You studied and apprenticed for years, and then you worked hard to build up your professional practice. Maybe even your spouse did the same thing, too!
There are many rewards to serving people in your chosen calling, whether it be in health care, legal services, accounting, architecture, engineering, design, or any other of a wide range of professional practices. When your client or your patient gives you a big smile and says, “Thank you,” you realize, once again, that you really do love your work.
As you also know, there are also a few challenges that go with the territory.
For example, you gave up the option of a secured pension plan when you decided to put out your own shingle. Instead, while you do get paid pretty well, you need to carve out a portion of your regular income and carefully set it aside to save and grow for some day when you’re ready for some new adventures.
How should you invest it? How much, even, should you save? Everyone seems to have a friend with an opinion about what you should do with your money, but really, what should you do? Are there tax-efficient savings options available that you aren’t taking full advantage of yet?
At the same time, there are things you need to think about right now, too. How many years do you need to build up your business before you can even talk to the bank about a mortgage for a home? What about your office space: should you try to buy, or is leasing a better strategy?
As for dual-profession families, what’s your strategy for ensuring work-life-family balance? If something happens to you that prevents you from billing your minimum hours to stay afloat, do you have a backup plan until you recover? Does that backup plan let you avoid dipping in to your retirement fund?
Let’s say you’ve been at this for a while, and now your son or daughter is about to graduate in your footsteps. Should you allow him or her to come straight into your practice, or would they benefit more from working under a different mentor for a while, first? Do we need to be educating them in wise money management — lessons you learned well but the hard way — now, while they are still young?
If and when they do join you, what’s your succession plan? Can you both draw enough income from the practice as it is, or do you need to expand? What if they want to invest in wonderful new — and expensive — equipment? And they do have a point…
How about your post-practice phase… Do you have enough saved up to take that dream trek in Nepal, or buy that little cottage by the lake you’ve been eyeing for a while? Can you feel secure in your portfolio, confident that you have enough money for the rest of your days?
These are just some of the many topics we go through with you as your professional family advisors. We take care of you, letting you do what you do best.