Announcement

Collapse
No announcement yet.

What would you do?

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

  • What would you do?

    I sold a group of practices last year, took a long break and now wondering what to do.
    I am 40, home paid off (800k), commercial property (worth $3M, pays me $140K annually) paid off, have maxed up 529 plans (two kids, total $150K each) and HSA plans for last two years. Also have cash, VOO, SCHG and QQQ worth $4M+.
    Kids are 5,11 and wife still wants to work. I feel like I am doing nothing even though I worked hard in last decade.

    I tried to upgrade my home recently to a bigger one but could only get approved for half of the loan b'cos I don't have any W-2 income, despite the fact that I have so much cash and real estate assets. I have tried a couple of places to take an easy 2-3 days job but those practice owners think I could later open a mile away and take their clients with me (due to my history of being a practice owner). So that didn't work out and I understand their reluctance. Moreover I realized I would be a bad employee anyway

    I thought I could retire early but it's a boring life which has been made worse by COVID restrictions.

    Now I have two options:

    1. Start another practice/s and sell before 50 before really retiring. I do miss practicing, busy schedule and especially the procedures/surgeries. I cannot work for free or volunteer, just the mind of a for profit businessman. If I don't start practice this year I cannot get practice financing next year. Some of my colleagues who sold to corporate in last 12-24 months are restarting new practices BUT they do not know how to the option 2 (below) either. They say "I don't know or have anything else to do."
    This requires a lot of effort, struggle and recurrence of some of the staffing nightmares of the past decade. There are days this option is my favorite and then there are other when it is not.
    I was diagnosed with coronary heart disease in 2012 at the age of 32 (family history) but still kept going strong. I am very healthy, jog or bike daily +/-gym, 6'1" height with 190 lbs. I am very healthy, jog or bike daily +/-gym, 6'1" height with 190 lbs. Now I am getting older, I am just afraid that if I start new practice/s with huge loans and something happens to me in coming years, my family won't be able to operate and will suffer from the debt. That's my reluctance for this option also.

    2. I like development and construction. Actually built my own clinic building and then a home for $1.7M last year and sold for $2.5M, with before taxes profit of $650K. I enjoy being outdoors and not having to work 9-6 schedule. I am in Seattle, can probably still make about $500-$750K profit every 12-24 months from such sales, one at a time to keep life easier. Of course it doesn't create an asset like a practice that could sell for millions later on but at the same time stress in relatively less. I have never doubted this option.
    In this option, if something happens to me, my family is capable of finishing the project/sell.

    What would you do?
    Don't know how many people move from their primary profession and do something else when they get somewhat financially independent.
    Thanks!

  • #2
    What would you do at 50?
    Why didn’t you consider offering a strong non-compete?
    Those types of questions don’t really help you do they?
    Kids are 5,11 and wife still wants to work. They have their own lives don’t they?
    Don’t bother with the questions above, just answer Three Kinder Questions and you will probably have a solution.

    https://thephysicianphilosopher.com/...der-questions/



    Comment


    • #3
      With those numbers you can do whatever you want. More money is just icing on the cake now. Figure out what makes you happy and do that for a while.

      Comment


      • #4
        Does $140k cover your spending? If so the only reason to work is health insurance. Does your spouse have coverage? If you enjoy building houses why not? Practicing medicine provided you with an early nestegg you can certainly do anything you want. You will find things to do with your time. They will just be different.

        Comment


        • #5
          I practise as a solo practitioner, make enough to cover expenses and continue to add to retirement accounts. I’ve reduced to 3 days a week and spend more time with kids, which is a big adjustment initially but a good one I think, as you never get that time back.

          On the real estate development, I take the other end and either sell land to developers or buy from distressed developers. I have no interest in developing or building anything. I tend to think there are probably higher odds for commercial development success as the space is less competitive. You might be a great residential developer or maybe you were lucky on that one. It’s seems to me a pretty crowded space.

          I love investing, so I’ll always be doing that. Many aspects of my field in medicine I also like. It also means I still have an income if my investments blow up. I’d be trying to learn how to invest, even if I didn’t make any money from it. Do what you love. It’s your life.

          Comment


          • #6
            Congrats. Looks like you should start reading and getting into the FatFIRE community.

            You can go to reddit.com/r/fatFIRE to start reading up on those who are already financially very secure in what they can start doing or next steps.

            At this point in your life, without discounting your clinical competency, I view you more as a small business owner/person who happens to be a doctor by training...rather than a doctor who has lot of side businesses.

            Comment


            • #7
              Originally posted by sg13 View Post
              I sold a group of practices last year, took a long break and now wondering what to do.
              I am 40, home paid off (800k), commercial property (worth $3M, pays me $140K annually) paid off, have maxed up 529 plans (two kids, total $150K each) and HSA plans for last two years. Also have cash, VOO, SCHG and QQQ worth $4M+.
              Kids are 5,11 and wife still wants to work. I feel like I am doing nothing even though I worked hard in last decade.

