How dentists can begin preparing for retirement now

Glenn DuPont, DDS

I am 64 years old and financially able to retire now, but I am not mentally ready. Those of you who are younger than me should be planning for retirement now. You need to be both financially and mentally ready to retire when the time comes.

In order to help you plan, we’ll look at five key points:

1. Start maximizing your pretax retirement contributions early.
   
   
2. Consider investing in a fee-for-service financial advisor.
   
   
3. Decide if you are mentally ready to retire.
   
   
4. Find the right buyer for your practice.
   
   
5. Stick to your plan.
   
   

Start maximizing your pretax retirement contributions early

I started in my late 40s; it was then that I mentally decided it was time for me to start getting ready. That was too late! It would have been much easier if I had started in my late 20s or 30s. I would not have had to work so hard at putting money away in my 50s and 60s.

As a small business owner, you have to remember that no one is going to give it to you. You have to save it yourself. Therefore, you must answer some questions related to your financial readiness, no matter how old you are or where you are in your career.

First, at what age would you like to be financially ready to retire? It is important to discuss this with your spouse or partner. The age you choose will affect your planning directly. Janet and I raised four children who we are very proud of and who are all “off the payroll” and doing great on their own. I can tell you that our expenses went up and up as they progressed through grade school, high school, and college. We planned for our expenses to increase as we raised them until we reached age 51. A good advisor will help you through this process with projections for your future. The right advisor will also take into account inflation and all the variables that will affect the assets that you are trying to grow.