Dentists Get Their Financial Check-Up: Nexus attends the 2022 Ontario Dental Conference

Topic: Wealth Planning

Tom Wilson, CFA, MFin

June 24, 2022


Print & Share

Print

Dentists Get Their Financial Check-Up: Nexus attends the 2022 Ontario Dental Conference

In early May, we had the opportunity to attend the Ontario Dental Association’s (ODA) Annual Spring Meeting (ASM) in Toronto. Now in its 157th year, the ASM is the signature dental conference and trade show of the ODA and is one of the largest dental conventions in North America.

The ASM is a great opportunity for dental professionals to learn, network, share ideas, best practices and gain valuable insights into the dental profession. Not only was it our first time attending the ASM, but it was also the first in-person ASM since 2019 – hopefully a sign that things are finally starting to return to normal.

At Nexus, a number of our clients are dentists and medical professionals. Our business is designed to work with individuals who, like dentists, are often too busy to properly manage their own investments but want to know that their capital will grow in real terms so they can retire comfortably. Conferences like the ASM provide us with a great opportunity to connect with hard working professionals so that we can better understand the challenges they face and their financial goals.

Dentists, like other professionals, face many challenges throughout the lifecycle of their careers. Whether they’re entering the field, or a seasoned professional running their own practice, at Nexus, we can help them define a path through integrated investment management and wealth planning to help them achieve good financial health – for the long term.

At a high-level, the lifecycle of a dental professional can be broken down into four stages – early, growth, late, and retirement. In each stage, there are certain challenges faced and key things that can be done to set each person up for financial success. We help dental professionals achieve their financial goals throughout all four stages. You can read more on each stage here.

Although the decisions made in the early stage (debt repayment, cashflow management, establishing a professional team, opening a Professional Corporation) of a professional’s career will have a big impact on their first 5 years, the choices made in the growth and late stages will be the key determinants of success in their retirement. Let’s look at some considerations for those stages.

Growth Stage: For the established dentist

The biggest challenge dental professionals face in this stage is coping with the ever-increasing demands for their time and money. Their practice is growing, and they’re stretched thin serving patients and managing their business. They’re finally earning more than they spend. They may be buying their first practice or hiring more staff to support the ever-increasing demands from their patients. They’re starting a family! Needless to say, they’ll need to make important decisions about managing their wealth. Their priority should be focused on doing what they do best – managing their practice. Leveraging their professional team to help them manage their finances will be crucial to their success.

Some of the key things they’ll be doing will be maximizing registered savings and integrating their professional corporation into their financial plan to help keep more of what they earn. They’ll need detailed wealth and estate planning as their financial situation becomes more complex as they get older and their family grows. Their investments should be focused on continuing long-term capital accumulation (net cash contribution, focus on asset growth, long-term investment horizon). These are the peak earning years of a professional and their ability to replace capital is high.

Late Stage: Staying focused on the big picture

They’ve worked hard to build and grow their business to where it is, but they’re starting to think about retirement. Some of the questions they might be asking themselves are, “Should I sell my practice? What steps do I need to take today to prepare for that? Do I qualify for the capital gains exemption? Are my registered and non-registered portfolios enough to support me and my family in retirement?” Wealth planning in this stage should be focused on preparing for retirement. A key determinant will be how much income they need to support their lifestyle and how to draw it down tax efficiently. Investment management should be focused on portfolio accumulation, but they’re starting to consider preparing/transitioning their portfolio to decumulation.


There are some things that we don’t do in-house at Nexus. We’re not accountants, business consultants, or lawyers. But over the years we have assembled a large network of trustworthy professionals, including lawyers and accountants, with experience dealing with Dentist clients that we can leverage to assist professionals and their practice.

At the end of the day, no matter where an individual is in their professional or personal lifecycle, Nexus’s tailored investment management and wealth planning process can help them achieve their financial goals. For more information on how Nexus can partner with you to achieve your goals, get in touch with us for your financial check-up.

More Like This...

See another CRM2 blog post that may be of interest to you.

CRM2: The Nexus Approach to our CRM2 Reports

Topic:
CRM2
Excerpt:
With changing securities regulations coming into effect, investment firms are now required to provide individual investors with specific additional in

More Like This...

