When the Practice Becomes the Plan

By Dr. Roxanne Arnal, CFP®, CLU®

If you’re like many Optometrists, a significant portion of your wealth is tied up in your practice.

And honestly, this makes perfect sense.

During your career, you’ve invested in the things that matter: staff, equipment, technology, patient care, renovations, and growth opportunities. You’ve put money back into the business because that’s where you’ve had the most control and often the best opportunity to create value.

Over time, though, it’s worth asking yourself a simple question: “Is my practice part of my retirement plan, or has it become the retirement plan?”

It may sound like a subtle distinction, but it can have a significant impact on the options available to you later in life.

The Assumption Many of Us Make

Most practice owners spend years reinvesting in their business.

You add another exam lane. Upgrade technology. Expand your space. Pay down debt. Invest in staff development. Before you know it, a large portion of your net worth is sitting inside your practice.

Along the way, it’s easy to assume that selling the practice one day will provide the capital you’ll need for retirement.

To be clear, there’s nothing wrong with this assumption. For many Optometrists, their practice is one of the most valuable assets they will ever own.

The challenge is that your retirement begins to depend heavily on a transaction that hasn’t happened yet.

Value and Liquidity Are Not the Same Thing

I often hear conversations focused on what a practice might sell for.

Though it’s an important number, it’s not necessarily the most important number.

A practice can have tremendous value on paper while still not generating the retirement income you expect once the transaction is complete.

The eventual outcome depends on many factors: market conditions, buyer demand, financing arrangements, taxes, lease considerations, and how the sale is structured.

That’s why I often encourage practice owners to think beyond the sale price itself.

A more useful question may be: “How much income will my assets create after the sale is complete?”

That’s a very different conversation than simply discussing valuation.

Looking Beyond the Sale Price

The sale of a practice is frequently discussed in terms of valuation. But what ultimately matters are how the proceeds integrate with your existing savings, retained corporate assets, government benefits, and future spending requirements.

For example, two Optometrists may receive identical sale proceeds yet experience very different retirement outcomes.

One may have built substantial personal investments outside the practice. The other may have directed most available capital back into the business over many years.

The practice value may be the same. Their financial flexibility isn’t.

Creating Options Before They’re Needed

One benefit of starting succession planning early is the ability to build in flexibility over time.

This preparation may involve gradually increasing personal investment assets, reviewing future cash flow requirements, assessing debt obligations, or purification of corporate assets to align with your long-term goals.

Notably, gradual adjustments are easier to implement and less disruptive when made over a longer period of time.

The Emotional Reality of Financial Readiness

Retirement planning discussions often focus on numbers, which is important, but not everything.

For years, your practice has provided more than income. It has provided structure, purpose, relationships, leadership opportunities, and professional identity. So, stepping away can be a significant adjustment.

What will fill your time? Which activities will keep you socially engaged? How will you stay physically active? What aspects of practice ownership will you miss, and which are you ready to leave behind?

In my experience, the people who navigate this transition most successfully tend to have a sense of purpose that extends beyond the practice.

Alignment Matters More Than Timing

Many owners spend years looking for the perfect time to sell, yet, the reality is that perfect timing is difficult to identify, even in hindsight.

What often matters more is whether the important pieces are aligned. Is the practice ready for transition? Are your personal finances positioned to support your lifestyle? Have you reviewed potential tax planning opportunities early enough to take advantage of them?

Do you have a clear vision for what comes after ownership?

When these pieces start coming together, succession planning will feel less like a single event and more like a gradual transition.

Final Thoughts

The most successful practice transitions are rarely defined solely by the transaction itself.

They are defined by the preparation that took place beforehand.

Your practice is an important part of your retirement strategy, and often it’s one of the most valuable assets you’ll ever own. But retirement tends to feel more secure when your future doesn’t rely entirely on a single sale.

The goal isn’t simply to transfer ownership.

It’s to create enough flexibility, clarity, and confidence that when the time comes, you’re able to move into the next chapter on your own terms.