For doctors, dentists and other healthcare professionals, making the decision to sell their practice is wrought with many emotions, pitfalls and opportunities. Putting the emotions aside, how they proceed from the perspective of avoiding negative tax consequences, maximizing the after-tax return and instituting proper financial and investment planning, can significantly affect their retention of wealth and ability to build greater wealth. How their additional wealth (the proceeds from the sale of their practice), reduction in income (even if they continue to work), and investment and retirement planning are managed are all important factors which will influence their ability to maintain or achieve their desired standard of life. Considering that many healthcare professionals admittedly, are ill-prepared in these areas, it is vital that they understand the right way to proceed.

 

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