for sure but you know the third rule of these habits, the third habit is don't pick stocks because you can't make a mistake by buying the American economy the whole. Now empires have a hundred percent failure rate. The day they will come when the American Empire will have its failure but it's nowhere near in sight so if you buy the American economy as a whole rather than picking stocks you won't be making these kind of mistakes like you could by buying Apple and the wrong time, a lot of people made a lot of money in Apple, a lot of people made it one of my neighbors here she said she's gonna buy Tesla stock when it was much lower and make enough money to buy a Tesla and it worked for her.

Howard: Yeah so back to these young dentists like what you know Timothy was saying that you know 95% when they retire from dentistry they have to significantly lower their lifestyle. So what are you doing with the Monday Morning millionaire? If these dentists go to Monday Morning Millionaire what is this some type of how does it work? what does it cost? What do you do with Monday morning millionaire the website.

Milan: We don't recommend stocks, what we do is express opinions and we emphasize the Habits of Highly Effective investors. We provide support for them from the academic investment literature and the people who write these papers report them with the academic investment literature do so to earn a PhD. They do so because they're professors, they need to publish or perish and there are no ulterior motives there so that's what Monday morning millionaire does. Supports people in the proper investment habits, we also answer questions we have four self-made multi-millionaire stock market investors who answer questions one of our experts advices a three billion dollar pension fund in County in Florida and so answering questions from experts like that is a big help for them. We also review academic investment papers, we don't review books and the reason we don't review books here there's some wonderful book reviewing websites out there. I can't add to them in any way, they're really frustrating. Their's also...

Howard: From technically when they decide ok they need to save, that they're following the rules number one you know save number two but when they're gonna save. Do you recommend an online, like you know their's TD Ameritrade. their's tradestation, Charles Schwab, fidelity, Interactive Brokers, Robin Hood. Where do you what would you recommend to susie-q living in Kansas, how would she mechanically save?

Milan: The competitive forces of a free-market economy which to a large extent we have in the United States almost forced them to behave similarly. So any of those who do I happen to use Throttle Dominion Bank because I started with them when I was a kid more than 50, 60 years ago with my first money there and working on the railroad went to to Throttle Dominion bank and I stayed with them and they have an American presence the TD Ameritrade but Schwab will also do the job and so any of them they're forced you know 30 years ago or so Commission's where 30, 40 dollars for a small trade they could go up to a hundred dollars if the trade was larger they can go up to over a thousand dollars if you were creating a large enough block of stocks. Today for under 10 bucks you can do $1,000 trade you can also do a million dollar trade for under 10 bucks. Competitive forces plus computerization has made it a lot easier for them to be more efficient but you can ignore commission's today. So to answer your question the competitive forces and the regulatory environment forces of the investment banks to act very similarly so I don't think it matters where you go.

Howard: So how much does it cost to join your club?

 Milan: $180 Canadian. $180 dollars in the Canadian...

Howard: $180 one time, a month, a year?

Milan: Annually,

Howard: $180 annually and then what are the features they get? Do you guys have, tell them if I signed up $180 Canadian right now for what would I be getting?

Milan: Well get into our website for that and you'd be looking at the answers to a lot of questions that most investors have that other people have already posed these questions we have answered them and they're on there for people to review. They would get a book called the Habits of Highly Effective investors, these habits that we talked about, save, do it yourself, don't buy, don't pick stocks, buy the American economy. The whole long time and have 50/50 asset allocation 60/40, 30/70, doesn't matter it depends on your stage of life and avoid complexity. So they will get that the answers to their questions is a big one and and the reviews. Now interestingly in dentistry when we do a crown for example we want it to last forever, we don't deal with planned obsolescence in dentistry, you do an endo it's supposed to last that patient forever and so the people who join us for 180 bucks could after a year go on their own and not need us anymore because the rules are not that difficult the, habits are not that difficult they have to become ingrained but they don't need us anymore if they want to maintain the membership for the other benefits. Which is and answering the questions we'd be glad to have them of course but that's it you know, the market out there that's interested in money is huge, huge. What's the population the United States... damn near everybody over the age of 15, maybe even earlier that are interested in managing money adequately. So we can make people independent in a year don't have to join us second year for your hundred eighty bucks you learn all you need. Now if you want to stay with us because we review academic papers because we answer questions because we keep finding in the daily investor literature material that supports our investing style you'll be welcome of course. You know what's out there a journalist who is writing a column, a columnist for The Wall Street Journal for any financial paper he has to produce something once a week twice a week three times a week even if there's nothing to say. So reading financial material is like drinking from a fire hydrant and what we do is represent that worthwhile material so they can have it from a champagne flute. So to retain her to renew membership go for it but the four hundred eighty dollars that's what they get. So how do you sign up, you want to sign up by going to Monday Morning Millionaire on the internet. Just type in any search engine that you have Monday Morning Millionaire comes up our website and over there it will walk you through how to sign up then. I say is the best hundred eighty bucks you can spend on because what money managers charge imagine, if somebody came in to your office for a crowd and you said I'm gonna charge you a percent of your net worth. Hello, well that's what works so that's how it happens on Wall Street they have nothing to do with the accumulation of your assets but they charge you as a percentage of the size of your portfolio. Unheard in any other field but if you take that yourself by managing yourself you can save it in enormous amounts of money.

