If you’re like most dentists, you’ve spent years helping other people plan for the future.

You encourage patients to prevent problems before they happen. You remind them that a small cavity today is much easier (and less expensive) to deal with than a root canal tomorrow.

Retirement planning works much the same way.

Unfortunately, many dentists treat retirement planning like the patient who knows they should schedule the appointment but keeps putting it off. They’re busy. Production is good. The practice is growing. Retirement feels far away.

Then one day they wake up and realize retirement isn’t twenty years away anymore. It’s five years away. Or two.

The good news? Whether retirement is around the corner or still years down the road, there are practical steps you can take today to improve your options tomorrow.

Let’s walk through some of the key considerations.

Why Retirement Planning Looks Different for Dentists

Most professionals retire from a job.

Dentists often retire from a business.

That’s an important distinction.

Over the course of your career, you’ve likely accumulated wealth in several different places:

• Your dental practice
• Retirement accounts
• Investment portfolios
• Real estate
• Cash reserves
• Equipment and other business assets

Think of retirement planning like assembling a puzzle. Most people only have a few pieces to worry about. Dentists often have an entire box dumped out on the table.

The challenge isn’t simply accumulating assets. It’s figuring out how all those pieces fit together.

Step 1: Define What Retirement Actually Looks Like

Here’s a question we ask dentists all the time:

“What does retirement look like for you?”

Surprisingly, many don’t have a clear answer.

Most know what they want to retire from:

• Staff issues
• Insurance headaches
• Emergency calls
• Administrative responsibilities

But they haven’t spent much time thinking about what they’re retiring to.

Will you travel?

Spend more time with grandchildren?

Volunteer?

Teach?

Mentor younger dentists?

Buy a second home?

Play golf three times a week?

The clearer your vision becomes, the easier it is to build a financial plan around it.

Imagine planning a family vacation without deciding where you’re going. You wouldn’t know what flights to book, what hotel to reserve, or how much money to budget.

Retirement works the same way.

The destination determines the plan.

Step 2: Determine Your Retirement Number

Once you understand the lifestyle you want, the next step is determining what it may cost.

Many dentists either dramatically overestimate or underestimate their retirement spending needs.

Some assume they’ll need very little.

Others assume they’ll need the same amount they’re earning today.

The truth usually falls somewhere in between.

A useful exercise is to break expenses into categories.

Essential Expenses

These are the basics:

• Housing
• Utilities
• Food
• Insurance
• Transportation

Lifestyle Expenses

These are the things that make retirement enjoyable:

• Travel
• Golf
• Dining out
• Hobbies
• Entertainment

Legacy Goals

Many dentists also have goals beyond themselves:

• Helping children
• Supporting grandchildren
• Charitable giving
• Leaving an inheritance

The objective isn’t to find a perfect number.

The objective is to create a realistic target that allows your investments, retirement accounts, and other assets to support the lifestyle you want.

Step 3: Build Retirement Income Streams

One of the biggest misconceptions in retirement planning is that retirement is about having a large pile of money.

It’s actually about creating income.

Imagine owning a rental property.

You don’t care nearly as much about the property’s value as you do about the rent check showing up every month.

Retirement planning follows the same principle.

The goal is to convert assets into reliable income.

Potential income sources may include:

Investment Accounts

Stocks, bonds, ETFs, and mutual funds can help support retirement income needs.

Qualified Retirement Plans

401(k)s, Profit Sharing Plans, Cash Balance Plans, and other retirement accounts often play a significant role.

Real Estate

Rental properties can provide additional cash flow.

Social Security

For many retirees, Social Security becomes one piece of a broader retirement income strategy.

The strongest retirement plans often rely on multiple income sources rather than a single asset or account.

Step 4: Don’t Rely Solely on Selling Your Practice

This may be the most important section in the entire article.

Many dentists unintentionally treat their practice as their retirement plan.

The logic sounds reasonable:

“My practice is worth a lot of money. I’ll sell it when I retire.”

Maybe.

But there are several problems with relying entirely on that strategy.

What if market conditions change?

