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Managing cash flow is key to being a financially healthy business.  Most dentists know their monthly cash flows, with a keen awareness of when payroll, credit cards, rent, labs and the other big bills are due each month.  But managing cash flow is not just about increasing next month’s production or reducing expenses.

It's the time of year to be thinking about year-end deadlines.  Here’s a quick checklist – not all-inclusive, but hopefully helpful:

If the 4% withdrawal rule was created with a 65 year old in mind, what happens when you want to retire earlier?  How much would an early retiree have to reduce their withdrawal rate to accommodate a longer retirement?  Research has been done that suggests that you don’t have to reduce the 4% withdrawal rate too dramatically, even for very young retirees.

It’s good for young kids to have exposure to money, learning the  consequences that come with different financial decisions while the pain is relatively mild. 

The recent Equifax security breach compromised names, Social Security numbers, birth dates, addresses, credit card numbers and driver’s license numbers. Our annual, gentle reminders to keep a watchful eye on credit reports have turned urgent. 

The hurricane has me thinking about how to be prepared for emergencies.  I imagine families trying to contact each other, computers and file cabinets under water,  and businesses unable to function.  If you are somewhere that was not impacted by the hurricane, use it as a motivator to be prepared should a disaster hit closer to home. 

A client reminded me of some good budgeting advice this morning; I thought I’d pass his comments along.

A convenient truth of a 4% withdrawal rate in this market is that dividends and bond income will come pretty close to covering it. However, once you start withdrawing more than the income the portfolio can predictably produce,  you are relying on growth to fund your spending.

The IRS ruled in January 2017 that they had classified syndicated conservation easement investments as “listed transactions” with commentary that the IRS believes these investments carry a strong potential for “abusive tax avoidance”.

When people speculate about what spending will look like in retirement, they usually come up with some version of the go-go,  slow-go and no-go phases.  They assume spending will stay the same or increase for several years while catching up on the fun missed while working (go-go), that they’ll slow down after that (slow-go), and at some point will reach “no-go”, wher