What are the Best Strategies for Building Wealth?
Building wealth as an orthodontist does not require you to work yourself to the bone for decades, nor do you need to push back your retirement just to meet your ultimate goals. As the years go on, the average retirement ages for doctors, dentists, and orthodontists have continued to slowly increase, but wealth building as orthodontists using the right strategies can be the difference between achieving financial freedom or being stuck behind the chair for decades longer than necessary.
Costs of operating a practice for doctors, dentists, and orthodontists are increasing, primarily due to lower insurance reimbursements, higher overhead costs, taxes, and regulatory compliance fees. These challenges make wealth building as orthodontists harder, but not impossible if you are ready to break out of the standard financial mold that most well-meaning accountants, business and financial advisors try to fit you into, or if you are willing to look to new strategies that greatly improve your passive wealth generation.
Breaking Free of the Standard Retirement Plan
Generating a significant earned income is no guarantee of wealth or financial Freedom. Most traditional financial models for high income earners are focused on tax mitigation (401ks and other methods of kicking the tax can down the road). Unfortunately, these strategies also limit your ability to enjoy your wealth and have choices/options prior to a distant “retirement” age.
Most bankers, accountants, and wall street gurus will want you to use your retirement savings plan to invest in stocks, bonds, annuities, CD’s, treasuries, etc. The problem with this, though, is that the return is relatively small and unpredictable, those investment vehicles fail to provide for your family and lifestyle, forcing most practitioners to continue earning active income for years and decades longer than they wish. Unfortunately for many practitioners, they have no plan for wealth building as an orthodontist, beyond continuing to earn active income to support their lifestyle.
Relearning Wealth Building as an Orthodontist
At Freedom Founders we have a more robust form of wealth building for orthodontists, doctors, and dentists, that involves creating sustainable, predictable, and passive income streams outside your practice. It’s about making your wealth work harder for you. Yes, there is a sacrifice period required to grow a practice and create the economic engine that will fuel your wealth building. But this sacrifice period should not last until you are 65-70 years old. Your practice should create enough wealth for you to have true freedom and options decades sooner than that… if you have a plan for making that wealth create sustainable income for you outside your practice.
Yes, this can be done alone through DIY real estate investing. But the opportunity cost is significant. Most practitioners have full lives, busy in their practice, with their families, etc. The amount of time and risk required to develop the skillsets and relationships necessary to be successful in real estate is significant. Do you really want to risk your hard earned nest egg in the school of hard knocks?
Investing in properties by yourself can be very risky, but if you do it with a group of like-minded individuals that are more knowledgeable than you, you can learn from them, invest with them, and absorb their knowledge along the way, making the group stronger than the individual. At Freedom Founders we have the mantra, “your network is your net worth”; making connections, and learning from each other's experiences and mistakes, can help build a more stable community of investors that produces passive incomes that can last for decades.
Freedom Founders is Here for Your Future
Building up wealth on your own can succeed, but as time goes on, it becomes harder to reach the goals you want, especially if you are looking to retire before age 65. If you have net worth that is not working hard for you or vulnerable to the stock market roller coaster, consider contacting Freedom Founders today. We will set up an appointment with you to talk about great opportunities for wealth building for orthodontists, and we’ll connect you to the Freedom Founders network.