Dr. Arnold (back row far right as you look at photo) with his staff, most of whom were with him for years. Dr. Arnold, recognized as No.5 in Newsweek’s 2021 America’s Best Eye Doctors, started in practice in 1984. He is now at the point of retirement.
Retirement planning tips for optometrists
Sponsored Content
By Thomas P. Arnold, OD, FSLS
Oct. 2, 2024
When you have a fulfilling career, knowing the right time to retire can be hard.
That decision, however, is made easier when you’re part of a supportive organization like AEG Vision, which gives you an array of options for your career trajectory and transition out of your career.
Starting Your Retirement Journey on Day One of Your Career
My long-term retirement plan started on day one when I first opened my own private practice in 1992.
I worked with several different ophthalmology practices for the previous eight years. However, none of these positions offered any path to equity, nor did they offer even basic 401k plans.
I diligently funded a traditional IRA but I knew, even then, that this would not be enough to fund a secure retirement. My bachelor’s degree in finance and economics helped inform my opinion.
When setting up the “C” corporation for my private practice, I instructed my attorney and CPA to set up a 401k plan for the business and a “top heavy” pension/profit sharing plan that all full-time employees could benefit from. Some years later, we switched to an “S” corporation.
AEG Vision provided a comprehensive retirement package at Fidelity Investments. The rollover of my personal accounts and those of the staff members was seamless and prompt. Fidelity is one of the largest and most reputable financial entities, and AEG offered a large palette of investment vehicles to choose from.
Fees are low, and the portal for individual investors is excellent and easy to navigate, whether using a web browser or the iPad app.
I chose a balanced fund with a specific target date. This plan’s rate of return has been excellent.
There is an amusing quip that goes, “I always knew that I would get older. I just thought it would take longer!”
The time to start planning for retirement is from the first day you begin working, no matter the practice situation. When starting a practice and family, with all the responsibilities that entails, it always feels like you could use more money.
Even as your professional career flourishes, we tend to “rise to our level of income,” meaning that money is always tight. Nonetheless, make regular savings a commitment, and do not waiver.
“Pay yourself first” is one of the best pieces of advice I can think of. I lived within my means and didn’t waste money trying to impress others.
A Successful Practice Paves the Way for a Successful Retirement
There are several “keys” to building a successful practice which can bring both personal fulfillment in addition to laying the groundwork for a smooth transition into retirement.
Train your staff
Train, train, train your staff. Get the best people and reward them both financially and emotionally. They are the touchstone of the practice. What comes out of their mouths is of the same value to the practice as what comes out of yours.
I am often asked how one retains a topnotch staff. My answer is always, “Fire the bad ones.”
“Slow to hire, quick to fire” is more than a cliché.
Don’t make the practice all about you
Use a trade name instead of your personal name. In other words, don’t make the practice all about you. This makes it easier to introduce associate doctors.
If all the patients just want to see the excellent “Dr. Jones,” it may be hard to switch them to “Dr. Smith.” When it comes time to sell the practice, patients may decide to go elsewhere since Dr. Jones has retired. Have the office build the reputation, not you as an individual.
Slowly cut back on work
As retirement approaches, start reducing the number of days you see patients. Cut a day at a time over a one-to-two-year period. This will get patients used to seeing an associate or employee doctor and the staff used to relying on themselves rather than being dependent on your presence.
Even if you are still a solo practice, working fewer days for a couple of hours longer may generate the same revenue as spreading the patients over five days.
As You Near Retirement, Double Down on What You Most Enjoy in Practice
I enjoyed my specialty lens practice and being able to speak more frequently at live events as well as webinars. Having additional time to read and keep up with the latest advances in our understanding of pathological conditions and etiologies has been satisfying.
With AEG Vision taking over the day-to-day management responsibilities, I could focus on my specialty lens practice. I was also able to travel internationally to speak at conferences around the world. I could be confident that the practice was in good hands benefiting both the patients and staff.
Prior to partnering with AEG, upon returning from a lengthy vacation, I often spent several days playing “catch-up” and dealing with issues that arose in my absence.
Start Doing More of Your Favorite Leisure Activities
I enjoy traveling as well as golf and skiing.
I am an avid skier and have skied in Europe, Chile, Canada and many of the major resorts in the U.S. Retiring in Northern Colorado made it easy to get my “ski fix” in.
After partnering with AEG, I continued to work in the practice for almost three years, which is a typical transition time. This gave the staff and patients time to adjust. As we planned to move from Texas to our retirement home in Colorado, I worked three weeks in the clinic and took a week off every month.
In the last six months prior to full retirement, I worked just one week in the clinic and commuted from Colorado, where I spent the remaining time.
Letting Go of an Accomplished Career
The practitioner must come to realize that they are no longer fully in charge and need to be flexible in adjusting to new management.
The EHR system may be different as well as policies and procedures for ordering frames, contact lenses, office supplies and even a new optical lab.
Other Articles to Explore
One of the wonderful things about AEG, and one of the things I appreciated most, was how the AEG leadership team always allowed me to just be the doctor. No one ever interfered with my professional judgment or had any comments or opinions about how we cared for our patients.
AEG values and respects each practitioner in the network, and I was always treated with the utmost respect and courtesy.
No Regrets
Partnering with AEG Vision was the best financial decision I could have made. Since joining them five years ago, I have not had a single regret.
The transaction was generous and fair. The financial team at AEG upheld every commitment with no prevarication. Everything happened as promised and on time. While it is often thought that what is best for private practice optometry is to bring in and groom a young associate doctor who will eventually purchase the practice, this is may not always turn out as expected.
The eyecare profession has undergone significant changes in the last 40 years of my career.
Partnering with a larger professional entity like AEG Vision is a sound financial strategy for the private optometrist.
Thomas P. Arnold, OD, FSLS, now-retired, was a partner with Memorial Eye Center at Sugar Land, now a part of AEG Vision. To contact him: tarnold@aegvision.com
This article was created using several editorial tools, including AI, as part of the process. Human editors reviewed this content before publication.
