4 Common Mistakes Dentists Make with Student Loans

Brian Hanks Financial Planning, General Leave a Comment

A few weeks ago I had the chance to scratch an item off my bucket list when I flew to New York and saw the US Open tennis tournament live. As a casual fan and player, I loved the opportunity to sit as close to 10 feet away from Nadal, Murray, Djokovic and Williams – the best in the world. As I watched them play, I could predict who would win almost every time by looking at only one statistic: unforced errors. An unforced error is a lost point entirely the result of a player’s own blunder, and not because of how well the other player has played. As dentists struggle to repay record levels of student-loan debt, many are making unforced errors that threaten their long-term financial security and delay retirement. Unforced Error #1: Assuming Income-Based Repayment Plans are the Best Option

Brian Hanks4 Common Mistakes Dentists Make with Student Loans

5 Reasons a New Dentist Should Buy Term, and Not Whole Life Insurance

Brian Hanks General 3 Comments

Life insurance is a crucial topic for new dentists to get right. After such an enormous investment of time, money, energy and effort in school, should the unthinkable happen you want your family and/or loved ones to be taken care of. (You? Peacefully in your sleep, of course. Me? Wingsuit skydiving, probably!) You want to be able to replace your income if you’re not around to provide. I can hear the whole life insurance zealots now, “Whole life offers great returns!” and “It’s much safer than the stock market!” I’ve heard it all before. Every time I sit and analyze a client’s whole life policy they’ve been paying on for a number of years, what they were told they would have in their account is never even close to what they actually have. A few times a year I go to various dental schools and residency programs to talk with …

Brian Hanks5 Reasons a New Dentist Should Buy Term, and Not Whole Life Insurance

Why You Should Buy a Dental Practice BEFORE Your Student Loans are Paid Off

Brian Hanks General 1 Comment

“I am really interested in owning my own dental practice, but I think I need to pay down my student loans before I buy one.” said nearly every dental student and resident I’ve talked with across the country. It’s a common response I get when talking with students. But it’s not a wise one. If you’re coming out of dental school, you probably have a mountain of student loans. It feels daunting. And it only feels worse if you did a residency program. I get it. You need to face your fears. Stare the cold, hard facts in the face. Realize the quickest way for you to pay down your student loans is to own a good dental practice as soon as possible. Recently, a client of ours came out of dental school with just under $300,000 in student loans. He’s married, and has 3 kids. He worked for about 8 …

Brian HanksWhy You Should Buy a Dental Practice BEFORE Your Student Loans are Paid Off

4 Common Dental Practice Transition Mistakes and How to Avoid Them

Brian Hanks General 1 Comment

We’ve worked with a lot of clients to help them successfully transition to dental practice ownership. We’re proud of our track record with our clients, and the results of the good work we’ve done to ensure that both the buyer and seller are happy with the transition. We’ve seen, from time to time, a few common dental practice transition mistakes. If you, or someone you know, will ever buy a practice in the future, read through these four common dental practice transition mistakes and learn how to avoid them. Mistake #1 – Selling the Cow and Trying to Keep the Milk An owner of a practice in Utah thought she was ready to sell. She was the third-generation owner of a practice where she was the main source of production, and her father (the previous owner) was the associate now working two days a week. The practice grossed over $1.3 …

Brian Hanks4 Common Dental Practice Transition Mistakes and How to Avoid Them

2 Methods Every Dentist Needs to Know to Value Their Practice

Brian Hanks General 1 Comment

Do you know the two most common ways to value a dental practice? If you’ve ever bought, or considering buying a dental practice, did you pay too much? How would you know? Does it even matter? There is a secret to valuing your practice. Let me share what it is with a quick story. I learned how business are REALLY valued in a finance class in my MBA program, and it wasn’t close to what I expected. At the time, I was in one of the most difficult finance classes I’d ever taken learning from the feet of one of the foremost finance professors in the world, Dr. Gautam Kaul. (In fact, if you want to take his valuation class, click here for the free online version! I warn you – it’s painful!) Week in and week out Dr. Kaul drilled us in the various methods of valuing a business – …

