Featured Success Stories
Convert her biggest asset into a retirement income stream while retaining job continuity for her employees and minimizing taxes on the sale of the business.
Amanda had built her successful veterinary practice from the ground up. It was hard, but she grew the practice to a staff of 8, with enough cash flow to afford a very nice lifestyle. But the years had worn on Amanda. Stressors from the business started to layer on top of one another, and she soon realized she was losing the passion she had when she started the business two decades before. As the stress began to impact her health she knew she needed a change, but didn’t know where to start.
We started by exploring what was most important to Amanda and what she really wanted from her resources. While her love for animals never waned, her love for her career did. She realized that it was time to transition away from the business, but was concerned about her employees’ jobs if she sold to a competitor or private equity firm.
Once Amanda knew it was time for her to sell the business, we built a retirement plan that quantified exactly what she needed from the sale of her business to live comfortably for the rest of her life. This plan included distributions to support her need to travel and see family, as well as fund health insurance costs until she turned 65 and later once she enrolled in Medicare.
Since she had saved diligently in her practice’s 401k plan, we also mapped out an income plan that incorporated strategic Roth conversions. She’d be giving up an income stream by selling the practice, and would most likely fall into a lower tax bracket. That being the case, she had a great opportunity to convert her retirement savings to tax free Roth accounts, providing substantial long term tax savings.
We then worked with her attorney and CPA to clean up the business’s books, remove her personal expenses from the P&L, and prepare to put the practice on the market.
When the offers started to come in, an experienced private equity firm with national presence posted the highest initial bid. They were willing to secure the employees’ jobs for a short period of time, and Amanda proceeded to close the transaction several months later.
We put her investment and retirement plan to work, and set aside ample cash for Amanda to pay tax on the transaction. The rest was invested according to plan, and we continue to convert her retirement savings to Roth accounts in years Amanda remains in the lower tax brackets.
Not Quite Ready? Stay In Touch.
Subscribe to our newsletter to receive financial planning articles & updates to help you organize and optimize your finances.
"*" indicates required fields