SECRETS OF THE WEALTHY DENTIST
A
Business Parable for Dental Professionals
by
Mike
Lakhani
with Stive Farronato
and Chris Molloy
Smashwords Edition
* * * * *
Published
on Smashwords by:
Tax Matters for Dentists
218-350
Burnhamthorpe Road West
Mississauga, ON
L5B 3J1
Secrets
of the Wealthy Dentist
Copyright 2012 by Tax Matters for Dentists
ISBN: 978-0-9869337-1-4
All rights reserved. Without limiting the rights under copyright reserved above, no part of this publication may be reproduced, stored in or introduced into a retrieval system, or transmitted, in any form, or by any means (electronic, mechanical, photocopying, recording, or otherwise) without the prior written permission of both the copyright owner and the above publisher of this book.
Smashwords Edition License Notes
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Material in this book is for educational purposes only. This book is sold with the understanding that neither the author nor the publisher is rendering legal, accounting, tax, investment, or other professional services by publishing this book. This publication is not a substitute for the advice of your financial advisor or any of your other advisors, personal or professional.
* * * * *
MORE PRAISE FOR SECRETS OF THE WEALTHY DENTIST
A must-read for every dentist, Secrets of the Wealthy Dentist is a detailed road map to financial success no matter what stage of your career you find yourself in.
Dr. Neil Gajjar, DDS, MAGD, FADI, FPFA, FICD
Secrets of the Wealthy Dentist is a great guide for dentists of any age to follow in achieving financial success and retirement freedom.
Dr. Leny Sferlazza, DDS, MAGD, FICOI
This compelling story of three dentists reminds all of us in the dental profession that we’re not alone. The financial challenges we face can’t be handled in isolation. As this parable so vividly illustrates, there’s no shame in seeking out a group of trusted advisors to help us through the maze of decisions that confront us.
Dr. Arthur Johnston, DDS
Secrets of the Wealthy Dentist offers true insight into the personal and professional management of a dentist’s life. Having practiced dentistry for over 20 years, I’ve been through every step outlined in this book, except for the last transition into retirement. You’ll be amazed at the excellent tax-saving strategies. After all, it’s not how much you make that counts, but how much you save.
Dr. Jitendra Mistry, DMD
Every dentist who cares about their financial health should read this book. When it comes to financial planning, most of us procrastinate even though we know we shouldn’t. This book helps demystify the planning process to give you the jump start you need. Secrets of the Wealthy Dentist takes into account that we’re dentists, not accountants, by combining facts and numbers with a compelling story to create an easy and enjoyable read.
Dr. Murray Arlin, DDS, dip. Perio., F.R.C.D.(C)
You learned how to be an excellent dentist in dental school but not how to profitably run a practice or manage your finances. This book spells it all out. Secrets of the Wealthy Dentist is an easy-to-understand guide full of valuable financial planning strategies, tips and solutions.
Dr. Roger P. Levin, DDS Chairman & CEO, Levin Group, Inc.
You’re a dentist, not an accountant. This book spells out how to find a team specializing in your needs to coordinate your financial affairs, and the concrete benefits of doing so.
Ettore Palmeri, MBA, AGDM, BEd, BA President, Palmeri Publishing Inc.
Secrets of the Wealthy Dentist describes three scenarios that a dentist could face while engaged in the practice of dentistry. Along the way, the book provides valuable hints and advice on financial matters that affect us all, both professionally and personally, and shows us how to keep more of the money we make. A highly recommended resource.
Dr. Pravin Patel, DDS
Secrets of the Wealthy Dentist is an insightful how-to guide written by experienced financial planners who understand dentists’ needs and the opportunities they can too easily overlook.
Dan Sullivan Founder, Strategic Coach Inc.
Great book . . . easy to read. I wish I had such a useful resource when I first graduated over 20 years ago. This book should be on the recommended list for all dentists in private practice as it would significantly facilitate their understanding of the business of dentistry.
Dr. Guido Galli, DDS, dip. Perio.
* * * * *
To all the dentists who have worked with us over the years, thank you for your trust.
* * * * *
Contents
SECTION I: DR. MALHOTRA’S EDUCATION
1.
Three dentists
2.
