New Dental Practices
Your future is only as good as you make it.
I’m a dentist starting a new practice, and I’m researching retirement investment firms. What should I look for and how can CDG help me?
First — congratulations. You are already ahead of the game.
Planning for retirement is not just for those over 50. Retirement planning is for everyone. Too many Americans — and far too many dentists — have inadequate savings because they began planning too late.
Ask yourself, “What will I live on, and what will I live like, when I retire?” It is never too early to ask these questions.
In addition to the obvious – to build a nest egg for yourself — there are several other advantages:
You can build your savings in a pain-free manner by deducting contributions of your taxable income while deferring taxes on the growth of your assets
Start early so that the phenomenon of compounding can achieve maximum effectiveness
An attractive plan can help attract and retain good employees
Qualified plans can be favorable because you are able to decide, year by year, what percentage of each eligible person’s earnings will be contributed to the plan and, depending on the plan, these contributions can be discretionary.
You may elect not to make a contribution to your plan for a particular year. Depending on your objective, you can select a plan design that is weighted more heavily toward yourself. There are plans in which the employees contribute to their individual retirement plan as a salary deferral, and you match their contribution.
As you can imagine with government programs, there are plenty of ifs, ands or buts to sort out, but this is not as daunting as it sounds. Our Retirement Program Specialists know all the right questions to ask in order to place you in a plan that is best for you.
An IRA is for individuals, not groups. Contributions to an IRA are tax-deductible (within IRS limits) and grow, tax deferred. Proceeds are taxed when they are withdrawn at retirement. Contributions to a Roth IRA are made on an after-tax basis, but are not taxed when they are withdrawn at retirement.