              I tried to upgrade my home recently to a bigger one but could only get approved for half of the loan b'cos I don't have any W-2 income, despite the fact that I have so much cash and real estate assets. I have tried a couple of places to take an easy 2-3 days job but those practice owners think I could later open a mile away and take their clients with me (due to my history of being a practice owner). So that didn't work out and I understand their reluctance. Moreover I realized I would be a bad employee anyway

              I thought I could retire early but it's a boring life which has been made worse by COVID restrictions.

              Now I have two options:

              1. Start another practice/s and sell before 50 before really retiring. I do miss practicing, busy schedule and especially the procedures/surgeries. I cannot work for free or volunteer, just the mind of a for profit businessman. If I don't start practice this year I cannot get practice financing next year. Some of my colleagues who sold to corporate in last 12-24 months are restarting new practices BUT they do not know how to the option 2 (below) either. They say "I don't know or have anything else to do."
              This requires a lot of effort, struggle and recurrence of some of the staffing nightmares of the past decade. There are days this option is my favorite and then there are other when it is not.
              I was diagnosed with coronary heart disease in 2012 at the age of 32 (family history) but still kept going strong. I am very healthy, jog or bike daily +/-gym, 6'1" height with 190 lbs. I am very healthy, jog or bike daily +/-gym, 6'1" height with 190 lbs. Now I am getting older, I am just afraid that if I start new practice/s with huge loans and something happens to me in coming years, my family won't be able to operate and will suffer from the debt. That's my reluctance for this option also.

              2. I like development and construction. Actually built my own clinic building and then a home for $1.7M last year and sold for $2.5M, with before taxes profit of $650K. I enjoy being outdoors and not having to work 9-6 schedule. I am in Seattle, can probably still make about $500-$750K profit every 12-24 months from such sales, one at a time to keep life easier. Of course it doesn't create an asset like a practice that could sell for millions later on but at the same time stress in relatively less. I have never doubted this option.
              In this option, if something happens to me, my family is capable of finishing the project/sell.

              What would you do?
              Don't know how many people move from their primary profession and do something else when they get somewhat financially independent.
              Thanks!
              Boy, I really should have paid more attention to the specialty I choose, lol
              What would I do if I was already financially independent? I would stay home and enjoy gardening, cooking, spending time with family. Travel when I'm able to again. Maybe start a few new hobbies like rebuilding an old car or whatever I felt like. But then again, this is coming from someone who doesn't enjoy their career and is just doing it for the paycheck (and my checks have never been even close to yours, lol). I could keep myself very well occupied at home with no regrets or second thoughts.

              So, your question shouldn't be what would others do. What's right for me is likely not right for you. Instead, you should be asking yourself what would make yourself happiest. Do whatever will bring you joy in life. If you need to start a business and keep yourself busy with business type pursuits, then by all means do it. The nice thing about your situation is you have no pressure to provide any income to yourself since you're already completely set up for life.

              Comment


              • #8
                What multiple of practice revenue did you sell the practice(s) for?

                Comment


                • #9
                  Originally posted by Hatton View Post
                  Does $140k cover your spending? If so the only reason to work is health insurance. Does your spouse have coverage? If you enjoy building houses why not? Practicing medicine provided you with an early nestegg you can certainly do anything you want. You will find things to do with your time. They will just be different.
                  Yes it does easily. With house paid off, cars paid off (relatively new) and being in a good school district, expenses are minimal. I pay for mine and two kids' HSA plan while wife's covered under work. Not a huge expense. Most of income is passive and goes to saving unless we go to vacation. T

                  Comment


                  • #10
                    Originally posted by MPMD
                    sounds like you should be building high end homes.

                    not to be morbid but known CAD at 40 w/ four kids i think your are right to be considering keeping it simple. a bunch of buildings and practices with debt and paper all over the place will just create an extra headache for your wife if something happens to you.

                    if you want to practice a little bit consider something with a charitable bent maybe? free clinic once a week? supervise residents or students at Harborview?
                    Yes closing a lot later this month. I enjoy this

                    Comment


                    • #11
                      Originally posted by EntrepreneurMD View Post
                      What multiple of practice revenue did you sell the practice(s) for?
                      10.
                      I wasn't practicing much even when I owned practices, that's why my EBIDTA was a bit lower than others very much into it.
                      That's also the reason I didn't have to sign any employment contract either.

                      Comment


                      • #12
                        Originally posted by hightower View Post
                        So, your question shouldn't be what would others do. What's right for me is likely not right for you. Instead, you should be asking yourself what would make yourself happiest. Do whatever will bring you joy in life. If you need to start a business and keep yourself busy with business type pursuits, then by all means do it. The nice thing about your situation is you have no pressure to provide any income to yourself since you're already completely set up for life.
                        Sounds like you're in a great spot financially!

                        With regard to the next steps, I like Hightower's answer above and Tim's suggestion of using Kinder's questions.

                        What would I do? I've worked with an executive coach for years. Mostly, he just reflects back to me what I've said to him. However, in doing so, he continuously helps me to stay focused on my purpose. Maybe something like that would be helpful to you.

                        Be well.
                        If I had to choose between investment analysis and my mountain bike, I'd choose the mountain bike 100% of the time.

                        Comment

                        Working...
                        X