Planning Your Practice Exit: The Retirement Math That Sets the Floor

Planning Your Practice Exit: The Retirement Math That Sets the Floor

Questions? Thoughts? Send a Text to The Optometry Money Podcast! We'll answer your question on the show. [https://www.buzzsprout.com/1970676/fan_mail/new] Episode Summary Most practice owners spend close to two decades building their business — and too often only a few months planning how they exit it. That imbalance shows up in the outcomes. This episode kicks off a new series on planning for the sale of your practice, built around five questions worth answering long before a sale shows up on your calendar. We start with the first and most important one: not "what is my practice worth?" but "what does this sale actually need to do for my retirement to work?" Because those are two completely different questions — and the gap between what you assume the practice is worth and what you actually need it to do is where a lot of the regret lives. We walk through why your retirement gap sets the floor for every other exit decision, how to actually build that number, and why the earlier you start, the more flexibility you'll have on your way out. What You'll Learn * The five questions to answer when planning to exit your practice (and why this one comes first) * Why your practice valuation only matters in relation to your retirement gap * How two identical practices can lead to two completely different sale strategies * Why earlier owners have far more flexibility — and how to "pre-fund" your future buyout * How to build your retirement gap: lifestyle spending, guaranteed income, existing assets, and the gap that remains * How that gap becomes your negotiating floor — shaping timeline, buyer type, and payment structure * The what-if scenarios worth testing before you ever sell Key Takeaways for Optometrists Your practice valuation is only meaningful in context. The number that actually matters is the gap between what you've already built outside the practice and what your retirement plan needs to succeed. Until you know that gap, every conversation about price, structure, and buyer is theoretical — you have nothing to measure an offer against. Figure out that number first, and it becomes your negotiating floor. It tells you whether you can wait for the right buyer, whether you can sell to an associate at a friendly price or need to chase a higher multiple, and whether work is truly optional afterward. Too many owners step into a sale unsure of what their family actually needs — and let the deal determine their retirement plan rather than the other way around. Resources for Optometrists * Podcast Ep 160: How to Maximize Your Optometry Practice Value Before You Sell with Erich Mattei [https://optometrywealth.short.gy/ODmoney160] * Podcast Ep 50: Guide to Due Diligence on Practice Purchases with Erich Mattei [https://optometrywealth.short.gy/ODmoney50] * Podcast Ep 80: Intro to Optometry Practice Valuations with Erich Mattei [https://optometrywealth.short.gy/ODmoney80] * Podcast Ep 70: Financial Planning Considerations for Owners of Established Optometry Practices [https://optometrywealth.short.gy/ODmoney70] Want a more proactive approach to your planning? You can schedule a no-commitment introductory call to discuss what's on your mind financially and learn how we help optometrists navigate those same decisions nationwide. 👉 Schedule an introductory call [https://optometrywealth.short.gy/contact] The Optometry Money Podcast is dedicated to helping optometrists make better decisions around their money, careers, and practices. The show is hosted by Evon Mendrin, CFP®, CSLP®, owner of Optometry Wealth Advisors, a financial planning firm just for optometrists nationwide.

The Biggest IPOs in History Are Here - Should Optometrists Invest?

