In this episode of the Dental Boardroom Podcast, host Wes Read, CPA and financial advisor at Practice CFO, is joined by Brandon Hobson and Paul for their quarterly deep dive into the stock market, global economy, and what dentists and practice owners should prepare for as 2026 approaches.

The episode covers:

• The Federal Reserve’s rate movements and expected leadership change
• Whether the current AI wave is a bubble or a true productivity revolution
• The future relevance of the traditional 60/40 investment strategy
• How economic shifts impact dentists’ borrowing, practice finances, and patient spending
• Practice CFO’s investment outlook and positioning for 2026

A must-listen for dental entrepreneurs and investors navigating today’s unpredictable financial landscape.

• Current Fed Funds Rate: 3.75%–4%, with another 0.25% cut expected soon.
• Kevin Hassett is the likely replacement for Jerome Powell in 2026   potentially a more politically influenced choice.
• Concerns about Fed independence rising due to political pressure.
• Rate cuts stimulate borrowing but risk inflation if overdone.

Importance for dentists:

• Affects practice loans, buildouts, refinancing, and equipment financing.
• Impacts patient discretionary spending, especially in cosmetic dentistry.

• Inflation appears stable around the mid-2% range.
• Unemployment creeping toward 4%.
• Risk emerges if inflation rises while unemployment increases = “stagflation.”
• Not yet alarming, but the rate of change is what matters.

• U.S. GDP last reading (Q2): 3.8%, stronger than expected.
• Global GDP remains surprisingly strong despite trade tensions.
• Q3 & Q4 readings delayed due to government shutdown but expected to stay positive.

• Big tech’s AI infrastructure spend expected to hit $3 trillion by 2028.
• 53% of investors believe we are in an AI bubble.
• OpenAI & NVIDIA valuations are 30–40× revenue, compared to Walmart at 1.3×.
• MIT study: 95% of companies currently see no ROI from AI.

Major concerns:

• Revenue lag vs. massive AI investment
• Circular funding structures (promising investments without cash to fulfill them)
• Big tech taking on debt to fund AI (Meta’s off-balance-sheet financing)
• Parallel drawn to the dot-com era   huge innovation + huge speculative hype.

• High valuations and interconnected dependence create contagion risk.
• NVIDIA’s unusually high profit margins may attract new competition.
• Some tech (like Google, Meta) still offers strong fundamentals & cash flow.
• But investors should avoid blindly overweighting tech indexes.

• After years of underperformance, value stocks and quality companies are regaining momentum.

PracticeCFO’s positioning:

• Lower tech exposure (15–18% vs. S&P 35–40%)
• Higher weight in value, quality, and cash-flow-focused companies
• 20–40% international stocks for diversification

AI benefits will extend to all sectors   consumer staples may monetize AI faster and cheaper than mega-tech.

• Elective dentistry depends on consumer discretionary income   market downturns may reduce patient demand for cosmetics.
• Rising long-term rates affect:
• Practice purchases
• Buildouts
• New location expansion

Dentists should:

• Lock in favorable financing when possible
• Watch overhead and maintain cash reserves
• Avoid emotional investment decisions
• Reassess risk tolerance if nearing retirement

In this episode of the Dental Boardroom Podcast, host Wes Read, CPA and financial advisor at Practice CFO, and Chris Marshall break down some of the most important warning signs dentists should watch out for when evaluating a dental practice for purchase. Drawing from real client cases and common deal-flow patterns, they discuss the financial, operational, and clinical red flags that often hide beneath the surface of seemingly attractive listings.

Listeners will learn how to interpret declining numbers, inconsistent hygiene schedules, sudden production increases, PPO manipulations, risky seller behaviors, and gaps in patient flow. By the end of the episode, you’ll understand how to look past broker language and identify the true health or weakness of a prospective practice.

If collections or production drop year-over-year even slightly it signals deeper issues.

This could mean a declining patient base, ineffective ownership, poor systems, lack of demand, or mismanagement.

• Large swings in hygiene revenue
• Inconsistent recall schedules
• Declining hygiene visits
• These typically indicate poor systems, weak re-care, or a lack of organization affecting long-term revenue.

A seller spiking numbers in the year before the sale is a common tactic.

Examples include:

• Over-treatment
• Running unnecessary procedures
• Pre-billing treatment
• A buyer should be cautious: inflated numbers ≠ sustainable revenue.

Practices sometimes:

• Drop PPOs before selling
• Switch PPO participation
• Adjust fee schedules to appear more profitable
• Understanding the insurance environment is essential to projecting true cash flow.

Pay attention if the seller:

• Wants to leave immediately
• Avoids answering questions
• Has incomplete records
• Shows disorganized systems
• These behaviors often align with financial or operational decline.