A chance meeting
3.
The Good Samaritan
4.
Advice acted on
5.
The appointment
6.
His life on paper
7.
Incorporation
8.
New beginnings
9.
Tweaking the plan
Financial
Profile: Dr. Malhotra
SECTION II: DR. BEKKER’S STRUGGLES
10.
A step in the right direction
11.
Eyes wide open
12.
Changing course
13.
The numbers
14.
Ready for change
15.
Passing the budget
16.
What they decided
17.
Giving thanks for good advice
Financial
Profile: Dr. Bekker
SECTION III: DR. ST. LOUIS’ EXIT STRATEGY
18.
Planning for retirement
19.
Smart investments
20.
Security within reach
21.
The exit strategy
22.
The defining issue: a share- or asset-based sale
23.
The final stretch
24.
Celebrating with friends
Financial
Profile: Dr. St. Louis
* * * * *
Preface
The idea for this book was developed after years of publishing my newsletter, Tax Matters for Dentists. Together with my partners and co-authors, Stive Farronato and Chris Molloy, I write case studies about actual client scenarios and the solutions provided to improve their situations. After creating a collection of case studies, I wanted to expand upon these concepts and explore them in detail. More importantly, I wanted to demonstrate the benefits these changes could have on clients’ lifestyles once aligned with their main source of revenue—their dental practices.
THE FORMAT
In developing this book’s format, I asked myself how I could introduce tax and financial planning concepts in an engaging and interesting way. As I’ve said many times in my seminars, my objective isn’t to make accountants out of dentists!
I decided to create a story about three characters, at various stages in their careers, whose paths cross in their quest to find coordinated solutions to their financial concerns. I used a parable format so the reader could better identify with the financial challenges faced by the story’s characters. As a dentist reading this book, you may come to recognize you aren’t alone in your concerns and challenges.
THE NUMBERS
In this book, I describe various financial planning concepts. I’ve always found that actual numbers illustrate the impact of these concepts far better than words alone, which is why there’s a summary of calculations supporting each section. I hope the summaries will satisfy those readers who want to know the mechanics behind the calculations. Those who’d rather not be bothered with the details can pass over these sections without compromising the messages in the story.
THE PRINCIPLES
My experience has repeatedly shown that most dentists use advisors in isolation, specifically for one purpose at a time—banks for practice financing, consultants for practice management, stockbrokers for investments, insurance agents for risk management, lawyers for estate planning, and accountants for tax preparation. While all these functions are necessary, the dentist is oft en left to coordinate the activities and liaise between each party. The time, effort, and potential miscommunication can be costly or exhausting. Using the services of a trusted advisor to coordinate the duties of these various experts, however, can result in significant cash flow improvement and much less stress for the dental practitioner.
This book contains many of my fundamental financial planning beliefs about tax reduction, efficient cash flow management, and building net worth. A key principle is that the incorporation of a dental practice can be beneficial in a vast majority of situations. In the short term, incorporation offers the opportunity for tax savings and improved cash flow. In the long term, it offers efficient accumulation of investments for retirement, education funding for family members, structure for business succession, and estate planning opportunities.
Besides tax reduction strategies, investments are an important part of building net worth. While most oft en talked about at dinner parties or with colleagues, investing continues to be a widely misunderstood endeavour, characterized by irrational decisions and inappropriate risks. Emotion, non-stop media noise, and claims citing the ability to beat markets are huge distractions to investors. Sticking to a well-structured and personalized investment policy that addresses global diversification, risk management, tax allocation, and a low-cost index–based approach goes a long way in building net worth.
ALIGN YOUR PRACTICE WITH YOUR LIFE
As a dentist, your practice is the engine of wealth creation. Your practice needs to be integrated with your personal objectives to ensure you achieve your goals in the most effective way possible. The growth of your net worth is the benchmark that provides both the measure of your progress and a sense of comfort.
While there’s no shortage of “great ideas” within the realm of personal finance, those ideas don’t achieve much until they’re actually implemented. I hope this story will motivate you to be proactive about achieving your personal financial objectives.
The key is to work with an advisor you can trust to coordinate with other professionals in managing your cash flow, taxes, and building your net worth. Ultimately, this will help you align your practice with your life.
