My Two Cents: Building a legacy of generosity: The power of giving
Years ago, I met a soccer coach who was an exceptional man with a big heart. At the time, he lived in a rundown apartment, in a neighborhood where anybody might feel dejected. Despite his humble homelife, he was a top-notch authority on coaching kids on and off the field, and he was a perennial giver. I remember he bought a young boy whose mother was on welfare a new pair of cleats. That’s just who he was. This coach embodied a mix of compassion and pride every single day. While it’s been a while since I last saw this gentleman, I know he no longer lives in a terrible apartment on the wrong side of town. Once the world got wind of his altruistic nature, all sorts of doors opened for him. This coach embodied a mix of compassion and pride every single day. While it’s been a while since I last saw this gentleman, I know he no longer lives in a terrible apartment on the wrong side of town. Once the world got wind of his altruistic nature, all sorts of doors opened for him. Give with authenticity To this day, I take cues from this wise man when it comes to serving others, and I encourage my clients to follow suit in their businesses—give with authenticity rather than with expectation. Do nice things for other people for no other reason other than it feels good. I can’t scientifically explain what happens, but I know from years of experience that the results are beneficial for everyone. Some may consider this karma. I refer to it as esprit de corps. If you’re not familiar with the term, Merriam-Webster defines it as “a feeling of pride, fellowship, and loyalty shared by members of a group.” Whatever you call it, just know that you want it in your organization and that it starts with you. I’ve spoken for years about cultivating an abundance mindset. Live generously, and you’ll see how generous life can be toward you in return. Act from the standpoint of scarcity, and you’ll witness opportunities drying up as the entire will of your organization withers in accordance with your own cynicism. How to blend generosity and profit I can’t stress enough that goodwill outperforms cutthroat conduct in every business imaginable. How exactly does one display generosity when trying to be profitable in the highly competitive dental sphere? I’m not suggesting that you let patients off the hook for unpaid bills. Nobody should have to work for free, including dentists. Although, if you notice a patient struggling to pay, your willingness to work with them on a payment plan might be a good starting point. In general, though, to truly promote esprit de corps, you must put the well-being of your employees and patients front and center. People must matter most. Care for your employees so that your employees care for your patients, and then watch the world’s grace come full circle on your behalf. Interfere with that cycle in any way, and you’ll compromise the results. On paper, the benefits of being a giver make sense. But there’s always pushback from the skeptics, and I don’t blame them. Once someone takes advantage of your kindness, you learn to avoid getting stepped on again. There are three kinds of people: givers, takers, and matchers. These archetypes illustrate people who give without expectation, who take without limitation, and who insist on reciprocity. Thankfully, I rarely meet a dentist who falls in the second category; most are in the matching group. They give frequently, but with stipulations to guard their self-interest. I get it. When pesky takers stymie your interests, you want to cut them off. But should you? It depends on your temperament. I’m upbeat, and people often comment on my high energy. I entered my 60es not too long ago, and I feel like I’ve always felt—eager about life and who I get to serve next. My stamina isn’t a persona. I’m the same way at home as I am with my clients and colleagues. Most days, it seems I have an infinite energy supply and therefore an endless willingness to help in any way I can. My secret? I tend to my basic needs of adequate sleep and proper nutrition, and I mind my mental health. Doing so allows me to give freely without needing anything in return. I don’t fundamentally require anything from the people I help because I’ve fulfilled my needs. I interact with people for the fun of it, for the camaraderie, the collaboration, and the satisfaction of a job well done. That’s it. What about the takers? Do they lurk in the shadows awaiting someone like me? Maybe, yet I hardly ever run into them. The people in my circle are those with energy like mine. We play perfectly with one another, and others like us join in the fun. It’s an ongoing process, thus our circle keeps growing. We’ve got the takers outnumbered. They feel uncomfortable around us. Take these ideas to heart In a nutshell, this is the secret to giving unabashedly. Remember that others can tell if you’re giving with strings attached. Serve with expectation, and you’ll be in a state of constant disappointment from others’ unwillingness to reciprocate. Instead, learn to honor yourself first. When you start your day, make sure that you’re nourished, well-rested, and in a good mood. Then let your bliss carry you smoothly throughout your day as you go from helping one person to the next. It’s how servers make stellar tips, how salespeople make phenomenal sales, and how dentists grow thriving practices. Ask, “What can I do for you?” In due time, others will ask you the same. Since you’re already happy, every new blessing that comes your way will simply be a bonus. Editor’s note: This article appeared in the April 2025 print edition of Dental Economics magazine. https://www.dentaleconomics.com/money/article/55271942/my-two-cents-building-a-legacy-of-generosity-the-power-of-givingDentists in North America are eligible for a complimentary print subscription. Sign up here.Mark B. Murphy, CEO
My Two Cents: You can’t know it all: Team with other experts, and you’ll excel
