Starting Your Career With Confidence and Strategy

Congratulations — you’ve made it through dental school, passed the boards, and maybe even landed your first job. But while you know everything about molars, crowns, and perio charts, no one taught you how to manage money as a dentist. That’s where this guide comes in.

We’ll walk through the essential financial planning steps every new dentist should follow to build long-term wealth, reduce taxes, and avoid common money mistakes.

1. Understand Your Financial Starting Point

Track Your Net Worth

Start by knowing where you stand financially:

  • Total student loan debt
  • Cash savings
  • Retirement or investment accounts
  • Monthly income vs. expenses

Use a simple spreadsheet or an app like Mint or YNAB (You Need a Budget).

Know Your Credit Score

Your credit score affects everything from mortgage rates to business loans. Pull your report from free sites like AnnualCreditReport.com.

2. Create a Student Loan Repayment Strategy

Dentists often graduate with $200,000+ in loans. Don’t panic — create a strategy:

  • Federal Loans: Consider Income-Driven Repayment (IDR) or Public Service Loan Forgiveness (PSLF) if you’re working in public health.
  • Private Loans: Refinance for a lower interest rate when your income stabilizes.
  • Aggressive Payoff vs. Investing: Work with a financial planner to decide whether to pay off loans quickly or invest simultaneously.

3. Protect Your Career

before the stock market, you need to protect your career — Start by investing in the “S & Me 500”

  • Disability Insurance: Non-negotiable. Choose own-occupation coverage.
  • Malpractice Insurance: Typically provided if you’re employed, but check the coverage.
  • Term Life Insurance: Especially important if you have dependents or debt cosigners.

4. Build an Emergency Fund

Save 3–6 months of living expenses in a high-yield savings account. This keeps you from going into debt during emergencies or job transitions. It doesn’t all have to be in cash. It can be earning money in the market as long as it’s properly structured by a wealth advisor.

5. Start Investing Early

Time is your biggest advantage. Here’s where to begin:

  • 401(k) or 403(b): Contribute enough to get the employer match (if available)
  • Tax-Free Wealth Strategy: We recommend a long-term strategy using a properly structured Indexed Universal Life (IUL) policy. This can provide:
    • Tax-free retirement income
    • Access to funds without early withdrawal penalties
    • Protection from market downturns
    • Living benefits and a death benefit for loved ones
  • Taxable Investment Account: Once you’ve covered tax-advantaged and protected strategies, this is your flexible wealth builder.

Automate your contributions. Discipline makes the difference. It’s not about timing the market. It’s about time in the market.

6. Plan for Life and Career Flexibility

Your goals may shift as your life evolves. Whether you want to:

  • Go part-time to raise a family or improve work-life balance
  • Open or buy into your own dental practice
  • Specialize in a specific area of dentistry
  • Transition to teaching, consulting, or even a new career field

Planning ahead ensures you’re financially prepared to pivot. Build flexibility into your investment, insurance, and savings strategies to keep options open. A financial advisor can help you forecast different paths and stay prepared.

7. Set Clear Financial Goals

Write down your short- and long-term goals:

  • Pay off $100k in loans in 5 years
  • Save for a home down payment
  • Start your own practice in 10 years
  • Retire with $5 million in tax-free income

Revisit goals annually and work with a fiduciary advisor who specializes in dentists.

8. Avoid Common Financial Mistakes

  • Buying a house too soon
  • Leasing luxury cars early in your career
  • Skipping disability insurance
  • Ignoring retirement savings
  • DIY investing without a plan

Final Thoughts

Financial planning isn’t about being rich — it’s about being in control. By starting early, protecting your income, and making intentional decisions, you’ll set yourself up for a future where money works for you, not the other way around.

Ready to create a custom financial plan based on your income and career stage? Book a free 15-minute discovery call with our team here.

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