Mike Lakhani
November
2011
Note: The tax planning techniques and tax rates used in this book are based on the rules in the province of Ontario in 2011. For simplicity, rounding has been used in some instances.
* * * * *
Acknowledgements
We would like to acknowledge many of the people who have guided us during our emergence into the dental industry.
Dr. Neil Gajjar was instrumental in introducing us to many members of the Ontario Academy of General Dentistry, OAGD, and to the various societies and study clubs in Ontario. As a result of his confidence in our team, he invited us to become one of the original sponsors of the South Asian Dental Association (SADA), to which we continue to provide support and offer speaking engagements at their events.
The success of our newsletter, Tax Matters for Dentists, couldn’t have been accomplished without the services of Ettore Palmeri, of Palmeri Publishing Inc. Ettore graciously allowed our publication to be circulated with issues of Spectrum Dialogue and Teamwork magazines. This provided us with visibility to dental practitioners that we wouldn’t have attained without his help.
We would also like to thank Rudi Rodrigues for his collaboration with Ettore in the creative elements, layout, and design of the newsletter.
Aside from the publication, we have gained greater exposure to dentists in the Greater Toronto Area through our speaking engagements. We would again like to thank Ettore Palmeri, principal of the Aethestic Design & Implant Academy (formerly Toronto Implant and Aesthetic Study Club), and founder Dr. Murray Arlin for allowing us the opportunity to present at their events many times over the years.
Our success truly is a reflection of a team effort. We would also like to thank our staff and family members who have supported us behind the scenes. Without their continued dedication to our efforts, this book and our success within the dental community wouldn’t be possible.
* * * * *
Section I: Dr. Malhotra’s Education
* * * * *
Chapter 1: Three dentists
DR. MALHOTRA: 7:00 A.M.
On the first morning of the Ontario Dental Association (ODA) annual spring meeting, traffic was congested and frustrating to navigate in and around Toronto. By city standards, that meant the crawl of traffic was frequently slowing to a complete halt. Dr. Arjun Malhotra lived in London, Ontario, so he wasn’t used to it at all. It was nothing like London traffic. But being a patient man, Dr. Malhotra kept his wits about him and kept his mind occupied with the latest book on tape he’d borrowed from the library. His long commutes to work during the week were oft en boring; the audio tapes kept his mind occupied, and it was the only way possible to get through some of the books he wanted to read for pleasure.
He hadn’t driven in Toronto in at least four months, and then it was only to pick up a cousin at the airport on the outskirts of the city. His drives to work were often white-knuckle stuff in the winter, but all that snow and ice paled in comparison to the madness of downtown Toronto traffic. How do Torontonians do it? Dr. Malhotra wondered.
The first hour of the drive into Toronto was easy enough— that part was familiar to him as he’d been commuting for the past eighteen months to an office in Kitchener where he worked as an associate two days a week. He’d practically worn grooves into the asphalt along the route between his hometown of London and Kitchener. He could name the exits by heart. Between those drives and the forty-minute, once-a-week commutes he made out to Strathroy to work as an associate at a practice in town, Dr. Malhotra was running his four-year-old Volkswagen Golf into the ground.
By the time he reached Mississauga, his clock was moving faster than his odometer. He still had a good hour to go before he’d be anywhere near the city centre. A thick fog had rolled in and caused a couple of fender-benders on the 401, which had basically shut down the highway. Nobody was moving an inch. Dr. Malhotra thought that perhaps he should have brought another book on tape. What he was certain of was that he was running more than an hour late—and it wasn’t his nature to be late.
He was eager to make it to the conference. It was his second year attending, and if the previous year was any indication, this year would prove to be very informative. He was looking forward to the sessions on cosmetic dentistry. He also had plans to meet a couple of old classmates for breakfast. He hadn’t seen Thom and Darcy since they had all graduated from the University of Western Ontario two years before. It was hard to get together oft en because none of them lived in the same city, so the meeting was a good opportunity to catch up—other than in brief and sporadic e-mails. They were bound to hassle him because he still drove the same car he’d had in university, especially since Darcy had recently purchased a gorgeous black Mercedes.