Howard: Well you know the industry you know, America does really well in their GDP in the economy, in health care, military, insurance, banking, finance, music ,movies but insurance banking and financing. I mean the returns they make are just, they're just incredible in America but going back to the dentist, I think they're trapped because they come out,  they paid, they didn't save up for dental school then go they borrowed money and graduated four hundred thousand in debt and then they won't go buy a car, they'll go finance it and GMAC financing makes more money than GE. I remember one of my favorite books in the world was the Profit Zone and it took each industry and everybody talks about how many billions and sales but they were just talking about net income profit dollars and Chrysler, GM and Ford hardly made any profit dollars compared to GMAC. The people financing the cars over five years even the insurance companies like progressive and all that and any industry they went in you know that they just ranked every industry by profit dollars. Like even in dentistry I think most profit dollars are in the insurance of companies not the person. The manual-labor dentists working with his hands doing the surgery it's in  the insurance companies, it's people who finance and so that's what I see with dentists. I mean I'm 56 years old but they get out of school and they go use other people's money and they finance a car for five years at the end of the five years they want a new car so then they finance another five years for another car. The average American will finance 13 new cars in their lifetime between ages of 16 and 72. I mean I know dentists my age that they're getting a Tesla but again they're getting it on a five-year loan. I just saw, I just had a patient the other day she's 80 years old and she just bought a house and she bought a different house and it's on a 30-year mortgage. I'm like do you seriously think you're gonna live to be a hundred and ten years old? So I I see and I hate to be racist about this but in my observation it's racist people born in the United States are using other people's money on mortgages and car loans throughout their whole life and only people who come here that weren't born in the United States who voted with their foot to take a big risk ambitious and vision came to America to follow their dream, they're the ones that quit using other people's money by age 30 and then they start saving their own money and they start making money off other people's money and I mean you just see that routinely. I can look at any 50 year-old dentist and say where were you born which country he says the United States of America, I say I bet you still have a home mortgage, a car mortgage, credit card debt. How do you psychologically coach these people to quit living above their means? It's not what you earn it's what you burn and you're either gonna make money off other people's money and interest or you're always gonna be paying all of your money for other people's money so you can have the car in the house say how do you get them to psychologically cross that?

Milan: Howard you must have read my book because in my book I say that most people have too much house and too much car. Now the average today average individual today is living in a house twice as large as the house that his parents lifted parents lived in how this twelve hundred square feet at one bathroom. Today the houses that are double that size and have four bathrooms for two people living in it so I and most of them are financed and with money. So too much house in too much car and the reason for that is the people who sell houses if it will sell cars are so good at marketing and the appeal of having your own nest egg is so strong. so they tell you the bank's will tell you that you should spend well what do I know 28% or 30% of your income could go to housing and those are two incomes husband and wife wife gets pregnant the household income drops they're struggling and the banks they don't want to own your house but they want you to borrow as much as you possibly can and manage that so that's what they do really. My house is 5% of my net worth and and Warren Buffett's house is worth point zero zero percent of his net worth. So too much house and too much car is really the prevailing economic picture and people who are financing these things will lend lending the money the ones who are making the money yeah and it's interesting observation that GE before it fell apart. It was making more money on the financial side of the GE then there is selling the products that they make.

