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Retirement Dilemma: Balancing Slowdown with Success · The Millionaire Dentist™

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  Speaker 1: Hello, everyone, Welcome to the Millionaire Dentist Podcast, brought to
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  Speaker 1: you by four Quadness Advisory. On this podcast, we break
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  Speaker 1: down the world of dentistry, finances and business practices to
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  Speaker 1: help you become the millionaire dentists you deserve to be.
• 0:17
  Speaker 1: Please be advised we do speak with an honest tongue
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  Speaker 1: and may not be safe for work.
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  Speaker 2: Hello and welcome.
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  Speaker 3: This is Casey Hires back at the Millionaire Dentnist Podcast
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  Speaker 3: in studio with co host Jared Bridgeman.
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  Speaker 4: Casey, how are you cold?
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  Speaker 2: Cold?
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  Speaker 4: Yeah? Zero degrees outside today.
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  Speaker 2: It's real cold.
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  Speaker 4: My kids had two hour delays today and yesterday do
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  Speaker 4: to it.
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  Speaker 3: I wonder if our grandparents said two hour delays when
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  Speaker 3: it was cold.
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  Speaker 4: I don't think my grandparents even finish high school.
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  Speaker 3: So yeah, I get to fly to Sunny Florida tomorrow
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  Speaker 3: for an event and the high.
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  Speaker 4: Is in the fifties. Well it snowed in Florida.
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  Speaker 2: Yeah, were airport shutdown?
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  Speaker 4: Yeah? There goes my oranges this year. Disappointed?
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  Speaker 2: How are you going to fight scurvy? Wow?
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  Speaker 4: All those pirates?
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  Speaker 5: Casey again, you know you're gonna come back next week.
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  Speaker 5: You're gonna tell us about the you know, we were
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  Speaker 5: going to Jacksonville this week, We're going to Fort Myers
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  Speaker 5: after that. You know, we're going to be in Birmingham, Alabama,
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  Speaker 5: We're going to Report Louisiana.
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  Speaker 4: We're gonna be all over the place.
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  Speaker 5: And I'm really excited to hear some feedback that you
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  Speaker 5: hear from from the dentists in those areas. But until then,
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  Speaker 5: something came up on our mind recently. You know, you
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  Speaker 5: speak with a lot of dentists who maybe or towards
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  Speaker 5: the end of their path of their career, thinking about retiring,
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  Speaker 5: and they might start to cruise a little bit. Maybe
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  Speaker 5: you know, it's that senioritis. They're kind of like, I'm
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  Speaker 5: already on my last leg here, I'm almost done. What
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  Speaker 5: do you say to them when when that topic comes up.
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  Speaker 3: Well, I'll talk to practice owners who are in the
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  Speaker 3: front end of the middle of their career and they're
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  Speaker 3: thinking about retirement, so right, you know, some of that's
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  Speaker 3: the dream, yep. And sometimes there's physical ailments that can
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  Speaker 3: come in the dentistry. It's a physically demanding job, right,
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  Speaker 3: and when the body starts to tell you things like
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  Speaker 3: it hurts, that can change the mindset too. With thinking
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  Speaker 3: about retirement, and it's sort of a it's it's like
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  Speaker 3: two opposing views because as a dentist, if you're producing
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  Speaker 3: great dentistry decade in decade out towards the end, what's
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  Speaker 3: the natural disposition?
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  Speaker 4: It really is like I want to I want to slop,
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  Speaker 4: I want to slow.
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  Speaker 2: Down a little bit. Yeah, and really the whole thing.
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  Speaker 3: Yeah, we can get into psychology of not being complacent
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  Speaker 3: and finishing strong, but if you got to sell your practice,
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  Speaker 3: they're going to look at the last three years financials
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  Speaker 3: and they're going to look at them inside now, and
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  Speaker 3: you want those to be the most pristine that they
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  Speaker 3: ever are. Why make it more appealing to the buyer
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  Speaker 3: to yeah, and to maximize what you sell your practice for.
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  Speaker 5: Otherwise they'll look at the numbers and even if they
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  Speaker 5: go back a couple more years, they're going to wonder
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  Speaker 5: why you went from you know, collecting a million then
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  Speaker 5: all of a sudden you drop to seven fifty or worse.
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  Speaker 3: Yeah, you know, you're they're going to look at production
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  Speaker 3: and collections and profit and loss statements and balance sheets
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  Speaker 3: and a whole bunch of metrics and that whole want
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  Speaker 3: to back off, want to take it easy. Well, they're
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  Speaker 3: doing that because their their mind and bodies telling them
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  Speaker 3: they need to retire, and if they haven't mastered the
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  Speaker 3: topics that we talk about week in and week out,
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  Speaker 3: then they're probably not in the best position to do so.