What if there aren’t enough qualified buyers?

What if the practice doesn’t sell when expected?

What if the valuation is lower than anticipated?

Imagine building a retirement plan that depends on selling a stock at exactly the right price on exactly the right day.

Most investors would recognize that as risky.

Yet many dentists do something very similar with their practice.

Your practice can be an important retirement asset.

It just shouldn’t be your only retirement asset.

The dentists who enjoy the most flexibility are often the ones who spent years building investments and retirement income streams outside their practice. That way, the sale of the practice becomes a bonus rather than a necessity.

When retirement planning is done well, you gain options.

And options are one of the most valuable assets a retiree can have.

Step 5: Increase the Value of Your Practice Before You Exit

Many dentists assume they’ll start thinking about practice value a year or two before retirement.

In reality, the most successful transitions often begin five to ten years beforehand.

Think of selling a practice like selling a house.

If you know you’re moving next month, there’s only so much you can do. You might repaint a room or tidy up the landscaping.

But if you know you’re moving five years from now, you have time to make meaningful improvements that can significantly increase value.

The same principle applies to your dental practice.

Potential buyers are often looking at more than production numbers. They may also evaluate:

Profitability

A practice collecting $1.5 million annually isn’t necessarily more valuable than a practice collecting $1.2 million.

What matters is what remains after expenses.

Strong profitability often makes a practice more attractive to buyers and lenders.

Systems and Processes

A practice that runs smoothly without the owner being involved in every decision can be more transferable.

Documented systems often create confidence for prospective buyers.

Team Stability

A great team can be a tremendous asset.

High turnover, on the other hand, may create uncertainty.

Patient Retention

Loyal patients and strong recall systems often indicate a healthy practice.

Technology and Facility Condition

Modern equipment and updated facilities may improve the overall attractiveness of a practice.

The goal isn’t perfection.

The goal is to make your practice easier for the next owner to step into and succeed.

Step 6: Understand Your Exit Options

Many dentists assume there’s only one way to retire:

Find a buyer. Sell the practice. Walk away.

In reality, there are often several paths available.

Sell to an Associate

If you’ve developed an associate within the practice, they may eventually become a natural successor.

This can sometimes create a smoother transition for patients and staff.

Bring on a Partner

Some dentists gradually transition ownership over several years.

This approach may provide flexibility while reducing some of the pressure associated with a single sale event.

Sell to an Individual Buyer

This remains one of the most common transition strategies.

Partner with a DSO

Dental Service Organizations continue to play a significant role in the marketplace.

For some dentists, this option may align with their goals. For others, it may not.

Every arrangement should be evaluated carefully based on financial, operational, and personal objectives.

Gradual Retirement

Not every dentist wants to go from 100 miles per hour to zero overnight.

Many prefer a phased approach:

• Four days per week
• Three days per week
• Mentoring younger doctors
• Consulting

Retirement doesn’t have to be all-or-nothing.

Step 7: Create a Tax-Efficient Exit Strategy

Most dentists spend decades building wealth.

Unfortunately, taxes can take a meaningful bite out of the proceeds if planning doesn’t occur in advance.

This is why tax planning is often most effective years before a sale—not weeks before.

Think of it like orthodontics.

If someone wants straighter teeth, braces are much more effective when installed before the wedding photos than the week before.

The same concept applies to tax planning.

Potential areas that may warrant discussion include:

Capital Gains Considerations

Practice sales may involve capital gains treatment on certain assets.

Retirement Plan Contributions

Maximizing retirement plans before retirement may create additional opportunities for long-term accumulation.

Tax Diversification

Having assets spread across different tax categories may provide more flexibility in retirement.

Business Structure

The way a practice is structured can influence various aspects of a future transition.

Because tax situations vary significantly, dentists should work closely with qualified tax professionals when evaluating specific strategies.

Step 8: Understand Sequence of Returns Risk

This is one of the most overlooked retirement risks.

And it has nothing to do with earning poor returns.

Let’s look at an example.

Imagine two retirees.

Both average 7% annual returns over retirement.

Sounds great, right?