In this episode of the Dental Boardroom Podcast, host Wes Read, CPA and financial advisor at Practice CFO, and Chris Marshall break down some of the most important warning signs dentists should watch out for when evaluating a dental practice for purchase. Drawing from real client cases and common deal-flow patterns, they discuss the financial, operational, and clinical red flags that often hide beneath the surface of seemingly attractive listings.

Listeners will learn how to interpret declining numbers, inconsistent hygiene schedules, sudden production increases, PPO manipulations, risky seller behaviors, and gaps in patient flow. By the end of the episode, you’ll understand how to look past broker language and identify the true health or weakness of a prospective practice.

If collections or production drop year-over-year even slightly it signals deeper issues.

This could mean a declining patient base, ineffective ownership, poor systems, lack of demand, or mismanagement.

• Large swings in hygiene revenue
• Inconsistent recall schedules
• Declining hygiene visits

These typically indicate poor systems, weak re-care, or a lack of organization affecting long-term revenue.

A seller spiking numbers in the year before the sale is a common tactic.

Examples include:

• Over-treatment
• Running unnecessary procedures
• Pre-billing treatment

A buyer should be cautious: inflated numbers ≠ sustainable revenue.

Practices sometimes:

• Drop PPOs before selling
• Switch PPO participation
• Adjust fee schedules to appear more profitable
• Understanding the insurance environment is essential to projecting true cash flow.

Pay attention if the seller:

• Wants to leave immediately
• Avoids answering questions
• Has incomplete records
• Shows disorganized systems

These behaviors often align with financial or operational decline.

In this episode of the Dental Boardroom Podcast, host Wes Read, CPA and financial advisor at Practice CFO, and Dr. Howard Farran, Founder of Dentaltown, delve into the evolving landscape of dental ownership from the rise of private equity in dentistry to the challenges and opportunities facing today’s practitioners.

They explore how cheap financing and investor enthusiasm fueled massive consolidation in the dental space over the past decade, and why the focus is now shifting from quantity to quality. As interest rates rise and capital tightens, DSOs and private equity groups are becoming more selective, prioritizing well-run, profitable practices over sheer scale.

The discussion also contrasts private equity-led DSOs with those founded and guided by dentists, examining how leadership, culture, and long-term vision shape patient outcomes and professional integrity.

Dr. Farran passionately defends the importance of dentist-led organizations, transparency, and long-term patient relationships, emphasizing that dentistry is a “sacred profession,” not just a business. Wes complements this view with a grounded financial perspective, offering practical advice for dentists who aspire to grow sustainably, without losing their clinical focus or personal balance.

• The PE Boom and Shift: Low interest rates and abundant capital fueled a buying frenzy in dental practices, but the landscape is changing with higher borrowing costs.
• From Volume to Value: DSOs are now focused on high-quality operations and sustainable cash flow rather than mass acquisitions.
• Dentist-Led vs. Investor-Led DSOs: Dr. Farran stresses that DSOs led by clinicians, not “suits,” create better care models and stronger trust with patients.
• Operational Mastery First: Before expanding, dentists should perfect one successful “prototype” practice much like McDonald’s perfected its first store before scaling.
• Liquidity and Transparency Matter: Private equity’s lack of transparency and illiquidity pose risks; publicly traded or dentist-owned models offer more accountability.
• AI and Dentistry: Both see promise and potential pitfalls as AI expands into diagnostics and insurance, cautioning that technology can empower or restrict clinicians depending on who controls it.

In this episode of the Dental Boardroom Podcast, host Wes Read, CPA and financial advisor at Practice CFO, sits down with Howard Farran, founder of Dentaltown and one of the most influential thought leaders in the dental industry. Together, they explore the evolution of dentistry from emerging AI technology to the rise of DSOs, the challenges new grads face, and the skills needed to thrive in today’s rapidly shifting landscape. This episode delivers raw insights, bold perspectives, and practical lessons for dentists at every stage of their careers.

• AI is transforming dentistry at historic speed—comparable to the rise of the internet.
• Dentaltown is building AI tools to unlock insights from 10+ million dental conversations.
• AI won’t replace dentists but dentists who adopt AI will replace those who don’t.
• Example: Robotics like Yomi are enhancing implant surgery, not eliminating the surgeon.

The Real DSO Landscape

• Not all DSOs are massive corporate chains.
• The real competition for private practices? Local 4–9 location DSOs scaling smartly across small regions.
• These local groups win by leveraging:
• Shared marketing
• Centralized operations
• Better purchasing power
• Structured systems

• Student debt is real, but so are lifestyle choices that amplify it.
• Early career focus should be:
• Clinical reps and speed
• Learning practice systems
• Strong mentorship
• The best first job is one that teaches:
• Business operations
• Full-scope clinical care
• Patient flow and case acceptance

• Patients choose loyalty, trust, and relationships.
• Private practices win when they deliver:
• Consistency in care
• Stable teams
• Real human connection
• High staff and doctor turnover in corporate settings creates opportunities for private offices to stand out.

