The 47 Variables Methodology: Comprehensive Financial Planning for Chiropractor Practice Owners
How our proprietary analysis system examines 47 financial variables to uncover $15,000–$50,000+ in annual hidden cash flow for practice owners earning $250,000+.
Most financial advisors ask the same basic questions: How much do you make? What are your expenses? How much can you save? Then they offer the same generic advice: max out your 401(k), buy term life insurance, invest in index funds, and hope for the best.
After four decades of working exclusively with chiropractor practice owners, we've developed a completely different approach: The 47 Variables Methodology—a comprehensive financial analysis system that identifies exactly where your money is going, recovers capital being lost to inefficiencies, and creates a customized wealth-building strategy designed specifically for your situation.
The results? Most practice owners discover $15,000 to $50,000+ in annual cash flow they're losing without even realizing it.
Why Generic Financial Planning Fails Practice Owners
You generate $300,000 annually from your practice. That sounds like substantial income. But after practice expenses, taxes, insurance, debt payments, and living costs, how much are you actually building in wealth each year?
For most practitioners, the answer is shockingly low. They're making good money but not building good wealth. Traditional advisors see the top line. We examine every line.
The 5 Categories of Analysis
The 47 Variables Methodology examines 47 distinct variables across five key categories:
Practice Financial
Personal Expense
Tax & Entity Structure
Debt & Financing
Financial Products
Category 1: Practice Financial Variables (12 Variables)
Your practice is your primary wealth-creation engine. Small optimizations create substantial wealth-building capacity.
Example: Revenue Per Patient Visit
Dr. Jennifer's practice sees 120 visits weekly. We found her reimbursement rates were 12% below market. By renegotiating contracts, she increased average reimbursement by $18 per visit.
Result: $18 x 120 visits x 48 weeks = $103,680 additional annual revenue without seeing a single additional patient.
Other practice variables include collection rate efficiency (industry average 85–90%, many practices only 70–80%), practice overhead ratio, insurance costs across 4 policy types, equipment leasing vs. financing vs. purchase, merchant processing fees, supply chain optimization, marketing ROI, and staff efficiency.
Example: Insurance Consolidation
Dr. Robert was paying $8,400 annually across four business insurance policies. By consolidating with a specialized broker, we reduced premiums to $5,800 while improving coverage.
Result: $2,600 annual savings redirected to wealth-building.
Category 2: Personal Expense Variables (10 Variables)
The 47 Variables approach isn't about deprivation—it's about efficiency. We examine housing costs, transportation (auto loans, leases, insurance), tax withholding optimization, lifestyle subscriptions, childcare and education costs, and personal insurance (life, disability, umbrella).
Example: Auto Cost Optimization
Dr. Lisa was leasing a luxury SUV for $890/month perpetually. By purchasing a 2-year-old certified pre-owned version with a 3.5% loan, her payment dropped to $615/month and she'd own the vehicle in 5 years.
Result: $3,300 annual savings plus vehicle equity building.
Category 3: Tax & Entity Structure Variables (8 Variables)
High-income chiropractors pay $60,000–$120,000+ annually in taxes. Small optimizations here create enormous wealth-building capacity.
Example: S-Corp Entity Restructuring
Dr. David operated as a sole proprietor, paying self-employment tax on his full $280,000 net income ($39,200 in SE tax). By restructuring as an S-corp with a $150,000 reasonable salary, the remaining $130,000 flowed as distributions without SE tax.
Result: $18,330 annual tax savings from entity restructuring alone.
Additional tax variables include retirement plan structure (Solo 401(k) vs. SEP-IRA vs. defined benefit), Augusta Rule home office rental ($3,000–$8,000/year tax-free), QBI deduction optimization ($12,000–$15,000 savings on $250K), family employment, HSA maximization, charitable giving strategies, and state tax planning.
Category 4: Debt & Financing Variables (9 Variables)
Debt isn't inherently bad—but inefficiently structured debt drains wealth. We examine student loan optimization, mortgage rates, practice debt structure, credit card strategy, auto debt, and the critical question: Should you pay down debt or redirect capital to wealth building?
Many practice owners waste thousands paying down 3% debt while missing 6–8% wealth-building opportunities.