Howard: So another thing you notice when you're 56 yen you know you've been doing this 30 years you look and see where all your buddies are at their age another huge huge monster variable is a divorce or not our number of times divorce and/or children or not. I mean you can't get divorced three times and have three kids and end up with the same amount of money as a dentist who never got married so he never got divorced he never had any kids I mean 25 percent of baby boomers never had a child and it looks like about a third of the Millennials are never gonna have a child. What advice would you give and then and then I don't understand the whole marriage thing, I mean I get the marriage thing if you're gonna bring a child into this earth and I bet these they meet in dental school and they're buddies and they're in love so the first thing they do is go find some lawyer to legally contractually marry each other and I'm like what the hell did you do that for. I mean half of all marriages end in divorce, why are you signing a legal contract with someone if you don't have to, because right now it's young and romantic and she smells nice but someday you're gonna have a lawyer looking down your table and taking half. So what's your advice on the millionaire next door versus marriage divorce and children? I'm getting you to the finish line.

Milan: Well children to raise a child from the cradle to finished university close to 300 thousand dollars maybe more so you have to budget very carefully when you're planning a children having an only child is an economic advantage but not such a great thing for their only child probably this the only chance to have a sibling. So you have to take that into account certainly for that and so the worst thing yeah the worst thing that you can do economically is get divorced because your assets are split. So you know a lot of people and your viewers will know, a lot of people who are staying together for economic reasons even though they're living separate lives, they don't have to buy two houses, they're living under one roof ,they live separate lives and so they avoid the expense of divorce but divorce is costly and divides the net worth of the family accumulate depending how long they're in they're in depending what they brought into the marriage all that is complicated and the lawyers are making money on divorces for sure. They call it family law they should call it anti family law. So I've seen a survey which showed that divorce rates, high divorce rates indicate a level of unhappiness whereas others say the opposite high divorce levels equate to high levels of happiness because you exit out of an unpleasant situation in a case of divorce. So a lot of worst people who paid a lot for their is supporting spouse they say it's the best money I've ever spent.

Howard: Yeah that's the old joke why is divorce so expensive because it's worth it. Yeah but so again talk to that talk to that 25 year old girl she just graduated she's $400,000 in debt and she doesn't know should she work as an associate where she's making $150,000 a year or at $400,000 in debt. Should she go borrow another seven hundred fifty thousand which is the median liquid price of a dental office for sale in America. If she's 250 in debt and buys a 750 office she's now a million dollars in debt and she's 25 to 30 years old. What would you tell that person? Does anything change?

 Milan: A woman as an example for women it's a different situation to, women are really special their so much stronger than we are, they always have two jobs there is also motherhood for most of them and so a career woman dentist will not put in as many hours as a man will because she has other responsibilities. So probably she will be better off working for a corporate organization rather than trying to run her own show because if she does it's so demanding. I don't have to tell your audience's how demanding running a dental practice is that she has to do that in the expense of the family you know wonder whether it's worth it. So for most women who tend to be part-timers in veterinary, medicine, in dentistry and medicine working for a corporate situation is probably a better way to go.

Howard: Are you seeing that in Toronto, I mean do you have evidence of that in Toronto do you think more women are taking associate jobs than male counterparts?

Milan: Canada is an interesting situation or we produced a lot of dentists and so Toronto is so saturated with dentists. You know every priest wants to see every pew occupied and every merchant was to see stuff flying off the shelves and every restaurant er was to see a lineup outside the restaurant and the people who make dentists wants to make more dentists very good, in Canada they;ve been very good. So we got a there is the population ratio in Ontario one to two thousand it's higher than any other place. So then you walk down the streets of Toronto and you see a billboard saying free checkups, free cleaning, free whitening, free x-rays and then the people walking. One of my patients kid I saw her since she was three years old now she's a university student in Toronto. So free cleaning hey, hey this is worth it ,walks in there we'll do a check-up for you two for free and they find 15 cavities. She says you know we all have built in crap detectors, so her built in crap detectors say I'm gonna go and check with my dentist. She comes to the office she didn't have anything she needs doing now if he did that with her he's doing it with everybody. So some of these organizations corporate dentistry have requirement economic requirements for the people to meet and so they're doing occlusal restorations all over the place because you can't detect occlusal decay on x-rays and so patient comes in and they'll fill every occlusal Fisher with the restorative material composites and measly requirements that way. So that's something that too many dentists, physicians, veterinarians is not good for society not enough is not good for society. So Mexico has one dentist per 600 people, that's why people are a leaving for you know Mexico. Natives they're going from San Diego to Mexico is not very far and they go and get the dentistry that over there which then the San Diego days we do.

