How a Financial Advisor Can Support Your Dental Practice
As a dentist, the success of your practice is the foundation of your financial health. You need a comprehensive, tax-intelligent financial plan to help you reach your personal and professional goals.
Your time is best spent caring for your patients, which doesn’t leave much time to worry about expenses, overhead, student debt or investing for the future.
Here are a few ways a financial advisor who understands the complicated nature of dentistry can help you reach your goals:
Debt and Cash Flow Analysis
As you enter the dental field, an advisor will review your compensation to make sure the percentage of your collections is competitive. Most dentists often leave school with significant student loan debt, and an advisor can offer guidance on whether to consolidate or refinance loans, with a growing business in mind.
Business Growth and Transition
If you want to become a business owner, an advisor can guide you through the process of creating the right business structure or provide assistance in getting a business valuation for purchasing a practice. Whether you’re looking to develop a partnership or establish a solo practice, a financial advisor can counsel you on any debt you may incur as a result, in addition to your existing student debt.
Planning for Retirement
Retirement often comes later in life for dentists because the significant amount of time that’s required for education means entering the workforce later than the average worker. Having less time to save for retirement, combined with high levels of debt, makes it even more important for dentists to start planning early. An advisor can help you identify goals for retirement and develop strategies to achieve them. Additionally, practice owners must also think about the future of their employees. A financial advisor can design a retirement plan with the objectives of recruiting and retaining talent to support your business goals. At Davie Kaplan, we offer comprehensive 401(k) service, making sure employees are educated about their benefits and have a dedicated team for inquiries.
Assessing and Navigating Risk
Practice ownership also comes with increased liability. An advisor can help you understand the risks and benefits of term and whole life insurance, as well as malpractice and long-term care insurance.
Every small business owner needs an estate plan, but especially dentists, who tend to be business owners and high-net-worth individuals. With an estate plan, an advisor can help you prepare to transition your wealth to your heirs, as well as prepare for the future of your practice. Without an estate plan, you risk having your legacy defined by others and losing a large portion of your wealth to tax liabilities.
A financial advisor who specializes in serving dental professionals can understand your unique challenges and recommend financial strategies to help you achieve your goals, while growing your business and securing your family’s future.
At Davie Kaplan, you’ll find expertise you can trust and relationships you can count on. Call us for a complimentary consultation.