Your End of Career Transition: Are You Ready Financially?

Punctuating Paradise

Bird of Paradise (Strelitzia reginae)

Kauai, HI - 2021

A Practical Methodology for Evaluating Your Readiness

Part Four of a Series...

There will likely come a time in your life when you will think of a projected date for your End of Career and begin to plan for it. When you do, you may take action and begin by doing what you are familiar with. You may get an update regarding the status of your retirement plan from your investment advisor(s).  

After that, you might schedule a meeting with your financial planner. It is certainly a prudent thing to do. You go with the expectation of getting some answers and clarity about your future prospects.

Stumble and Recovery

Charles asks you few questions and then suggests that there is some preliminary planning that you and your spouse should do in order to optimally advise you on your financial readiness. He asks you to prepare a fairly clear description of how you envision your ideal future lifestyle. This includes a projection of associated costs, a budget. The meeting ends and you resolve to get it done.

You are resilient and certainly know how to focus on matters that require your attention. You have done this throughout your entire career…successfully. Now you and your spouse schedule quiet time together with plenty of paper and pencil and perhaps spreadsheets. It is time for blending creativity and methodical planning in order to bring your dreams to reality. 

Time passes and you have spent considerable time with your spouse developing your ideas and visions. At the end of this process, you were satisfied with the results. You have a plan that you may or may not have named. 

I refer to it as the Post Career Lifestyle Plan _TM as it describes exactly what it is. In a previous article, I discuss some examples of its various elements that are critical for you to consider and describe of how they apply to you.

Now for the next step.

Sequential Steps, All Essential

At this point, you have created the basis to begin to develop with Charles what I refer to as your Post Career Financial Plan _TM.

You schedule a meeting again with Charles. When the day arrives, there's a noticeable increase in both your levels of confidence. You have many questions, but in your mind one stands out: Do your present financial resources support your future lifestyle plan?

 Identifying the Forks in the Road

You may be advised that indeed, your current financial resources will support your Post Career Lifestyle Plan _TM. If that is the case, you can proceed with confidence to prepare your practice for your End of Career. You will do so knowing that at this point, you have gone a long way to prepare yourself personally and financially. You may be advised that whether or not you want to undertake a succession plan for a younger surgeon to acquire your practice, you are now prepared with your current assets.

On the other hand, you may be advised that your resources presently do not support your Post Career Lifestyle Plan _TM  as written. No doubt, you may experience disappointment that is temporary. But, now you know that you need to make adjustments.  You have the ability to adjust your lifestyle plan and/or your plans to transition from practice. 

Other Considerations

Sometimes the need to solve one problem will solve other challenges as well.

This is an example that I encounter: Sometimes you are not so sure that you want to completely end your career. You do not want to give it up entirely. Your level of satisfaction and sources of external relevance encourage you to continue. If that is the case, and you're not quite financially ready, a solution to both may be to practice longer and get some help with your workload. (Check out my previous audio and summary about relevance here)

If you are in solo practice, whether or not you are financially ready to end your career, you may consider developing a succession plan to introduce a younger associate to your practice and acquire it. Such a succession commonly involves you, as the senior physician, to remain working in the practice for a period of time. This can be a source of satisfaction as you introduce the younger physician to the practice and mentor him.

Investment in Planning Yields Multiple Benefits

Planning to succeed is priceless. Its key elements are to create a plan and execute it in a timely manner. In most cases, the need to prepare yourself and your practice means that you should begin to prepare at least five years in advance of your anticipated end date.

The creation and execution of a logical, practical sequence that is described by a meticulous methodology is the path to lasting success.

 Plan. Prepare. Prosper. _TM

PS: By the way, do you want to learn more about how to prepare yourself and your practice for a fulfilling End of Career Transition and life beyond? I would like to help you. I provide consulting/coaching services that are tailored to your specific needs. Click here to request a complimentary introductory conversation.

Flowering into the Future

Florida - 2010