Building and maintaining a network of brilliant innovators is fundamental to my success as an advisor. I’ll go so far as to say that no business can flourish without a steady stream of cutting-edge input from experts in fields outside your own. Recurring success stems from the collaboration of diverse minds. Intellectual access is key to what I do each day, which is why I had a recent meeting with Dr. Glenn Krieger. A leading authority in the orthodontic community and a friend of mine, Glenn has made it his mission to mentor fellow orthodontists and other professionals in private practice. As a dental monitoring advocate and passionate technophile, he’s helped countless practitioners reach pinnacle heights in their markets through the implementation of state-of-the-art technology. If you’ve heard the term “orthopreneur,” then you’ve likely been exposed some of Glenn’s philosophy. He launched the Orthopreneurs podcast in 2018, and it’s received numerous accolades and is among the top 2% of downloaded podcasts worldwide. Perhaps Glenn’s most noteworthy achievement is founding Remote Response, an AI-driven application that virtually eliminates the need for in-house dental monitoring. Not only does Remote Response reduce a practitioner’s stress and operating expenses, but it provides doctors and patients vital feedback regarding treatment while ensuring superior outcomes. It’s nearly impossible to overstate the sheer ingenuity of a mind like Glenn’s. Upon graduation at age 24, he was the youngest dentist ever at the time in the US. Twenty years later and looking to further his training, he became the oldest known orthodontic resident. Having built a thriving synergistic practice, he envisioned how advancements in technology could grow his business exponentially and catapult his success. In the process, he became a pioneer in blending dental management with newly emerging automated systems, which ultimately led to the development of Remote Response. Why expert support is crucial Without getting into too much technical jargon, I’ll highlight the importance of my relationship with people like Dr. Glenn Krieger, and why you want people like him in your corner. Not only is he brilliant, but he’s a natural-born teacher who champions the success of others. I consider myself smart, and the smartest thing I can do is surround myself with people who are more knowledgeable than me in different areas, and who can guide me toward my goal. If you’re curious about what automated dental monitoring can do for you and the productivity of your staff, I encourage you to check out what Glenn developed at remoteresponse.com. For those simply looking for new ways to enhance their business, tune into the Orthopreneurs podcast. Glenn is a master at revealing insights through easy-to-digest segments. In a recent episode, one that I found particularly enlightening, he outlines (in a little over 10 minutes) how to free weeks of your time by simply using the power of common AI programs such as ChatGPT. He uses the example of an orthodontist agonizing over the wording of an email response to a patient complaint. He emphasizes that the entire message can be written perfectly and succinctly with little more than a brief indication of what tone you’d like the message to have. In short, the task shouldn’t waste 45 minutes of your day when it can take a few seconds with AI. Freeing your time is at the heart of what I teach. If generational wealth is your goal, then efficiency must be the name of the game. I encourage every one of my clients to be on the lookout for new ways to leverage not just their time, but also the time of their staff. Time is money, and wasted time means wasted energy. In case you haven’t noticed, wasted energy is what throws both your team’s and your morale into a ditch. If you’ve ever climbed out of such a hole, then you know it’s exasperating, so it’s better to avoid a ditch altogether. Effective leaders learn to navigate around pitfalls. But how? That’s where people like Glenn and I come in. You don’t need to be a tech wizard. You simply need one in your court. How about a dedicated team of experts? Glenn has assembled a cadre of associates who have dental monitoring down to a science, and it’s all done remotely. The result? You and your staff can focus less on menial duties and more on providing superior service to your patients. Want to take your time? Some of my clients see the big picture right away and dive right in. Others like to dip their toe in the water first. If that’s you, then take a minute to poke around and see what Remote Monitoring can do for you and your practice. There eventually comes a point when you need dedicated expertise to grow your business. None of us got where we are by working in a vacuum. Collaboration is vital to all our successes, no exception. Even if the only resource you can spare right now is a few minutes of your time, you’re in luck. Tune into Glenn’s Orthopreneurs podcast, or my podcast, The Hero of the Hour. Have a listen, and you’re bound to glean some wisdom to tuck in your back pocket. The best part? It won’t cost a single cent. Keeping an ear to the ground is an easy way to navigate your way to greater prosperity. Experts maintain and improve their level of mastery by consulting with fellow experts, particularly those outside their own realm. A decent dentist works to build up his patient roster. A better dentist invests in his staff members. The best dentists? They continually grow their entire network, engaging not only with patients and staff, but also with a consortium of industry leaders who can show them the path to unlimited success. Editor’s note: This article appeared in the March 2024 print edition of Dental Economics magazine: https://www.dentaleconomics.com/money/article/55259944/my-two-cents-you-cant-know-it-all-team-with-other-experts-and-youll-excelDentists in North America are eligible for a complimentary print subscription. Sign up here.Mark B. Murphy, CEO of Northeast Private Client Group, is an accomplished author, speaker, and motivator who’s revolutionizing the financial planning and wealth
The Key to generational wealth using “buckets”
Building generational wealth takes a plan, discipline, and an accountant who has your best interests in mind. A good strategy is using buckets. A great big pile of money may seem like the answer to all your hopes and dreams. As an advisor to private practitioners for more than 40 years, I want all the dentists who come to me for guidance to reap the benefits of wealth built to last for generations. The catch? The goal cannot be immediately centered around a lavish lifestyle. A truly abundant mindset revolves around financial acuity, and more specifically, consistent and intelligent investing. It might seem counterintuitive, but hiring the right accountant is key to your wealth-building journey. For more insight about the integral role that accounting plays in the creation of generational wealth, I spoke with Bill Ladd and Jared Duckett with the accounting firm Duckett Ladd. As CPAs and cofounders of the firm dedicated exclusively to the business of dentistry, Bill, Jared, and their team have established an irrefutable framework for lasting prosperity. Where buckets come into play Instead of viewing wealth as a single entity, they encourage clients to see it as a plurality. In essence, money shouldn’t be lumped into a pile, but rather allocated into distinct buckets. For example, take your business bank account. Dentists whose bank balance has enough to meet all their expenses are poised for success, provided they know what to do with the remains. Tempting though it may be, the blance shouldn’t go directly toward a lifestyle upgrade. Yet that’s the number one mistake struggling private practitioners make according to Bill and Jared. As mentioned earlier, aspiring wealth-builders need to tend to their buckets, with the first one being adequate