But one retiree experiences market declines during the first few years of retirement.

The other experiences those declines later.

Even though their average return is identical, the retiree who experiences losses early may face significantly different outcomes because withdrawals are occurring simultaneously.

This is known as Sequence of Returns Risk.

It’s similar to withdrawing blood from a patient while simultaneously trying to replenish it.

If too much leaves too quickly, recovery becomes more difficult.

This is one reason many retirement plans include:

• Diversification
• Cash reserves
• Fixed-income assets
• Multiple income sources

The goal isn’t necessarily maximizing returns.

The goal is creating resilience.

Step 9: Plan for Healthcare and Insurance Needs

Healthcare is often one of the largest expenses retirees face.

Yet many dentists spend more time planning vacations than planning healthcare costs.

Areas to consider include:

Medicare

Understanding enrollment timelines and coverage options.

Long-Term Care

Many retirees underestimate the potential impact of long-term care expenses.

Life Insurance

Coverage needs often change during retirement.

Disability Insurance

Many policies are no longer needed once employment income stops.

Estate Planning

Ensuring beneficiary designations, trusts, wills, and healthcare directives remain current.

Healthcare planning isn’t the most exciting part of retirement planning.

But neither are root canals.

Both become much more manageable when addressed proactively.

Step 10: Build Your Retirement Team

No single professional typically handles every aspect of retirement planning.

Think of retirement planning like a complex dental case.

You may involve:

• A general dentist
• An orthodontist
• A periodontist
• An oral surgeon
• A lab

Each professional brings unique expertise.

Retirement planning often works similarly.

Your team may include:

Financial Advisor

Helps coordinate investments, retirement income, and long-term planning.

CPA

Provides tax expertise.

Attorney

Assists with estate planning and legal matters.

Practice Transition Consultant

Helps navigate practice sales and succession planning.

Banker or Lending Professional

May assist buyers and facilitate financing.

The earlier this team is assembled, the more options you may have available.

Retirement planning is rarely about making one perfect decision.

It’s about making a series of thoughtful decisions over time.

6 Common Retirement Planning Mistakes Dentists Make

After working with dentists for many years, we’ve noticed that retirement challenges usually don’t come from a lack of intelligence or work ethic.

Most dentists are incredibly successful professionals.

The problem is that retirement planning often gets pushed to the back burner while life, family, patients, and practice demands take center stage.

Here are some of the most common mistakes we see.

Mistake #1: Waiting Too Long to Start Planning

This is by far the most common mistake.

Many dentists assume they’ll begin serious retirement planning five years before retirement.

Unfortunately, many of the most impactful decisions are best made ten years—or more—before retirement.

Think of retirement planning like planting a tree.

The best time to plant it was twenty years ago.

The second-best time is today.

The earlier you begin planning, the more options you’ll typically have available.

Mistake #2: Assuming the Practice Will Sell Easily

Many dentists view their practice as their retirement safety net.

And it may be.

But markets change.

Buyer demand changes.

Interest rates change.

A practice that appears highly valuable today may face different market conditions years from now.

A successful retirement plan shouldn’t depend entirely on a future sale occurring at exactly the right time and exactly the right price.

Mistake #3: Ignoring Tax Planning

Taxes can be one of the largest expenses you’ll face in retirement and during a practice transition.

Yet many dentists spend more time researching vacation destinations than understanding how taxes may impact the proceeds from a future sale.

Good tax planning isn’t about avoiding taxes.

It’s about understanding the rules and planning proactively.

Mistake #4: Underestimating Retirement Spending

Many people assume their expenses will drop dramatically in retirement.

Sometimes they do.

Often they don’t.

Travel, hobbies, healthcare expenses, helping family members, and pursuing new interests can all add costs.

The goal isn’t to spend less.

The goal is to spend intentionally.

Mistake #5: Overestimating Investment Returns

Everyone hopes their investments perform well.

But retirement plans should be built on realistic assumptions—not best-case scenarios.

A retirement plan built on optimistic projections may create unnecessary risk.

A retirement plan built on reasonable assumptions often creates more confidence and flexibility.

