How the recession has affected practice owner retirements
Veterinarians A, B, and C are all retiring at age 67, but check out how a drop in asset value affects them. Doctor A is in the ideal scenario, beginning retirement with $2 million in assets and withdrawing $150,000 per year to cover forecasted living expenses. Funds will last 26 years, until the ex-veterinarian reaches the ripe old age of 93.
Things aren't so good for Doctors B and C—who are experiencing what many veterinarians in the past few years have had to cope with. With the loss of half a million in assets, Doctors B and C have made tough choices. Doctor B could opt to keep his yearly withdrawals at $150,000 but for only 18 years, making it to age 85 in financial solvency. Doctor C could cut his yearly withdrawals by almost 25 percent to keep them coming to age 93.