Dental Financial Advisor

Q&A with a Dental Financial advisor.

A few questions with Cecil Staton, CFP®, an expert in financial planning for dentists. 

Q: Who is Arch Financial Planning? 

As a dental-focused registered investment advisor, Arch Financial Planning offers specialized financial planning services to dental professionals. We recognize the differing needs of dental industry professionals and strive to provide the best possible guidance and support to help our clients reach their financial goals. As registered investment advisors, we take pride in acting in our client’s best interests, meaning that our guidance is always unbiased and tailored to the unique needs of each individual. Our team of experienced professionals brings a wealth of knowledge and is equipped to help you make informed decisions about your finances, no matter your situation.

As business owners, your personal finance needs are very unique. That’s why we decided to start our own practice that helps an associate dentist become a practice owner, a practice owner become wealthy, and medical professionals enjoy their personal life outside of their clinical work.

Q: When you first speak with a dentist, what questions do you like to ask to better understand their unique circumstances and determine how you can best help them achieve their goals?

As financial professionals, it’s our goal to best understand each unique circumstance of our patients to determine how we can best help them achieve their goals. When speaking with younger dentists, we find it crucial to ask about their student loan repayment plan after dental school. This helps us understand the financial burden they may be facing and how we can best assist them in achieving financial stability and success. For mid-career dentists, we like to ask about their plan to accumulate wealth as they continue to grow their practice. This helps us better understand their long-term goals and strategies. Finally, for late-stage dentists, we ask about their plan to build a succession plan and sell their dental practice. This not only helps us understand their future goals but also aids in the development of an effective strategy to ensure a smooth transition and continued success for their practice.

Q: What should dentists consider when starting a dental practice?

Starting a dental practice is a big decision, and dentists should consider a variety of factors before making the leap. Working with a trusted team of advisors and professionals is key to financial success. That’s where Arch Financial Planning comes in. Our dental-focused Certified Financial Planner can provide invaluable advisory services to help dentists navigate the financial challenges of starting a practice. In addition to managing cash flow and living expenses, dentists need to think about the logistics of running the practice, including insurance credentialing and the number of operatories needed. Working with experienced dental-focused attorneys and tax professionals is also crucial for legal and financial advice. At Arch Financial Planning, we can help dentists build the right team of experts for ongoing support.

Q: For dentists approaching retirement age who own their small businesses, what smart money moves do you suggest they consider to begin preparing to transition their practice to a new owner or winding down operations?

As dentists approach retirement age and begin to consider transitioning their practices to a new owner or winding down operations, it’s important to make smart money moves that will ensure a smooth transition. As a dental-focused registered investment advisor, Arch Financial Planning has extensive experience in helping dentists make the right financial decisions for their practice. By creating a comprehensive plan that takes into account factors such as retirement income, taxes, and potential liabilities, we can help dentists navigate the complex process of transitioning their practice. Whether you’re looking to sell your practice or simply wind down operations, our team can help you make the most of your hard-earned assets and achieve your retirement goals with confidence.

Q: At what age should dentists retire?

The age at which dentists should retire depends on a few factors, including financial security, lifestyle goals, and health. When it comes to planning your retirement as a dentist, the most important consideration is having enough income-producing assets to replace your current income and lifestyle. This means making sure you have sufficient savings and investments to support yourself and any dependents in retirement.

When it comes to reaching a specific retirement age for dentists, this differs from person to person depending on their individual goals. For example, some dentists may want to retire earlier due to health concerns or family obligations that require their presence more frequently than working full-time allows. Other dentists might plan for a later retirement because they love what they do, and they continue working until their skills decline naturally with age. Generally speaking, though, as long as the dentist has planned well financially by saving adequately over time and invested in reliable income-producing assets like stocks or bonds that will generate returns in perpetuity after his/her passing away, it is possible for them to retire at any desired age between 55 – 75 yrs of age; however, ultimately it remains an individual preference based on one’s personal needs & aspirations!

Q: What is the average dentist’s net worth at retirement?

When it comes to retirement, financial goals are at the forefront of everyone’s minds. As a dentist, you may be wondering what the average net worth is for those who retire in your field. According to recent statistics, the average dentist has a net worth of over $2,000,000 at retirement. However, this may not be enough to sustain the lifestyle you’re accustomed to. Fortunately, retirement plans from financial planners like Arch Financial Planning can help you build a personalized retirement plan that allows you to reach a much higher net worth than your peers. By working with a financial planner, you can ensure your retirement dreams become a reality.

Q: What should dentists consider when preparing to sell their dental practice?

As dentists prepare to sell their dental practice, it’s important to consider a few essential factors. One key aspect is to determine the end goal early on in the process; do you want to continue working or exit the practice entirely? This will determine the type of buyer that would be most suitable for your practice. Another crucial step is to plan for the tax implications that come with selling a practice for a taxable gain. This will help you avoid any potential financial surprises. Lastly, it’s essential to assess whether the income reduction resulting from the sale will allow you to maintain your desired lifestyle. By taking the time to consider these factors, you can ensure that you achieve your financial needs while setting the stage for a successful sale.

Q: What questions do you recommend dentists ask financial advisors they’re considering hiring to help them decide if they’re a good fit?

When it comes to finding the right financial advisor, dentists should ask some key questions to determine if the advisor is a good fit for their particular financial needs. One important question is whether the advisor has experience working with dental professionals and understands the unique financial challenges they face. Another important consideration is how the advisor gets paid and whether their fee structure aligns with the dentist’s goals and objectives. Additionally, it’s important to ask about the advisor’s investment philosophy and approach to risk management, as this will impact the kinds of investments the dentist may be offered. By asking these questions and others, dentists can make an informed decision when selecting a financial advisor to help them achieve their financial goals.

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