Questions? Thoughts? Send a Text to The Optometry Money Podcast! We'll answer your question on the show. [https://www.buzzsprout.com/1970676/fan_mail/new] Episode Summary The largest IPO in history is here. SpaceX goes public this week with an expected total value of $1.77 trillion, and OpenAI and Anthropic have both announced plans to go public this year at valuations around $1 trillion each. In optometry forums and online communities everywhere, ODs are asking the same question: should I get in? In this episode, we look at 45 years of data and research on how IPOs have actually performed for investors - and then dig into the question that matters more for most listeners: how index funds and other passive funds will add these mega IPOs to their portfolios, and what that means for you. Have questions about your own investment approach? Reach out at podcast@optometrywealth.com [podcast@optometrywealth.com]. What You'll Learn * What an IPO is and why 2026's IPOs are historic in size * How IPOs have historically performed compared to the broad US stock market * Why the famous "first-day pop" doesn't benefit everyday investors * The distribution of individual IPO outcomes over 3 and 5 years — and why most lose money * Why periods of peak IPO hype tend to be followed by the worst returns * How the S&P 500, Russell, CRSP, and MSCI indexes decide when (and how much of) an IPO to include * What "float adjustment" means and why these trillion-dollar companies will enter index funds as tiny slivers * How the Nasdaq-100's approach to IPOs differs from broad market indexes * Whether index fund "front-running" around IPO inclusions should worry long-term investors * How factor-based funds like Dimensional handle newly public companies Key Takeaways for Optometrists Investing in IPOs right after they go public has historically been a poor strategy. IPOs as a group have trailed the broad market, and when you look at individual companies, roughly 60% lost money over their first three to five years - while a small sliver delivered lottery-like gains that lift the averages. Betting on IPOs means betting you can pick those rare winners. For index fund investors, these mega IPOs will eventually show up in your funds - but because indexes are float-adjusted, even a $1.77 trillion company may enter as a fraction of a percent of the index. The impact on your portfolio, good or bad, is small. The bigger lesson: when hype is at its highest, expected returns tend to be at their lowest. Staying broadly diversified, keeping costs low, and not chasing shiny objects continues to be the prudent approach - and if you do want a lottery ticket, be honest about what it is and size it accordingly. Related Episodes: * Ep 134: The Case for Index Funds – Why Optometrists Should Embrace Passive Investing [https://optometrywealth.short.gy/ODmoney134] * Ep 135: Beyond Indexing – An Optometrist’s Guide to Factor-Based Investing [https://optometrywealth.short.gy/ODmoney135] * Ep 58: Investing Fundamentals – Understanding Stocks, Bonds, Mutual Funds, and ETFs [https://optometrywealth.short.gy/ODmoney58] * Ep 153: How to Invest Tax-Efficiently and Keep More of Your Returns (After-tax) [https://optometrywealth.short.gy/ODmoney153] Resources for Optometrists * Loughran & Ritter (1995), "The New Issues Puzzle" — Journal of Finance [https://site.warrington.ufl.edu/ritter/files/2015/04/The-New-Issues-Puzzle-1995.pdf] * Dimensional Fund Advisors (2019), "What to Know About IPOs" research study [https://www.dimensional.com/us-en/insights/ipos-profiles-are-high-what-about-returns] * Dimensional Fund Advisors 2025 video: Do IPOs Have a Place in Your Portfolio? [https://www.dimensional.com/us-en/insights/do-ipos-have-a-place-in-your-portfolio] * Jay Ritter's Long-Run Returns on IPOs (University of Florida) [https://site.warrington.ufl.edu/ritter/files/IPOs-long-run-returns-on-IPOs.pdf] * 2025: Primary Capital Market Transactions and Index Funds [https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4929872] * Cullen Roche's Article: Three Things – 100s, SpaceX, & Indexing [https://ria.disciplinefunds.com/2026/06/05/three-things-100s-spacex-indexing/] * Morningstar's Jeff Ptak: Lessons From a Private Markets Bust: Why This ETF’s Investors Missed Out on SpaceX Gains [https://www.morningstar.com/alternative-investments/lessons-private-markets-bust-why-this-etfs-investors-missed-out-spacex-gains] Want a more proactive approach to your planning? You can schedule a no-commitment introductory call to discuss what's on your mind financially and learn how we help optometrists navigate those same decisions nationwide. 👉 Schedule an introductory call [https://optometrywealth.short.gy/contact] The Optometry Money Podcast is dedicated to helping optometrists make better decisions around their money, careers, and practices. The show is hosted by Evon Mendrin, CFP®, CSLP®, owner of Optometry Wealth Advisors, a financial planning firm just for optometrists nationwide.

