The Optometry Money Podcast

Listener Q&A #2: S Corp Salary, How Much Practice Cash to Keep, Buying Practice Real Estate, and More

Questions? Thoughts? Send a Text to The Optometry Money Podcast! We'll answer your question on the show. [https://www.buzzsprout.com/twilio/text_messages/1970676/open_sms] We're back with our second listener Q&A episode, tackling real questions from ODs around the country. From S Corp salary decisions and how much cash to keep in your practice, to buying your commercial real estate, preparing your practice for sale, and whether you're overfunding your kids' 529 plans — we cover a lot of ground in this one. Have a question you'd like answered on a future episode? Submit it at optometrywealth.com/podcastquestion. What You'll Learn * What goes into determining a "reasonable salary" as an S Corp optometry practice owner — and why you should rely on your CPA * Two practical methods for calculating how much cash your optometry practice should keep on hand * Key factors to weigh when deciding whether to buy your practice's commercial real estate * What drives practice valuation and how to start preparing 10 years before you want to sell * How to build balance in your net worth over over time and not be overly concentrated in your practice * The flexibility built into 529 plans that most ODs don't realize they have Key Takeaway Many of these questions come down to the same principle: your practice's cash flow is your most powerful financial tool. Whether you're deciding how much salary to pay yourself, how much cash to hold in the business, or how to diversify your net worth — using that cash flow intentionally and efficiently is what moves the needle over time. Links & Resources * Submit a question for a future Q&A episode [https://optometrywealth.com/podcastquestion] * IRS: S Corporation Compensation and Medical Insurance Issues [https://www.irs.gov/businesses/small-businesses-self-employed/s-corporation-compensation-and-medical-insurance-issues] * Ep 139: Optimize Your Pay – 7 Key Factors for Setting Practice Owners’ Compensation [https://optometrywealth.short.gy/ODmoney139] * IDOC Practice Cash Reserve White Paper [https://optometrywealth.com/wp-content/uploads/2026/02/Cash-Discipline-Nathan-Hayes-IDOC.pdf] * IDOC How Should Optometry Practices Manage Cash? [https://booksandbenchmarks.com/blog/how-should-optometry-practices-manage-cash/] * Ep 154: Trump Accounts for Kids - What Optometrists Need to Know [https://optometrywealth.short.gy/ODmoney154] 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.

Are Your Retirement Accounts Protected from Lawsuits? A Guide for Optometrists

Questions? Thoughts? Send a Text to The Optometry Money Podcast! We'll answer your question on the show. [https://www.buzzsprout.com/twilio/text_messages/1970676/open_sms] As an optometrist—especially a practice owner—you face real liability exposure from both your professional work and your business. So how well are your retirement accounts and investments actually protected if something goes wrong?  In this episode, we walk through the different layers of liability protection available to ODs and dive into exactly which retirement and investment accounts are shielded from creditors, which ones aren't, and where the common gaps and misconceptions are. What You'll Learn * Four common layers of liability protection available to optometrists (entities, insurance, titling, and federal/state law) * Why umbrella insurance is one of the most common gaps in OD insurance planning * How ERISA law protects 401(k) and cash balance plans—and why it's the gold standard * Why solo 401(k) plans do NOT carry the same ERISA protection (a common misconception) * How SEP IRAs and SIMPLE IRAs fall short on liability protection compared to full 401(k) plans * How Traditional and Roth IRAs are protected in bankruptcy (and the current dollar limit) * What happens to liability protection when you roll a 401(k) into an IRA—and a best practice for keeping those dollars separate * How HSAs, taxable brokerage accounts, and 529 plans are (or aren't) protected * Steps ODs should take now to review their liability exposure Key Takeaway Not all retirement accounts are created equal when it comes to liability protection. ERISA-covered plans like 401(k)s and cash balance plans offer the strongest, unlimited federal protection—making maxing those contributions both a tax strategy and a liability strategy.  But accounts like solo 401(k)s, SIMPLE IRAs, and traditional/Roth IRAs don't carry that same blanket protection, and the gaps are highly state-dependent. Understanding where your dollars sit and how they're protected is an important part of your overall financial plan. Resources * Submit your questions for upcoming Listener Q&A episodes: OptometryWealth.com/podcastquestion [https://OptometryWealth.com/podcastquestion] * Reach out: podcast@optometrywealth.com [podcast@optometrywealth.com] 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.