The upside to traffic congestion was that the delay was sparing him those shots. The way it was working out, he’d be lucky to get a coffee to go at the convention centre before the opening session.
DR. BEKKER 7:25 A.M.
Dr. Dennis Bekker was only coming from Bayview and Lawrence and should have been able to make it to the conference on time, but as luck would have it, Dr. Bekker was sitting in his vermilion red BMW M3, noticing that the “check engine” light was on again. He’d first discovered this on the drive back from his cottage in Muskoka the previous Sunday night. Trish, his eternally optimistic wife, assured him that it hadn’t been on the last time she’d driven the car. It really annoyed him because there were less than thirty thousand clicks on the vehicle. Then again, he had no idea what went on with the BMW when the kids borrowed the car. He trusted them to share any major information, but small hiccups in the car’s performance might not be something they’d want to admit to for fear of not being allowed to use it again. Why he even let them use the BMW, he wasn’t sure. He’d thought many times about getting them a Kia or some compact economy car for them to ride around in, but it never went much past the idea stage. He’d have to get the vehicle to the mechanic sometime this week.
The BMW’s GPS showed that there were eleven kilometres to the Metro Toronto Convention Centre, which would take about seventeen minutes on a good day. Like Dr. Malhotra, Dr. Bekker had colleagues he wanted to catch up with; if nothing else, it’d be good to get a laugh from Dr. Manser’s receding hairline. Even though their school days were long behind them, they’d stayed in touch over the years by e-mail, but nothing replaced face-to-face conversations. But this morning, real life was getting in the way. He’d dropped off the twins at riding school down by Sunnybrook earlier in the morning and was now shuffling them across Lawrence Avenue to Havergal College. “It’d be nice if you girls could ride over to school,” Dr. Bekker laughed. He looked in the rearview mirror and saw Tracey and Anna rolling their eyes at him. Another reminder of just how uncool they thought he was.
Finally, he dropped the twins off at school at 7:45 a.m. and made his way downtown to the meeting. His stomach was growling and he thought he might stop at McDonald’s, but the GPS wasn’t equipped to indicate how long the lineups at the drive-through windows would last, so he’d have to grab a quick bite and go straight into the conference hall.
DR. ST. LOUIS 7:45 A.M.
At quarter to eight, the food court at the convention centre was close to capacity. Dr. Adeline St. Louis had been one of the first to sit down. She’d flown in the night before from Ottawa and had already filed away her breakfast receipt in the small file folder she carried in her large Coach bag. Always an early riser, Dr. St. Louis had asked for a 6 a.m. wake-up call and made her way to the gym for a forty-five-minute walk on the treadmill, a quick steam in the sauna, and then a shower.
At the table in the restaurant, Dr. St. Louis pored through the Globe and Mail and gave the “Report on Business” a close reading over a breakfast of yogurt and cereal. She’d also brought along a good book—her husband always insisted on having two with him whenever he traveled, even if it was just a commute across town. He’d happily forget his wallet before he forgot something to read. “Never know when you’ll have to wait for a tow truck,” he’d say.
She teased him about it—”a hopeless academic who’d seek shelter from a storm in a book.” Tucked away in a side pocket was the latest from Scott Turow, a slight departure from her usual choice of story, but a hygienist in her office had highly recommended it. After twenty-five years of marriage, Dr. St. Louis and her husband had picked up each other’s habits (and the book habit had served her well the time a two-hour stopover at Heathrow became an eight-hour ordeal).
By 7:50 a.m. her reading had slowed down considerably, her progress interrupted frequently by visits from peers, friends, and those who’d sat on committees she chaired, which were quite a few, as Dr. St. Louis had been a member of the association for almost thirty years. She wondered whether she would still be interested in attending these conferences once she finally retired from dentistry. Retirement wasn’t far off, and she was already making mental notes about the travel plans she and her husband wished to pursue.
When the tide of people eventually trickled to a halt, she put her book aside and checked the weather in New York on her iPhone. She and her husband had tickets to a couple of Broadway shows the following weekend.
