A high income is a powerful tool, but it forgives fewer mistakes than dentists think. The pattern we see again and again isn’t bad luck — it’s a handful of avoidable decisions: spending ahead of saving, no written plan, the wrong insurance, and putting everything into the practice. Here are the big ones and how to sidestep them.
Why do high-earning dentists still struggle financially?
Because wealth is built from what you keep, not what you earn. A dentist can earn in the top few percent of households and still feel behind — the income arrives, but taxes, debt, and lifestyle absorb it. Almost every mistake below is a variation on that theme: the money comes in and quietly leaves before it ever gets a job.
The mistakes we see most
1. Lifestyle creep
The doctor house, the doctor cars, the doctor vacations — each reasonable on its own, together they set a spending floor that eats your savings rate. Growing your lifestyle slower than your income is the single most powerful financial habit a dentist can build.
2. No written plan
Many dentists have accounts but no plan connecting them — no target savings rate, no defined goals, no idea whether they’re on track. Without a plan, “I make good money” substitutes for actually knowing. A written plan turns a good income into a defined outcome.
3. Under-saving and starting late
Dentists start earning later than most professionals thanks to school, so lost compounding is expensive. Waiting to “start investing next year” for several years in a row is one of the costliest habits there is. Aim for a savings rate of at least 20% of gross — see where a dentist’s income goes.
4. The wrong insurance mix
Two errors are common: being sold expensive whole life insurance that isn’t needed, and skimping on disability insurance that is. Your ability to produce is your biggest asset while you’re working — protect it properly and skip products you were sold rather than chose.
5. Everything in the practice
The practice is a great wealth engine, but betting your entire future on a single sale is fragile. Build assets outside the practice so your retirement doesn’t hinge on one transaction going perfectly.
6. Ignoring proactive tax planning
Most tax savings come from planning ahead — entity choice, retirement-plan design, timing — not from filing season. Treating your CPA as a once-a-year historian rather than a year-round planning partner leaves money on the table. See tax planning for owners.
7. DIY-ing complexity — or trusting the wrong “advisor”
As the picture gets complex, some dentists wing it and others hand it to a commissioned salesperson dressed up as an advisor. Both are risky. Knowing how to choose a genuine fiduciary is itself one of the most valuable financial decisions you’ll make.
Frequently asked questions
Letting lifestyle grow as fast as income. A high income spent as fast as it’s earned still leads to financial stress — just at a higher level. Controlling lifestyle creep and automating a strong savings rate prevents most other problems.
Build a written financial plan with a target savings rate, automate the saving so it happens first, carry the right insurance (strong disability, term life), diversify beyond the practice, and work with a fee-only fiduciary and a proactive CPA. Those habits address nearly all of the common mistakes.
Founder & Financial Planner · Investment Adviser Representative · Series 63 & 65
Ian McGinnis is the founder of Dental Wealth Partners and a fee-only financial planner dedicated to dentists. As an investment adviser representative (Series 63 and 65), he built the firm to give dentists coordinated, fiduciary advice across their practice, taxes, investments, retirement plans, and long-term goals — the whole picture in one strategy. A graduate of Belhaven University, Ian previously worked at Davis Private Wealth, MML Investors Services, and Northwestern Mutual, and is based in the Jackson, Mississippi area. He is the author of The Wealthy Dentist and hosts the Smiles & Cents podcast.
Keep reading
- Where does a dentist’s income actually go?A high income doesn’t automatically build wealth. Here’s how a dentist’s dollars get divided — and the savings rate that decides whether you get ahead.
- Term vs. whole life insurance: what do dentists actually need?Most dentists are best served by term life insurance plus investing the difference. When whole life makes sense — and why it’s so often oversold.
- How should a dentist choose a financial advisor?Not all “financial advisors” are the same. The questions a dentist should ask — about fiduciary duty, fee-only pay, and dental experience — before hiring one.