• A general accountant isn’t enough in dentistry.
• Dentists need advisors who understand:
• PPO strategy
• Overhead benchmarks
• Practice-specific financial planning
• Growth vs. profitability
• Specialized financial guidance is a competitive advantage.
• 
  

• Half of patients don’t have dental insurance.
• Present multiple treatment paths:
• Basic → Mid-tier → Ideal care
• Never assume what a patient can or can’t afford—let them choose.

Who Should Listen?

✔ New dentists navigating debt and career choices

✔ Private practice owners competing with DSOs

✔ Clinicians curious about AI adoption

✔ Anyone wanting unfiltered industry truth

In this episode of the Dental Boardroom Podcast, host Wes Read, CPA and financial advisor at Practice CFO, kicks off a new multi-episode series focused on the most common financial mistakes dentists make in both their personal and practice finances. After returning from an October break, Wes zeroes in on cash flow discipline, spending habits, tax inefficiencies, depreciation strategy, excess distributions, and the development of automated systems for long-term wealth.

Wes explains how many dentists struggle with lifestyle inflation, unmanaged owner draws, and treating the business account like personal cash, often without understanding tax basis limitations. He highlights the “depreciation trap,” where large Section 179 write-offs paired with financed equipment purchases create short-term tax relief but long-term cash crunches. He encourages dentists to align depreciation schedules with loan terms to avoid future financial strain.

• Automate savings and retirement contributions
• Match depreciation timelines with equipment loan terms
• Avoid treating the practice account as personal spending
• Monitor tax basis before taking distributions
• Maintain disciplined budgeting and lifestyle control
• Reinvest profits to strengthen practice efficiency and growth

In this episode of the Dental Boardroom Podcast, host Wes Read, CPA and financial advisor at Practice CFO, and an AI co-host unpack the ADA Health Policy Institute’s Q3 2025 “State of the Dental Economy” report. The data paints a complex picture of a dental sector stuck in an uneasy holding pattern where rising costs, flat reimbursements, and persistent staffing shortages are squeezing practices nationwide.

Despite modest growth in consumer dental spending, many practices report being less busy than before, caught between financial pressure and patient affordability challenges. The discussion dives deep into the fiscal squeeze, workforce struggles (especially hygienists), and the strategic choices dental practices are making to adapt.

• Dentists’ confidence in their own practices (67.5%) remains higher than confidence in the U.S. economy (33.4%).
• Optimism has eroded throughout 2025 despite a slight Q3 bounce.
• Top concerns: tariffs, political unrest, and global uncertainty.

• Core problem: costs (supplies, labor, operations) are rising much faster than insurance reimbursements.
• Two-thirds (65.8%) of dentists raised fees in 2025 by an average of 6.7% just to maintain margins.
• This has worsened patient affordability and fueled a perception of dentistry as “discretionary,” reducing patient visits.

• Consumer dental spending is up 10% (inflation-adjusted) since pre-pandemic levels.
• Yet, the number of dentists reporting they’re “not busy enough” jumped from 25% to 35% in Q3 2025.
• Average patient wait times hit a three-year low (12 days), showing ample capacity and lower demand intensity.

• Hiring in dental practices remains flat, but recruitment demand is high.
• Hygienists are the most difficult position to fill; 90% of dentists report it’s very hard.
• Only 43% of those recruiting for hygienists successfully filled the role.
• One-fifth of hygienist positions remained open 6+ months, hurting production and patient flow.

• Many dentists are investing in software (41%) to improve efficiency and adding staff (47%) where possible.
• Some are dropping low-paying PPO plans to regain control over pricing and profitability.
• Practices are focusing on what they can control: internal efficiency, cost management, and workforce adaptation.

• The dental economy isn’t collapsing, but it’s not growing fast either.
• The balance between rising costs, stagnant reimbursement, and patient affordability remains fragile.
• The future may depend on technology adoption, workforce development, and new care delivery models to break the stagnation.

#DentalEconomy #DentalIndustryTrends #FiscalSqueeze #Dentistry2025 #DentalPracticeManagement #HygienistShortage #DentalCareCosts #ADAReport #WesRead #DentalBoardroomPodcast #DentalBusiness #DentistryInsights

In this episode of The Dental Boardroom Podcast, host Wes Read, CPA and financial advisor at PracticeCFO, talks with Brandon Hobson (Chief Investment Officer) and Paul Lipcius (investment committee member) about what’s happening in the markets and why it matters for dentists.

They break down the recent Federal Reserve rate cut, explain how bond yields signal what might happen next in the economy, and discuss what the steepening yield curve could mean for growth and inflation. The team also looks at today’s stock market, where high valuations and a heavy focus on just a few big tech companies may bring new risks.

