The baby boomer dentist is selling his/her practice and retiring. Our firm, McNulty Group, works with 108 Canadian families, 104 of which are dentists (or specialists). Of these 104 dentists, 97 have sold their practices.
If you’re a baby boomer dentist, like many of our clients, there is a good chance that you are close to financial independence. And many practice owners are thinking of selling. Dentists are facing greater and greater competition. You have more non-clinical and practice management responsibilities than ever before. And you are likely paying a higher tax rate than you have in years. Combine these challenges with the fact that practice values are still at all-time highs, and many of your colleagues are considering selling.
We are getting many emails and phone calls from dentists asking, “If I sell my practice today, how much can I spend in retirement?”. While most have a financial advisor in some capacity already, they are interested in our firm’s input given our decades of experience in managing dentists in retirement.
This means that by the time the dentist and his spouse reach the age of 62 they will need $4.55 million (in today’s dollars) including the practice sale to be financially independent.
Again, $15,000 per month, after-tax might not be your goal. We have worked with many of your colleagues who spend far less and enjoy a great retirement. But if you are on a path to financial independence, I recommend you find out what your number is.