Investing Tips from Jason Codrea – Codrea Financial Services
Simplifying the idea of investing.
Investing is (by far) one of the most confusing and overwhelming financial subjects. That’s because the word alone conjures up different meanings, strategies and approaches to everyone. But, we’re here to tell you that investing does not have to be complicated. Investing is simply putting your existing money to work to earn more money for the future.
A necessity for your financial future
The years of working 40 years, and then living on social security and pensions, are long gone. In today’s world, investments are necessary to help achieve your financial goals and maintain your desired lifestyle long after your 9-5 days are done.
While some dentists nearing retirement may be able to live off the sale of their practice, newer dentists should be planning their investment strategy early in order to ensure they have more control of their retirement date – and retirement lifestyle.
There is no one-size-fits-all approach
Investing is like completing a puzzle – every option may look like it will work, but only certain pieces fit together based on the desired outcome. That’s why there is not a one-size-fits-all approach to investments – and why it’s so important for you to have a personalized financial plan created to meet your goals.
Some investment strategies may make sense for one dentist, but not another. Why? Because every dentist has different goals, risk tolerances and even desired lifestyles. For example, if you are an associate dentist, and your office has a group retirement plan such as a 401(k) or SIMPLE IRA that matches a portion of your contributions, then it is usually in your best interest to take advantage of these plans. However, if you own a practice, then it may make more sense to utilize retirement planning to save on taxes and offer a benefit to your employees.
Where to begin
The best way to begin is by identifying a financial planner who specializes in dentistry, and who will create a personalized investment strategy that aligns with your long-term goals. Then, you’ll want to complete the following steps to ensure you’re investment strategy is established to meet your needs.
Identify your short and long-term goals, including your ideal retirement age.
Research investment options to get an idea for which you think are best for you.
Meet with your financial planner to share your goals and compare notes on investment strategies. Note: make sure you ask lots of questions to ensure you understand the characteristics and how each plays a part in solving your investment puzzle.
At Codrea Financial Services, we’re here to help take care of your financial health so you can stay focused on providing patients with healthy smiles.
Sources: eMoney, Perio Implant Advisory, Dental Economics
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