Brian Hanks2 Methods Every Dentist Needs to Know to Value Their Practice

Why Investors Should HOPE the Market Goes Down

Nate Williams General, Investments Leave a Comment

Bring on the next recession! The beginning of 2016 tested investors with the S&P 500 falling 10.51% in just over a month, hitting a low of 1,810.10 on February 11. Since that time, the US Market Index has pulled back, almost breaking even with the January 1, 2016 starting point of 2,043.94 with a closing price on March 16, 2016 of 2,027.22. At this point, most investors are wiping the sweat off their brow, breathing a sigh of relief and saying “that was close.” During this volatile time period many of our clients called with concerns over the market decline. After recommending a new investing savings plan, one client texted me saying, “Looked at Schwab account last night…down $15,000…doesn’t make me want to jump into putting more money into stocks.” My response was simple: “When the market falls you should be more excited to buy ownership of companies, not less …

Nate WilliamsWhy Investors Should HOPE the Market Goes Down

Your Dental CPA Could Be Selling You Out!

Brian Hanks General Leave a Comment

Did you know that your dental CPA is constantly getting offers to sell you out by referring products and/or services that may not be the best for you?

Check out part of this email I got from a web marketing guy who wants to show us his amazing SEO and traffic driving skills. His ultimate goal is to get us, at PFG, to refer our clients over to him. Watch how he phrases the offer:

I also wanted to reach out to see if any of your dental clients have any interest in a digital marketing campaign. I have been working with Dr. [redacted] for years now, and his SEO campaign has consistently brought new patients to his practice. If you’re able to connect me with any of your clients who want my support, I’d love to discuss a Finder’s Fee relationship with you for making the connection.

A “finder’s fee relationship?” That’s a polite way to say “we’ll pay you to tell your clients that we’re great.”

Another time a banker told us that in exchange for referring them clients, they would give us a “marketing allowance” in the amount of 1% of the amount of the loan. “Marketing allowance” is code for “kickback,” of course.

There’s some good news and some bad news here. First, the bad news:

Brian HanksYour Dental CPA Could Be Selling You Out!

The Four Best Ways New Dentists Find a Practice to Buy

Brian Hanks General 1 Comment

In talking to young dentists all over the country, we get this question a lot: How can a New Dentists Find a Practice to Buy? Fortunately, the majority of dentists still understand the benefits of owning their own practice (far greater income and control/freedom over life and how you practice) and are courageous enough to take the plunge. But how to find the right practice? And what if you can’t find the right practice quickly? Several of your friends from dental school had connections or family that helped them get started. Some of your other friends have mentors they’ve found that have helped. But for whatever reason, you’re coming up dry. Or you don’t know where to start. What to do? Unfortunately there isn’t one easy answer. Finding a practice to buy is a lot like finding a spouse – you look and look and look, and then rely a …

Brian HanksThe Four Best Ways New Dentists Find a Practice to Buy

When to Start Saving as a Dentist

Nate Williams General, Investments 1 Comment

We have two main jobs with our clients, understand their goals and help them reach the goals they set for themselves. It is inspiring work. Truly, we have one of the best jobs on the planet. We try and account for everything that will help or hinder a client in achieving those goals. However, there is often one person who cares the most about you goals and plans, but can’t do anything about it right now: your future self. In our work, we often try to advocate for this poor, unfortunate soul – you, but the older, feebler version. We want this version of you to live a good life with dignity and independence; but whether or not that happens will depend largely on the decisions the current version of you makes today. Two of these decisions include how much money to save, and when to start saving it. How …

Nate WilliamsWhen to Start Saving as a Dentist

Welcome to the PFG Blog

Nate Williams General Leave a Comment

Welcome to the PFG Blog. We invite dentists everywhere to subscribe. Our commitment to you: to keep the content relevant, practical, and worthwhile. We are constantly seeking to learn new information for our clients. When what we learn is valuable, we want to share. For example, we recently learned of a company called SoFi (www.sofi.com) who will refinance student loans at fixed rates as low as 3.625%. A blog post is a great way to get the word out to many of our younger dentists, and their friends, who are strapped with high debt loads and onerous interest rates reaching higher than 8%!

Nate WilliamsWelcome to the PFG Blog