Have you ever noticed how many dentists frequently talk about how they will retire as soon as they have saved another few hundred thousand dollars for their retirement? They will continue to practice dentistry for years trying to save enough money towards their retirement goal. The years quickly go by, and instead of taking time off to enjoy life more, these dentists continue to practice in their quest for an adequate retirement fund.
Perhaps they rationalize that if they practice dentistry long enough, then they won’t live for many years after retirement and will not need as much money. If you practice until you die, you will considerably lessen the amount of money you need to save for retirement. That’s a pretty sad statement, but it apparently holds true for many doctors. A financial planner once told me that he knows of several retired dentists who expressed hope that they will die before their money runs out!
It’s interesting to note that the doctors who choose to practice until they reach that financial goal ignore the value of their practice when planning for retirement. An average practice can be worth from five hundred thousand to a million dollars. This amount usually exceeds the amount most of the doctors feel they need to save to retire.
Even worse, as many dentists approach retirement, they begin to practice dentistry less and less each year. They start decreasing their personal production and downsizing the practice. By the time they retire, they have lost much if not all of their practice value. Unfortunately, many doctors lose more in the value of their practice in the last five pre-retirement years than the net earnings they realize from practicing dentistry. In other words, they worked their last five years for nothing!
Selling your practice for its peak value can provide doctors with the cash they need to jump-start their retirement. Their practice value can provide them and their family a new sense of financial security while allowing them to add many quality years to their retirement.
If you take the time to explore your options, you may find out that your practice can be sold now for its peak value, and you can continue to practice for many years after that if you desire. You can then phase out of practice financially secure and with your health and your dignity all intact. Selling at peak value is a much better option than practicing until you die or until you become disabled. It’s your future. Call AFTCO Southwest at 480-634-4803 or visit our website at www.aftcosw.org