Debt Free Dr

To help other dentists obtain financial independence within 5-7 years by investing in passive real estate investments.

Blog By:
DebtFreeDr

Do You Really Need Millions to Retire as a Dentist?

Most financial advisors would say yes. But what if they’re wrong?

If you’ve ever wondered whether you truly need to save millions just to stop working, this article will give you a new perspective—especially if you’re a dentist, doctor, or high-income earner.

?? Don’t feel like reading? Watch the full YouTube video instead and get the breakdown in just a few minutes.

Let’s dive in.

Why the 80% Rule is Failing You

Financial advisors often promote what’s known as the 80% rule—the idea that you’ll need 80% of your current income each year in retirement to maintain your lifestyle.

Sounds logical, right? Less work = less spending.

But here’s the problem: this one-size-fits-all advice ignores your specific financial situation. Especially if you’re a dentist, your retirement expenses will likely look very different from your working years.

What the 80% Rule Assumes

This rule is based on the belief that certain costs will drop in retirement:

    
•     

  No commuting

      
    
•     

  Less money spent on clothing

      
    
•     

  Fewer work-related expenses

      

But that’s a shallow view. It doesn’t consider the big expenses you’ll stop paying by the time you retire—especially if you’re a professional or business owner.

Your Real Expenses Will Likely Be Much Lower

By the time most dentists retire:

    
•     

  Their mortgage is paid off

      
    
•     

  Their kids are out of college

      
    
•     

  They no longer pay for staff or continuing education

      
    
•     

  Practice-related expenses disappear

      

So why save as if you’re still covering all those costs?

Actual Retirement Spending: What the Data Shows

A study from Dimensional Fund Advisors looked at real retirement spending across different income levels.

Here’s what they found:

Lower 25% of earners
Needed: 82% of pre-retirement income
Why: Social Security covers most of their expenses

25–50% of earners
Needed: 72%

50–75% of earners
Needed: 62%

Top 25% of earners (like doctors and dentists)
Needed: Only 58% of pre-retirement income

That’s nearly half of what financial advisors tell us to plan for.

The Shocking Truth: You Might Be Working a Decade Longer Than Necessary

If you’re aiming for the 80% rule but only need 58%, you may be:

    
•     

  Saving more than you’ll ever need

      
    
•     

  Working an extra 5–10 years unnecessarily

      
    
•     

  Giving up your healthiest, most active years for no reason

      

One study even found that half of retirees still had nearly all their savings after 18 years in retirement. That means they saved for decades for money they didn’t even use.

The Real Retirement Goal: Cash Flow, Not a Number

Most advisors focus on a “magic number” in your account. But here’s what they rarely mention:

It’s not about how much money you have—it’s about how much cash flow you generate.

When you build passive income from things like real estate, that income can:

    
•     

  Cover your living expenses

      
    
•     

  Reduce the amount you need to save

      
    
•     

  Make work optional far earlier

      

This means you don’t need to touch your savings, and you avoid the risk of running out of money.

Stop Trading Time for Money

Financial freedom doesn’t come from working longer—it comes from owning assets that pay you monthly, like rental properties or real estate syndications.

By shifting your focus to cash flow, you can stop trading your time for money and start designing a life you actually want to live.

Think About This…

The average 60-year-old has fewer than 1,000 weeks of healthy, active life left.

Do you want to spend those precious years behind a desk… or doing what you love?

Your Next Step Toward Financial Freedom

If you’re questioning whether you’re ready to retire—or if you even can retire yet—don’t guess.