Planning for retirement should be at the forefront of your mind as you are approaching the sale of your veterinary practice. Oftentimes it is difficult to know where to begin as you think about what your retirement will look like. This guide will walk you through five important steps to ensure your retirement is comfortable.
- Plan on cutting costs. A common standard is to expect 70 percent of your regular income in retirement month to month. While every scenario is different, you can expect to see a reduction in the cost of commuting, eating lunches out, and even work clothes. Most retirement planners will tell you that 70 percent is a safe number that seems to work for the majority of people.
- Think out your lifespan. Life expectancy is an important part of your retirement planning equation. Too often people shortchange themselves by only planning for 10-15 years of retirement. The reality is that you may have 30-40 years left to live, which is nearly as much time as you've spent working. With a whole second life ahead of you, you need to be prepared to fund it all the way through.
- Prepare for life changes. Suddenly you'll have all the time you need to travel or play golf. Of course, these things come at an added expense over your regular bills and they often come intermittently instead of in a predictable order. As a result, you need to be prepared for the hit or miss expenses that come with new hobbies and lots of free time.
- Consider working. More than 70 percent of workers say that they plan to work in some capacity during retirement. Continuing to work part-time is a great way to stay social and active, even if it doesn't drastically change your whole budget. Consider working at a local museum or at a retail store that has to do with your hobby. You'll meet other people who are enthusiastic about the same things as you while you're there.
- Make sure you write things down. Work with a lawyer to draft a will, and work with a financial planner to lay out the funds for the rest of your years. Your financial planner should advise you on how to account for changes in the cost of living, potential medical costs as you age, and more. Put all of this information in writing so you can refer back to it over time.
Selling your veterinary practice is a big step toward retirement, but once your practice is sold it won't be a free for all. You need to take these five steps before you close the deal to be sure that you have a plan in place for the money and yourself going forward.
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