How to Find a Financial Advisor for Dentists » Helpful Wiki Financial Advisors

Dentistry is a unique profession. Dentists work in small businesses in highly regulated industries that can be financially and physically taxing. What other professionals have to spend the majority of their days hunched over with their mouths open? While suffering from a hunch might not sound like something a dental financial advisor could help you with, it’s more relevant than you might think.

“Dentistry is incredibly hard on the body from an ergonomic perspective,” says David Koch, Certified Financial Planner and Senior Wealth Advisor at Halbert Hargrove. “Bent over all day often leads to back problems, and getting a dentist on track to retire early will be incredibly beneficial to their long-term health.”

Helping plan for early retirement to avoid long-term back problems is just one reason to find a financial advisor who specializes in working with dentists.

Just as you wouldn’t take your Mercedes to a Ford mechanic, dentists should seek out a financial advisor who specializes in helping dentists, says Charlie Massimo, senior vice president and financial advisor at Wealth Enhancement Group. A financial advisor who works with dentists will be best equipped to help you navigate the nuanced financial challenges and goals that come with working in dentistry.

What does a Financial Advisor for Dentists do?

“Dentists are highly specialized, and dental practices are not just small and medium-sized businesses – with all the challenges that come with it, such as employee retention, customer retention, marketing (and) accounting – but they’re highly regulated, too,” Koch says. It’s important to find a financial advisor who understands both the ins and outs of your business and the regulations that govern it.

“Plus, they may have hundreds of SKUs in their inventory that they need to track,” Koch adds. “Any given dental procedure could use a few dozen products, and if these are not stored appropriately, they will have to cancel and reschedule appointments, costing them revenue.”

An inefficient inventory system could cost a dental practice “tens of thousands of dollars a year,” he says. If your financial advisor isn’t aware of what distinguishes an effective inventory system from an ineffective one, you’re missing out, financially speaking.

Next, find appropriate financing for major capital expenditures like x-ray machines and dental chairs, and take advantage of tax deductions when available. And succession planning – which should start years before you sell your business – for when it’s time to take advantage of that savings-saving early retirement.

How to Find a Financial Advisor for Dentists

When you’re ready to find that financial advisor for dentists, an easy place to start is with your peers. Ask other dentists or distributor reps in the company if they have an advisor they work with, Koch says.

If you attend a networking event or are part of a professional association, those can also be great sources of referrals, says Massimo.

And there’s always good old Google. A quick search for “financial advisor for dentists near me” can yield several interesting options. But without a referral, it’s even more important to check all Google search results before signing up with them.

What to Look for in a Financial Advisor for Dentists

Naturally, a financial advisor specializing in dentists must understand how the dental business works. “They should know how the front of the desk works and how the back of the desk works, because one of the greatest values ​​a financial adviser could bring is exit planning,” Koch said.

He suggests finding someone with the Certified Exit Planning Advisor (CEPA) certification, which demonstrates the advisor has the knowledge to unlock and maximize the value of your business when it’s time to sell.

You may also want an advisor who works as a trustee, as trustees are legally obligated to always put the interests of their clients first.

Massimo suggests asking the advisor to tell you how they have helped other dentists and asking for concrete examples of this work in practice.

Ultimately, you want to make sure the advisor is there for you – to avoid those aches and more. “The relationship you have with your advisor is one of the most intimate you’ll ever have,” says Massimo. “If you can’t talk openly and honestly, you’ll never get out of the relationship that you hope for.”

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