reserves. Emergencies happen. Think a line of credit can get you out of a jam? Think again. Routinely piling on debt due to insufficient funds can ultimately squelch your means to profitability. While it’s unreasonable to accurately forecast when equipment will break or when your office will need a new HVAC unit, it’s safe to say that snags will occur. As long as you maintain ample liquidity in a dedicated fund, any emergencies that creep in won’t negatively impact your bottom line. How much should you have on hand? A solid cash position equivalent to 10% of annual revenue is a good benchmark. Additionally, an emergency fund requires maintenance. On those occasions when you make a withdrawal from it, you need to refill the hole during the coming weeks or months. It might seem obvious, but those who forgo this crucial step will eventually chip away at their reserves until nothing remains. Once you’ve developed a proper safety net, or contingency fund, it’s time to build your tax reserves. Unlike emergencies, taxes are not only inevitable, but their cost is fairly predictable, which is why you need a dedicated account apart from your rainy-day fund. Draining your emergency reserves to pay the IRS on April 15 is a precarious proposition, particularly since your tax liability will likely outweigh what you’ve set aside for emergencies. There should be no springtime scramble to pay your tax bill, especially when the deadline is so well known. You simply need a second bucket from which to pay your obligation. Setting aside 30% of net revenue is a good rule of thumb. If you’ve hired a great accountant, you’ll likely have a sizable leftover sum in your account after you’ve paid the IRS. Leave this for subsequent tax years and you’ll reduce the percentage you’ll need to continually earmark in the future. Growing your wealth When both these buckets are full, you’re in a highly enviable position. You’ll have no issues maintaining day-to-day operations, and no IRS or unexpected predicaments will pose a threat to your existence. The growth of your wealth can now take center stage. In comes the third bucket, which is less defined than the first two and can be further broken down into various sub-buckets, all in the category of investments. Expected returns on your investments will determine your course of action, specifically which new buckets to focus on. Bill and Jared have a belief about investing that I wholeheartedly espouse, which is that the highest ROI comes from investing in yourself and your business. However, strategy is paramount. Before you shell out tens of thousands of dollars on brand-new dental equipment, you must have a sense of the profits such an investment will yield in the next one to five years. An accountant can give you a rough idea. You may learn that you’re better off buying gently used equipment. Aside from upgrading your toolbelt, there are numerous other investment buckets. In addition to helping you with traditional investments such as retirement accounts and similar savings vehicles, your accountant can help you navigate opportunities outside your dental practice. Creating substantial future wealth for you and your family might include real estate ventures or joint collaborations with other stakeholders, within or outside the scope of dentistry. There are no limits other than what’s both profitable and appealing to you. If the thought of taking on more projects makes you apprehensive, know that it’s perfectly acceptable to go slow. If you’re comfortable with your current rate of growth, you can shift your focus toward paying down debt, particularly if you’ve financed it with high-interest loans. Paying off your loans might not be as exciting or lucrative as, say, purchasing a second practice, but it’s an infinitely better use of your resources than prematurely buying a boat. It’s true that accountants tend to be disciplined and cautious in their approach to finances, which may lead you to wonder if there will ever be a time when you can upgrade your lifestyle. The answer is yes. However, an accountant will tell you exactly when and by how much. If having generational wealth is the goal—and Bill, Jared, and I all agree that it can be yours if you want it—then your level of luxury can’t outpace your
Inspiring future dental entrepreneurs
As a father of two daughters and three sons, I’m faced with the task of guiding these young adults to become the best version of themselves. Part of me wants them to follow in my footsteps and embrace the life of an entrepreneur. I see the benefits of being master of my own fate and never needing a vacation away from my own life. You don’t retire from such a joyous mission. Once you become an entrepreneur, you stay the course for the rest of your days. When you have it good, it’s natural to want your children to have what you have and build upon it even further. For many business owners, the most logical move is to hand their children the keys to their empire. Tread with caution. I sometimes must remind myself that my children have their own aspirations. They don’t have to become entrepreneurs. My job is not to steer them one way or the other, but to encourage them to fulfill their inner calling. Only about 5% of people have an entrepreneurial mindset. I find that most people would rather work in an organization than create a new one themselves. This makes sense when considering the number of employees it takes to run a thriving business. On the other hand, it’s not uncommon for entrepreneurs to raise future entrepreneurs. It’s not rare for dentists to raise future dentists; just no guarantees, of course. Before you drill into your son’s or daughter’s head that the good life you’ve created should be the one they want, remember how you felt when you stood in their shoes. What went through your mind when you were figuring out how to spend the rest of your time on this planet? Chances are good that your ideas weren’t in lockstep with your parents’. If they tried to persuade you against your wishes, you likely felt some resentment. It can feel miserable when someone attempts to squelch your dreams and supplant them with their own. Your desires exist for a reason, and to deny them is self-betrayal. When you realize you can’t control your kids’ future, do you give up parenting? Obviously not. There’s an important distinction between coercion and influence. As a successful entrepreneur and parent, you wield tremendous influence over many people in your life, including your children. The best way to guide future entrepreneurs Keep in mind that you lead by the clarity of your example rather than the cacophony of your rhetoric. In other words, your success speaks for itself. When your children see you with a happy life, they pay attention. When they ask questions about your success, be open and transparent. That’s your invitation to let them in on your trade secrets. Receptivity is key, and when they approach you, rest assured that