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Economic cycles shift every few years, but the period leading up to 2026 presents a unique set of conditions. Rate cuts are beginning, tech valuations are stretched, global activity is steady, and a leadership change at the Fed may influence financial conditions across the country. For dentists and practice owners, these trends highlight the need for a clear, structured wealth plan that accounts for both risk and opportunity.
Many dental practices rely heavily on elective procedures to support margins, especially when insurance reimbursements feel tight. At the same time, borrowing plays a major role in expansion whether you're purchasing a practice, upgrading equipment, or taking on a remodel. Because of this, changes in long-term rates and market volatility can influence income, growth plans, and retirement timelines.
This section outlines how dentists can prepare for 2026 through informed investing, responsible borrowing, and steady planning.
Short-term rate cuts help reduce immediate borrowing pressure, but long-term rates often guide major decisions within a dental business. Since the Fed influences only the short-term side, practice owners must watch how markets respond.
Long-term loan costs depend on:
Even if the Fed cuts rates, long-term financing may not fall until markets gain clarity on inflation and economic direction.
This matters because practice owners often take on:
Small changes in interest rates can shift annual payments enough to influence profitability.
Dental technology evolves quickly, and many practices update equipment every few years. Lower rates should support these upgrades, but timing matters. Acting too early or waiting too long can impact cash flow if markets shift unexpectedly.
Key considerations:
A balanced approach reduces strain during volatile cycles.
The past decade has favored growth stocks, especially in tech. Yet 2025 showed signs of rotation toward value-based sectors. For investors, this shift requires attention because portfolios built heavily around growth may carry more risk if valuations soften.
The investment approach discussed in the podcast emphasizes:
These sectors may benefit more in periods when markets pull back from high-priced growth stocks. This does not mean avoiding tech entirely, but rather building a portfolio with balance and realistic expectations.
International markets offer:
Holding 20–40% of a portfolio internationally can help reduce concentrated risks tied to U.S. tech-heavy indices.
Every economic cycle includes pullbacks. While downturns feel uncomfortable, they often create the best long-term returns. When valuations drop, investors who stay disciplined usually see strong gains when markets recover.
Lower prices mean:
This mindset requires patience and planning. Emotional reactions often push investors to sell during declines, even though history shows this hurts long-term results.
The best time to plan is before volatility hits.
Steps that help:
A clear plan supports confidence when uncertainty rises.
Dentists nearing retirement have a different set of concerns than those early in their careers. They often rely on portfolio withdrawals to support living expenses, which makes market stability more important.
A dentist preparing to retire within five years should ask:
Thinking through these scenarios helps align investments with real-world needs.
Moving everything to cash or gold is rarely the right move. Instead, consider:
Small adjustments made early are far more effective than large reactions made late.
Elective procedures often drive higher margins in dentistry. When the economy softens, households reduce discretionary spending first. Practices that rely heavily on cosmetic or elective services may feel pressure sooner than others.
Dentists can strengthen stability by:
A well-run practice remains profitable even when patient spending patterns shift.
Cash flow planning becomes essential during uncertain periods. Review:
Small improvements can protect margins when revenue starts to fluctuate.
With rate cuts returning, a shift in Fed leadership approaching, and market concentration rooted in high-value tech stocks, the path into 2026 brings both opportunity and uncertainty. Dentists who understand how these trends influence borrowing, practice operations, and portfolio decisions will be better prepared for any turn ahead.
A clear financial plan, balanced investments, and thoughtful cash flow management make it easier to navigate changing conditions while staying focused on long-term success.
Ready to strengthen your 2026 plan? Connect with our advisors for clear guidance on investments, borrowing, and practice decisions so you can move into the next cycle with confidence and stability.
View Episode: 2025 Q4 Financial Market Update
Wes knows what's best for dental practices. He's been doing this for a long time and he sees lots of practices. He can tell me how our practice is doing, and what we can do to increase our productivity. With past CPA's, there were no ideas. It was all coming from me, saying "I think I can do better, but I don't know how." I come in to meet with Wes and he says "You CAN do better, and I know how."
PracticeCFO is in hundreds of dental offices around the country. They know what numbers should look like. They know what percentages of payroll, rent and supplies should be, and they will hold you accountable to those numbers, which will really help you stick to your plan and your path of growth and savings. That is invaluable
Whenever something comes up, whether it's building or practice related and we weren't sure where the numbers would go, PracticeCFO has been instrumental in helping us figure that out. I can't say enough of how important that is - that it goes beyond that initial partnership. They make sure this business marriage works.
When I go home from work, I don't spend a whole lot of time stressing about what my books look like, or how much I owe in taxes. By using PracticeCFO, the burden of keeping track of a lot of the big financial numbers and metrics are taken off my plate.
PracticeCFO helped me develop a plan for the future. I have colleagues that work with other accountants that don't have a plan - they just look at the numbers of the practice and that's it. There's no plan for 10, 20 years from now. But with PracticeCFO, you get that. PracticeCFO makes you feel like you're they're only client.
(In reference to his practice sale) What could've been super stressful, wasn't! When picking John and Wes, it was from word of mouth recommendations and other people's experiences from the past that really did it for me. And it turns out that those recommendations were right on the line.
Wes knows the business side of dentistry. His comprehensive plan will organize your personal and professional finances so you can focus on taking care of patients. Massive ROI.
I can’t say enough good things about everyone at PracticeCFO. Everyone on the team is professional, organized, knowledgeable, helpful and kind. They also respond to emails and phone calls immediately and are always happy to help. They have helped me navigate year-to-year as a business owner. PracticeCFO gives me peace of mind that my business is in good hands.
I love Practice CFO! They have helped me obtain a practice and maintain a practice. They are incredible people who are on top of everything and make owning and running the business portion of a practice easy. They couldn’t be better for my business and my sanity. They have every detail of the business and taxes taken care of where all I have to do is show up and follow their easy steps to success!
Practice CFO has the best tools I’ve seen for personal tax and financial planning in addition to top-tier corporate tax and accounting services. I have been very pleased with the level of quality service. They manage my monthly bookkeeping and accounts payable. It is a great system and saves me a ton of time, and it allows us to have monthly financial statements within a week of month end.
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