What to Do After Selling Your Medical Practice: A Financial Planning Guide for Physicians

Congratulations—you’ve sold your medical practice. That’s a huge milestone. But once the deal is done, the next big question often is:

"What should I do next—personally and financially?"

I’ve worked with many physicians through this exact transition. This guide walks you through what comes next, including taxes, investing, and figuring out your next chapter—financially and professionally.

🤔 What Should I Do Next After Selling My Practice?

Most practice sales include a workout agreement, meaning you may be continuing on for a few years—or even longer. But it’s still a good time to ask:

Do I want to keep working? Change my role? Retire early? Start something new?

The challenge is that, after a lifetime of medical training and practice ownership, imagining a different future can be tough.

That’s why I guide clients through something I call Wealth Clarity Planning. It’s about discovering what you actually want next, and then aligning your money with that plan.

Example: A client of mine sold their surgical practice. Through Wealth Clarity Planning, they realized they didn’t want to stop entirely—but they did want to do fewer surgeries, focus only on complex cases, and enjoy more time off. This wasn’t something they had considered before going through the process.

💸 What Happens to Taxes After Selling My Medical Practice?

"Will I owe capital gains tax after selling my practice?" "How do I manage taxes during and after the workout period?"

Here’s the reality: Uncle Sam doesn’t go away. If you’re still earning income through a workout, you’ll likely stay in a high marginal tax bracket (possibly one that starts with a “3”).

Even after the workout ends, you may have cash proceeds from the sale, and those have tax implications too. And when you start investing that money, tax strategy matters even more—especially with multi-million-dollar portfolios.

💰 What Should I Do with the Cash from Selling My Practice?

"How should I invest the money from selling my medical practice?" "What should I do with a 7-figure payout?"

This may be the largest amount of liquid wealth you’ve ever had—and it’s critical to get this right.

Key considerations:

• Yes, some proceeds are taxed. But even after taxes, how you invest what’s left will determine how far it goes.
• You may not need all of it for yourself. Through planning, some clients discover they only need 75% of their assets to reach all their goals. The remaining 25% could be used for legacy planning, family, or charitable giving—each with its own strategy.
• Be intentional. Don’t let the money sit idle, and don’t jump into risky or oversold investments.

One strategy I often use with high-net-worth clients is Direct Indexing—a sophisticated approach to managing investments and taxes in large taxable accounts. Because in the end:

“It’s not what you make—it’s what you keep.”

📈 Should Physicians Invest Differently After a Practice Sale?

"Is Direct Indexing good for physicians?" "Do I still need aggressive investments after a practice sale?"

Maybe not. Your retirement timeline is shorter than most—you’ve already spent a decade or more in training. You likely don’t need to take unnecessary risk if you have a sound strategy.

That’s why your investment plan should reflect your actual goals, needs, and lifestyle—not just what a portfolio model says.

👥 Do I Still Need the Same Advisors After the Sale?

"Do I need a new financial planner after selling my practice?" "Should I keep the consultants I used for the sale?"

The team that helped you sell—your CPA, attorney, and business consultants—played an essential role. But now that the sale is done, your needs have shifted.

You now need a financial partner who specializes in working with physicians at this stage—someone who can help guide decisions about taxes, cash management, investing, and even what you want to do next.

🎯 How I Help Physicians After a Practice Sale

Here’s what I do for clients just like you:

✅ Wealth Clarity Planning – Aligning your money with what you want next ✅ Investment Management – Custom portfolios with tax efficiency built in ✅ Tax Planning – Year-round, not just at filing time ✅ Flat-Fee Pricing – No commissions. No assets under management (AUM) fees.

I'm a CERTIFIED FINANCIAL PLANNER™ and an IRS Enrolled Agent, a rare combination held by fewer than 4% of financial advisors. And even fewer work exclusively with medical professionals.

📞 Ready for the Next Chapter? Let’s Talk.

Whether you're feeling clear or completely unsure of what comes next, I’d be happy to help you make a plan. No pressure, no hard sell—just a thoughtful conversation.

📩 Email me at dan@forwardthinkingwm.com