Still,the most important of this discussion is, the fact that demand for dental/medicalservices, although should be unrelated to the performance of the larger economyand its bewildering cycles of expansion and contraction that should bedevil therest of us, but the contrary has started happening to all of us.  In otherwords, being a dentist/doctor used to be low-beta and low-volatility giving us anedge, if we use it, which they usually don’t. The ever changing economic slumphas raised its venomous fangs to our field as well and we surely are feelingthe pinch since the money in any business remains in cycle of circulation.

Wenormally used to have very steady, high-paid work irrespective of the economywhich meant that we could afford to take more risk in our investment portfolios.Our late start also pushes up this need. Ideally, dentists/doctors in their 30’sshould allocate about 80% of their portfolio to stocks (high risk, but high returns). In fact, we should be overweighting value and small company stocks that areeven higher-beta than the stock market as a whole.

What is surprising to findaccording to a survey is that 37% of dentists/doctors have less than 70%allocated to equities at this age. If the dentist/doctor hits the jackpot atalong the way, he should immediately scale back to a safe portfolio that cansustain him throughout his retirement.  Otherwise, as that happy valleydraws near, we need to start shepherding our portfolio more conservativelywhether we have hit his magic number or not.  With no labor income infront of us, we become just like any other retiree at about a 40/60 stock/bondportfolio by the time, we get within sight of the gates at Leisure World. Ifour health permits and we can work part-time in retirement, we can invest moreaggressively to make our portfolio sound. Many of us are majorly focused on investments and have aproduct-centric approach rather than managing our personal financesholistically because that’s where an expert financial consultant can actually help. Afinancial advisor can help us plan the financial needs that include goalplanning, net worth analysis, cash flow management, asset allocation strategiesto minimize taxation, insurance planning, risk management, succession planningand managing the tax liabilities. We have to understand a few vital pointswholesomely: 1.

       Unlike simple investment planning, financial planning approach isa much broader concept that helps us to take care of us finances by thefinancial advisor/expert. 2.       The methodology and uniqueness of wasting a decade (although itwas for gaining education) shall always continue to haunt us inevitably, so withoutmuch ado, we need to get in touch with an expert to plan and organize ourfinances. We usually delay our cash inflows and also require intensive capitalinvestments in infrastructures and machineries which significantly affect ourfinancial life in the longer run. 3.       Availability of time is gold and for us, it is a diamond and ahard sought luxury. With our working schedules being round the clock, we oftenrun short of time and are not able to focus properly on the financial matters. Thus,to keep our financial life healthy and running and hopping on the right trackat the right speed, a financial planner is the most necessary.

 4.       Own practice or a salaried job is one of the biggest dilemmas, adentist / doctor faces in the initial phase of his career. We dentists usually havelack of employment opportunities (salaried job wise) and own practice is alwaysa better idea, but since it demands high investments, we tend to take wrongdecisions of over spending or under decorating.

Setting up an own practice isnot so easy and an expert advice on managing the financial aspects will benecessary. A financial planner helps us calculate how much investment isrequired, space requirements, cost, place, services offered and other overheadcosts. They can also help identify the status of the cash flow, listing of therevenue and expenses. 5.       Partnering up a financial planner can help manage the wrong mixingup of the personal and professional expenses and help further planning in theright direction to make just the right kind of investment choices. .

 6.       Time problem not withstanding, an investment in a good financialplanner who can manage the finances and give us sound investment advice as per ourneeds and desired goals can be a real match winner saga for us. 7.       However, the bottom lineis that it might be fine to use a financial advisor, but making sure that theadvice is good and is a better bargain i.e. a good advice for a fair price.

Thesooner you realize that you can competently do it yourself, the sooner you willreach financial independence. In my experience, it is rare for an early retiree(think late 40s or early 50s) to pay any significant sum for financial planningor investment management. Rather than trying to pinch pennies on minorexpenses, just get the big expenses right and everything rest will fall intoplace and take good care of itself. 


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