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How should a dentist choose a financial advisor?

Ian McGinnis, Founder & Financial PlannerPublished 3 min read

Short answer: choose a fee-only fiduciary who works with dentists — and confirm it in writing. The word “advisor” is used by genuine fiduciaries and by product salespeople alike, so the job is to tell them apart. A few direct questions will do it.

Why is choosing the right advisor so hard?

Because the title “financial advisor” is nearly unregulated as a label. A fiduciary planner and a commissioned insurance salesperson can both hand you a card that says “advisor.” They operate under different legal standards and get paid in completely different ways — and those two facts determine whose interests come first.

What does “fiduciary” mean, and why does it matter?

A fiduciary is legally obligated to put your interests ahead of their own, at all times. That’s a higher bar than the “suitability” standard some salespeople operate under, where a product merely has to be appropriate — not best — for you. Always ask, plainly: “Are you a fiduciary 100% of the time?” and get it in writing.

How is the advisor paid?

This is the most revealing question you can ask, because compensation drives behavior. There are three broad models, covered in depth in our guide to fee-only vs. fee-based vs. commission:

How advisors get paid
ModelWho pays themConflict of interest
Fee-onlyYou, directly (flat, hourly, or % of assets)Lowest — no product commissions
Fee-basedYou and product commissionsMixed — can still sell commissioned products
CommissionProduct companiesHighest — paid to sell

Does dental experience actually matter?

A lot. A generalist may be excellent with a portfolio but unfamiliar with the things that dominate a dentist’s financial life: six-figure student loans, buying a practice, DSO offers, practice overhead, and transition planning. An advisor who speaks dentistry fluently spends less time getting up to speed and more time adding value.

What questions should I ask before hiring one?

  1. 1Are you a fiduciary 100% of the time — will you put that in writing?
  2. 2Exactly how are you paid, and do you earn any commissions or third-party compensation?
  3. 3What is your experience working with dentists and practice owners?
  4. 4What services do I get — investment management only, or comprehensive planning (tax, insurance, transitions)?
  5. 5Who will I actually work with, and how often will we meet?
  6. 6Can you show your Form ADV and disclose any disciplinary history?

How do I verify what an advisor tells me?

Trust, then verify. Registered investment advisers file a Form ADV you can read, and you can look up any advisor’s registration and disciplinary record through the SEC’s and FINRA’s public tools. A genuine fiduciary will hand you these before you ask.

Frequently asked questions

  • For most dentists, a fee-only fiduciary who specializes in working with dentists. Fee-only means they’re paid only by you, with no product commissions; fiduciary means they’re legally required to act in your best interest; and dental experience means they understand practices, dental debt, and transitions.

Sources

  1. SEC — Investment Adviser Public Disclosure
  2. FINRA — BrokerCheck

About the author

Ian McGinnis

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.

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