Dentistry is a unique profession. As a dentist, your income, expenses, and financial decisions don’t look the same as those of other business owners. Between high student debt, a delayed start to retirement savings, complex practice overhead, and the physical demands of the job that require both disability and retirement age considerations, your long-term planning needs are equally unique. Working with the right advisor can make a significant difference.
That’s why many dentists turn to dental financial advisors—professionals who understand the nuances of running a dental practice and managing a dentist’s wealth.
Why Dentists Need Specialized Advisors
A general financial advisor may be skilled in retirement or investment planning, but dentistry adds layers of complexity. For example:
- Student loans and debt repayment strategies often require careful balancing with practice investments and long-term goals such as family and retirement planning.
- Practice ownership involves managing cash flow, taxes, and business planning that affect both personal and professional finances.
- Transition planning (buying or selling a practice) requires advisors who understand practice valuations and deal structures.
A dental financial advisor brings experience in these areas, offering strategies tailored specifically to your career path.
Key Qualities to Look For
When selecting a financial advisor, dentists should focus on three essential qualities:
- Industry Experience: Has the advisor worked extensively with dental professionals? This ensures they understand practice financials, tax planning, and the challenges you face.
- Comprehensive Approach: Look for advisors who can integrate practice finances with personal wealth planning—everything from tax strategies to retirement and insurance coverage.
- Transparency and Trust: A good advisor should explain fees clearly and always put your best interests first.
The Role of a Dental CPA and Dental CFP® Financial Advisor
While a CFP® financial advisor focuses on comprehensive financial planning, wealth management, and investment strategy, a dental CPA complements that role by managing day-to-day accounting, bookkeeping, and tax strategy. Together, these professionals form a powerful team that can help you:
- Reduce taxes through proactive short- and long-term planning
- Create a roadmap to save for future goals—short-, mid-, and long-term
- Improve practice profitability and cash flow
- Ensure proper insurance coverage to protect your assets and family
- Monitor growth to ensure your practice expands in alignment with your financial and lifestyle goals
- Build long-term personal wealth while growing your practice
In fact, many dentists benefit most from having both a dental CFP® financial advisor and a dental CPA working side by side.
When to Seek Out an Advisor
It’s never too early to get professional guidance, but certain milestones make it especially important to work with a specialized advisor:
- Starting a practice and securing financing
- Converting to a multi-discipline dental office
- Adding a partner or owner to your practice
- Expanding or remodeling your office
- Buying or selling a practice
- Planning for retirement
- Building an investment strategy outside the practice
Each of these stages involves major financial decisions that impact your future security.
Making Your Financial Plan Work for You
The right dental CFP® financial advisor can help you navigate student debt, manage taxes, and grow both your practice and personal wealth with confidence. Pairing that expertise with the guidance of a dental CPA ensures you have a complete strategy that covers every aspect of your financial life.
At Dental CPAs, we specialize in the accounting, tax, and consulting side of the equation, and we frequently collaborate with financial advisors to give dentists a full financial plan. If you’re looking for clarity and confidence in your financial journey, our team can help guide the process and connect you with trusted dental financial advisors.