* * * * *
Chapter 2: A chance meeting
At 8:00 a.m., half an hour before the meeting’s scheduled start, word circulated that it was delayed by forty-five minutes and would now start at 9:15 a.m. Dr. St. Louis overheard the news; it was confirmed by a colleague’s text message. Apparently, there were problems with the wireless microphones and recording devices in the seminar rooms, so the morning presentations had to be delayed until the equipment was fixed.
At 8:05 a.m., Dr. Malhotra pulled the Golf into a parking lot off of Front Street and found a spot reserved for compact cars. Meanwhile, Dr. Bekker was finding traffic so snarled that he didn’t even try to get down to the south building of the Convention Centre, where the conference was being held. He gave up his hunt for a spot on the street and turned into the first public parking lot he could find on Queen St. He broke into a breathless run, jaywalking and weaving between cars like a halfback following his blockers. By the time he reached Front Street, he found himself standing next to Dr. Malhotra. They glanced at each other. Dr. Bekker noticed the younger dentist wearing a lanyard and a nametag.
“Are you on your way to the ODA meeting?” Dr. Bekker asked Dr. Malhotra.
“I am. Finally found parking.” Dr. Malhotra looked at his watch. “We don’t have much time, do we?”
“No. Traffic was horrible and of course finding a spot was maddening. I’ll have to buy a coffee to take in with me. No time for a sit-down meal this morning. There’s a pretty decent food court, marché style, at the Convention Centre.” Dr. Bekker pulled out his phone and opened a text message. “Oh, hey, one of my colleagues just informed me that the meeting’s been delayed to 9:15 a.m. Looks like time is suddenly on our side. I’m Dr. Dennis Bekker. And you are . . . ?”
“Dr. Arjun Malhotra.”
Dr. Bekker and Dr. Malhotra made their way to the convention centre, stopping to ask the doorman for directions to the food court because they now had time to eat a proper meal. By the time they found it, the place was full; other dentists had retreated there to wait out the delay with a better breakfast than just muffins. The only two unoccupied seats were at Dr. St. Louis’ table beside the window. Dr. Malhotra nervously asked Dr. St. Louis if she was alone and if she would mind if he and Dr. Bekker joined her.
“Please. I’ve been sitting here quite a while, so some company is absolutely welcome,” she said.
The three exchanged introductions.
“Where do you both practise?” Dr. St. Louis asked.
“I’m an associate at offices in London, Kitchener, and Strathroy. This is my second ODA meeting. I think it’ll be a great opportunity to network and talk to colleagues who are much more experienced,” said Dr. Malhotra somewhat sheepishly. He was keenly aware of the age difference between the three of them, and he was feeling less confident than he’d anticipated.
“I have a practice here in the city, going on twenty years now. Been to so many of these association meetings, but I haven’t attended in years. Family life prevents me from making it a lot of the time. I’ll have three kids over eighteen soon anyway, so it gets nuts sometimes. I missed last year’s conference because of a week-long trip to Paris. But I do enjoy them because it’s a great way to catch up and meet new colleagues like you,” Dr. Bekker said.
Dr. Malhotra excused himself for a moment while he went to buy some oatmeal. Dr. Bekker, hungrier than he thought, went off to a creperie counter. He hadn’t had a crepe in ages—double ham and cheese was what he craved. Maybe even chocolate banana.
When Dr. Malhotra returned with his cereal, Dr. St. Louis made small talk; she could tell that the young dentist felt uncomfortable.
“Did you grow up in London?” she asked.
“My family came to Canada when I was three. I was born in Delhi. My younger brother was born here, though.”
“My husband and I were in Delhi last year,” Dr. St. Louis said, delighted they had a point of interest they could share. “We toured extensively in the north of the subcontinent, but Delhi was one of our most spectacular stops. We were amazed by the Red Fort and the Jantar Mantar . . . who could have imagined such an incredible observatory built in the eighteenth century?”
Dr. Bekker returned to the table with his crepes. He hadn’t heard Dr. St. Louis talking about her experiences in Delhi.
“What took you to India?” Dr. Malhotra asked.
“My husband is a professor of classics, so we had an extended summer,” she told him. “Some summers he has research that he undertakes abroad, and I can have some younger associates step in for me for longer than my usual vacation time.”