they’re ready for your wisdom. When you have their attention, you might wonder what to say so as not to dispel their interest. Author and engineer Robert Byrne said, “The purpose of life is a life of purpose.”1 Purpose is a great starting point, but what does it entail? For me, it stems from being joyously of service to others. When you teach your children that their natural talents are tied to exhibiting a life of service, they’ll identify and trust their inner calling. Entrepreneurship involves a wide spectrum of interests. It takes a blend of science, art, and psychology, among other disciplines, to build a business. If you want your children to seek their inner entrepreneur, let them explore their natural curiosities. I consider myself a lifelong student. I’m a huge proponent of higher education, and I’ve steadfastly encouraged all my children to pursue a degree. However, college is far from the only education I recommend. In most cases, getting a job is an even more efficient way to advance your education. Not only is there no tuition, but your employer pays you to learn. What an entrepreneur path looks like If you really want to get down to it, the path of an entrepreneur starts long before the business license. Tell your children as they enter the workplace to consider themselves the boss of their time. They might not own a company yet, but they own their choices. Tell them that the growth and maintenance of their network is as important as their ongoing education. Also, teach them the importance of saving early on. It’s risky to leave an employer to start your own business if you don’t have adequate savings to support you when you start out. Even if your children don’t aspire to start a business, remind them of the leverage that comes with having significant capital in the bank. It’s nearly impossible to take any professional risk living paycheck to paycheck. Will your children listen to your advice? Not all the time. What you can do, however, is monitor your own behavior. Children tend to mimic their parents, especially when they see them living happy and successful lives. If you can demonstrate your passion for your work and your willingness to serve your community, your children will take note. Put your appetite for knowledge on full display, and they’ll hunger for great intellect right alongside you. If you can show them how impeccably you regard your finances, and more importantly, your relationships with others, then your children’s success, regardless of their chosen endeavor, is a sure bet. Editor’s note: This article appeared in the January 2025 print edition of Dental Economics magazine:https://www.dentaleconomics.com/money/article/55247103/inspiring-future-dental-entrepreneursDentists in North America are eligible for a complimentary print subscription. Sign up here.Mark B. Murphy, CEO of Northeast Private Client Group, is an accomplished author, speaker, and motivator who’s revolutionizing the financial planning and wealth management industry. He helps entrepreneurs achieve multigenerational wealth through personalized strategies, leveraging his strategic planning and financial engineering expertise. Forbes has ranked him as the number one financial security professional in New Jersey and number 15 nationwide. Additionally, his book, The Ultimate Investment, is a number one bestseller and new release on Amazon.
What I learned from two dental legends
We can all learn from each other. Consultants, leading dentists, and everyday dentists all have life stories and good advice to share. Have you ever wondered what you would include in a book about your life? I’m a firm believer that everyone has a remarkable story to tell, one that others could benefit from hearing. One of my life missions is giving people the opportunity to recount their lives in a way that gives new insight to the world. My own journey wouldn’t be nearly as satisfying if it weren’t for the encouragement I gleaned when learning about the triumphs of giants in our midst. I recently had the opportunity to reunite with two such champions in the dental industry. Although they will humbly deny it, they’re legends in their own right. The first is Fortune Management COO Kim McGuire, who has established herself as a leader in the world of dental advisory. With more than 20 years of experience in a leading dental consulting firm, Kim has shown me time and again her deft hand at crafting innovative strategies and win-win outcomes for her clients. One of her most notable clients is the newly elected president of the ADA, Dr. Brett Kessler. When I met with them, I picked their brains for advice. What I walked away with was even more engaging and enlightening than I’d anticipated. What these two influencers shared When Dr. Kessler began his practice in Denver many years ago, he thought unconventionally. Alongside his wife Gina, an orthodontist, he opened a unique one-stop shop for oral health. Getting their business off the ground was a mix of successes and failures, not unlike most private practitioners. Thankfully, they knew to seek guidance. In came Kim and Fortune Management, and she turned their business around seemingly overnight. As an outsider, Kim identified problems in plain view that weren’t visible to those on the inside. Kim articulated exactly what needed to be done to rectify every issue. My favorite part is that Dr. Kessler insists Kim didn’t tell him anything he didn’t already know. His weak area? He didn’t know how to express what he knew. But Kim did. I frequently talk about the key role communication plays in a well-run practice. Most people aren’t born genius communicators. Dentists are no exception, so it should come as no surprise that even a brilliant mind like Dr. Kessler’s struggled to get his staff to do what he knew they needed to do. In time, leaders become proficient at getting everyone up to speed, but until then, they hire people like Kim, who know exactly how and where to fill in the gaps. That’s the role of a good consultant. Dr. Kessler admitted that Fortune Management wasn’t the first firm he’d hired. He found out the hard way that hiring a consultant bent on doing things their own way is a recipe for disaster. Instead, he says the key with Kim was her insistence on understanding the vision he and his wife had already established and then working within those parameters. There is no one-size-fits-all approach when it comes to managing a private practice, so steer clear of those who try to peddle them. Dental practices win via differentiation, never conformity. Dr. Kessler’s vision for ADA Appreciating diversity in all aspects of dentistry is a priority for Dr. Kessler as the new ADA president. He holds firm to the idea that doctors typically know how best to care for their communities, and that a variety of solutions to pressing issues need to be acknowledged and supported. A recurring theme in his message is the importance of working with purpose, which means