(Rewind) Should Optometrists Invest at All-Time Highs? What the Data Says

Questions? Thoughts? Send a Text to The Optometry Money Podcast! We'll answer your question on the show. [https://www.buzzsprout.com/1970676/fan_mail/new] Episode Summary With the stock market trading near all-time highs again, it's natural to wonder — should you be worried? Is a crash inevitable? Should you hold off on investing? In this rewind of one of our most popular 2024 episodes, we dig into what history actually tells us about all-time highs in the stock market — and why optometrists should stay the course with the long-term investment plan they've already built. What You'll Learn * How common all-time highs actually are historically * Average S&P 500 returns one, three, and five years after record highs * How often significant market corrections follow all-time highs * Why declines are a normal and expected part of long-term investing * What optometrists should focus on instead of market noise Key Takeaways for Optometrists All-time highs sound alarming — but history says otherwise. Since 1950, the S&P 500 has hit roughly 1,250 all-time highs, averaging about 16 per year. Research from Dimensional Fund Advisors shows that average returns one, three, and five years after record highs are nearly identical to returns after any other given month. And data from RBC Global Asset Management found that only 9% of all-time highs were followed by a 10%+ decline within one year — with that number dropping to 0% over a five-year window. None of this means declines don't happen — they do, and they're a normal part of investing. But for long-term investors, the focus belongs on the things within your control: your savings rate, your practice, your career, and maintaining the right investment mix for your goals. The headlines will always find a reason to worry. Your job is to tune them out and stay invested. Resources for Optometrists * Podcast Ep 153: How to Invest Tax-Efficiently and Keep More of Your Returns (After-tax) [https://optometrywealth.com/podcast/the-optometry-money-podcast-ep-153-how-to-invest-tax-efficiently-and-keep-more-of-your-returns-after-tax/] * Podcast Ep 140: What Most Investors Get Wrong About Dividend Investing [https://optometrywealth.com/podcast/the-optometry-money-podcast-ep-140-what-most-investors-get-wrong-about-dividend-investing/] * DFA: Why A Stock Peak Isn't A Cliff [https://my.dimensional.com/dfsmedia/f27f1cc5b9674653938eb84ff8006d8c/77641-source/why-a-stock-peak-isnt-a-cliff-us.pdf] * RBC GAM: Investing at All-Time Highs [https://www.rbcgam.com/en/ca/learn-plan/investment-basics/investing-at-all-time-highs/detail] * Have a question for a future episode? Email: podcast@optometrywealth.com Want a more proactive approach to your planning? Let's schedule a call. You can schedule a no-commitment introductory call to discuss what's on your mind financially and learn how we help optometrists navigate those same decisions nationwide. 👉 Schedule an introductory call [https://optometrywealth.short.gy/contact] The Optometry Money Podcast is dedicated to helping optometrists make better decisions around their money, careers, and practices. The show is hosted by Evon Mendrin, CFP®, CSLP®, owner of Optometry Wealth Advisors, a financial planning firm just for optometrists nationwide.

