According to our survey of Ohio-based dental practitioners, dentists are stressed about their finances. Consider that of the 42 Ohio-area dentists we surveyed:
So how do you create an effective financial plan that helps you achieve financial independence, retire at a set retirement date, and decrease overall stress? First perhaps is understanding that comprehensive financial planning is different from investment management. Comprehensive financial planning means systematically addressing your entire financial situation, including goals, objectives, taxes and anything that affects your financial situation. Simply put, comprehensive planning brings an assurance that all your goals are being considered while your resources are being optimized to meet your goals. Financial planning helps you envision the future you want for you and your family, so you can better align all your resources.
Think of financial planning as developing a game plan for your life. It establishes short-and long-term budgets, helps manage and reduce risk and taxes. Financial planning helps you to limit the financial impact of unexpected events, such as disability or long-term illness. It helps you determine your retirement date, and to make sure your family and your business are taken care of in case your family survives you.
A financial plan should be personalized to take into account many factors that deserve customization, including:
As one pre-retiree told us, “financial planning provides you with confidence that you are on the right track.” Done right, a comprehensive plan can put you back in charge of your life, and help reduce stress.