Dentist retirement: How to get in better financial shape

Roger P. Levin, DDS

Saving enough for retirement takes planning, discipline, and endurance. It’s like running an ultramarathon for 30 years. The sooner you begin saving, the greater your chances of reaching your destination at the earliest possible time.

But let’s be realistic: retirement isn’t something most people, including dentists, think seriously about until they hit their late 40s or early 50s. Unfortunately, it’s one of those issues that we put on the backburner until one day we wake up and realize the big 5-0 is staring us in the face. Then it’s “Uh-oh, I better get my butt in gear” time.

Playing catch-up, whether you’re running a race or saving for retirement, is never a good position to be in. Wherever you are on your journey to retirement—from just starting out to nearing the end of your career or somewhere in between—there are always strategies to get in even better financial shape. Let’s stick with the basics and look at three effective techniques.

Live below your means

Too many dentists want to live like rock stars. That’s fine if you’re the owner of a state-of-the-art cosmetic practice generating $3 million in annual production. But if you’re a recent dental school graduate, it’s probably best to save the Jon Bon Jovi lifestyle until a little later in your career.

We all want to have nice things. I get that. But why strap yourself with unnecessary debt? It’s hard to make progress toward your financial goals when you’re weighed down with an $800,000 mortgage.

You might think this example is an exaggeration, but it’s not. I’ve met too many dentists who were drowning in debt because they couldn’t control their personal spending. What good do status symbols—McMansions, luxury cars, exotic vacations, expensive dinners, and the like—mean if you’ve barely got $100 in your bank account?