As your career advances, you’ll be responsible for managing not only your professional growth but the growth of your overall financial landscape.
Whether you go into practice ownership, or not, many factors — including property ownership, loans, income, and more — will vastly change through different stages of your career. In order to prepare for these changes, it’s best to work with a financial advisor for dentists who fully understands the complicated financial aspects of the dental industry.
Financial planning for dentists is often more complicated than the same process for other professionals. For example, many dentists are self-employed, paying off business loans, and managing other dental practice-specific needs.
Since dentists are in school significantly longer than other professions, many face longer student debt repayment terms and inherently larger debt sums.
Retirement planning for dentists may also be different than for other professions. According to Gallup, the average age for retirement in the United States is 62, while the ADA reports that the average age for dentists’ retirement is 68. Due to the length of time it takes to become a dentist, dentists are often faced with having a shorter time period during which to save for retirement. This, combined with high student debt levels, suggests that comprehensive financial planning is critically important if a dentist hopes to achieve financial independence.
With higher than average incomes, more significant student debt, substantial loans, dentists have a lot to navigate financially, so it’s essential to choose an advisor who has experience with the specific needs of individuals in the dental industry.
As we mentioned above, you also spend more time in school than other professionals, so your financial planner must understand how to put your money to work more efficiently than the average client may need.
Over the course of your career, you may decide to buy into a practice or start your own. In this situation, your assets and income will need to be managed differently, and you’ll want a financial advisor for dentists who can assist you — no matter what career path you take.
As changes occur within your career, so will your financial risks. A wealth management advisor who has experience working with dentists will understand these changes and help you navigate them.
For example, if you move from associate dentist to practice ownership, you will have increased asset protection concerns. In addition, you’ll need to plan for financial contingencies for your practice and your employees. Now, it’s more than just about you..
Financial planning for dentists also has to consider that larger income and assets come with increased chances for liability. A financial planner who understands your evolving financial risks as a dentist can help you protect your assets and financially prepare for those liabilities if they arise.
As more and more Americans are concerned about their financial security during retirement, it’s more critical than ever to properly prepare for that next stage of your life.
A solid financial plan starts with understanding your needs, including how to save toward a well-defined goal, obtain effective insurance coverage and properly manage debt. In addition, by working with dentistry-focused financial professionals, you may help ensure your financial plan is created for your unique needs.
Download our comprehensive Financial Fundamentals checklist today to make sure you have everything you need for a strong financial footing. .
Treloar & Heisel, an EPIC Company, is a premier financial services provider to dental and medical professionals across the country. We assist thousands of clients from residency to practice and through retirement with a comprehensive suite of financial services, custom-tailored advice, and a strong national network focused on delivering the highest level of service.