Howard: Now are you the founder of the Monday Morning Millionaire?

Milan: I'm the founder of Monday morning millionaire

Howard: and  how long has it been going?

Milan:  We just finished their first year.

Howard: What percent of your clients are dentist?

Milan: Most of them are, very nice rating for from clinicians report. Clinicians report looked at this board Christmases people and they gave it a very high rating and so Clinicians report comes out with annual report of the best products last year Clinicians report evaluated 700 products, one in five guests thumbs-up four out of five get thumbs down and so CR, clinician report serves as you could call them the Consumer Reports of dentist, because the only information that then is get about a new restorative material and your handpiece that your headlight is what comes from the marketing department of the manufacturer. Clinicians report it so they rated this book very nicely and so because of that I've got a lot of the more(inaudible 20:12)

Howard: Milan Somborac DDS, it's funny I love Gordon, do you know Gordon has an older brother who's like (inaudible 50:23) yeah he's a big-time banker isn't he

Milan: He's in financial work...

Howard: Yeah very successful in the financial world

 Milan: That's right yeah and they're so enthusiastic about what they do, you know you love to see people who are enthusiastic about what they do like you are about what you're doing, and so is Gordons older brother is like that, and so is Gordon. You know the Gordon and Rella were cited by American Congress for their contribution to society at the 40th anniversary of Clinicians report so the nice report that we got from them including the fact that it's one of the best products for 2019 is attracted a lot of attention.

Howard: I want to go back to a couple behavioral things because I love everything that you do, I love your message, I love all that but we're still talking to a lot of young kids and I see the woman's there's so much smarter than men. I mean if you made a woman dentist her husband always has a degree to job. He's always another dentist, a banker, finance lawyer, physician, MD and so many times the male dentist they fell in love with the waitress at the Waffle House and so I just I just always see when a woman dentist marries a male dentist, it's double income and they delay the childbirth instead of getting pregnant at 16 it's more like 26 or 27 and they just accumulate so much more money and it just seems like some of these dentist. You talked about predatory behavior that a lot of dentists were Psychopaths I think dentists physicians and lawyers attract a lot of people who think oh my god if I marry you I wont have too work and you see it in the first date where they bring the bill and she doesn't even attempt to get out her visa card and she doesn't even try to pay. She's basically just sitting there like look at all this, you want this you're buying the dinner, I'm not working I don't want to and you know it's crazy and then that type of person when it's a vacation they don't want to go to the lake and camp and fish they always want to go to Hawaii and I've told so many dentist couples I'll say, I just want to go down everything about what you do and show me where you're even in the median percentile house. Well you have too much house, car you have too much car, vacation why do you always have to get an airplane to go on vacation. I mean the clothing, shoes, jewelry, boots, her wedding ring is three carat and her three sisters each have a quarter carat. I mean that when you just overspend in every single category and I tell a lot of dentists you know, do you realize you're a dentist because you kind of act like you're a rock star. I mean did you put out a record that I'm not aware of or do you have some band that you're playing in. I mean you why do you think going to school learning how to do root canals means that you're gonna live like Rod Stewart and Prince. I mean so it's not what you earn it's what you burn and I tell the kids in dental school I mean, I'm this is why it says censored, every time I'm in dental school I always say you guys in the room they're always asking do you think I should specialize and and I say well you should specialize, if that's all you want to do but the smartest decision you make in dental school is marry one of them damn girls in the class. You're never gonna find a greater collection of women to pick than in your dental school class you've been in there for years if you can't determine what this girl's all about in four years of dental school you're brain dead but boys, I call it the peacock thing, they they see something pretty and they waive all their feathers and the peacock effect, like oh my god I want that and it's like okay well she's gonna destroy $10,000 a month to capital from age 25 to 65 and you could have married someone who creates $10,000 to capital she's one of your classmates and the difference between marrying the chick at the Waffle House who doesn't want a job and once this nice lifestyle where you overspend on everything versus marrying that girl sitting next to you and you know dental morphology is about a ten million dollar difference. One's gonna destroy a hundred and twenty thousand dollars a year for 40 years and one's gonna earn a hundred twenty thousand a year for 40 years, I mean it's it's like two sides of the Grand Canyon.

