Balvinder Thandi, specialist dental financial consultant for Wesleyan Financial Services, shares her key points for dentists when starting the investment journey.
If you're new to investing, it can seem a little daunting.
Investing wisely can help you accomplish life goals or provide a buffer against adversity, such as the impact caused by COVID-19 for much of the profession. Investing differs from saving as, instead of simply putting money aside, you are essentially buying things that may increase in value over time, thus growing your money.
As a starting point, you need to decide what the money will be used for in the long term. You may want to save for a house deposit, buying your own practice or practice assets, your child's future or your retirement. You may just want to make your financial future more secure during these uncertain times.
Once you've decided what you're saving for, you can start to think about your investment options. It's worth remembering that all investments carry a certain amount of risk and the right place to invest very much depends on how much risk you're prepared to take.
In it for the long haul
Investing is normally considered to be a medium to long-term home for your money. If you cannot commit your money for at least five years, investing may not possibly be for you.
As an investor, you'll undoubtedly encounter the ups and downs of the stock market which is a normal part of the investment journey. It's important to keep a level head and remember that you're in it for a long-term outcome.
Understand the asset classes
It can be important to spread the risk of your investments by investing across many different investment types (also known as asset classes). This is a process known as 'diversification' and it helps because it makes your investment less sensitive to the risk of a single event.
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Cash - Cash as an asset class can include money deposited with banks or held by other financial companies, but it can also include holding short-term government or corporate debt
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Bonds and gilts - A bond is essentially an IOU from a company or government that wishes to raise money, with a promise to pay it back at a later date. A bond issued by the UK government is called a gilt
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Property - The type of property you can invest in is broadly split between 'residential' and 'commercial' property
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Equities - Also known as stocks and shares. Company shares can be purchased to provide part-ownership of a company
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Commodities - Commodities are goods such as oil, coffee, gold and silver, and is a highly speculative form of investing and therefore highly risky.
Seek advice from specialists
Whether you're looking to invest for personal or business growth, having the advice of a financial consultant, particularly one who specialises in the dental profession, could get you off to the best start.
A specialist financial consultant that works within the dental industry means that they have the insights, experience and understanding on the complexities of the dental profession. Specialists can talk to you about diversification and take you through a risk assessment to work out what level of risk you're comfortable with.
If you'd like to discuss investments or any aspect of your personal or business financial needs, you can book a no-obligation 30-minute quick start chat with a specialist Wesleyan Financial Services consultant at www.wesleyan.co.uk/quickstart. Alternatively, you can call 0800 316 3784.
About Balvinder and the Wesleyan Group
Bal Thandi has been a Financial Consultant with Wesleyan Financial Services for over five years and worked within financial services for over 36 years in various roles at TSB, Lloyds and Scottish Widows. Balvinder has supported many dental professionals whilst at Wesleyan and understands the industry extremely well.
Capital at risk: Please remember the value of your investments and any income can go down as well as up and you may get back less than you invested.
Advice is provided by Wesleyan Financial Services Ltd.
'WESLEYAN' is a trading name of the Wesleyan Group of companies.
Wesleyan Financial Services Ltd (Registered in England and Wales No. 1651212) is authorised and regulated by the Financial Conduct Authority. Registered Office: Colmore Circus, Birmingham B4 6AR. Telephone: 0345 351 2352. Calls may be recorded to help us provide, monitor and improve our services to you.
FAQs
Investing means capturing all the wax pattern in a solid material which capable of maintaining accurate details during burnout procedure casting of metal alloy.
How do I make my dental practice more profitable? ›
25 Solutions to Increase Dental Practice Profitability
- Production Reports. Make sure your team keeps production reports and that you review the reports on a regular basis. ...
- Payments and Discounts. ...
- Financing Options. ...
- Scheduling Optimization. ...
- Staffing and Recruitment. ...
- Turnover Rates. ...
- Payments and Wages. ...
- Up-to-Date Technology.
- Knowledge. One of the most critical and apparent qualities a dentist must have is knowledge. ...
- Connections. Connections are an essential part of being a successful dentist. ...
