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Originally Posted by O.city
Thanks guys. We can't do a Roth, and I can only write off so much interest on the student loans. It sucks and it's bullshit, but whatever.
I can set up a 401k thru my office and max it out, which is something I'm starting this year as well. I don't really think I will need or atleast hope I won't need the $ until retirement, but I wonder if I'd be better off paying that in my student loans instead. It's at 7% and I graduated with 301k a few years back. I've got it down under 200k, but I've been throwing alot at it just to get out from under it asap.
Not sure that's wise, but it makes me feel better.
On a side note, fwiw, it's interesting to see how pts view dentists. They seem to think I'm just rolling in cash. Don't get me wrong, I do well, but between having student loan debt, buying a practice and all the shit thay comes with that, I was about 650k in debt before I had a single pt in the chair.
It's not all sunshine and rainbows. Sure there are ways to go about getting into dentistry with less debt and I wish, with hindsight, I'd have done a military residency and gave the gov service for some debt repayment, but it is what it is. I lucked into a really good practice opp that's turned out well for me so I'm not upset, just tend to be tired.
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Oh hell, there are phase outs for student loan interests. Forgot that. My bad.
I'm with you on the money thing. My gross receipts are pretty damn high. My net income is far lower. My net cash flow to management is really pretty dang low. So I'm handling a shitload of money, and trying to hang onto a couple bills as they flow by.
Regarding your debt service, servicing your business debt is paramount. If
you have to borrow money for anything, you will be borrowing against the equity in the business. That's not to say, don't pay attention to your student loans, especially if those rates are higher, but you really need to mind the equity in your practice, especially since it is in an LLC.
If you're good with that, plowing out student loan debt is good, especially if they are at 7%.
I'm glad you're doing well though. I have a friend that graduated vet school a few years ago with somewhere near your numbers. Now she's looking for hardship exemptions and shit.
I told her she's way tougher than me. If I wasn't able to service debt, I'd melt down. Like full on nuclear meltdown. That is probably my biggest fear.
I'm also with you on the tired bit. I'm not so much tired of the job. I've worked a metric ****ton of hours, which sucks and I'm trying to do better on, but my bullshit tolerance is used up. Anymore I'm criminally pragmatic, and if you can't help me, or you **** around and waste my time, I might cut your head off. I'm working on that too, but that's a tougher one.
All that being said, I wouldn't change it. I don't miss corporate life. Like at all. Even when I'm working a billion hours.
Quote:
Originally Posted by O.city
This was an option I considered. I don't know much about the HSA, but we do have a hdhc plan for myself but the kids are a bit different as the wife feels they need good coverage.
Instead of the hsa, I tend to keep quite a bit of cash in my practice llc account for emergencies. Dunno if that's wise or not.
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Cash on hand is a good idea IMO. You'd like to be able to get a return on it, but I try to keep as much cash as I can because it always spends and it's always there.
That being said, if you have a personal emergency, make sure you talk to an accountant and review your operating agreement before you pull your money out and spend it on a non-business expense. Most guys don't give a shit, but I work very hard not to pierce the corporate veil.
Again, I'm really glad you're doing well. I felt overwhelmed with the $35K I graduated with.