Trump Accounts for Kids: What Optometrists Need to Know

Questions? Thoughts? Send a Text to The Optometry Money Podcast! We'll answer your question on the show. [https://www.buzzsprout.com/twilio/text_messages/1970676/open_sms] Congress created a brand new investment account for kids called Trump Accounts, and the questions from optometrists have been flowing in. In this episode, we break down exactly what these accounts are, how they work, who can contribute, and - most importantly - whether they actually add anything new to the lineup of options you already have for investing on behalf of your kids. What You'll Learn * What Trump Accounts are and how they work * Who can contribute, how much, and when * How contributions are taxed (and why the after-tax structure matters) * How employer contributions work - and potential hurdles for practice owners contributing to their own kids' accounts * What happens when the child turns 18 * How Trump Accounts compare to existing options like UTMA/UGMA accounts, 529s, and custodial Roth IRAs * The best use cases for ODs, including the $1,000 federal seed money and Roth conversion planning Key Takeaway Trump Accounts aren't a game-changer, but they can definitely be a benefit for our kids. The biggest win is the $1,000 seed money for eligible kids and the renewed attention on starting retirement savings early. They don't replace anything already in your toolkit - think of them as one more option alongside 529s, custodial accounts, and Roth IRAs. Episode Chapters * [00:00] Introduction * [01:00] What are Trump Accounts? * [02:00] When they're available and how to open one * [02:30] Who can contribute and contribution limits * [03:00] Why contributions are after-tax (and why that matters) * [05:00] Employer contributions through your practice * [06:00] Can practice owners contribute to their own kids' accounts? * [07:30] Government and nonprofit contributions & the $1,000 pilot program * [08:30] Investment options inside Trump Accounts * [09:00] What happens when the child turns 18 * [10:00] Withdrawal restrictions and the ABLE account exception * [10:30] How Trump Accounts compare to existing options for kids * [14:30] Best use cases for optometrists * [17:00] Final thoughts: The real positive of Trump Accounts Resources Mentioned * IRS Form 4547 [https://www.irs.gov/forms-pubs/about-form-4547] * trumpaccounts.gov [https://trumpaccounts.gov/] * Submit podcast questions: www.optometrywealth.com/podcastquestion [http://www.optometrywealth.com/podcastquestion] * Contact: podcast@optometrywealth.com [podcast@optometrywealth.com] 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 Invest Tax-Efficiently and Keep More of Your Returns (After-tax)

Questions? Thoughts? Send a Text to The Optometry Money Podcast! We'll answer your question on the show. [https://www.buzzsprout.com/twilio/text_messages/1970676/open_sms] In this episode, we break down tax-efficient investing for ODs, showing you how to pair the right investments with the right accounts to maximize your after-tax wealth over your career. What You'll Learn Taxes can be the difference between two optometrists with identical investment returns ending up with vastly different retirement wealth. This episode breaks down how to invest tax-efficiently by pairing the right investments with the right accounts.  You'll learn which investments create tax-inefficient income (bonds, REITs) versus more favorable income (stock index funds), and the strategy for placing them across your taxable accounts, pre-tax retirement accounts, Roth accounts, and HSAs.  The key is treating all your accounts toward the same goal as one coordinated household portfolio instead of managing each separately.  Key Takeaway Don't let the tax tail wag the dog. Start with good, prudent, evidence-based investments - then optimize their placement to minimize taxes along the way. The goal isn't to avoid all taxes; it's to maximize your after-tax wealth over your lifetime. Episode Chapters * [00:00] Introduction: Why tax-smart investing matters for ODs * [03:00] Why taxes matter: The real drag on your investment returns * [05:00] Tax Layer 1: Understanding investment account types (taxable, pre-tax, Roth, HSA) * [06:00] How different types of investment income get taxed * [10:00] Tax Layer 2: Tax characteristics of stocks, bonds, and REITs * [12:00] How fund management impacts your tax bill * [16:00] Asset location strategy: Putting it all together * [20:00] Common constraints and considerations * [22:00] Mistakes to avoid when managing multiple accounts * [24:00] Conclusions: Focus on good investing while managing taxes Resources Mentioned Free Download: Get Your OD's Guide to Tax-Smart Investing [https://optometrywealth.short.gy/taxsmart] * Inventory your accounts * Identify tax-inefficient holdings * Evaluate if investments are in the right places Ready for a Second Opinion? Want help reviewing your current setup? Reach out for a no-pressure conversation about whether your investments are working as tax-efficiently as they could be. Click Here to schedule [https://optometrywealth.short.gy/contact] your free consultation!  Submit Your Question for Q&A Episodes!  Have questions you'd want answered on the podcast? Submit your questions for future Q&A episodes: OptometryWealth.com/podcastquestion [https://optometrywealth.short.gy/PodQ&A] 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.

