Although Dr. Bob Fry is the founder of Fry Orthodontic Specialists, he is also a financial advisor. On October 17th, Fry Orthodontics hosted a free continuing education event for all dental professionals in the Kansas City area – the topic of this lecture was financial independence and setting yourself up for a successful retirement. With close to 100 people in attendance, Dr. Fry was able to cover many of the following topics and offer personalized answers to a variety of questions at the end. Here is a brief overview of his 2 hour lecture.
Financial Independence
Dr. Fry started out his lecture with the question, “What percentage of medical and dental professionals can retire at the age of 66?” This set the tone for the rest of the presentation on how everyone can begin preparing for retirement – regardless of their current age. In the words of Dr. Fry himself, “The best time to start was yesterday!”
Dr. Fry’s Three Objectives
- Do your own financial plan – Being the leader of your own financial journey will make you more successful in the long run. YOU are the biggest driver of your own success!
- Understand your financial plan – If you do not understand your financial plan, how will you be able to implement it properly? It’s never too late to start learning how to understand your finances to get you one step closer to financial independence.
- Manage your lifestyle (be frugal) – Living within your means and watching every dollar you spend is important when thinking about your financial future. “Make more than you spend, spend, less than you make.”
Financial Management
Never borrowing for a lifestyle and making sure you have proper emergency funds set up were two key takeaways from this CE event. Dr. Fry also touched on budgeting and the importance of developing a budget each month.
Budgeting
This is the most important step in any financial plan. Why? Because spending outside of your budget will cause “pain”. Not every budget is perfect, and it can take 3-6 months to perfect it. If you’re budgeting with a spouse, it’s important to talk about your goals, objectives, and dreams because these will play into your current and future budget. Without having these conversations your budget will likely suffer.
Dr. Fry’s Budgeting Tips:
- START ONE. It doesn’t have to be perfect, and everyone’s will be different but you will learn as you go. The most important thing is to know where your money is going. Once you know where it’s going, you’ll figure out where to cut back.
- Cut up your credit cards and get your debt under control.
- Utilize an excel spreadsheet – it doesn’t have to be fancy!
Choosing your Financial Team | Who are they?
According to Dr. Fry’s lecture, in order to become financially independent one must first learn how to manage their finances. This needs to be done by organizing your financial information, and thoroughly looking at statements. He also recommends researching and choosing your financial team wisely. Who makes up your financial team?
- Legal teams
- In charge of your Will (state specifics and review regularly)
- Power of Attorney for Finances
- Power of Attorney for Health Care
- Insurance Agent
- Accountant
- Banker
- Interview several about overdraft fees, credit/debit card fees, emergency funds, etc.
- Financial Advisor
Risk Management
Managing your risks is another topic Dr. Fry discussed in his presentation, as managing your risks plays a huge role in your financial plan. These include:
- Life- term life, whole life, annuity
- Health- first dollar, major medical, HSA
- Assets – home, liability (office, auto, umbrella), trusts
- Income – disability, office interruption
- Statements – Balance sheets, Income/Expenses, Budget
Retirement Plans
Everyone’s goal should be to retire comfortably but to give generously. Dr. Fry recommended to start investing in retirement NOW, never to invade those earnings, and to think long-term when investing. Here is an example he provided our attendees:
**Assume: $10,000/year at 8%**
- Dr. Smith starts contributing to retirement at age 25 and stops age 35 (contributes $100,000)
- Dr. Jones starts age 35 stops age 66 (contributes $350,000)
Who wins?
Dr. Smith has $2,590,565 (this proves that investing early matters!)
Dr. Jones has $1,132,832
Hierarchy of Investing
- Health Savings Account (HSA)
- Retirement Plan
- Tax Preferred School Savings (529)
- Business/Personal
“The Millionaire Next Door”
This 1996 book by Thomas J. Stanley discusses the surprising secrets of wealthy Americans. Here are some takeaways:
- Live well below their means
- Allocate their time, money, and energy efficiently.
- Believe financial independence is more important than displaying high social status
- Parents did not give them their wealth.
- Teach their children to become economically self-sufficient.
- Proficient in targeting market opportunities.
- Choose the right occupation.
Dr. Fry ended the presentation with the quote, “a rich person is not who has the most, but needs the least.” Invest early, give back to your community, and create a budget you can stick to.
Fry Orthodontics offers a variety of free continuing education events each year to both dentists and hygienists. To receive information about upcoming events, give our office a call at: 913-469-9191| 816-877-0050.