My ultimate goal is financial independence as I do not have a passion for dentistry in and of itself. I do enjoy it a lot, but it's clear I don't have a passion for it. I am considering how to best invest my money to achieve FI as soon as possible. I want to achieve FI so that I can focus on doing work that I find meaningful without having to stress about providing for my family.
Some relevant information: I am going to graduate April 10th from dental school. I will begin getting paid by the Army starting early June. Then in August, I will be stationed in Clarksville, TN for at least one year doing an AEGD residency and then unknown where I will be stationed after that. Hoping to get stationed somewhere overseas for the adventure of it. More than likely I will separate from Army in 2031.
My total household income for June 2026-2027 will be about $160k gross expected to have about $5500/mo after expenses to put towards loans/investment. Household income for July 2027-2031 will be about $250k gross with really no way to even gauge expenses since that is so far away. Hoping to at least put aside $6-8k/mo for investments. Household income after the Army will be whatever I make as my wife will probably step back from work and be mostly a stay at home mom. Lifestyle creep will happen but hopefully expenses don't jump too much. We have done a good job in the last 5 years combatting lifestyle creep.
Right now income is gross 6k and expenses (tax, tithe, rent, fun money, etc) is $3700 (leaving about $2300/mo towards loans/investment). I will be eligible for the VA loan (early September after 90 days active duty requirement met) and for a physician loan (April 11th). Household student loans are $24k at 7%, $21k at 5.3%, $40k at 4.5-5%, and $7.5k at 2.75%. All are fixed interest rates. I have about $4k invested into S&P 500 index funds. Savings is just 2 months of expenses as I have been putting almost all additional money into loans.
No matter what I do, I will max out my Army TSP to get the full match.
The paths forward is to a) just pay aggressively on student loans until all the way debt free then put all investments into index accounts. Basically following a standard LEAN FIRE format of only using index funds to reach financial independence. Maybe buy a dental practice with little money down when I get out of the army if it works, but more in order to make a higher income and not so much as an investment per se.
Option b) make smaller loan payments and save the rest of that fund for the next however many months to put towards repairs or a down payment and buy the biggest cash flowing multiplex that I can in Tn while house hacking (biggest I can risk level might be determined by 100% vacancy expenses not exceeding the $5500/mo loan/investing budget). And then allocate the cashflow to paying loans and once loans are paid off keep the cashflow invested back into real estate. Eventually buy a practice as an additional investment with a focus on hiring associates and reducing the hours I work in the clinic until reaching FI from a combination of real estate and dental practice (with maybe like 5-10% put into an index for diversification).
Option c) Basically same plan as b, but removing the real estate aspect. I.e Pay loans ASAP, then put money into a brokerage account until I get out of the Army and make buying a dental practice my main investment with same goal of hiring associates and reducing hours until FI.
Or option d) A better suggestion made my a third party.
Investment Advice for an Army Dentist
byu/arcticsquid07 infinancialindependence
Posted by arcticsquid07
4 Comments
Real estate in TN is pretty solid right now and army housing allowance should help with the numbers. I’d lean towards option B but maybe start smaller than “biggest multiplex” – your first deal should be something you can handle if everything goes sideways
The dental practice angle is smart since you already know the industry, but don’t underestimate how much work it takes to manage associates and run a business. Thats a whole different skillset than drilling teeth
I would max TSP first ($24,500), then pay down student loans (7%), then max brokerage while paying minimum on the others. For now, focusing on keeping lifestyle in check during this transition phase is paramount. Make sure spouse is on board, and take advantage of whatever relocation/housing benefits the Army provides.
Things you can consider later once you’re settled and get small snowball started:
* whether it’s worth it to start tackling the 5.3% and less debt over investing. I might after the first $100k.
* whether the local market wherever you ultimately settle has a healthy property market for buying a property and leasing it.
* whether your evaluation and satisfaction with dentistry indicates that opening your own practice is worthwhile. Saying you don’t have a passion for it right at the top of your post should give pause.
* Whether you even have the time or desire to become a business owner or landlord, likely working significantly more than 40 hours a week.
Having a good income in your primary job and being a frugal index investor is a almost-guaranteed pathway to get to Financial Independence. Starting a business can be a shortcut, but remember this: while most of the top wealth holders are business owners, most business owners are not top wealth holders.
Do you know anyone running multi family realestate?
If you get posted overseas for 6-12 months have you organized how you will address noise complaints, or a blocked toilet Sunday night, or or or.
Yes index investing does not provide the same leveraged returns but GOD is it less headache than dealing with tenants.
My personal opinion is that as an in demand professional who makes $$$/hr that maximizing quality of life through simplicity beats trying to maximize returns.
Lower earners who self manage properties and do their own maintenance and the like absolutely have realestate as in of their best wealth generating options.
You could sign a 1 year contract in an underserved area and pull in $500k or more.
My 2 cents from a middle aged professional who never wants a Sunday night call from a tenant.
I would aggressively pay the student loans above the 5.3% and invest in an index fund (VOO/VTI) and I would do most in a Roth IRA with some in a brokerage for liquidity.
I’m not a huge fan of being overleveraged so I’m not sure I’d buy a practice on a lot of debt. I’d rather pay capital gains and use brokerage money but that’s just my risk tolerance.
Don’t forget to take into account your automatic 80% disability rating all military members get upon retirement 😉