Am I on the Right Financial Path?

This is one of the most common questions dentists ask me, regardless of their career stage, whether they are just starting out, mid career, or planning for retirement

John is mid 30s years old and has been practising for a few years. He has started investing through a couple of share platforms, contributes to KiwiSaver, and is saving for his first home. Some of his dental friends have purchased investment property, while others are buying a practice. John wonders:"Am I making the right decisions? Should I be doing something different?"

Then there is Wendy, an experienced associate practitioner in her late 40s with young children. She has been building her retirement savings through property and shares. Her concerns are different.

She wants to avoid making expensive financial mistakes and have confidence that the decisions she is making today will provide the future she wants.

Her questions are: "Are my investments appropriate for my situation? Will I have enough to retire comfortably?"

Finally, there is Ali, who is in his mid 50s. He has an older family, owns a dental practice, and has invested primarily in property.His questions are different again."Should I continue investing in growing the practice or focus on reducing debt? How will my property investments fund my retirement?"

Three dentists.Three different stages of life. One common question:

"Am I on the right financial path?"

It is a simple question, but my answer is rarely straightforward.

"I don't know."

That might sound like a cop out, but there is a reason.

I do not yet know where you are trying to go. Imagine a patient walking into the practice and immediately asking the dentist, ‘What treatment do I need?’

No dentist would answer that question.

Before recommending treatment, we would first understand what has brought the patient in, discuss their concerns and values, and assess their oral health both clinically and radiographically. Only then can we create an appropriate treatment plan.

Before deciding whether you should buy a practice, invest in property, build a share portfolio, pay down debt, or make other financial decisions, we first need to understand what you are trying to achieve. Without knowing the destination, it is impossible to know whether you are on the right path.

There Is No Single Right Financial Path

One of the challenges with personal finance is that there is no universal answer that applies to every dentist. Two dentists with the same income can require completely different financial strategies because they have different goals, values, family circumstances, risk tolerance and visions for the future.

We see this in practice every day. One patient with limited financial resources is determined to save every tooth because it matters most to them. Another patient has the financial means to pursue any treatment they choose, yet prefers the simplest option and is comfortable removing teeth if they become infected.

Neither patient is wrong. It is determined by their values, priorities and goals.

Financial planning is exactly the same

A Better Question To Ask

"Are my current financial decisions moving me towards the life I want?"

That question changes everything.

Financial success is not about having the biggest investment portfolio, owning the most practices, or achieving someone else's definition of success.

It is about having confidence that the decisions you are making today align with your goals and help you build the future you want.

Like dentistry, good financial planning starts with a thorough examination. By understanding your current financial position, goals, and concerns, I help dentists build a financial planning and insurance strategy that supports their careers, long-term goals, and retirement.

If you would like to discuss your own financial pathway, email me at ko@tfd.co.nz or text/ring 021 469 500.

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