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  Speaker 3: So they need to string out their career because they
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  Speaker 3: need the money, and so their body and mind needs
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  Speaker 3: a break. Their instinct says, I want to back off
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  Speaker 3: or bring in an associate, which if you're bringing one in,
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  Speaker 3: is a ten year strategy to transition.
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  Speaker 2: That's one thing.
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  Speaker 3: If you're bringing one in because you don't want to
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  Speaker 3: work less and your overhead's high, that's just going to
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  Speaker 3: make your financials and numbers look even worse.
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  Speaker 5: Right, because, I mean, you've seen some cases where the
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  Speaker 5: owner is their associated. They're paying more to have the
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  Speaker 5: associated around them what they're bringing in.
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  Speaker 3: Unfortunately, there's a fair amount of cases where people bring
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  Speaker 3: in an associate at the wrong time. And yeah, the
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  Speaker 3: practice owner, when you compare apples to their income, is
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  Speaker 3: less than the associate they're paying.
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  Speaker 4: That that's no good for the association.
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  Speaker 2: That's no good.
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  Speaker 4: That's a good deal for the association.
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  Speaker 5: Yeah, Yeah, in terms of their actual retirement plan, Let's
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  Speaker 5: say the last ten twenty years, they've been pretty decent
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  Speaker 5: with that. They've they've kept up as best as they
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  Speaker 5: can on their own. What can the last three or
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  Speaker 5: four years of not staying strong, staying steady, How will
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  Speaker 5: that affect them in the long run.
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  Speaker 3: Well, it's going to affect their income and cash flow
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  Speaker 3: and that practice owner's money at that time. But ultimately,
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  Speaker 3: if they're not going to get as much out of
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  Speaker 3: their practice, if they haven't been able to save and
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  Speaker 3: grow and plan properly for retirement, which takes decades to
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  Speaker 3: do that, right, they're not going to be in a
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  Speaker 3: good position. They're going to be cynical about dentistry because
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  Speaker 3: it wasn't what they thought it was. Yes, they enjoy
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  Speaker 3: dentistry and helping people, but when they look and they
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  Speaker 3: can't retire, they can't retire with the lifestyle they want.
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  Speaker 3: That's really really frustrated, right, And there's shame in that
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  Speaker 3: practice owners will tell me that all the time they
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  Speaker 3: feel bad. Yes, they feel shame and they want to
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  Speaker 3: ignore it.
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  Speaker 5: And I hope they know too that this is not
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  Speaker 5: just something that happens in the dental field. You know,
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  Speaker 5: talking about money in general can be very shameful. It
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  Speaker 5: can bring up a lot of embarrassment or a lot
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  Speaker 5: of nervousness and anxiety. That's why, you know, we preach
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  Speaker 5: day in and day out how important it is to
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  Speaker 5: have an external team of people that can at least
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  Speaker 5: help you in some way.
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  Speaker 2: We need to be a good steward of your talents.
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  Speaker 3: Right, So you want to produce good dentistry, and you
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  Speaker 3: want to have a good culture and a good staff
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  Speaker 3: and team, and those are all important between that and
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  Speaker 3: producing good dentistry. Most practice owners tell me they're maxed
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  Speaker 3: out their redline. Their capacity for more is not there.
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  Speaker 3: And so if you're looking at decision making and strategy
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  Speaker 3: and taxes and investing in personal financial planning and the
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  Speaker 3: practice advisory and good decisions in there. Again, we've said
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  Speaker 3: it before. If there's three of you as a practice owner,
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  Speaker 3: like one practice owner, but you have twenty four times
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  Speaker 3: three hours in the day, maybe you could get that right.
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  Speaker 3: But it's really really challenging for people to get that right.
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  Speaker 4: And until we get the whole cloning situation down, let's
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  Speaker 4: see you.
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  Speaker 3: Yeah, yeah, I guess people could fingers cross hold out
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  Speaker 3: for that multiplicity, you know, But but that finishing strong
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  Speaker 3: and not being complacent at the end of a career.
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  Speaker 3: It's important throughout a career, but at the end of
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  Speaker 3: the career the natural instinct is to back off, when
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  Speaker 3: in reality they need to be sure they are producing
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  Speaker 3: creating the best practice that they possibly can from all angles.
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  Speaker 3: So that number one, it's attractive for somebody to buy.
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  Speaker 3: But let's say somebody wants your practice. If your financials
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  Speaker 3: are not pristine and attractive, you're not going to get
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  Speaker 3: as much for your practice, for your baby, the thing.
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  Speaker 4: That you you've raised, You value it.
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  Speaker 3: Nobody's going to pay something's only worth what somebody's willing
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  Speaker 3: to pay for. And so it's like, you know, having
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  Speaker 3: good financials is like honey to a bee. You're going
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  Speaker 3: to get more interest and ultimately you're going to get
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  Speaker 3: more out of your practice and you're going to go
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  Speaker 3: out on your own terms and retire the best way
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  Speaker 3: right right.
