As a dentist, there is no doubt that you spend a lot of time managing the day-to-day operations of your practice. In all likelihood, you spend as much time juggling accounting, human resources, payroll or any number of things as you do seeing patients. As a result, you – and your finances – may be overstressed.
This is never ideal. If you are left trying to do everything now, it could leave you in a tough spot when you want to retire. Instead, create a quality, effective financial plan to ensure that your practice runs smoothly, and that you have the savings needed to maintain your existing quality of life well into your golden years.
In order to help you achieve that goal, here are a few financial tips and tricks to keep your practice on track:
Don't try to do too much
The life of a dentist is one of control – you want to oversee the entire operation, from the hiring process to each patient's visit. However, this level of commitment can be distracting at times, and that could lead to poor money management decisions. On the other hand, you'll be in a much better financial position if you don't try to do too much.
According to DentistryiQ, you can do this by first investing in your staff. To begin, conduct personality profiles and assess strengths and weaknesses for each employee. Once this is done, it will be easier to assign tasks that best suit each person, and also resolve any interoffice issues that may currently exist. Above all else, surround yourself with quality professionals, such as an experienced financial planner, tax advisor and attorney. These experts will provide vital advice during your career.
Create a balanced portfolio
As you plan ahead for retirement, you'll want to build a portfolio of assets that is both secure from lawsuits and other financial problems as well as tax efficient. This way, you'll have the capital needed to maintain your quality of life, while being protected from the bumps and bruises that will occur on the way to retirement.
According to MarketWatch, you can do this by creating a balanced portfolio. While it may be tempting to put all of your assets in a qualified retirement plan that is protected from lawsuits, this will keep you in a high tax bracket. Therefore, it may be worth it to explore other options, such as maintaining an existing plan to keep your fiscal responsibilities down for the time being.