The decision whether and how to best transition out of your business is seldom easy. Several key factors may include: (i) financial needs moving forward for you and your family; (ii) your desire to remain involved in the business in some capacity; (iii) the involvement of business partners and/or family members; (iv) the impact of income and/or estate taxes; and (v) market conditions.
That question is really just another way of asking “Have I saved enough to provide for myself for the rest of my life?” You must weigh whether a lifetime gift jeopardizes your retirement needs— including long-term care costs—against the enjoyment of seeing loved ones or charities benefit from your gifts. Generally, people wealthy enough to plan to avoid federal estate taxes can afford to give some gifts during their lifetimes.
Realizing the dream of owning your own medical or dental practice takes forethought and careful planning.The financial considerations are key to helping you make the decision to step out on your own and start your own practice.What type of medical practice financing do you need to make this dream a reality—a term loan or a line of credit, or both—and can you afford to take this next step?Starting with a review of your finances and cash flow needs is an important first step.