Once you’ve gotten your budget established and your debt under control, you should begin saving. Develop a savings strategy that will help you meet short and long-term goals.
Emergency fund — This is exactly what it sounds like- a place to save for emergencies. Start here and try to save six month’s-worth of expenses.
Goal fund — This is where you will save for specific, big-ticket purchases, such as a wedding, a new car, or a vacation.
Retirement – You’ve got your whole career ahead of you, but it’s a good idea to figure out your long term plan for retirement — and establish a routine to support it — as soon as you can. Get advice from an independent financial advisor separate from whatever financial entity or entities you’re saving with.
ADA-endorsed Members Retirement Program, administered by AXA. Designed exclusively for ADA members, the Program offers a choice of competitive tax-qualified Retirement Savings Plans options. Since most dental practices are small businesses, the ADA-endorsed Program was designed to be affordable and easily customized to fit your individual needs. The Program allows you to save for retirement on a tax-deferred basis. Visit http://ada.axa-equitable.com/ to learn more.
Investing — Where you invest depends on your interests as well as your goals. You might find it rewarding to know you’re supporting a particular growth industry you believe in or a technology sector you’re excited about. But a typical investment strategy involves varying percentages of your wealth invested in short to long-term investments. We have investment tools that can help you decide what works for you, available from the ADA Retirement Programs by AXA Retirement Programs
Taxes and interest — There is much to know about taxes and how that affects your wealth and retirement. Initially, dental school costs can be written off as business expenses, for example books, journals and instruments are known as your Professional Library. Consult a tax professional for this information.