Why retirement should not depend on selling your practice

For many practice owners, the finish line is clear: build a successful business, sell it (hopefully for a large sum), and use that lump sum to retire. It is usually the default path, but what if the value of your business was not the determining factor in your ability to retire?

What intrigues me most about the story I am going to tell today is what we help practice owners do all the time. This is, in fact, one of the major focal points that we try to get clients to focus on. Many people want to do this, but they just do not know how. The concept is clear, but the execution is not easy.

A while ago, we had the opportunity to work with a veterinarian whose story challenged that narrative entirely because she did not need to sell her practice to retire. In fact, she could have given it away and still had more than enough to retire. Her business became the cherry on top of a cake she had already baked, and it all came down to how she prepared.

This veterinarian and her husband had done something that is, unfortunately, rare: They built a life and a financial foundation that did not depend on the practice. They saved a lot of their money and made intentional decisions with the surplus.

Every year, instead of letting extra money sit in her business checking account where it earned nothing, she gave those dollars a job. Some went into an individual retirement account (IRA) to build retirement savings with tax advantages. Some went into life insurance, which not only protected her family but also grew cash value she could access later. She used permanent life insurance, certificates of deposits (CDs), real estate investment trusts (REITs), stocks, bonds, and mutual funds to stay diversified and help capture long-term market returns.

By spreading her money across these different areas, she turned idle cash into tools that supported her protection, growth, and future income—all without overcomplicating the process.

Over time, the assets she accumulated outside her business grew to a point where the sale of the practice became optional, and with that, independence came the ultimate luxury: choice.

She did not need to entertain a $6 million offer from a corporation or feel rushed or worried about whether a buyer would pay top dollar. Her wealth was already secure, which gave her the freedom to decide who would own her practice next.

However, most owners are not in that position. More often, we speak with people who feel backed into a corner because they have spent decades building something valuable but haven’t built personal assets to match. They may want to sell to a younger veterinarian, but when corporate shows up with a check that an associate cannot match, they feel like they have no choice. That is not freedom—it’s lack of planning.

It is also risky because corporate multiples fluctuate with the economy. What was once a strong offer can quickly disappear when markets shift. Owners who rely solely on that big payday can find themselves vulnerable and disappointed.

One of the most overlooked issues we see is money sitting in the business, doing nothing, also known as “dead cash.” It is not reinvested, generating income, or supporting personal wealth. We have seen owners with hundreds of thousands of dollars left in checking accounts, unsure of what to do with it.

Often, the default is to pay off a mortgage or reinvest in new equipment, which could feel productive but is not always the best use of capital. The real question is: What is the highest and best use of every dollar? In this case, our client moved that dead cash out and made it work for her strategically.

Of course, transitioning a practice is about more than numbers; culture, leadership, and employee retention play massive roles. Our client knew exactly who she wanted to take over and developed key people in her practice who were invested in the mission and the future. Because she was not financially dependent on the sale, she could prioritize who bought her practice over how much she got for it.

The transition was not simple, and it required legal work to ensure that if those successors ever sold the business to a corporation, she would still benefit. The deal was structured with protections in place.

What surprised her most, though, was the realization that accumulating assets is only part of the equation. When we asked how she and her husband planned to turn those assets into income in retirement, they were not sure. Like many people, they assumed they would “live off the interest.”

That is a risky plan, and it is entirely dependent on market performance.

We helped her design a retirement income strategy that provided predictability and efficiency. She learned how to generate a consistent income from her assets without relying entirely on investment returns. That single shift made her retirement not only possible but also sustainable.

Perhaps the most powerful part of this story is that her lifestyle did not have to change. The life she lived before retirement—modest, intentional, fulfilling—is the same one she continues to enjoy. There was no need to “scale down” or make sacrifices. Her plan was already in motion, and retirement simply became the next chapter.

Too often, practice owners reach their 60s and think they have more time. The decision to sell does not usually come slowly; it shows up suddenly, often when burnout peaks or health declines. If you are not prepared, you may find yourself forced to accept a deal that does not reflect the value you have built or the future you want.

Succession planning does not have to lock you in; it simply gives you more options, and good plans include contingencies. Life happens, associates leave, and buyers change their minds, but with a strong plan in place, none of that derails your future.

So do not wait until you are ready. Start designing your exit while you still love what you do. Build wealth outside your business and protect what you have built. Make sure your next chapter is a choice and not a compromise.

Material discussed is meant for general informational purposes only and is not to be construed as a recommendation or advice. Please note that individual situations can vary; therefore, the information should be relied upon only when coordinated with individual professional advice. Registered Representative and Financial Advisor of Park Avenue Securities LLC (PAS). Securities products and advisory services offered through PAS, member FINRA, SIPC. Financial Representative of The Guardian Life Insurance Company of America® (Guardian), New York, NY. PAS is a wholly owned subsidiary of Guardian. Florida Veterinary Advisors is not an affiliate or subsidiary of PAS or Guardian. Florida Veterinary Advisors is not registered in any state or with the US Securities and Exchange Commission as a Registered Investment Advisor. The individuals associated with Florida Veterinary Advisors do not maintain specialized licenses or qualifications for the financial services provided to veterinary professionals. CA Insurance License #0K80141, AR Insurance License #15823672. 8269216.2 Exp 8/27