Big Student Loan Changes Are Final: What Optometrists Need to Decide Now

Questions? Thoughts? Send a Text to The Optometry Money Podcast! We'll answer your question on the show. [https://www.buzzsprout.com/1970676/fan_mail/new] The Department of Education just released its final rule implementing the federal student loan changes we’ve been tracking over the past couple of years — and while most of it lines up with what we expected, two surprises stood out.  In this episode, we recap how we got here (the official end of the SAVE Plan and the sweeping changes from the One Big Beautiful Bill Act), break down the income-driven options ODs have going forward, and dig into the two surprises in the final rule that could affect your repayment strategy. If you have questions about navigating these decisions alongside the rest of your cash flow, tax, and practice planning, reach out at podcast@optometrywealth.com. What You’ll Learn •Why the SAVE Plan is officially dead and the 90-day decision window for borrowers still in SAVE forbearance •How the One Big Beautiful Bill Act splits borrowers into two groups based on the July 1st date •Why consolidating your federal loans right now could restrict your repayment options •The difference between old and new IBR — and which ODs qualify for each •How the new Repayment Assistance Plan (RAP) works, including its payment calculation and 30-year timeline •The first surprise: new restrictions on who can enter Pay As You Earn before it sunsets in 2028 •The second surprise: how RAP payments are (and aren’t) treated for forgiveness under IBR Key Takeaway July 1st is the date to circle. Whether you’re deciding how to exit SAVE forbearance, weighing a consolidation, or trying to lock in Pay As You Earn before new restrictions hit, the window to act on your best options is closing — and the right move depends heavily on your specific path toward forgiveness or payoff. Resources * Podcast Ep. 152: Listener Q&A: Practice Ownership, Backdoor Roths, and Student Loans [https://optometrywealth.short.gy/ODmoney152] * Podcast Ep. 151: How Filing Taxes Separately Impacts Student Loan Outcomes for Optometrists [https://optometrywealth.short.gy/ODmoney151] * Ep 143: How the Final One Big Beautiful Bill Act Impacts Optometrists – Taxes, Student Loans, and More! [https://optometrywealth.short.gy/ODmoney143] Want a more proactive approach to your planning? You can schedule a no-commitment introductory call to discuss what's on your mind financially and learn how we help optometrists navigate those same decisions nationwide. 👉 Schedule an introductory call [https://optometrywealth.short.gy/contact] The Optometry Money Podcast is dedicated to helping optometrists make better decisions around their money, careers, and practices. The show is hosted by Evon Mendrin, CFP®, CSLP®, owner of Optometry Wealth Advisors, a financial planning firm just for optometrists nationwide.

How to Maximize Your Optometry Practice Value Before You Sell with Erich Mattei

Questions? Thoughts? Send a Text to The Optometry Money Podcast! We'll answer your question on the show. [https://www.buzzsprout.com/1970676/fan_mail/new] Whether you're five to ten years from exiting your optometry practice or just starting to think about it, the decisions you make right now have a major impact on what your practice is ultimately worth.  In this episode, Evon is joined by Erich Mattei of Akrinos — a returning guest who specializes in practice transitions and valuations — to break down the key levers practice owners should be focused on long before they're ready to sell. From profitability and expense benchmarks to payor mix, capital expenditure, and add-backs, this conversation gets into the mechanics of how fair market value is actually determined and what you can do to improve it. What You'll Learn * How fair market value for an optometry practice is determined * The two primary drivers of practice value: profitability and capital expenditure * Key expense benchmarks for COGS, occupancy, non-doctor payroll, and general overhead * Why growing revenue matters — and why growing the right revenue matters even more * How payor mix and cash pay percentage affect practice value and buyer negotiation * What add-backs are and why minimizing seller discretionary spend before exit is critical * How associate doctors and full-time equivalent coverage factor into valuation * Why outdated equipment can undermine an otherwise profitable practice Key Takeaway The time to prepare your practice for sale is long before you're ready to sell. The ODs who get the most at exit are the ones who ran their businesses like a business — with clean financials, controlled expenses, growing revenue through the right channels, and a practice that a buyer can step into with confidence. Resources * Erich Mattei / Akrinos: contact@akrinos.com [contact@akrinos.com] * Akrinos 360 Due Diligence Resource — reach out to Erich directly or contact Evon at podcast@optometrywealth.com [podcast@optometrywealth.com] * Akrinos Website [https://www.akrinos.com/] * Podcast Ep 50: Guide to Due Diligence on Practice Purchases with Erich Mattei [https://optometrywealth.short.gy/ODmoney50] * Podcast Ep 80: Intro to Optometry Practice Valuations with Erich Mattei [https://optometrywealth.short.gy/ODmoney80] Want a more proactive approach to your planning? You can schedule a no-commitment introductory call to discuss what's on your mind financially and learn how we help optometrists navigate those same decisions nationwide. 👉 Schedule an introductory call [https://optometrywealth.short.gy/contact] The Optometry Money Podcast is dedicated to helping optometrists make better decisions around their money, careers, and practices. The show is hosted by Evon Mendrin, CFP®, CSLP®, owner of Optometry Wealth Advisors, a financial planning firm just for optometrists nationwide.