Category 5: Financial Product & Investment Variables (8 Variables)
Example: 401(k) Fee Reduction
Dr. Brian's Solo 401(k) charged 2.1% in total fees on his $240,000 balance ($5,040 annually). By moving to a low-cost provider at 0.6%, fees dropped to $1,440.
Result: $3,600 annual savings that compounds significantly over time.
Additional variables cover investment allocation, taxable account tax efficiency, life insurance structure (including Infinite Banking strategies), disability insurance, annuity evaluation, banking relationships, and financial advisor fee assessment.
The 47 Variables Process
Data Gathering
Practice financial statements, personal finances, insurance policies, debt schedules, and tax returns. This depth is what generic advisors skip.
Analysis
Examine each of the 47 variables to identify inefficiencies, recovery opportunities, strategic optimizations, risks, and unused tax strategies.
Recovery Quantification
Quantify exactly how much cash flow is being lost. This is actual, specific, dollar-amount recovery in your situation.
Customized Strategy Development
Build a plan including Infinite Banking, tax optimization, debt restructuring, investment adjustments, and entity modifications.
Implementation & Ongoing Optimization
Your practice evolves, tax laws change, markets shift. Ongoing monitoring ensures your strategy stays optimized.
Real-World Results: Case Studies
Case Study 1: Dr. Jennifer T. — $280K Annual Income
- Practice insurance consolidation: $2,400/yr
- 401(k) fee reduction: $3,100/yr
- Equipment lease optimization: $4,800/yr
- Mortgage refinance: $3,600/yr
- S-corp election tax savings: $9,200/yr
- Auto insurance shopping: $1,100/yr
- Subscription audit: $840/yr
- Credit card rewards optimization: $2,400/yr
Total Annual Cash Flow Recovery: $27,440
Funded a $30,000/year Infinite Banking policy for tax-free wealth building.
Case Study 2: Dr. Michael R. — $350K Annual Income
- Practice collections improvement: $18,200/yr
- Liability insurance optimization: $3,200/yr
- 401(k) to Cash Balance plan: $12,000/yr additional deduction
- QBI deduction optimization: $4,800/yr
- Student loan refinance: $4,200/yr
- Augusta Rule home rental: $6,000/yr tax-free
- Investment fee reduction: $4,100/yr
- Banking optimization: $1,800/yr
Total Annual Cash Flow Recovery: $54,300
Funded Infinite Banking ($40,000/yr) and real estate investment while maintaining improved lifestyle cash flow.
Case Study 3: Dr. Sarah K. — $425K Annual Income
- Entity restructuring to S-corp: $14,200/yr
- Practice overhead reduction: $22,000/yr
- Defined benefit plan: $28,000/yr additional deduction
- Whole life conversion from term: $3,800/yr savings while building cash value
- Debt consolidation: $6,400/yr interest savings
- Tax planning (charitable, HSA, etc.): $8,200/yr
- Investment reallocation for tax efficiency: $3,100/yr
Total Annual Cash Flow Recovery: $85,700
Is the 47 Variables Analysis Right for You?
Works best if you:
- Earn $250,000+ annually from your practice
- Suspect you're not building wealth as efficiently as possible
- Want to recover hidden cash flow lost to inefficiencies
- Are open to specialized strategies beyond generic advice
- Take a long-term view of wealth building
- Value advisors who specialize in your specific situation
May NOT be right if you:
- Want quick, simple answers without deep analysis
- Prefer generic advice from generalist advisors
- Aren't willing to provide detailed financial information
- Won't implement recommendations when identified
- Expect wealth building without any strategic changes
From Income to Wealth
Income isn't wealth. Wealth is what you keep, what you build, what you control, and what you transfer to the next generation.
The 47 Variables Methodology transforms income into wealth by recovering cash flow lost to inefficiencies, optimizing every aspect of your financial life, and implementing specialized strategies designed specifically for practice owners.
The question isn't whether you're making good income. The question is: Are you building good wealth?
If the answer is “not yet” or “I'm not sure,” it's time to examine all 47 variables. For a broader overview of how these strategies fit together, see our Complete Guide to Finance for Chiropractors.
Disclaimer: This article is for educational purposes only and does not constitute financial, tax, or legal advice. Results vary by individual situation. Past results are not indicative of future outcomes. Consult with qualified professionals before implementing any financial strategy.