Milan: Well a couple of things about that Howard, first of all I hope there's a large enough number of young dentists that are watching us talking and what you would then buy into it and and modern moderate their lifestyle because it's also expected by society that dentists are gonna drive big fancy cars and live in fancy places they fancy holiday.s so you are doing something very positive by talking this way. I'm convinced that people who go into how differently motivated that people who call on Wall Street, The numbers on Wall Street the potential is unbelievable as you know as we mentioned earlier so people who are attracted to the numbers probably with not going to dentistry but you see a lot of these people that you describe who living in more housing than they need, driving more cars than they need and I hope that some of them are listening to you and by the time to get out about ten years out or so they start seeing the truth of what you're saying. They're living paycheck to paycheck when really the paycheck is pretty big and so you really hope that some of their listening.

Howard: Here's another psychological thing like I Drive a 2004 SUV Lexus okay every time I take it in for an oil change, they are like well you just give us your car and a hundred thousand you could have twenty nineteen Lexus. Well when you have to reach into your bank and give someone a hundred grand you won't do it you're like my car's fine you know that it's got a dent. I mean I was back in the garage and my granddaughter open the door she decided she was gonna open the door as I move it out so they bent the door and she got upset. I'm like I'm just glad you did it didn't bend you I don't care about the door and I body slammed the door back and it's all bent and stuff, but see when you don't have a hundred thousand and someone shows you that new 2018, 2019, 2020 car you start drooling all over yourself and get on your hands and knees aren't licking the tires and kissing the hubcaps you buy those luxury items it's so much easier to buy with other people's money and they finance it to you if you say oh no you got to save up eighty five thousand dollars to buy this car when they're holding their eighty five thousand in cash they won't give it to you for a car.

Milan: I think they're true there, but when you borrow money to buy a car or anything else you're really borrowing from your future earnings you're borrowing from yourself. In the future you will have to keep less than you make so that you can repay your debt so you're borrowing  from yourself and like I said I hope that it enough people are listening to this that we'll buy into the Monday Morning Millionaire attitude which talks about how we got too much okay and we'll just start coming to their senses,

 Howard: The Monday Morning Millionaire, do they buy it on Amazon or do they just buy it at your website Monday Morning Millionaire? Where can they buy your book Monday Morning Millionaire by Milan Somborac DDS?

Milan: We haven't had it on Amazon yet. I wrote another book "Your Mouth Your Health" and so I had it on Amazon and they didn't do nearly as well as Biomed, which is a company that puts on continuing education programs. So I haven't been this book on Amazon.

Howard: but you should post this on Dental Town. Dental Town has a quarter million members, they have 50 categories, root canals, buildups, crowns all that stuff and one of them is finance and you should go in there under finance because you're a dentist you're a homie. You should go in there and focus and tell them what you're doing and I think that'd be the best marketing ever and it all post this podcast of that thread where you're talking. One of the largest threads we have on Dental Town it's got like no twenty thirty forty fifty thousand post is only three percent can retire at age 65 I mean they're all talking about that because when you're young I remember out of school going up to Gordon's every month for a year and all these core, it was so fun to do all these fillings, but I have to tell you after you do ten thousand fillings you don't wake up in the morning say my god I want to do a filling. You know and so you know when you're young and you're really productive and you're really making bank you have to be learning how to save your money and not burn your money because then you're gonna get adjusted this lifestyle and then you're gonna run out of energy and you're not gonna want to work that hard to maintain that lifestyle and then you didn't save because Muffy never had a job and you overspent on house, car, vacations, jewelry, everything and then you find yourself at 65 and they're depressed.

 Milan: Universal truths are universal for a good reason, one of these universal truths which comes from some European society I'm not sure which one, it says "we get to soon old and too late smart" and do you think that that's gonna change? You know all these people that you're talking about who have too much car, too much house, too much vacation will get too soon old and too late smart then that will probably remain in place forever. So the fact that a lot of younger people are watching what you're saying Howard, might well turn some of them around they won't turn all them around because we get to soon old and too late smart.