Plus, they explore why international stocks are starting to outperform and how adding global exposure could strengthen your portfolio.

Whether you’re saving for retirement or planning your practice’s financial future, this episode gives you practical insights to help guide smart, long-term investment decisions.

Key topics include:

• What the Fed’s latest rate cut means for bond yields and future inflation
• Why the yield curve’s steepening could signal improving economic conditions
• The risks of sky-high U.S. stock valuations and concentrated index exposure
• How international and emerging markets are reshaping the global investment landscape
• Long-term investing principles every dentist should follow

In this episode of the Dental Boardroom Podcast, host Wes Read, CPA and financial advisor at Practice CFO, continues the discussion on putting your kids on payroll as a smart tax and wealth-building strategy. This time, he dives deeper into how to maximize the benefits by pairing payroll with 529 education savings accounts and Roth IRAs.

Shifting income for tax savings:

• Move income from a higher parent tax bracket to your child’s 0% bracket (standard deduction in 2025 is $15,750).
• Saves roughly $3,000–$4,000 per child per year. Over many years, that adds up significantly.

Practical execution:

• Children can start as early as age 6–7 and continue through college years.
• Create job descriptions and light documentation (e.g., photos, office work, modeling fees) to substantiate employment.
• Use a modern payroll service (Wes recommends Rippling) to simplify compliance.

How to use the payroll funds:

• Deposit paychecks into the parent’s checking account (simpler than setting up child accounts).

Direct those funds toward:

• A custodial Roth IRA (tax-free growth).
• A 529 education savings account (tax-free growth + tax-free qualified withdrawals).

529 Education Plans explained:

• State-administered plans with varying benefits Utah’s “My529” (Vanguard, low-cost index funds) is Wes’ favorite.

Benefits:

• Tax-free growth and withdrawals for education.
• Potential state tax deductions in some states.
• High contribution limits.
• Parent-owned accounts are more favorable for financial aid and offer flexibility to transfer funds among siblings.
• Can cover not just college, but also K–12, trade schools, apprenticeships, and up to $10K in student loan repayment.

Suggested split strategy:

• After payroll and FICA taxes, about $14K remains per child.
• Example: Fund $7K to a Roth IRA + $7K to a 529 plan, balancing retirement savings with education funding.

Risk & compliance notes:

• Wes has never seen an IRS audit on this strategy in 17+ years, but stresses proper documentation.
• Pay a fair wage aligned with actual work performed.
• Always consult your CPA if unsure.

Big picture:

• This is more than just tax savings it’s wealth building.
• Combining small strategies like payroll, home office, auto deductions, and retirement plans can collectively cut taxes by 30–60% (or more) and accelerate financial independence.

By intentionally leveraging tax rules, you can redirect money that would have gone to the IRS into your kids’ education, retirement, or family wealth. Over time, these small wins compound into major financial independence.

In this episode of the Dental Boardroom Podcast, host Wes Read, CPA and financial advisor at Practice CFO, dives into one of the most powerful  yet often overlooked  tax and wealth-building strategies for dentists: putting your kids on payroll and using that earned income to fund retirement and education accounts.

Wes explains how hiring your children in your dental practice (for real, legitimate work) creates not only a tax deduction for the practice but also a springboard for long-term wealth accumulation in the child’s name. He emphasizes the Roth IRA as a uniquely flexible and tax-free account, often a better choice than a 529 education account, since the funds can be used for retirement, education, or other qualified purposes.

He walks through how to handle payroll logistics, funding contributions annually to simplify administration, and how compounding growth turns even modest contributions into hundreds of thousands  or even millions  over a lifetime. Along the way, Wes shares investment allocation strategies, including why volatile, high-growth assets fit well in Roth IRAs and how “tax location” across different account types can meaningfully boost after-tax returns.

The episode also compares Roth IRAs with 529 plans, outlining when each makes sense, and highlights the importance of aligning education funding with family philosophy  whether parents fully cover tuition, split costs, or expect children to pay their own way.

This is part one of a two-part series on the Kids on Payroll strategy, with part two focusing more deeply on 529 plans.

Key Points

• Paying your kids from the practice creates a deductible expense and earned income for them.
• A Roth IRA for children offers unmatched tax-free growth and flexibility versus 529 accounts.
• Funding once a year avoids payroll admin headaches while still capturing the benefit.
• Compounding can turn $7,000 annual contributions into millions over decades.
• High-growth, volatile assets fit best in Roth accounts due to their tax-free nature.
• Tax location (placing the right investments in the right accounts) is a major driver of long-term wealth.
• Family philosophy matters  whether parents fully fund education or expect kids to share the cost.

Hashtags

#DentalBoardroomPodcast #DentalFinance #KidsOnPayroll #RothIRAForKids #DentalPracticeOwners #TaxStrategy #FinancialPlanning #PracticeCFO #WesReadCPA #WealthBuilding