“It’s great that you can travel like that,” Dr. Malhotra said. “I feel like I’m running as fast as I can just to keep up. I can’t seem to get ahead. Two years out of school, and I’m still paying down my student loans. I’m trying to help out my parents, but I feel like I can’t do enough. I took a couple of weeks off and went to a friend’s cottage for a long weekend, but otherwise I didn’t get away this year. I always imagined that it’d be easier than this. I knew it wouldn’t be possible to have overnight success, but this amount of time wasn’t what I expected at all.”
Dr. St. Louis nodded and smiled sympathetically. Dr. Malhotra was fishing for advice, and she knew that.
“It wasn’t a matter of me being a financial whiz,” Dr. St. Louis said. “I can assure you I’m not. It was hard for me, too, coming out of dental school. It was hard for quite a few years beyond that, even. It was only when my husband and I went to the Leighton team that things got better.”
•
If you don’t have a plan and if you don’t have help, you can spend years working hard but not achieve your financial potential.
•
Dr. Malhotra looked confused, so she added, “They’re tax advisors to dentists. I know, I hardly would’ve thought such a thing existed but it does, and I’m so thankful for it. I’d always thought that if I worked hard enough, things would look after themselves. And I’d always been independent—asking someone else for help wasn’t something I was comfortable doing.
“The truth is that if you don’t have a plan and if you don’t have help, you can spend years working hard but not achieve your financial potential. But because we had a plan and stayed with it over the years, we saw a big difference from one year to the next.”
Dr. Malhotra asked Dr. St. Louis how long ago she’d first solicited advice from the Leighton team. She did the math.
“How time flies. More than fifteen years ago now. I graduated from McGill over thirty years ago,” she said, “but in many ways I did my graduate studies when I met the Leighton team and learned about the business of my practice—what I should’ve been doing from day one.”
Dr. Malhotra’s eyebrows arched. “It wasn’t just a one-time deal where they helped organize your practice?” he asked.
“No. We’ve developed a relationship over the years,” Dr. St. Louis said. “They’ve helped me look beyond the numbers, to focus on the long-term objectives of my husband and myself.”
Dr. Malhotra hadn’t been the most materialistic in his circle of friends during university, and his family had always stressed the idea of living modestly. Nevertheless, he couldn’t help but notice Dr. St. Louis’ watch. He didn’t know much about watches, but he knew Chanel was a top name and was certain hers was worth more than his car.
“I wish I could be doing half as well as you are,” Dr. Malhotra said, instantly regretting the admission the minute the words came out of his mouth. There was no envy, just a wish that his hard work in school and in his first years of practice had been as rewarding as he’d expected when he chose to pursue dentistry as a career. Dr. St. Louis’ response surprised him.
“Well, I wish I were starting today like you are and had a chance to realize the benefits of a well-managed practice. One of the best pieces of advice I received from the Leighton team early on was the importance of focusing on my dental practice and not other ventures. Nothing else comes close for generating cash flow for the future.” Dr. St. Louis thought again about her plans to retire in a couple of years and sell her practice. She hadn’t let some of her long-time friends know that the Leighton team was already working on it for her. It was best not to bring the matter up until all the i’s had been dotted and the t’s had been crossed. She opened her Day-Timer, pulled out a business card, and handed it to Dr. Malhotra. “Call or e-mail me if you want to know more,” she said.
•
One of the best pieces of advice I received early on was the importance of focusing on my dental practice and not other ventures. Nothing else comes close for generating cash flow for the future.
•
“Thank you, Dr. St. Louis. I don’t have a card to give you in return.”
“I’ll get your contact info once you e-mail me. And, please, call me Adeline.”
Dr. Bekker’s breakfast had his undivided attention. He still had part of his breakfast left when his cell phone vibrated. He looked at the call display: his son calling from Queen’s University. He knew what was going to follow—another plea for cash. Dr. Bekker felt the urge to let the call go to voice mail but felt too guilty.
“Yes, Clayton, what’s going on? I’m in a bit of a rush.”
“Dad, my laptop died on me. I think it’s the logic board. The guy at the Apple shop says it’s going to cost a fortune to fix. Can you help me out? I have four papers to hand in next week, and I’m totally up the creek without my files.”