Listener Q&A: Practice Ownership, Backdoor Roths, and Student Loans

Questions? Thoughts? Send a Text to The Optometry Money Podcast! We'll answer your question on the show. [https://www.buzzsprout.com/twilio/text_messages/1970676/open_sms] In this first-ever OD listener Q&A episode, we tackle seven questions covering practice ownership, retirement accounts, student loans, and tax strategy. From why your practice is your most important investment to navigating the backdoor Roth IRA maze, we break down what actually matters for ODs at different career stages. Submit Your Questions to the Podcast: Submit your questions for future Q&A episodes: OptometryWealth.com/podcastquestion [https://optometrywealth.short.gy/PodQ&A] Listener Questions We Tackle: * What can younger optometry practice owners do to build wealth in the first few years of ownership? * How are "backdoor" Roth IRA contributions recorded on an optometrist's tax return? * Why does a traditional IRA "ruin" the "backdoor" Roth IRA contribution for optometrists? * Why is a 401(k) plan "better" for optometry practices than a SIMPLE IRA? * Are owner's distributions from optometry practices taxable? * Should optometrists pay down student loans or save for practice ownership? * If an optometrist is on the PAYE plan for student loans, does he/she need to switch repayment plans due to the One Big Beautiful Bill Act? Episode Chapters [00:00:52] What can younger optometry practice owners do to build wealth in the first few years of ownership? [00:06:08] How are "backdoor" Roth IRA contributions recorded on an optometrist's tax return? [00:09:01] Why does a traditional IRA "ruin" the "backdoor" Roth IRA contribution for optometrists? [00:12:29] Why is a 401(k) plan "better" for optometry practices than a SIMPLE IRA? [00:17:25] Are owner's distributions from optometry practices taxable? [00:20:42] Should optometrists pay down student loans or save for practice ownership? [00:25:34] If an optometrist is on the PAYE plan for student loans, does he/she need to switch repayment plans due to the One Big Beautiful Bill Act? Resources Mentioned * Submit your questions for future Q&A episodes: OptometryWealth.com/podcastquestion [https://optometrywealth.short.gy/PodQ&A] * The Optometry Money Podcast Ep 151: How Filing Taxes Separately Impacts Student Loan Outcomes for Optometrists [https://optometrywealth.short.gy/ODmoney151] * The Optometry Money Podcast Ep 143: How the Final One Big Beautiful Bill Act Impacts Optometrists – Taxes, Student Loans, and More! [https://optometrywealth.short.gy/ODmoney143] * The Optometry Money Podcast Ep 68: Financial Planning Considerations When Preparing for Practice Ownership [https://optometrywealth.short.gy/ODmoney68] * The Optometry Money Podcast Ep 69: Financial Planning Considerations for the Early Years of Practice Ownership [https://optometrywealth.short.gy/ODmoney69] * The Optometry Money Podcast Ep 70: Financial Planning Considerations for Owners of Established Optometry Practices [https://optometrywealth.short.gy/ODmoney70] * The Optometry Money Podcast Ep. 49: An Optometrist’s Guide to Business Entities [https://optometrywealth.short.gy/ODmoney49] 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.