57-yr Old DDS Asks for Advice...

Earlier this week I received an email from a 57-yr old Dentist looking to pump up his retirement. Here's what he wrote:

Jerry,

Would you mind answering a question for me?

I am a 57 year old DDS with a profit sharing/401k for myself and 4 employees. I have approx. $780,000 in my personal part of the plan. Is there a way for me to continue the plan at work but also open a Roth 401k, too? If I had an extra $30,000 a year (beyond my business PS/401k $) to invest, how would you recommend I invest it? Would I need to start another “entity?" I am interested in your Real estate info. as well.

Thanks,
Steve Smith, DDS
[name changed]


Hi Steve,

I'm no atty or CPA or tax-type adviser so I can only tell you what I would do were I you. Verify with the proper folks prior to engaging.

1) yes, create a new entity...An LLC perhaps that owns equipment and leases it to your dental ofc. EVEN if it's a few pieces of eqpt and there can be cash flow through the entity via your other entities to soup-up your accounts. That LLC can then apply for a Roth 401(k) via Equity Trust (www.trustetc.com).

2) I LOVE private lending secured with real estate where you can charge 3 points and 12 to 15% interest on top. My dad does a lot of this out of his IRAs and he does very well and we keep things pretty tight. I also do some with my IRAs as well. That total of 15 to 18% a year amounts to about 23 to 25% a year when you are turning your money over 2x a year!!! HUGE bucks!

3) Shoot me your physical addr, I will have Melody in my ofc send the info on the boot camp to you. You can also check it out online at www.RealEstateForBusyDentists.com and my BLOG at www.realestateforbusydentists.blogspot.com

Have a great week! Jerry

Real Estate Education & FREE Information for Busy Dentists - For more information visit http://www.RealEstateForBusyDentists.com