InSight

Dental Practice Financial Planning Offers Employee Retention and Attraction

Financial Planning Dentist

Dr. Koslow started his dental practice over 20 years ago and is proud to have grown to 6 dentists providing general and cosmetic dental services to children and adults. He and his team also really pride themselves on community give back. However, Dr. Koslow was finding that he wasn’t retaining staff as well as he wanted and the turn-over was costing him money. Employee Retention needed to become a priority.

He knew he needed to do more to attract and retain staff. He did some research and found that employees who are happy about their workplace benefits have been shown to be four times as likely to have job satisfaction. And it’s not a long walk to see how Employee Retention paid off in his practice.

However, he also discovered that only 40% (or less) of employees who want health insurance opt-in, while the other employees are left unsatisfied. Personalized but equitable benefit packages that meet the specific needs of the employees create the highest staff satisfaction.

Dental practice financial planning was Dr. Koslow’s solution.

Dr. Koslow brought in a dental financial advisor – someone who specialized in serving the unique financial needs of dental professionals. His staff was able to meet with the advisor on an individual basis to create their own plan according to their needs and time of their life. Some of these plans included:

  • Retirement planning
  • Investing in a dentist 401(k)
  • Saving for children’s education
  • Creating an emergency savings plan
  • Setting up life insurance
  • Reviewing disability insurance options

In addition, Dr. Koslow was able to create a more solid long-term plan for the practice. Giving the employees the opportunity to invest in their retirement, children’s education, and savings goals has built company morale and supported effort to increase Employee Retention. “We tend to be a conversive bunch and stability speaks volumes. I knew providing a financial planning professional would build that.”

Providing security and stability was key in creating a retention and attraction plan, and it was at no cost to Dr. Koslow. This is an ideal solution for businesses with tight budgets, especially when that has limited them from offering benefits in the past.

Studies show about 82% of employees choose a company, or stay with a company, because of their retirement benefits. This means offering retirement planning, as well as other financial planning, helps with both attraction and retention of quality staff. Those with tight budgets who want to create employee job satisfaction and help employee retention need look no further than dental practice financial planning.

Is your dental practice experiencing turn-over or a shortage of valuable, personalized benefits? Are you concerned about long-term financial health or you or your practice? A dental financial advisor can meet with you to better understand your personal and professional goals and offer a variety of solutions to create the security and stability needed for longevity and financial health in your practice. Give us a call today to learn more about dental practice financial planning.

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The Tangible Lessons of Money: Why Kids Should Start with Physical Cash Before Going Digital