Howard: I cannot tell you how many times in 30 years I've walked one of my teenage male patients out to his car and say look dude you're you're pushing a lawnmower for $10 an hour and you have a $30,000 f-150 truck. You could have gone to one of these schools, is it ITT Tech and there's another one but anyway you can go there and for that price of that truck they could have got a two year degree and all those in technical training schools. What it is, is the big companies like Intel and Motorola they need a guy that knows how to do this, so they donate the million dollar machine or the last model they had and then when you're done it's like a ninety six percent job placement and I'll say you go from making ten dollars in cash to $25 an hour with medical insurance and dentist. I mean why do you have and I'm right across the street from the Guadalupe Indian Reservation, so I have people that are doing manual labor for cash under the table that have a purple $30,000 lowrider and then the dentists say well I can see that he should not have a lowrider, he should go to a tech school and get a big job and everything and then I'm like well look at your house look at your cars look at your vacations. I mean what I would say up to 30 years of this game and you've been doing it longer is that dentist have a spending problem, industry studied study lawyers or physicians you almost never meet a frugal dentist.

Milan: Do you think the problem is unique to dentists or unique to homo sapiens because you know deferring gratification is an indication of maturity and deferring gratification is not an easy thing to do for most people. I'm gonna do without that fancy car I'm gonna be like Howard Farran and drive a 2005 car until it falls apart and so that could be a characteristic of all of us

Howard: and when we were in Creighton we drove by Warren Buffett's house in Omaha, I mean they didn't even have a wall around it. I mean that guy is a man in fact what he bought his jet he called it the indispensable, no no not even this what do you call it something me it was completely irrational there's no good reason for it

Milan: Yes he called it be indefensible

Howard:  Oh indefensible

Milan: Indefensible, that's right and then he had to go to New York to settle down, settle some Salomon Brothers issues I think it was where he was a major shareholder then he changed its name to semi-indefensible

Howard: Well hey let's get out Timothy A Brown to come back for the closing. Tim we've been talking for an hour, I can't believe the hour is already over but after listening to us talk and you are in a very unique situation because you have been watching dentist sell their practice at the end of their career for decades and decades and decades. So after your hearing everything we talked about what would be the closing points that these young 30 year old dentists should should swallow digest and not forget?

 Timothy: I have four words Howard, live modestly and stay married. After that I can elaborate but I think practice ownership is a better investment than any other investment you can make in dentistry. Be a solo dentist or worse one or two partners. I would stay away from the corporate model we referenced it today and reference it in our episode 1111 of uncensored. Buy a practice or build a practice, be an owner. Live modestly of course and if you're going to invest which you should invest, then Milan's advice is about 50% of your earning excess earnings to debt and 50% to investment. I believe in the Monday Morning Millionaire program I have no financial interest in Monday Morning Millionaire for everybody watching none whatsoever. Canadians believe in this, their is no financial benefit for me. This is a mentor, this is a good man that young dentists should listen to so all you young dentists listen to this man watch this episode again and share it with your friends post it on your social media please, stay to the basics. For a hundred and eighty dollars a year you can get this advice and you can unsubscribe after a year, that's 180 Canadian which is less than American. You know stick with the basics, it's a basic profession where people need your help. You need to stick to your knitting, stay to your core competency, don't get outside of it, live within your means and that's financial advice that's been given to all of us all through our life from our parents or grandparents your professors gave you that. So few people actually follow it and those who do very handsome lives do very well and are living peacefully and in a very good space as a dental practitioner they're helping their clients doing well for the patients that they have and they're happy, don't live beyond your means. Four words, live modestly stay married Monday Morning Millionaire from Dr. Milan Somborac.

Howard: and Milan you should write an article about this for Dental Town magazine. It's mailed to a hundred and twenty five thousand dentists each month the United States and Canada and it's a digitally sent around the world and you should go to dental town and go under finance and if you're shy because you don't want to see sells you just say you just did a podcast with Howard and Howard wants me to post this here but it'll start a big discussion and I think this is so important because dentists do have issues with burnout and so this is the cure for burnout, is when you get to go to work because you want to not because you have to to pay for stuff that you bought five ten years ago and if you're a girl in dental school class and you have you're some guy picked out in the class you should text him this video which explains why that guy should marry you and not the girl at the Waffle House. So alright guys thanks so much for coming on my show and spreading all your wealth.

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