See another Foundations & Endowments blog post that may be of interest to you.

Charitable Giving Made Easier

Topic:
Foundations & Endowments
Excerpt:
Giving to charities and supporting our community are important to us at Nexus. We donate a portion of our management fees back to the charities and

More Like This...

See another Human Interest blog post that may be of interest to you.

The Case for Openness – An Open and Shut Case?

Topic:
Human Interest
Excerpt:
From time immemorial, mankind has been open. Open to new ideas, open to trade, and open to migration – the three critical ingredients for progress.

More Like This...

See another Inside Nexus blog post that may be of interest to you.

Here we Grow Again!

Topic:
Inside Nexus
Excerpt:
Recently, the Nexus team welcomed our seventh new face to join us since the start of the pandemic in 2020. As growth is an integral part of our

More Like This...

See another Investments blog post that may be of interest to you.

The Demise of FTX and Sam Bankman-Fried

Topic:
Investments
Excerpt:
At the beginning of November 2022, Sam Bankman-Fried was crypto-currency’s “White Knight”. The flip-flop and t-shirt-wearing 30-year-old was the found

More Like This...

See another Pearls of Wisdom blog post that may be of interest to you.

“Work, Work, Work, Work, Work, Work”

Topic:
Pearls of Wisdom
Excerpt:
This has been a busy year. I’ve had lots happening on the home front (a wedding!) and lots going on at the office (too long to list!) Managing work

More Like This...

See another Tax Planning blog post that may be of interest to you.

Saving in my Professional Corporation – It’s a Great Idea!

Topic:
Tax Planning
Excerpt:
The ability for professionals in Canada to incorporate their practice has existed for some time. Doctors, dentists, lawyers, accountants, and other

More Like This...

See another Wealth Planning blog post that may be of interest to you.

Living to 100

Topic:
Wealth Planning, Living to 100
Excerpt:
“You’re going to live to 100!” For some, this may sound like a fantastic, welcome prognosis. They imagine gazing at sunsets every evening at the

On a Side Note…

See another CRM2 Nexus Notes Quarterly article that may be of interest to you.

No posts found.

On a Side Note…

See another Foundations & Endowments Nexus Notes Quarterly article that may be of interest to you.

Charitable Giving Made Easier

Topic:
Foundations & Endowments
Excerpt:
Giving to charities and supporting our community are important to us at Nexus. We donate a portion of our management fees back to the charities and

On a Side Note…

See another Human Interest Nexus Notes Quarterly article that may be of interest to you.

The Case for Openness – An Open and Shut Case?

Topic:
Human Interest
Excerpt:
From time immemorial, mankind has been open. Open to new ideas, open to trade, and open to migration – the three critical ingredients for progress.

On a Side Note…

See another Inside Nexus Nexus Notes Quarterly article that may be of interest to you.

Here we Grow Again!

Topic:
Inside Nexus
Excerpt:
Recently, the Nexus team welcomed our seventh new face to join us since the start of the pandemic in 2020. As growth is an integral part of our

On a Side Note…

See another Investments Nexus Notes Quarterly article that may be of interest to you.

Lessons From the Art World and Beyond

Topic:
Investments
Excerpt:
“Exactitude is not truth.”

On a Side Note…

See another Pearls of Wisdom Nexus Notes Quarterly article that may be of interest to you.

A Table for None, Please; Working From Home on the Rise

Topic:
Pearls of Wisdom
Excerpt:
Reading is one of the principal occupations in our profession. As we digest a wide range of material, interesting ideas and surprising facts – some

On a Side Note…

See another Tax Planning Nexus Notes Quarterly article that may be of interest to you.

Saving in my Professional Corporation – It’s a Great Idea!

Topic:
Tax Planning
Excerpt:
The ability for professionals in Canada to incorporate their practice has existed for some time. Doctors, dentists, lawyers, accountants, and other

On a Side Note…

See another Wealth Planning Nexus Notes Quarterly article that may be of interest to you.

From The Editor: What’s My Age Again?

Topic:
Wealth Planning, Living to 100
Excerpt:
How old are you? It’s a simple question, one we readily know the answer to, although some of us might not want to talk about it. And why do we know