In an era where digital transactions and virtual currencies dominate the financial landscape, the value of understanding physical money should not be underestimated, especially for children.  The transition from earning, saving, and spending physical cash before delving into more modern financial methods offers a wealth of indispensable lessons that build a strong foundation for financial literacy. This article explores why it’s crucial for kids to grasp the tangible aspects of money before embracing the virtual alternatives and why the painful lessons of losing or misplacing cash hold invaluable teachings. Hands-On Learning Physical cash serves as an excellent teaching tool for introducing kids to the concept of money. Tangible currency provides a sensory experience that engages sight, touch, and even sound. Children can hold, count, and visually differentiate between various denominations. This tactile interaction fosters a deeper understanding of the value of money compared to merely viewing numbers on a screen. Real-World Connection Money is an abstract concept for young minds. Like distances or time children may find it hard to construct a framework for learning these ideas. Unlike other abstract ideas, money has a physical representation in the form of currency. Physical currency bridges the gap between this abstraction and the real world. Kids can connect chores, allowances, and monetary rewards with the physical notes and coins they receive. This connection lays the groundwork for comprehending the value of work, patience, and the trade-offs associated with spending choices. Delayed Gratification Physical cash creates the proper “challenge of delayed gratification.” When children can visually witness their money pile up, and have it in their possession they are challenged with the impulse to spend it. My mom always said it was “Burning a hole in my pocket.” If children are never confronted with that impulse, that sense of urgency, they will rarely overcome it. Conflict is an important part of our development of Good money habits. The act of saving becomes more tangible when they see their funds grow over time. This valuable lesson in patience and discipline paves the way for healthier financial habits in the future. Understanding Loss and Consequences One of the most profound lessons that physical money imparts is the experience of loss. While parents naturally shield their children from the pain of losing or misplacing money, this very pain provides an essential life lesson. The emotional impact of losing a few dollars due to carelessness can be a powerful incentive for kids to be more responsible with their possessions and money. This is definitely a point of conflict I reach with other parents, who chose to insulate their children from this pain – though I would rather my child experience the devastation their carelessness has from the loss of say $20, then $20,000.   These losses, though small, teach resilience, accountability, and problem-solving skills that virtual transactions often lack. I know this might seem like a “willful” intent to have my children experience pain…and it is…but I think it’s an earned lesson that we ought not to rob our children of.  Lessons in Budgeting Physical cash inherently imposes limits on spending. Kids can visually see when their wallet is getting emptier, which prompts them to make choices about what they want versus what they need. This limitation introduces them to the concept of budgeting, a skill that becomes increasingly important as they navigate more complex financial scenarios in the digital world. DON’T PAY THE SALES TAXES OR SHIPPING COSTS!!! Another essential lesson that physical cash transactions can teach kids is the concept of sales taxes. I see many parents paying the sales tax or shipping costs of purchased items. Just Don’t; this is a huge opportunity to teach a lesson about where taxes come from and the effect it has on buying power. While these taxes might not be explicitly stated on price tags, they are a part of many purchases. When kids pay with physical money, they often hand over more than the price of the item due to sales tax. This provides a valuable opportunity to discuss the role of taxes in society, as well as the importance of understanding the total cost of an item. By engaging with these real-world examples, children gain insight into how governments fund public services and the broader economic landscape. I have had to see my child walk out of a toy store in tears because he had to put an item back as the result of sales tax…this lesson is priceless! He wasn’t mad at me, he was mad at taxes. In the digital age, it’s easy to browse online marketplaces and make purchases with a few clicks. However, the true cost of an item might not be immediately apparent. Shipping fees can significantly increase the total expense, especially for items ordered from different locations. When kids use physical cash for purchases, they have a chance to experience the cost of this convenience firsthand. Whether it’s buying a gift online or ordering a favorite book, involving children in the payment process allows them to witness the final price and the added shipping cost. This lesson highlights the importance of considering all expenses before making a purchase, promoting critical thinking and wise decision-making. A Concrete Value of Money In the digital realm, the value of money can feel elusive, as transactions are reduced to numbers on a screen. Physical cash, on the other hand, provides a concrete representation of that value. Kids can witness the exchange of goods or services for money firsthand. This real-time experience helps them understand that money is earned through effort and must be spent wisely. Embracing Technology Later The transition from physical cash to digital transactions becomes more seamless when kids have a solid foundation in understanding money’s tangible aspects. Armed with lessons in earning, saving, spending, loss, and budgeting, children can approach the digital world of finance with a more critical mindset. They are better equipped to navigate the complexities of online banking, digital wallets, and virtual currencies, making informed decisions that align

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Investment Bias: Confirmation

Confirmation bias is the natural human tendency to seek specific supportive sources, or overemphasize information confirming our decisions. People will often come to a conclusion, then seek information confirming the decision. Think about buying a car, once you bought the car your brain starts to highlight all the other similar cars on the road. Surely we are not conceited enough to think “there are more of this make and model because I bought the car” and yet your brain helps to draw it into our registry. It might seem backwards, but the seeking alpha and motley fools of the world know this and generate searches and lists confirming your already held conclusions. Confirmation bias can lead investors to be overconfident in an outcome, and as a result over allocate to a position and under hedge a risk. The investment consequences of this confirmation bias may also couple easily with some of the other biases we have discussed, most easily anchoring, endowment, and loss aversion. These “price point biases” are only entrenched when an investor seeks out other support for their price point. Here is a great example of this in action: Open a fresh google search and type in “is (insert company name) stock a”, and stop. Now look at the results, it will likely say “buy”, “good buy”, “good time to buy”, this is a feedback loop Google knows searchers want. Notice the lack of objectivity in the results? Our brains work similarly. We have a conclusion, then seek the supporting evidence to justify it. This overconfidence can result in a false sense that the decision is correct, and risk is not being properly rewarded. Which increases the likelihood of a misstep. A series of psychological experiments have confirmed that in our decision making process, we expel contrarian view points early and to the detriment of rational. We carry a tendency to test ideas in a one-sided way, focusing on one possibility and ignoring alternatives. Explanations for how our brain alters the observed includes wishful thinking and the limited human capacity to process a high volume of conflicting information. Another explanation, and one that might be more insidious, is that confirmation bias helps protect us (at least our ego) from the costs of being wrong.  Rather than investigating in a balanced, objective, and scientific way our brains protect us early from the possibility of having made a mistake through confirmation bias. This is an obvious investment bias. Being overly critical of criticism, and overweighting the value of consensus is not unique to investing. It happens with all of our strongly held beliefs. But investing carries the permanent impairment of wealth. I’ve even heard investors say, “this is why I get a diverse range of opinions, and use several brokers.” That doesn’t solve the bias however. It isn’t the range of options, or the volume of ideas you are evaluating. Recall that Google result was broad, and deep in its sourcing. But it’s the way the brain fabricates a positive or negative weighting as it processes that information that is the root of the bias.

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How do I plan for retirement if I’m no longer working (stay at home parent)?

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