In my inaugural blog post, Wealth Management For Dentists, I introduced why I believe it takes a highly specialized, dental-specific wealth manager to make the most of your personal and professional wealth. But you may still be wondering: “Why do I need wealth management to begin with?” That’s a fair question, fortunately, easily answered:
Why Wealth Management?
Without wealth management, a dentist’s financial goals tend to distract rather than contribute to the quality of his or her life.
Too often, amidst all that complex financial-speak and practice management strategizing, we lose sight of what really matters the most. So it’s worth emphasizing: Wealth management is not about your money, it’s about YOU!
So Many Moving Parts
As a dentist – whether at start-up, mid-career, or nearing or into retirement – you probably have a whole lot going on within your financial concerns … to say the least. You must:
- Manage your practice and its intricate patient care, business, human resource, financial/accounting and tax considerations
- Determine how to extract appropriate levels of earnings for personal debt pay-off, spending, saving and investing goals
- Plan for and enjoy a retirement on your own terms
- Protect personal and professional assets against unforeseen threats
- Steward family wealth for desired legacy and charitable pursuits
Bridging the Planning Gaps
With so much to consider, it’s not surprising that uncomfortable gaps emerge. To name a few, young dentists face conflicts between paying off college debt while starting their practice and saving for the future. Pass that hurdle, and you face tough choices between growing your practice while enjoying the improved lifestyle you’ve earned, and building your personal portfolio toward retirement or other long-term goals. Throughout, you must manage the risks that you can – in your professional, personal and financial affairs – while minimizing the costs and uncertainties involved.
Thus, even as your wealth accumulates, those gaps leave you worried and anxious; wondering whether you’re overlooking some important detail that’s going to sooner or later cause you grief.
That, my friend, is exactly where wealth management comes in. In a future Wealth Extractions post, I’ll explain more about how and why it works.
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