Associate Dentist

Early career planning can have an exponential impact on your long-term financial plan.

Associate dentists have unique issues in their financial plan.  As high income earners it is actually more difficult to find efficent ways to achieve financial success. Even if your employer provides a retirement plan many times you are excluded or limited in your ability to participate.  Couple this with higher taxes and asset protection needs - it is very important to develop a comprehensive strategy to obtain your short and long-term financial goals.  At Virtus we understand these issues and have successfully educated and guided hundreds of dentists in constructing and managing their financial plan.

Issues facing associate dentists today

Just because you make a high income doesn't mean it will be easier to retire.  As a successful dentist you will be faced with higher taxes and limited availability to tax-efficient investments.  Additionally, practice owners have an asset to sell in retirement.  Associates have to amass a similiar level of wealth through a more traditional investment approach.  This is very difficult considering the dental industry is not a workplace benefits rich industry.

Dentists have the propensity to make a high level of income very fast in their career and with this they begin to forge a high standard of living.  This can make it even more difficult to reach financial success.  No matter the income, there's only so much left in the budget after you pay taxes, housing and daily cost of living.

If you look at another trend in the country as a whole - everyone is wanting to retire earlier.  Additionally, modern medicine is pushing our mortality age out further and further.  We are faced with longevity risk, will we outlive our money?

Of the hundreds of financial plans we manage, many times we find it harder for associates to reach financial independence.  It is because of this we stress the importance of understanding what strategies you need to implement to start to accumulate wealth.

Strategies to overcome

With recent changes in government policy we are starting to see more retirement benefits being offered in the practice. This is allowing associate dentists an opportunity to participate in tax-efficient investments at a higher level.  However, the key is to develop a strategy early in your career in order to allow for a proper investment budget.

There is a wealth of information available to us at our fingertips today.  However, financial planning seems to be an area where technology is just now beginning to catch up.  The word "fin-tech" has become a buzz as of late and we are now starting to see products to assist in the various complexities of financial planning.  Many of those products are what we employ at Virtus Financial Partners.  Our advisor use these tools as the backbone of their relationship with their clients.  

Not to sound like your parents, but the phrase, "invest as early as you can...the power of compound interest is what allows us to retire one day", is as real today as it ever has been.  Your very first paycheck needs to have a savings component to it.  We can't procrastinate this very important part of young life.  From there you set the discipline to spend what you're allowed today...while ensuring a quality lifestyle in retirement.

Should you become a practice owner?

At Virtus we embrace both the associate dentist and practice owner the same.  They both are very unique situations and we have the experience to guide you through that transition should you choose embark on that journey.  Yes, a practice owner typically has an easier road to financial success simply because they are growing equity in their practice while performing the same duties as an associate.  Make not mistake however, practice ownership is not for everyone.  

Our team will take the time to educate you on the process of becoming a practice owner.  Whether you launch a start-up or purchase an established practice, Virtus, as well as our partners in the Virtus Dental Planning Network, have the tools and expertise to help guide you through retirement.