something unique to every practitioner. However, wellness must be at the heart of everything we do. Every dentist must nurture the physical, emotional, intellectual, social, and spiritual aspects within themselves to ensure lasting success. In my view, Dr. Kessler is a leading voice when it comes to the betterment of one’s life. He believes wholeheartedly in every word he teaches. He doesn’t shy away from discussing his 25 years of sobriety. He says that no matter the trajectory someone is on, it can be changed. A first job immediately after dental school doesn’t seal someone’s fate. Dr. Kessler turned his life around from a substance abuser to becoming the president of the Colorado Dental Association and a fitness enthusiast in his 50s who’s completed numerous marathons and Ironman competitions. In his ADA capacity, Dr. Kessler espouses the value of being an ADA member. Dentists who belong to the organization gain insight and support to strengthen their practices and communities. Bringing his human version of dentistry, Dr. Kessler aims to focus on wellness in the broadest sense, leaving behind old modalities rooted in convenience rather than what will benefit everyone. Ultimately, Dr. Kessler wants dentists to know they don’t have to go it alone. A lone wolf mentality serves no one. He likens his relationship with Kim McGuire and Fortune to that of a personal trainer. A great advisor keeps their clients focused and accountable, and they don’t let up until the clients succeed. He couldn’t bear to let Kim down, which meant he refused to let himself down. Failure was not a possibility when he brought her into the fold. I remind my own clients that whether they write a book or not, they’re the author of their own life. Don’t underestimate the task, and don’t leave it to chance. Those of us who have elevated our businesses to new heights depend on the wisdom of coaches and advisors to get us there. I wouldn’t hesitate to reach out to Fortune Management to enlist a steadfast voice of reason like Kim McGuire. Take advantage of every benefit that the ADA provides its members and keep a close watch on Dr. Kessler as he brings the organization to a place it’s never been. Editor’s note: This article appeared in the September 2024 print edition of Dental Economics magazine: https://www.dentaleconomics.com/money/article/55137459/what-i-learned-from-two-dental-legends. Dentists in North
The Importance of Transparency in your Practice
Being straightforward with your team will earn their respect and get things done. Tell them what’s going on in the practice, and things will operate much more smoothly. When it comes to improving managerial aptitude, there isn’t a business owner or entrepreneur out there who doesn’t want to become a better communicator. It’s practically unimaginable that, in this information age, successful people don’t inherently understand the value of effective communication. As a private dental practitioner, you have a clear message you want to broadcast to everyone with whom you do business, both patients and employees. Through your words and actions, you want them to know that they can count on you. I believe everyone in your office has the same three questions for you—why what you have to say is important to them; how it’s going to help them; and if they can, in fact, trust you. That last one is the clincher. You need to earn their trust if you aim to keep them, and you can’t earn their trust unless you’re transparent regarding your intentions. If there’s anything I’m guilty of, it’s overcommunicating. I don’t hide my intentions, especially not from my staff. If you think that business is like a poker game and you must keep your hand to yourself, you’re going to lose a lot of people. You’ll come across as inauthentic or aloof, if not downright deceitful. How to institute a new policy When instituting a new policy, understand that you have every right as a business owner to change the way you conduct your office. But also expect that your people will want to know at least a general reason why they’re being asked to suddenly shift gears. Resist any temptation to throw your weight around. Don’t use “I’m the boss” as your justification. You want your team to embrace change, and they’ll be infinitely more cooperative if they understand your vision. Otherwise, they’ll pay you lip service and revert to doing things the old way behind your back. Most dentists I coach don’t have a problem with outlining their reasons behind business decisions once they get the hang of it. They understand the logic of bringing everyone up to speed and making sure they’re on the same page. Where it gets tricky is when mistakes happen, particularly when the dentist is the one who drops the ball. I promise that the sooner you confess, the better. There’s no shame in making mistakes as long as you own up to them as soon as possible. If you choose the opposite route and try to cover up your tracks, your people will not only find out about your mishap, but they’ll invariably make up a worse scenario in their heads about what you did and why you did it. Don’t let it get to that. It’s nearly impossible to earn back trust and respect once you’ve lost it. Own your mistakes Not surprisingly, owning up to your mistakes improves your overall trustworthiness while simultaneously showing your team the importance of being accountable for their mishaps. Oversights and misjudgments are part and parcel of doing business. Nobody is immune to making them. Thankfully, the vast majority of mistakes aren’t a big deal when they’re addressed in a timely manner. You catch it early, and you carry on with a newfound sense of clarity about how to do better. Unfortunately, that’s not the case when you’ve unwittingly created a culture of sweeping things under the rug. That’s when problems fester and become terrible thorns in your side. Remember that when you’re the boss, people follow your lead. So, make it clear that blunders are inevitable, particularly by acknowledging your own, and then demonstrate your willingness to learn as you go and let everyone else do the same. In time, such hiccups will become fewer and less consequential as you all find your groove and hone your skills. Avoid too much of a good thing While my intentions are to espouse the virtue of overcommunicating, I would be remiss if I didn’t emphasize that too much broccoli can kill you. In other words, you can have too much of a good thing and communication is no exception. Not everything that happens in the confines of your practice needs to be announced to your entire team. For instance, if a key employee needs time off because of something such as chemotherapy, keep the specifics private. Not only does federal law prohibit you from disclosing medical information about one employee to another, but doing so would instantaneously erode your trustworthiness. When you need to inform your team of an employee’s time away, simply state that they must tend