- Leadership. A great leader is a core quality of becoming a successful dentist. ...
- Communication. ...
- Resilience. ...
- Commitment. ...
- Cooperation. ...
- Work Ethic.
Dental investment materials are used to encase the wax designed for the lost wax casting technique. These materials are usually available as a powder that is mixed with water and then used to encase the wax design.
What is the most money in dentistry? ›
What Dentist Makes the Most Money? The highest dental salary in the US is the salary of a dental anesthesiologist. oral and maxillofacial surgeon. They can earn anywhere from $290,000-$400,000 per year.
Is it worth investing in teeth? ›
Boost Your Self-Esteem
Investing in your smile can then be priceless, as it can boost your self-confidence, your self-esteem, and can change the way you view yourself and live your life. It is important not to underestimate the effect a beautiful smile can have on your entire demeanor, as well as your outlook on life.
What is the average profit margin for a dentist? ›
Profit Margins in the Dental Industry
Here's the breakdown of average profit margins (and incomes) across the U.S. dental industry: The average profit margin for a general dental practice is 30–40% of revenue.
Is owning a dental practice stressful? ›
Disorganized Schedule
If you are like many dentists, your schedule may be out of control. One day you are overscheduled and running behind, and the next day you have several open appointment times. This constant back and forth between too busy and not busy enough can be a huge source of stress.
What multiple do dental practices sell for? ›
One of the most frequently referenced rules of thumb for dental practices is 0.6 to 0.8 times (0.6x to 0.8x) revenue. Other commonly cited rules of thumb include 1.0x to 2.0x net income, 3.0x to 4.0x EBIT (earnings before interest and taxes), and 3.0x to 4.0x EBITDA.
Why is it so hard to become a dentist? ›
How hard is it to become a dentist? Becoming a dentist is challenging in a number of ways, including the years of schooling required, the financial cost of education and setting up a dental practice, and the competitive dental school application process.
The volume of information to learn is vast, and the practical training can be physically demanding. Long hours in the clinic, combined with studying for exams, can lead to stress and burnout. Furthermore, dental school is a significant financial investment.
How difficult is it being a dentist? ›
It is challenging. Some of it is innate but a lot can be learned. To be a dentist you need to develop hand skills, learn a lot of information about medications and their effects and also learn restorative materials and techniques for procedures.
What is the lost wax technique? ›
Lost-wax casting – also called investment casting, precision casting, or cire perdue (French: [siʁ pɛʁdy]; borrowed from French) – is the process by which a duplicate sculpture (often a metal, such as silver, gold, brass, or bronze) is cast from an original sculpture. Intricate works can be achieved by this method.
How do I start investment casting? ›
The steps within the investment casting process are as follows:
- Step 1: Engineering Review. ...
- Step 2: Mold Design & Build. ...
- Step 3: Wax Pattern. ...
- Step 4: Ceramic Mold Construction. ...
- Step 5: De-waxing. ...
- Step 6: Foundry & Pouring. ...
- Step 7: Shell & Casting Removal. ...
- Step 8: Finishing.
The lost wax process, also called cire-perdue, method of metal casting in which molten metal is poured into a mold that has been created by means of a wax model. Once the mold is made, the wax model is melted and drained away.
What does investing mean in medical terms? ›
Medical Definition
invest. transitive verb. in·vest in-ˈvest. 1. : to envelop or cover completely.
Why invest in your smile? ›
A healthy smile isn't only a confidence-booster, but critical for your health. After all, your teeth allow you to properly break down food during the very first steps of the digestion process, and help you communicate with others. Investing in your smile is both good for your health and your future finances.
How profitable are dentists? ›
Profit margin of a dentist office
It is common for a dentistry practice to be profitable in the range of 30–40% of revenues, although calculating this amount can be deceivingly complex. There are a variety of factors that may influence your margins, this figure can be considered as a starting point.
What is working capital in dentistry? ›
Working capital is the amount of available money a business has at its disposal for its day-to-day operations and expenses. Working capital is not the same as the overall value of your dental practice.
