Dental Articles

Dr. Smith was a 47-year-old general dentist who owned a small successful solo dental practice. Dr. Smith wanted to retire at age 59 and he had retained AFTCO to help him design a plan that would allow him to retire in the next twelve years.

Dr. Smith was a 47-year-old general dentist who owned a small successful solo dental practice. Dr. Smith wanted to retire at age 59 and he had retained AFTCO to help him design a plan that would allow him to retire in the next twelve years. His practice was grossing about $580,000 and his net income was about $190,000 per year. The dental practice was appraised at $475,000.

Dr. Smith knew he wanted to net at least $80,000 per year of income from investments after he retired. He wanted this much income in order to maintain a reasonable lifestyle. He knew he would need at least one and one-half million dollars in his pension plan in order for it to provide him with that income.

Dr. Smith currently had $100,000 in his pension plan. That $100,000 was earning ten-percent interest each year, and it would grow to approximately $315,000 in 12 years. Provided he maintained his dental practice at his current level of production for the next 12 years, he could plan to sell his practice for $475,000 when he was ready to retire, but that would only generate about $255,000 after he paid all the fees and taxes due on the sale.

That meant he was still short by $930,000. In order to have that much money on hand when he retired, his financial advisor told him he would have to contribute $39,343 per year for the next 12 years. The problem was he still had two kids in college, he was enjoying travel and vacations with his wife, and he did not want to curb his lifestyle now to fund his retirement. There was no way he could save up that much money each year and still enjoy life, and he did not know what to do.

The answer for this dentist was AFTCO’s PreSale Program, combined with the miracle of compound interest.

AFTCO sold his dental practice for $475,000. He cleared approximately $425,000, which was used to fund his pension plan. At an annual rate of ten percent compound interest, in 12 years, that $425,000 would grow to $1,333,832!

The difference in the net proceeds he would realize from the sale by selling the practice now instead of selling it when he retired earned him an extra $1,083,832!!! His pension plan was now funded without affecting his current lifestyle.

Dr. Smith’s practice was sold and merged into another dental office. He maintained the guaranteed right to work his practice for the next 12 years. He began practicing 3 days a week. He soon found that he was earning as much money in those 3 days as he had earned when he owned the dental practice and worked 4 ½ days.

He and the other dentist (who had purchased his practice) began to utilize AFTCO’s Three-On-Three practice schedule, and they both now enjoyed 26 full vacation weeks each year. This was just an additional benefit to this program.

Think it can’t be done? Think it can’t work? Think it can’t happen to you? Well, if you think that way, you are probably right, and it won’t ever happen to you. But if you are tired of not seeing any light at the end of the tunnel and you want a way to provide yourself with some long-term security and improve your “Quality of Life” now, then call AFTCO today… if you think you deserve. It can happen to you if you will accept help.

Find out more about the PreSale Program from Northern Dental Alliance member: Click this link…