to something urgent and leave it at that. Your staff will be sympathetic and cooperative even if they don’t know the details. There’s a fine line when it comes to open communication and transparency. Knowing what to say and when to say it is an art, and it’s not difficult to master. I’ve learned to read the room. I take a moment to gauge my surroundings, and then I calibrate my words to the person standing in front of me. Some of the people I coach appreciate when I’m “New York direct” with them. They not only can handle it, but they benefit from my refusal to mince words. However, I can’t be like that with everybody. For the most part, I’ve learned to approach people from underneath rather than come straight at them. Before I offer my critique, I make certain they know that I care about them and their success. On those occasions when I have a lot to get off my chest, I remind myself that a firehouse is hardly an effective way to water a houseplant. Sometimes when it comes to constructive and transparent communication, fewer words get the job done beautifully. Editor’s note: This article appeared in the September 2024 print edition of Dental Economics magazine: https://www.dentaleconomics.com/practice/human-resources/article/55131784/the-importance-of-transparency-in-your-practice. Dentists in North America are eligible for a complimentary print subscription. Sign up
How dentists can sidestep their business blind spots
Everyone needs to acknowledge that they have blind spots. Not addressing these in your dental practice can lead to problems in your business. When it comes to blind spots, perhaps the biggest one of all is assuming you don’t have any. But everyone has blind spots. Thankfully, they pose a serious threat only when we refuse to acknowledge them. Private dental practitioners, and business owners in general, intuitively understand how to maneuver around many potential blind spots. For example, you hire support staff. You’d miss out on a lot of business if you didn’t at least have a scheduler. Assuming you already have dedicated employees, the bigger question becomes: what might be hiding in plain sight that’s hindering your potential for greater success? I take pride in my ability to think on my feet and make quick decisions. Good leaders are often encouraged to make snap judgment calls, but therein lies a trap. Savvy opponents can pick up on your fast thinking and trick you into choosing a rash course of action in haste rather than an effective strategy. Don’t get me wrong. I’m not suggesting that bad actors are out there baiting you to fall for their deceit. But if you’ve developed a habit of taking swift action, take a breath first. Rarely does provocation need an immediate response. This is especially true when you receive harsh criticism. It’s natural to want to defend yourself, particularly when you’ve done nothing wrong. On the other hand, if you’re especially empathetic, you might do the opposite, which is immediately soothe the upset patient or employee. Proceed with caution. Neither approach is to your advantage. Pause briefly, and then clearly state your intent to seek more information. Let the other party offer their point of view before you tell them yours. Tell them you appreciate their feedback, and if you’re ready, offer a resolution. If you need more time, assure them they’ll receive a response once you’ve had time to decide. What can cause blind spots? While pulling the trigger too quickly may be the biggest culprit in worsening your blind spots, there are plenty of other considerations. Another big mistake I see is entrepreneurs who surround themselves only with those who think like they do. In my business, I don’t want partners who think like me. Do I want them to share my values? Absolutely! But I need people who are pragmatic, detail-oriented, or who habitually think outside the norm. The more pairs of eyes, the better. Together, we see what others can’t. If everyone agrees with you, then you’re poised to walk straight into a great big hole. Learn to be receptive when your teammates sound the alarm. It’s a great feeling to move forward in your business with confidence and ease. But don’t get cocky. I remind my clients that hubris and ego will bring them to ruin. Being overly confident is a blind spot in and of itself. Nothing puts a lid on future success like the stubborn refusal to learn and adapt. If we don’t learn, we get left behind. Be open see feedback and criticism as guidance. When you see a pattern in the feedback you receive, it’s time to pivot. You might soon realize that something is off kilter. You might be able to pinpoint what’s wrong based on the feedback you’ve been getting. But you still might not know how to solve it. Never fear. That’s where someone like me comes in. Why a consultant is a good idea As a key strategist, I’ve built my career seeing what others need to watch out for but aren’t in a position to sense for themselves. If there’s one lesson that sticks out above the others after being in this business for 40 years, it’s the impossibility of seeing the bigger picture from the inside. You can’t do it. But a willing team of experts from the outside looking in can see. If you’re in the midst of wanting to make a big shift in your organization, don’t try to do it alone. The risk is too great. Know that there’s guidance well within reach. Professionals like me are adept at providing essential insight, saving you tens of thousands, if not hundreds of thousands of dollars in avoidable mistakes. Your job isn’t to overcome every last one of your weaknesses. Instead, surround yourself with a people who know how to identify potential challenges and who will help you navigate around them. I encourage my clients to grow as big as they can dream, and then dream bigger. The caveat? I don’t let them do everything all at once, and I don’t let them do it alone. When it comes to charting unfamiliar territory, give yourself the benefit of time, and more importantly, seek various perspectives. You’ll gain the requisite clarity to see past potential blind spots and forge safely ahead. Editor’s note: This article appeared in the August 2024 print edition of Dental Economics magazine: https://www.dentaleconomics.com/money/article/55089160/how-dentists-can-sidestep-their-business-blind-spots. Dentists in North America are eligible for a complimentary print subscription. Sign up here.Mark B. Murphy, CEO of Northeast Private Client Group, is an accomplished author, speaker, and motivator who’s revolutionizing the financial planning and wealth management industry. He helps entrepreneurs achieve multigenerational wealth through personalized strategies, leveraging his strategic planning and financial engineering expertise. Forbes has ranked him as the number one financial security professional in New Jersey and number 15 nationwide. Additionally, his book, The Ultimate Investment, is a number one bestseller and new release on Amazon.