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  Speaker 5: You know, Let's say we've got a doc listening out
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  Speaker 5: there who maybe you know as fifties or whatever, not
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  Speaker 5: quite where he wants to be he or she, He
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  Speaker 5: or she thank you, it's wild, Jared, I know.
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  Speaker 4: My bad. We almost had a female president. I'm really
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  Speaker 4: behind the times here.
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  Speaker 5: What are some some inclinations you get from practice owers
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  Speaker 5: that you've talked I've spoken to when they've reached that
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  Speaker 5: age where the know their fifties, They're like, you know,
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  Speaker 5: retirement ages coming up sooner than I thought it would.
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  Speaker 5: I'm not where I want to be. What are some
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  Speaker 5: of the solutions you've seen some doctors try to put
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  Speaker 5: into place to correct that.
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  Speaker 3: Yeah, I'll get to the solutions in a second. But
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  Speaker 3: you know, here's the ingredients of where you don't want
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  Speaker 3: to be again, mind and body are tired. Do you
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  Speaker 3: want to back off or you want to bring in
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  Speaker 3: an associate, You want to retire with a great lifestyle opportunity,
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  Speaker 3: You want to retire sooner if possible. Well, those things
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  Speaker 3: are all great, but they don't work unless you have
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  Speaker 3: maximized the proble off of the build of your practice
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  Speaker 3: with good decision making and all those things throughout your career.
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  Speaker 3: And so it's unfortunate what they want and what their
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  Speaker 3: vision is versus what their reality is. A lot of
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  Speaker 3: times they don't match up, and that's frustrating for them.
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  Speaker 3: And that's why some of them go for that Hail
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  Speaker 3: Mary Dso offer, which We're going to talk about a
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  Speaker 3: lot in our our new courses this year, and we
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  Speaker 3: talked on our last podcast. But sometimes they go okay,
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  Speaker 3: and the pit of my stomach, I know that I
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  Speaker 3: haven't done the best that they could have on the business.
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  Speaker 3: The financial side of my practice so great, I'm going
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  Speaker 3: to sell for all this money and go out this way. Well,
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  Speaker 3: in our courses, you're going to hear the pros and
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  Speaker 3: the cons of DSOs. And the unfortunate part is, you know,
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  Speaker 3: ibita it's six seven, eight, nine ten x of Ibita
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  Speaker 3: is what people that's the glitter. The fine print is
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  Speaker 3: another thing.
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  Speaker 5: Do you think in terms of retirement plans, you want
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  Speaker 5: to stick with something.
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  Speaker 4: Boring you know what I mean?
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  Speaker 5: Like, I feel like sometimes this might be the crowd
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  Speaker 5: I run and I run, we know, around with some
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  Speaker 5: rough city kids. But I feel like a lot of
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  Speaker 5: people try to chase, you know, maybe buying and selling
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  Speaker 5: you know, the hottest new stock or a meme coin
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  Speaker 5: and things like that, instead of planning and trying to
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  Speaker 5: think of things for the next twenty years, not just
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  Speaker 5: the high of winning one hundred bucks next week.
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  Speaker 2: I think TLC put it best. Don't go chasing waterfalls.
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  Speaker 4: Right, yes, yes, thank you, I left I Lopez.
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  Speaker 3: Yeah, No, that's again We've talked about this in the past.
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  Speaker 3: But unfortunately those who then undersave or quite frankly underperform
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  Speaker 3: on the business and financial side of their practice. They're
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  Speaker 3: looking for the hail Mary. They're looking for that bailout
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  Speaker 3: where yes, ooh, I'm gonna, I'm gonna potentially do some
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  Speaker 3: higher risk investment strategies.
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  Speaker 4: Yes, and when.
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  Speaker 5: Those mainly out of necessity, and when those don't work out,
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  Speaker 5: which more often than that they tend not to, then
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  Speaker 5: they're sunk that money. And then like psychologically, they're rushing
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  Speaker 5: to find the next thing and now I got to
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  Speaker 5: make up for that. Ten grand I dropped on that.