Dr. Bekker sighed. “Okay, Clay. I’ll go to the bank later today and transfer money to your account. Find out first how much to get it fixed. Don’t buy anything new or added or extra. I gotta go, kid. Don’t worry, it’s all going to be just fine.” He hung up and gulped a large amount of coffee before it went cold.
When Dr. Malhotra and Dr. St. Louis looked over, Dr. Bekker rolled his eyes. “Kids. Can’t live without them but can’t afford them, either. If it isn’t someone’s Mac dying, it’s some repair my wife wants done or school trips for the twins.” Dr. Bekker felt like it was all piling up. On the drive to the conference, he’d received a text reminder from his wife: contractor coming by at dinnertime . . . marble counter . . . bathroom? Sometimes, when things actually fell into place, he felt eminently qualified to be a dentist and an air-traffic controller. Or maybe a fireman, because it seemed all he did away from the office was put out one fire after another (with occasional breaks for golf).
Dr. St. Louis passed a business card to Dr. Bekker. “E-mail me and I’ll send you the same information I’m sending Arjun about the Leighton team. I think they could really help you. It’s worth investigating, at any rate.”
At that point, it was ten after nine and the meeting was about to begin. The three dentists bade farewell to one another and headed off to the meeting hall, pleased to have expanded their network of colleagues. Dr. Malhotra was doubly pleased because he’d discovered that maybe all wasn’t lost and that he could have a bright future sooner than he was beginning to think.
* * * * *
Chapter 3: The Good Samaritan
The three dentists moved in their own circles that day. During the breaks, Dr. St. Louis caught up with dentists who, like her, would have struggled to count how many of these meetings they’d attended over their long careers. A couple she’d met at the previous year’s meeting thanked her for recommending the Leighton team. The advice they had received had brought peace and stability to their lives.
On the other side of the conference hall, Dr. Bekker chatted with friends who also had well-established, lucrative practices in downtown Toronto, as well as sons and daughters in university or heading there in the next couple of years. Over lunch, Dr. Malhotra compared notes with Mike, a former roommate from school days, and had managed to meet up with his college friends for a coffee in the cappuccino lounge. And, as he’d predicted, Mike had made a jab about the old Volkswagen.
After the final educational track for the day, Dr. Malhotra jumped into his Golf to head uptown. Mike had told him about a sale at Harry Rosen, and Dr. Malhotra wanted to pick something up—maybe a nice silk tie or shirt—for himself and his father, whose birthday was coming up. Dr. Malhotra saw a man standing in front of a car with the hood open, pleading with a parking attendant. When Dr. Malhotra slowed down, he recognized the distressed driver as Dr. Bekker. Dr. Malhotra pulled over and asked Dr. Bekker what was wrong.
“It won’t turn over,” Dr. Bekker said. “Something’s been wrong with this heap for the last few days. The red engine light kept coming on. I don’t know why I shouldn’t scrap it completely.”
“Try to start the car again.”
Dr. Bekker did, and then when nothing happened, he threw Dr. Malhotra a look that said See? The battery was almost flat.
“Let me get my cables and give you a boost. I can follow you to a garage.”
“You keep cables with you?” Dr. Bekker asked, impressed. Dr. Malhotra was nothing if not practical. Dr. Bekker bought provisional items like that but never had them on hand when he actually needed them. He’d bought some contraption that inflated a tire on the roadside, but the day he’d had a flat on the 401, it was somewhere in the family’s garage. His wife reminded him of it whenever they passed someone with a flat tire.
“All the winter driving I do getting to the offices I’m an associate at,” Dr. Malhotra said, “I need to have these things. I do have CAA insurance, but you never know how long they’ll take to get to you. Always a good idea to have them on hand.”
Dr. Bekker deeply appreciated Dr. Malhotra’s assistance. “When you’re in Toronto next time, give me a call,” he said. “Taking you to lunch is the least I can do for all of this.”
* * * * *
Chapter 4: Advice acted on
One night a week later, Dr. Malhotra was at home, sitting in front of his computer screen. He’d e-mailed his younger brother Ramesh to see if he was still on track for the scholarship money he’d been awarded. Then he uploaded some recent family photos to his Facebook account; a cousin in Delhi had asked to see them. He also sent him a message that said, It’s been so long since I’ve seen you . . . I wish I were there. Dr. Malhotra pushed the keyboard away; his mind was racing. I wish I could do more for my brother.