What’s So Great About a Rollover?
Changing jobs can be a tumultuous experience. Even under the best of circumstances, making a career move requires a series of tough decisions, not the least of which is what to do with the funds in your old employer-sponsored retirement plan. Some people choose to roll over these funds into an Individual Retirement Account, and for good reason. About 35% of all retirement assets in the U.S. are held in IRAs, and 62% of traditional IRA owners funded all or part of their IRAs with a rollover from an employer-sponsored retirement plan.1 Distributions from traditional IRAs and most other employer-sponsored retirement plans are taxed as ordinary income and, if taken before age 59½, may be subject to a 10% federal income tax penalty. Once you reach age 73, you must begin taking required minimum distributions from a Traditional Individual Retirement Account in most circumstances. Withdrawals from Traditional IRAs are taxed as ordinary income and, if taken before age 59½, may be subject to a 10% federal income tax penalty. Contributions to a Traditional IRA may be fully or partially deductible, depending on your adjusted gross income. Generally, you have four choices when it comes to handling the money in a former employer’s retirement account. First, you can cash out of the account. However, if you choose to cash out, you may be required to pay ordinary income tax on the balance plus a 10% early withdrawal penalty if you are under age 59½. Second, you may be able to leave the funds in your old plan. However, some plans have rules and restrictions regarding the money in the account. Third, you can roll over the assets to your new employer’s plan if one is available and rollovers are permitted. Fourth, you can roll the money into an IRA. Rollovers may preserve the tax-favored status of your retirement money. As long as your money is moved through a direct “trustee-to-trustee” transfer, you can avoid a taxable event. In a traditional IRA, your retirement savings will have the opportunity to grow tax-deferred until you begin taking distributions in retirement.2 Rollovers can make it easier to stay organized and maintain control. Some people change jobs several times during the course of their careers, leaving a trail of employer-sponsored retirement plans in their wake. By rolling these various accounts into a single IRA, you might make the process of managing the funds, rebalancing your portfolio, and adjusting your asset allocation easier. Keep in mind that the Internal Revenue Service has published guidelines on IRA rollovers. You generally cannot make more than one rollover from the same IRA within a one-year period. You also cannot make a rollover during this one-year period from the IRA to which the distribution was rolled over.3 Also, the Financial Industry Regulatory Authority (FINRA) has published some material that may help you better understand your rollover choices. FINRA reminds investors that before deciding whether to retain assets in a 401(k) or roll over to an IRA, an investor should consider various factors including, but not limited to, investment options, fees and expenses, services, withdrawal penalties, protection from creditors and legal judgments, required minimum distributions, and possession of employer stock.4 An IRA rollover may make sense whether you’re leaving one job for another or retiring altogether. But how your assets should be allocated within the IRA will depend on your time horizon, risk tolerance, and financial goals. 1. ICI.org, February 20242. The information in this material is not intended as tax advice. It may not be used for the purpose of avoiding any federal tax penalties. Please consult a tax professional for specific information regarding your individual situation.3. IRS.gov, 20244. FINRA.org, 2024 The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG Suite is not affiliated with the named broker-dealer, state- or SEC-registered investment advisory firm. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security. Copyright 2024 FMG Suite.
What Is a Roth 401(k)?
While many people are familiar with the benefits of traditional 401(k) plans, others are not as acquainted with Roth 401(k)s. Since January 1, 2006, employers have been allowed to offer workers access to Roth 401(k) plans. As the name implies, Roth 401(k) plans combine features of 401(k) plans with those of a Roth IRA.1,2,3 With a Roth 401(k), contributions are made with after-tax dollars – there is no tax deduction on the front end – but qualifying withdrawals are not subject to income taxes. Any capital appreciation in the Roth 401(k) also is not subject to income taxes. What to Choose? For some, the choice between a Roth 401(k) and a traditional 401(k) comes down to determining whether the upfront tax break on the traditional 401(k) is likely to outweigh the back-end benefit of tax-free withdrawals from the Roth 401(k). Please remember, this article is for informational purposes only and is not a replacement for real-life advice, so make sure to consult your tax professional before adjusting your retirement strategy to include a Roth 401(k). Often, this isn’t an “all-or-nothing” decision. Many employers allow contributions to be divided between a traditional 401(k) plan and a Roth 401(k) plan – up to overall contribution limits. Considerations One subtle but key consideration is that Roth 401(k) plans aren’t subject to income restrictions like Roth IRAs are. This can offer advantages to high-income individuals whose Roth IRA has been limited by these restrictions. (See accompanying table.) Traditional 401(k) Roth 401(k) Roth IRA Contributions Contributions are made with pretax dollars Contributions are made with after-tax dollars Contributions are made with after-tax dollars Income Limits No income limits to participate No income limits to participate For 2024, contribution limit is phased out between $230,000 and $240,000 (married, filing jointly), and between $146,000 and $161,000 (single filers) Maximum Elective Contribution* Contributions are limited to $23,000 in 2024, ($30,500 for those over age 50)* Contributions are limited to $23,000 in 2024, ($30,500 for those over age 50)* Contributions are limited to $7,000 for 2024, ($8,000 for those over age 50) Taxation of Withdrawals Qualifying withdrawals of contributions and earnings are subject to income taxes Qualifying withdrawals of contributions and earnings are not subject to income taxes Qualifying withdrawals of contributions