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  Speaker 3: If you've ever been to Las Vegas or a casino,
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  Speaker 3: and you know, you start out with one hundred dollars
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  Speaker 3: or one thousand dollars or wherever you're at. When you win,
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  Speaker 3: it feels good. When you don't, it feels like shame,
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  Speaker 3: and you want to hurry up and win the next
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  Speaker 3: hand so you feel better because you just lost two
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  Speaker 3: hands in a row. Same principle. Yeah, they're trying to
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  Speaker 3: fix it and make up for it. Really quick, so
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  Speaker 3: nobody finds out, nobody knows. You know, there's a lot
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  Speaker 3: of psychology to this, but the natural inclination of tapering
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  Speaker 3: off at the end of your career, it needs to
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  Speaker 3: be the opposite. When you're in your thirties and forties,
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  Speaker 3: you need to be crushing it. Your overhead, you need
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  Speaker 3: to be working on overhead and insurance adjustments. Your income
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  Speaker 3: needs to probably be twenty five to fifty to sometimes
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  Speaker 3: one hundred percent higher. You know, your retirement savings need
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  Speaker 3: to be tripled and quadrupled, and you're not getting you know,
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  Speaker 3: punched in the back with pack surprises, like you've got
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  Speaker 3: to master this early so then you are in a
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  Speaker 3: position with options. So then if sewing down is part
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  Speaker 3: of a strategy, well, guess what you've done the right
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  Speaker 3: things over the course of your career to make I
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  Speaker 3: got possible. But those are tough conversations when it's an
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  Speaker 3: older person who's ready to retire and they're not close
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  Speaker 3: to being in the position to retire, and the awareness
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  Speaker 3: there's some lack of awareness sometimes again they just think
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  Speaker 3: and hope it'll all work out.
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  Speaker 5: I can feel that, you know, I just turned forty
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  Speaker 5: one this past year, and you know, I'm halfway towards
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  Speaker 5: an ideal retirement age, but.
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  Speaker 2: Half way you want to be eighty two.
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  Speaker 5: Well, I met in terms of my working years from
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  Speaker 5: twenty to sixty you know whatever. But you know, I
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  Speaker 5: remember my twenties being like, yeah, retirement is that so
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  Speaker 5: far away? And then twenty years later and I'm here,
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  Speaker 5: I am now I'm obviously going to retire. I just
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  Speaker 5: met in terms of that. It creeps up faster than
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  Speaker 5: you think it does.
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  Speaker 3: Yeah, times like a sling shot, right, I mean, a
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  Speaker 3: semester in college felt like an eternity, you know, then
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  Speaker 3: all of a sudden you have to get twenty thirty. Yeah,
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  Speaker 3: I'm starting to get to that point where I look up, I'm.
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  Speaker 5: Like, holy cow, I'm gonna tell you this week I
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  Speaker 5: could not remember I lost track of my days of
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  Speaker 5: the week.
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  Speaker 4: This week.
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  Speaker 5: Well, I was so confused, I thought, yeah, anyways, just
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  Speaker 5: that's that's where.
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  Speaker 4: I am out.
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  Speaker 3: Yeah, No, it sneaks up. I mean most Stennists that
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  Speaker 3: retire there, you know, they will say, well, what's the
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  Speaker 3: old saying the days are long, the years are short,
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  Speaker 3: but you know they will say, wow, that that went
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  Speaker 3: by fast, even though it was hard in some cases.
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  Speaker 4: But Casey, thank you so much for stopping by today.
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  Speaker 5: If you do, if you don't have someone to talk
• 12:23
  Speaker 5: to you about these things, you need to find an
• 12:25
  Speaker 5: external team. You can find us online. You can find
• 12:28
  Speaker 5: our our phone number. You can fill out a form.
• 12:30
  Speaker 5: We can always chat with us and maybe set up
• 12:32
  Speaker 5: a call and see we can see if maybe we're
• 12:34
  Speaker 5: able to help you or not help you in that
• 12:36
  Speaker 5: case sense we don't help everybody. You can also attend
• 12:39
  Speaker 5: one of our events to find out more information. Again,
• 12:40
  Speaker 5: we're going to be all over the country this year.
• 12:42
  Speaker 5: Go to four Quadrants Advisory dot com slash events. You'll
• 12:45
  Speaker 5: see the dates, times, place, venues we're going to be.
• 12:48
  Speaker 5: You can register right there on the on the spot, Casey.
• 12:51
  Speaker 2: It's a nice first step for people.
• 12:52
  Speaker 5: Yes, and it's a good it can be a very
• 12:54
  Speaker 5: good wake up call for a lot of you. And
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  Speaker 5: or maybe you already know these things in your kick
• 13:01
  Speaker 5: affirm it's always good to be validated.
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  Speaker 4: It's all right. Thank you so much, Casey, and have
• 13:05
  Speaker 4: fun in Florida.
• 13:06
  Speaker 2: Thank you.
• 13:09
  Speaker 1: Hello, everyone, welcome to the Millionaire Dentist podcast, brought to
• 13:13
  Speaker 1: you by four Quadnance Advisory. On this podcast. We break
• 13:16
  Speaker 1: down the world of dentistry, finances, and business practices to
• 13:20
  Speaker 1: help you become the millionaire dentists you deserve to be.
• 13:23
  Speaker 4: Please be advised we do speak
• 13:24
  Speaker 1: With an honest tongue and may not be safe for work.