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Listener Q&A #2: S Corp Salary, How Much Practice Cash to Keep, Buying Practice Real Estate, and More
Description
We're back with our second listener Q&A episode, tackling real questions from ODs around the country. From S Corp salary decisions and how much cash to keep in your practice, to buying your commercial real estate, preparing your practice for sale, and whether you're overfunding your kids' 529 plans — we cover a lot of ground in this one.
Have a question you'd like answered on a future episode? Submit it at optometrywealth.com/podcastquestion.
What You'll Learn
- What goes into determining a "reasonable salary" as an S Corp optometry practice owner — and why you should rely on your CPA
- Two practical methods for calculating how much cash your optometry practice should keep on hand
- Key factors to weigh when deciding whether to buy your practice's commercial real estate
- What drives practice valuation and how to start preparing 10 years before you want to sell
- How to build balance in your net worth over over time and not be overly concentrated in your practice
- The flexibility built into 529 plans that most ODs don't realize they have
Key Takeaway
Many of these questions come down to the same principle: your practice's cash flow is your most powerful financial tool. Whether you're deciding how much salary to pay yourself, how much cash to hold in the business, or how to diversify your net worth — using that cash flow intentionally and efficiently is what moves the needle over time.
Links & Resources
- Submit a question for a future Q&A episode
- IRS: S Corporation Compensation and Medical Insurance Issues
- Ep 139: Optimize Your Pay – 7 Key Factors for Setting Practice Owners’ Compensation
- IDOC Practice Cash Reserve White Paper
- IDOC How Should Optometry Practices Manage Cash?
- Ep 154: Trump Accounts for Kids - What Optometrists Need to Know
Want a more proactive approach to your planning?
You can schedule a no-commitment introductory call to discuss what's on your mind financially and learn how we help optometrists navigate those same decisions nationwide.
👉 Schedule an introductory call
The Optometry Money Podcast is dedicated to helping optometrists make better decisions around their money, careers, and practices. The show is hosted by Evon Mendrin, CFP®, CSLP®, owner of Optometry Wealth Advisors, a financial planning firm just for optometrists nationwide.