The Retirement Formula with Reese Harper

• Average retirement age for dentists is 69
• Most dentists retire when they think they can, they don’t wait longer

• When to retire

• • Calculate total net worth, retirement accounts, cash, investment to determine
  • Make 30-35 times what is spent in 1 year at any age younger than 70
    • Example: $200,000 spent in a year, net worth should be $6-7 million
  • TT Score: Net worth divided by annual spending
    • Wealth should grow at 3.3% or more at a TT score of 30 to never run out of money and maintain principle
• A lot of people don’t have a clear picture of how their net worth is growing, so they don’t make any changes
• Track personal net worth statement and progress report quarterly

• Spending 30% of your total gross rate is ideal
  • This will allow a 20+% savings rate
  • Average savings % is 21
• Focus on net worth not savings
• People often pursue accumulating assets in the wrong order
  • Focus on practice equity, then liquidity, then qualified assets, then real estate
• More practice equity leads to higher investment returns

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