Dr. Malhotra had received some scholarship money, but it had offered only partial financial relief, and he knew it’d be the same for his brother. The first lesson of university life is the high price of hidden and miscellaneous costs. I wish I could see my cousin and his family, thought Dr. Malhotra. He could either go to Delhi or help them come here for a visit—it didn’t matter much. But it’d be a major expense, and wasn’t something he could do right now.
There were too many other things he had to do financially first. Dr. Malhotra pushed the keyboard away and leaned back in his chair. It should be easier.
Dr. Malhotra thought about Dr. St. Louis and the lifestyle she and her husband enjoyed—it was the lifestyle he’d been working toward in dental school. He didn’t feel that his life lacked any rewards, but he hadn’t received the rewards he’d expected, such as being able to travel.
Rifling through his Day-Timer, he found the business card Dr. St. Louis had given him. He started a new e-mail:
Dr. St. Louis,
I’m the young dentist who talked with you at
breakfast before the conference the other day. You mentioned a group
that gives you financial advice in operating your practice. Could you
provide me with the contact information? It would be deeply
appreciated.
Hope you and your husband are doing well.
Many
thanks,
Dr. Arjun Malhotra
When Dr. Malhotra checked his e-mail a few hours later, he had a reply from Dr. St. Louis.
Arjun,
It was great to meet you at the conference. My husband and I are doing quite well. We had a wonderful weekend in New York, and we’re looking at something a little more adventurous for our anniversary weekend—Paris, if I have my way.
You’ll find the contact information for the Leighton team below. Please feel free to use my name as a reference when you give them a call. I’m sure you’ll find the group very helpful. I know I do.
Best Wishes, Adeline
* * * * *
Chapter 5: The appointment
The day after receiving the information from Dr. St. Louis, Dr. Malhotra called up the Leighton office to arrange an appointment to meet with someone. Two weeks later, after a full morning of appointments in Kitchener, Dr. Malhotra drove to Mississauga for a meeting with Paul Leighton, senior advisor at the Leighton team. He brought the file full of financial documents with him that had been requested at the time he set up the appointment.
The meeting made him more uncomfortable than excited. He’d mentioned it to one of the hygienists at the Kitchener practice. “It’s like my trip to the dentist,” Dr. Malhotra had said. The joke had gotten a laugh from her, but Dr. Malhotra had been telling the truth. When he sat down with Paul Leighton in the company’s offices, it was the closest thing he’d experienced to white-jacket syndrome. The idea of reviewing his finances made him nervous, and in the days before the meeting he’d seriously considered rescheduling and even dropping the whole thing.
Dr. Malhotra was once again thinking about abandoning the idea as he started completing the confidential questionnaire he’d been given to fill out while he waited for Paul Leighton. The form was a standard piece of paperwork that clients prepare for financial planners. But even the overview page left Dr. Malhotra puzzled. For instance, he had no idea what “planning assumptions” meant, nor had he given much thought to the rate of inflation, never mind making any assumptions about it. Furthermore, retirement seemed so far off that he didn’t know where to start with the line that read Retirement needs (annually, in today’s dollar, indexed to inflation)—after tax. And he had no idea where to start with the line under that one: Survivor’s Needs (%).
Dr. Malhotra didn’t have any survivor candidates in mind, so projecting the needs of a future bride (or the needs of the family they’d raise) seemed like too much blue-sky imagining, like putting the cart before the horse. His energy right now was directed toward working full-time and paying down his student debt. He hadn’t thought about when he’d like to retire or whether his financial needs would increase or decrease over the term of his retirement.
It was then that Paul Leighton popped his head out from his office. He walked over to Dr. Malhotra, extending his hand. “Good to meet you, Dr. Malhotra. I’m Paul Leighton. How are you making out with those forms?”
“Mr. Leighton—”
“Please, call me Paul. No need for formality. Over the next few months, I’m going to know everything there is to know about you, so we may as well be on a first-name basis, don’t you think?”