re: Saved around 4M, 45 yrs old and burned out. What to do

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I have a friend that is a dentist, he purchased another dentist's practice, that dentist was around your age and tired of running the business. He was tired of managing people and equipment, etc., but he wanted to continue to work, so he sold kept the practice but kept his patients and worked under my friend's business without the headache.

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Yeah, this seems like the way to go to me. I really will get this guy in touch with my buddy who is the CEO of a company that buys dental practices

I don't know why I care so much so I apologize for commenting so much...

But, screw selling your practice OP in my opinion. Why work for someone else when you work for yourself? Owning a Dental Practice is where its at well into "retirement". Keep hiring young dentists out of school and teach them how to own a practice until they leave you to buy their own. Wash and repeat. You pay them to work however much they want to work and you pick up the slack hours.

I would never work for someone else when I can own it myself.

You have the hardest part of a business accomplished: starting and running a financially successful business. If I was you, I'd make less money and possibly a hell of a lot less and hire better people to work for you to run it outside of an hour or 2 of staff meetings a week. Walk in, do your thing, have a meeting, after your last appt you walk to your car and leave.

Do this for another 5 years maybe ten now you have $6 or $8 mil or maybe more. Then you have plenty to hang it up and collect 3% and live a damn good life.

You’re essentially looking for a unicorn investment, you’re never going to find it. You have to be at-risk or work for it, or both.

I agree. Do you remember when banks would pay 5% in savings accounts. It was only a few years ago.

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And you’ll get 100% of that index downside.

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Unless you go all-in at the top and sell-off at the bottom, then the data is pretty overwhelming that long-term you’ll be okay. Especially at his current age, as long as he de-risks as he ages, he will be completely fine.

Personally, I’d do things different, but if he wants to ride out 5-7% without lifting much of a finger, that’s the best way to do it and it’s not that risky. You just have the stomach the years you may be down a bit.

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Rebel12

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Freaking retire.

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However you’re likely full of shite. If you accumulated that by 45, then you already know how to make 5-7% I’d hope

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Having money doesn’t necessarily equate to intelligence. You’d be shocked at the amount of clients I’ve dealt with, with access to several millions, that didn't even know what something as simple as a freaking Cap rate was prior to our dealings.

it might be lonely at the top.

but it's a bitch at the bottom.


no sympathy here. you're simply greedy and want the perfect scenario.

Ok I'll bite.

First. Are we talking 4M net worth? 4M liquid/nearly liquid.

If 4M net worth then you are not quite there yet IMO. I didn't pull up the tables but even if we assume 2M immediate liquidity and you get a pipe dream 5% muni bond (its out there) then its only 100k/year and the muni rates will vary, it happens to be a time of massive infrastructure spending.

100k/yr will be obliterated by 3% avg inflation over the next 40 years (will feel like 25,000 a year at age 85).

If its 4M liquid, plus you have ill-liquid assets (house, vacation house, practice building, practice value etc). Then I think you can do it.

I would do 2MM in highest rate munis I could find (4-5%). That gets us 100k/yr.

2MM in target fund that is 20+year horizon (pick a vanguard flavor would be my rec). You are young enough to deal with it and you have a tax free safety net of 100k/year with the munis.

Then I would shift into practice management and take on 2-3 new dentists. (This is a personal opinion). Other option is to fully liquidate the practice. Charts may not be worth as much as you think, as you mentioned competition is increasing. May be the value of the real estate + equipment + in place logistics.

Although a different area altogether I have transitioned from the fee for service model to management (but as a clinician) and it has been extremely rewarding. When I am on vacation income does not vary, everything is still chugging along (but you must be willing to give up true "vacations" and be avail for any crisis/etc).

It is a new challenge but fun.

Regarding 30 hours per week. Don't listen to the noise, 30 hours in a given profession can easily equal 100 in another. Taking care of people is very hard.

I'm a little younger than you, but have transitioned to the point where I would not have to work clinically if I did not want to, but I find the mix of management duties and clinical (but now selecting cases I specifically want) has been amazing and reinvigorating.

2-3 new dentists, 100% growth in support staff, 2.5x patient volume as initial projection, and you take the cases you want but focus on making your team strong and streamline revenue cycle and outcomes.

This guy fricks.

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