Why Dental Practitioners Need Genuine Wealth Management?

Why Dental Practitioners Need Genuine Wealth Management?

Aug 08, 2018

Wealth management is a common term that gets tossed around quite readily in the media and by financial pundits. Financial planning and wealth management are often used interchangeably, but they are not the same. Therefore, it is necessary for dental professionals to recognize true wealth management to be sure you receive the appropriate services.

  • Financial Planning: The process of financial planning should involve consultation to help guide and assist dentists through their personal and professional journeys. The legalized framework should include cash flow, lifestyle spending, investment management, saving, retirement, insurance, estate planning, and more. By examining all facets of your financial makeup and gaining an intricate understanding of your wants, needs, and goals, a good financial planner can work with you to develop a completely customized plan.
  • Wealth Management: Wealth management combines professional planning and advisory services, much like financial planning. Both services require a comprehensive approach to tackle a dentist’s overall financial situation. The differentiating factor is that once a dentist achieves adequate wealth, assistance may be needed beyond traditional financial planning.

In addition, wealth management demands specific knowledge that the average financial planner might not possess. Therefore, when advising wealthier dentists, the issues involved are very different and often more complex than with traditional financial planning.

What are the 13 Wealth Management Issues?

Wealth management involves 13 important issues that need to be addressed:

  • Banking and Credit Management
  • Charitable Gifting
  • Distribution Plan at Death
  • Executor and Trustee Selection Issues
  • Gifting to Children or Descendants
  • Insurance
  • Investments
  • Planning for Incapacity
  • Practice Owner Compensation
  • Practice Succession Planning
  • Retirement Planning
  • Tax Planning
  • Titling of Assets

It is common for dentists to handle only one or two issues, but all 13 require full attention. This is where the aid of a genuine wealth manager can be invaluable.

Why is Genuine Wealth Management So Important?

Since no single person is an expert in everything, a collaborative effort is needed to meet all of a dentist’s financial needs. Consultative wealth management involves a team of experts who work together to address your wants and needs. A genuine wealth manager knows the importance of this collective approach and will work with other advisors including insurance providers, estate planning attorneys, and CPAs to come up with the best solutions.

Most dentists want to find the right balance between work life and their personal time. Dentists strive for financial freedom and opportunity to spend more time with loved ones. The journey to a great quality of life begins with a financial plan.