Mistake #6: Having No Written Plan

Imagine starting a complex full-mouth reconstruction without a treatment plan.

Sounds crazy, right?

Yet many dentists approach retirement exactly that way.

They have ideas.

They have goals.

They have accounts.

But they don’t have a written roadmap.

A written plan helps transform hopes into action steps.

Frequently Asked Questions About Dentist Retirement Planning

How Much Money Do Dentists Need to Retire?

There isn’t a universal number.

The answer depends on your desired lifestyle, spending needs, retirement age, healthcare expenses, and other goals.

For some dentists, financial independence may require less than they expected.

For others, maintaining a higher-spending lifestyle may require additional planning.

The key is determining what retirement looks like for you.

When Should Dentists Begin Retirement Planning?

Earlier than most think.

Ideally, retirement planning should begin at least 10 years before retirement, and often much sooner.

That doesn’t mean you need every answer today.

It simply means giving yourself enough time to make thoughtful decisions.

Should I Sell My Practice Before Retirement?

Not necessarily.

Many dentists transition directly into retirement after a sale.

Others continue working part-time.

Some bring on associates or partners years before exiting.

There is no one-size-fits-all answer.

The best approach depends on your personal, financial, and professional goals.

How Is a Dental Practice Valued?

Practice valuations typically consider multiple factors including:

• Revenue
• Profitability
• Patient base
• Team stability
• Growth potential
• Location
• Equipment and technology

A qualified practice transition specialist can help provide more specific guidance regarding valuation methodologies.

Can I Continue Working Part-Time in Retirement?

Absolutely.

Many dentists enjoy a phased retirement.

Some work one or two days per week.

Others mentor younger dentists or consult.

Retirement doesn’t have to mean stopping completely.

For many, it’s about creating more flexibility and choice.

What Happens If I Don’t Have a Buyer?

This is one reason early planning is so important.

Starting the transition process several years in advance can help create additional options and reduce pressure.

Waiting until the last minute may limit flexibility.

How Do Taxes Impact a Practice Sale?

The answer depends on many factors including the structure of the sale, the assets involved, and your overall financial situation.

Because every situation is unique, it’s important to work with qualified tax professionals when evaluating a future transition.

Retirement Planning for Dentists in Utah

Whether you practice in Salt Lake City, Holladay, Millcreek, Murray, Sandy, Draper, South Jordan, or elsewhere along the Wasatch Front, the retirement planning challenges facing dentists are remarkably similar.

You have likely spent decades building:

• A successful practice
• Meaningful patient relationships
• Financial assets
• A lifestyle you enjoy

The next phase of life deserves the same level of intentional planning.

Retirement isn’t simply a financial event.

It’s a life transition.

The most successful retirements often occur when financial planning, tax planning, practice transition planning, and personal goals are all aligned.

Final Thoughts: Retirement Is Too Important to Leave to Chance

At some point, every dentist will see their last patient.

The question isn’t whether retirement will happen.

The question is whether you’ll be ready when it does.

The dentists who tend to experience the smoothest transitions aren’t necessarily the ones who earned the most.

They’re often the ones who started planning earlier, asked thoughtful questions, and created a roadmap before they needed one.

Retirement planning isn’t about predicting the future perfectly.

It’s about putting yourself in a position to have options when the future arrives.

Are You Ready for Retirement?

If you’re wondering whether you’re on track, we’d love to help.

At Green Street Wealth Advisors, we work with dentists throughout Utah to help them understand their current financial picture, identify potential gaps, and evaluate whether they’re truly prepared for the next chapter of life.

Schedule a complimentary, candid retirement readiness discussion with our team.

We’ll help you explore questions like:

• Am I financially ready to retire?
• How dependent am I on selling my practice?
• What retirement income sources will I have?
• Are there tax considerations I should be thinking about?
• What steps should I take over the next 1, 3, or 5 years?

No pressure. No obligation.

Just an honest conversation about where you are today and where you’d like to go tomorrow.

Contact Green Street Wealth Advisors today to schedule your complimentary retirement readiness discussion.

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