What Dentists Should Look for in a Financial Advisor

As an owner of a dental practice your financial needs are unique. It’s a good idea for any professional in any business to have a financial advisor help them maximize their earnings to keep the money they have earned safe. There are a few things that separate your financial needs from other professionals, so it’s important to work with a financial advisor that knows how dental practice operates, how to value a dental practice, and how to address your unique set of circumstances.

Here are some of the most important things to look for when searching for a financial advisor:

  1. Make sure your financial advisor has worked with other dentists. The more, the better. You want an advisor who has already experienced the financial patterns of a dental practice and knows what dentists need, from the time they begin practicing until they get ready to make a dental practice transition. There are many areas that a general financial advisor has no understanding of when it comes to dental expenses and income.
  2. Find out how your financial advisor gets paid. Do they earn their income through commissions on selling products for a larger company or do they earn based on fees paid by you? The commission earners will be biased toward a specific product and may not give you a full picture of what you can do with your money.
  3. What type of education and licenses does your financial advisor hold? Many companies provide “weekend workshops” allowing almost anyone with any background to become “certified” as a financial advisor. There are only two designations you want to look for – Certified Financial Planner (CFP) and Certified Financial Advisor (CFA).
  4. Look for a fiduciary planner. Someone that is licensed as a fiduciary has made a legal commitment to putting their client’s needs above their own. This is not something that just any financial advisor will necessarily have.
  5. Talk to other dentists that you know and respect. Who do they recommend? This may be your best source for locating the ideal financial planner for your dental practice and for your transition of that practice.

Picking the best financial advisor for your specific financial needs is one of the most important steps to peace and security for your future. If you’re considering selling your dental practice it’s a good idea to use the best financial advisor available to you. Likewise, if you’re just starting your dental practice and want to make sure your financial needs are met for the duration of your dental career, use this checklist to determine if the planner you are considering is the best for your situation.


NAPB | National Association of Practice BrokersDENTAL PRACTICE BROKERS

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