Is generational wealth achievable for dentists or just a buzzword?

Generational wealth. You've heard the term on podcasts, in business books, or in a group chat with a dentist you barely know who now refers to him- or herself as a "founder."

The idea that what you build can outlast you sounds aspirational, even noble-that your work today can unlock freedom, access, and opportunity for your children and grandchildren But is it real? Is it sustainable? And most importantly, is it actually achievable for dentists?

What is generational wealth, really?

Forget the Instagram version. Generational wealth isn't just having a beach house, a trust fund, or a bunch of watches you refer to by their reference numbers. It's the ability to create, protect, and transfer capital across generations, ideally without eroding your family's motivation or identity.

It includes financial capital (liquid assets, real estate, business equity) human capital (education, health, work ethic, entrepreneurial spirit), social capital (reputation, access, networks), and intellectual capital (wisdom, judgment, and frameworks passed down through words, example, and mentorship). 

True generational wealth outlives you and gives the next generation tools, not just toys, but can dentists realistically build it? The short answer is yes, but in my humble opinion, not likely by practicing dentistry alone.

Let's be honest. Dentistry can be a high-income profession, but income alone does not build generational wealth. Cash flow funds lifestyle. Equity builds legacy.

Too many dentists stay stuck on the treadmill. They earn well, spend well, and reinvest … in their own exhaustion. You don't build generational wealth by collecting CE credits or faster handpieces. You build it by thinking like a founder.

The transition plan is clear for most clinicians-from provider to owner, from owner to investor, and finally, from investor to architect of legacy. If you're still trading time for money, you may be winning the short game. But you're not building generational wealth,; you're building revenue. There's a significant difference.

The numbers don't lie

First, we know generational wealth is fluid by nature, more of a mindset and legacy strategy than a hard number. That said, if we're being real and practical, especially for high-achieving professionals, entrepreneurs, or dentists, there is a way to frame it more concretely. Even if you earn $600K a year as a top 1% clinical provider, taxes and relatively standard lifestyle expenses can erode that quickly. Include private school, real estate, two cars, a few vacations, and maybe a second home, and suddenly, you're not investing enough to outlive yourself, let alone your money.

Contrast that with a dentist who:

• Owns a multidoctor practice or group

• Has equity in scalable assets (real estate, management orgs, or IP)

• Understands tax strategy and asset protection

• Makes money while not physically in the chair

That's the difference between income and wealth.

What gets in the way?

Here's what I've seen over and over again from colleagues, partners, and peers:

• Lifestyle inflation: The more we earn, the more we spend. And often, we convince ourselves it's justified. But generational wealth requires a delay of gratification that doesn't always come naturally to high performers.

• Lack of financial literacy: Many dentists are brilliant clinicians and some can even be pretty savvy businesspeople, but not necessarily investors. They lean on advisors, but don't always learn the game themselves. And if you don't understand it, you can't teach it to your kids.

• Single-point dependence: Relying solely on clinical income or even a single-practice model limits scalability. If you want wealth that multiplies over time, you need assets that grow without you.

• No legacy planning: You can't pass down a business you didn't structure properly. You can't gift wisdom you never spoke out loud. If you don't intentionally transfer your wealth, and your values, someone else could very well define the narrative for your kids.

Buzzword or blueprint?

It's a blueprint. But you have to be honest about where you are and where you want to go. If you're intentional about growing your practice, protecting your assets, and transferring more than just cash to your kids, then yes, generational wealth is absolutely within reach.

You're not going to get there with better margins on implants or adding one more op. You get there by evolving your mindset-from practitioner to builder, from operator to visionary.

How to start

You don't need a multimillion-dollar liquidity event to build legacy wealth. But you do need a plan. Here's where to start:

• Consider real estate inside or outside your practice.

• Own equity, whether that's your own practice, a platform, or shares in a larger group.

• Build structure such as LLCs, trusts, and asset protection should be proactive, not reactive (seek appropriate counsel on this)).

• Talk to your kids about money, grit, discipline, and what this all means.

And maybe most important: Surround yourself with people who play the long game like mentors, advisors, and partners who want to build something that matters. Only the very few (and lucky ones) build generational wealth by accident. It's usually built from deliberate, disciplined, and sometimes uncomfortable decisions made again and again.

You can't pass down a crown prep, but you can pass down a business, philosophy, and a name that stands for something. Generational wealth isn't reserved for private equity principals or tech founders. It's built by people who think beyond the chair and build beyond themselves.

And yes, if you do it right, that includes dentists too.

Editor's note: This article appeared in the September 2025 print edition of Dental Economics magazine. Dentists in North America are eligible for a complimentary print subscription. Sign up here.