Hello and welcome to the next instalment of VFAS, today we are going to be talking about when to start planning for retirement. Now I am really close to that retirement age (reference the platinum highlights) and some people out there start thinking about retirement at this stage, which makes things incredibly stressful and almost impossible to fulfil.
Really you should be planning for retirement as early as possible, there’s a whole host of reasons for that, and I am no financial adviser (little disclaimer), but it is obvious that if you begin planning for retirement at a young age, you start investing less money, but it grows a lot by the time that you come to retirement. So investing money is really important and the financial side of things have to be planned for early on for the best returns.
In terms of the clinical side of things, you’re going to be spending your time as a young doctor building your practice, you’re going to get a niche and you are going to find things that you really like. Once you’ve seen that rapid growth, and start to hit a bit of a plateau, you should start to think about what legacy you are going to leave, who is going to look after the practice when you go. This is when you start to think about succession planning, bringing in a junior doctor to help you out; it’s not just helping you out in terms of the numbers, it’s helping you out from a governance point of view, it’s having that extra person to talk to and a team behind you.
Planning for retirement starts early, it builds up, and gets to a plateau where you are really planning for the succession and how to leave your practice. It’s also worth noting (and we’ve talked about this before) that if i walk out of my practice today without a successor, it is worth nothing because i’m gone and there is no longer business being done, therefore nothing to buy. If you have a junior that has grown into the practice with you, then that is something that will be bought, something marketable and worth buying.
So this plan for retirement is two prong:
- Early thoughts and implementations to putting away money and investing in your retirement pot.
- Bringing in a junior to facilitate a succession plan once your practice is mature.
Overall the short answer on planning for retirement, do it early.
Thanks for reading, and i’ll see you next time.