and earnings are not subject to income taxes Required Distributions In most cases, distributions must begin no later than age 73 In most cases, distributions must begin no later than age 73 There is no requirement to begin taking distributions while owner is alive * This is an aggregate limit by individual rather than by plan. The total of an individual’s aggregate contributions to his or her traditional and Roth 401(k) plans cannot exceed the deferral limit – $23,000 in 2024 ($35,000 for those over age 50). Source: IRS.gov, 2024 Source: IRS.gov, 2024 Roth 401(k) plans are subject to the same annual contribution limits as regular 401(k) plans – $23,000 for 2024; $30,500 for those over age 50. These are cumulative limits that apply to all accounts with a single employer; for example, an individual couldn’t save $23,000 in a traditional 401(k) and another $23,000 in a Roth 401(k).4 Another factor to consider is that employer matches are made with pretax dollars, just as they are with a traditional 401(k) plan. In a Roth 401(k), however, these matching funds accumulate in a separate account, which will be taxed as ordinary income at withdrawal. Setting money aside for retirement can be part of a sound personal financial strategy. Deciding whether to use a traditional 401(k) or a Roth 401(k) often involves reviewing a wide range of factors. If you are uncertain about what is the best choice for your situation, you should consider working with a qualified tax or financial professional. 1. To qualify for the tax-free and penalty-free withdrawal of earnings, Roth 401(k) distributions must meet a five-year holding requirement and occur after age 59½. Tax-free and penalty-free withdrawals also can be taken under certain other circumstances, such as a result of the owner’s death or disability. Employer matches are pretax and not distributed tax-free during retirement. Once you reach age 73, you must begin taking required minimum distributions.2. In most circumstances, you must begin taking required minimum distributions from your 401(k) or other defined contribution plan in the year you turn 73. Withdrawals from your 401(k) or other defined contribution plans are taxed as ordinary income, and, if taken before age 59½, may be subject to a 10% federal income tax penalty.3. Roth IRA contributions cannot be made by taxpayers with high incomes. In 2024, the income phaseout limit is $161,000 for single filers, $240,000 for married filing jointly. To qualify for the tax-free and penalty-free withdrawal of earnings, Roth IRA distributions must meet a five-year holding requirement and occur after age 59½. Tax-free and penalty-free withdrawals also can be taken under certain other circumstances, such as a result of the owner’s death or disability. The original Roth IRA owner is not required to take minimum annual withdrawals.4. IRS.gov, 2024 The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG Suite is not affiliated with the named broker-dealer, state- or SEC-registered investment advisory firm. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security. Copyright 2024 FMG Suite.
Caring for Aging Parents
Thanks to healthier lifestyles and advances in modern medicine, the worldwide population over age 65 is growing. In the past decade, the population of Americans aged 65 and older has grown 38% and is expected to reach 82 million in 2050. As our nation ages, many Americans are turning their attention to caring for aging parents.1,2 For many people, one of the most difficult conversations to have involves talking with an aging parent about extended medical care. The shifting of roles can be challenging, and emotions often prevent important information from being exchanged and critical decisions from being made. When talking to a parent about future care, it’s best to have a strategy for structuring the conversation. Here are some key concepts to consider. Cover the Basics Knowing ahead of time what information you need to find out may help keep the conversation on track. Here is a checklist that can be a good starting point: It is also important to know the location of medical and estate management paperwork, including:3 Be Thorough Remember that if you can collect all the critical information, you may be able to save your family time and avoid future emotional discussions. While checklists and scripts may help prepare you, remember that this conversation could signal a major change in your parent’s life. The transition from provider to dependent can be difficult for any parent and has the potential to unearth old issues. Be prepared for emotions and the unexpected. Be kind, but do your best to get all the information you need. Keep the Lines of Communication Open This conversation is probably not the only one you will have with your parent about their future healthcare needs. It may be the beginning of an ongoing dialogue. Consider involving other siblings in the discussions. Often one sibling takes a lead role when caring for parents, but all family members should be honest about their feelings, situations, and needs. Don’t Procrastinate The earlier you begin to communicate about important issues, the more likely you will be to have all the information you need when a crisis arises. How will you know when a parent needs your help? Look for indicators like fluctuations in weight, failure to take medication, new health concerns, and diminished social interaction. These can all be warning signs that additional care may soon become necessary. Don’t avoid the topic of care just because you are uncomfortable. Chances are that waiting will only make you more so. Remember, whatever your relationship with your parent has been, this new phase of life will present challenges for both parties. By treating your parent with love and respect—and taking the necessary steps toward open communication—you will be able to provide the help needed during this new phase of life. 1. WashingtonPost.com, February 14, 20232. PRB.org, January 9, 20243. Note: Power of attorney laws can vary from state to state. An estate strategy that includes trusts may involve a complex web of tax rules and regulations. Consider working with a knowledgeable estate management professional before implementing such strategies. The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG Suite is not affiliated with the named broker-dealer, state- or SEC-registered investment advisory firm. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security. Copyright 2024 FMG Suite.