12/10/2024
Dr Kendi bites into her brandy snap just before sipping her tea from a flowery, bone china cup at the restaurant overlooking the golfing green. The atmosphere is calm as waiters glide by silently. This is the life to live, far from the hoi-poloi. Her husband Dr Hoffman hurries to join her. His last procedure has taken him into extra time so he and Kendi have found their own ways to the Golf club. There is no tournament today. They are here to plan the next few days, away from the clinic, which is steadily growing in business and revenues. Like most dentists with about KES 50,000 piece to spend, they will be attending the annual KDA conference.
All roads lead to Shanzu, just outside Mombasa. The KDA Conference starts and ends next week. Most dentists use it as a much-needed break from back breaking work. A few will attend short, two to three hour courses, the majority will visit the exhibition, shop for equipment and materials, attend plenary sessions and social events. They will all agree that it was the best conference, ever. Then back to the grind.
The best time to be young is now. Life is more sophisticated for the current vibrant generation. I wish them a fantastic time as they jet ski, snorkel and tantalize their taste buds with the best that the Indian Ocean has to offer. May they remain in the pink of health.
Good health is often taken for granted. Youthful vigor is assumed to last a lifetime. It is aways someone else’s funeral we are attending. However after a certain age we are all waking around with one or other symptom of one or more diseases that may become chronic or take us down eventually.
This week, I was in bed for a day with chills, fatigue and the runs. Enough time to ponder life, ill health and the inability to work and generate an income.
A chance encounter with somebody my age who complained that she needs more days off and holidays these days and simply lacks the psyche to manage patients for 18 – 24 months at a stretch got us thinking. Menopause and Andropause do not affect the opinion making process!! We tossed opinions this way and that, with wild abandon, all backed by highly unscientific personal experience and anecdotal evidence .
We discussed dentists in their 50s – 70s with dire diagnoses, that had caused them to become less efficient at work or even stop working all together. The change was gradual – there are problems with eyesight, motor coordination, muscle weakness, tenosynovitis, carpal tunnel syndrome and their ilk. The medical end -point had seriously negative consequences on their lifestyles.
The best laid plans often go awry. You have savings of KES 20M in various vehicles. Your wife has Money Market Funds aplenty and savings plans to boot. You have rental income of about KES 200, 000 and the odd loan that is manageable. Then life happens – ill heath throws a curved ball at you. The lives of those around you keep spinning. They need to go to school or university. They need pocket money for their upkeep. You have that retirement home you are finishing in exquisite style.
Suddenly it dawns on you. There is less money coming in than is going out. The Medical Insurance you had for 10M suddenly reminds you about pre-existing condition clauses and how you are now on your own.
Your employer retires you on medical rounds. Your pension scheme is hopelessly inadequate. Your friends, colleagues and students no longer call you that often.
You wish you could relax by a golf course or attend the KDA conference. That is a luxury you can ill afford between paroxysms of pain and discomfort.
You would advise Dr Kendi and Hoffman, if they would spare the time to listen to a grey-haired muse. You might tell them why an exit strategy and retirement plan make good sense when you are young(er).
You might consider five key pieces of advice for Drs. Kendi and Hoffman regarding the importance of having an exit strategy and retirement plan for their private practice:
1. Prepare for Health-Related Work Limitations: Dentistry is physically demanding. As you age, conditions like arthritis, vision problems, or carpal tunnel syndrome can make work difficult or impossible. An exit strategy ensures you're not caught off guard when health limitations arise, allowing you to transition smoothly from active practice to retirement without financial strain.
2. Safeguard Against Income Limitation: Relying solely on active income from dentistry is risky, especially when unexpected life events such as illness or injury occur. Having a retirement plan with diverse income streams (investments, savings, rental income, etc.) provides a cushion, helping maintain your lifestyle even if you can't work.
3. Plan for Medical Expenses: As medical costs can escalate with age, comprehensive health insurance may have exclusions like pre-existing conditions. An exit strategy should factor in potential gaps in coverage and account for a dedicated medical savings fund to protect you from overwhelming expenses later in life.
4. Exit Gracefully While Maintaining Lifestyle: Without a proper retirement plan, you risk financial shortfalls that could force you to continue working or downgrade your lifestyle. Planning early allows you to step away from dentistry at a time of your choosing while maintaining your desired quality of life, such as golfing, traveling, and attending conferences.
5. Reduce Business Dependency: Dental practices can be high-earning, but business revenue can decline due to personal capacity issues or market changes. Having an exit plan that includes selling or transitioning the practice allows you to monetize the business at its peak, ensuring continued income even when you're no longer actively managing the clinic.
By planning early, Kendi and Hoffman can protect themselves from financial insecurity and enjoy a smooth, comfortable retirement. Life happens. It is better to be prepared. If you are old(er) and not going to the conference have a conference with yourself and rue the halcyon days of your youth when you lived for today. The wisdom of hindsight and other stories.
