According to financial consultant Bruce Bryen of The Snyder Group, LLC in New Jersey, dentists have five primary financial concerns: debt, income taxes, retirement, healthcare expenses, and their children’s education. Do any of these weigh on your mind?
At DPR World, you can read the full article entitled, "Dentists’ top financial worries – tackled & solved." Here’s the gist of Bryen’s advice:
For Debt:
- Pay loans with high interest rates first
- Pay down the principal on high-interest loans
- Secure loans to lower the interest rates and extend the terms
- Pay loans off early when possible
For Income Taxes:
- Plan and follow a tax allocation system
- Know what’s on your balance sheet
- Consult an expert
For Retirement Planning:
- Merge personal and professional investments, then invest pretax dollars, if possible
- Combine tax and retirement savings in a modern IRS tax shelter
For Healthcare:
- Use pretax payments for medical insurance
- Invest in long-term care and disability insurance if you are older
(This is a hot topic in congress and should soon undergo significant change.)
For Children’s Education:
- Enroll in a tax-free tuition plan, like the 529
- Let your older children work for you – they may not have to pay income tax
- Use IRAs to pay for college, and you won’t pay a penalty – Cloverdale Educational Savings Account
- Check into loans and/or grants
- Plan early to avoid later headaches