PLANNING FOR OPTOMETRY PRACTICE OWNERSHIP
Building a Path to Practice Co-Ownership for Ambitious Young Optometrists
Jessica (32) and Christopher (33) are experienced optometrists working in a successful private practice owned by a senior OD nearing retirement. Having consistently saved and invested beyond their retirement accounts, they enjoy a comfortable lifestyle. Their children are still young, but they already aim to create generational wealth and give them opportunities they didn't have.
The Challenge
Jessica and Christopher dream of co-owning the practice where they have built strong patient relationships. This presents a significant financial move that needs to align with other ambitious goals:
Structuring the practice buyout for maximum tax benefit and minimal impact on their lifestyle.
Exploring alternative wealth-building strategies alongside the significant practice investment.
Ensuring their updated estate plan protects both their growing assets and their children's future security.
The Process
Seeking expert advice, they connected with a financial planner experienced in advising optometrists on practice transitions and optimizing wealth. They worked together to:
Buyout Valuation & Financing: Assess the practice's fair market value and explore various financing models for their ownership stake.
Investment Strategy Realignment: Analyze their existing portfolio, focusing on both short-term accumulation for the down payment and continued long-term growth outside of the practice.
Estate Planning Update: Collaborate with an estate attorney to revise their plan, considering their expected increase in business assets.
The Solutions
The financial planner provided a comprehensive approach:
Practice Transition Plan: Outlined potential financing structures (gradual buyout, loans, etc.) and the tax implications of each.
Optimized Investments: Adjusted their asset allocation to balance short-term liquidity needs with consistent long-term growth for their remaining goals.
Robust Estate Planning: Ensured their estate plan effectively protected their children, the practice ownership stake, and other assets in a tax-efficient manner.
The Results
Ownership Confidence: Jessica and Christopher have a realistic understanding of the financial commitment and timeline towards their practice co-ownership goal.
Strategic Wealth-Building: Their investments remain positioned for maximizing returns while accommodating the upcoming practice purchase.
Family Legacy Secured: Their estate plan offers peace of mind knowing their children's futures are protected while minimizing potential future tax burdens.
Note: We protect our clients’ personal information. This hypothetical case study does not involve an actual Foresight Financial Planning client. No portion of this content should be construed by a client or prospective client as a guarantee that he/she will experience the same or a certain level of results or satisfaction if Foresight Financial Planning is engaged to provide investment advisory or financial planning services.
Let’s build your financial health together.
✓ Feel confident about your finances so you can achieve your professional and personal goals.
✓ Become inspired by your own progress towards financial independence.
✓ Be thrilled by the possibilities that come with a well-managed financial portfolio.