Questions? Thoughts? Send a Text to The Optometry Money Podcast! We'll answer your question on the show.

Episode Summary

The largest IPO in history is here. SpaceX goes public this week with an expected total value of $1.77 trillion, and OpenAI and Anthropic have both announced plans to go public this year at valuations around $1 trillion each. In optometry forums and online communities everywhere, ODs are asking the same question: should I get in?

In this episode, we look at 45 years of data and research on how IPOs have actually performed for investors - and then dig into the question that matters more for most listeners: how index funds and other passive funds will add these mega IPOs to their portfolios, and what that means for you.

Have questions about your own investment approach? Reach out at [email protected].

What You'll Learn

• What an IPO is and why 2026's IPOs are historic in size
• How IPOs have historically performed compared to the broad US stock market
• Why the famous "first-day pop" doesn't benefit everyday investors
• The distribution of individual IPO outcomes over 3 and 5 years — and why most lose money
• Why periods of peak IPO hype tend to be followed by the worst returns
• How the S&P 500, Russell, CRSP, and MSCI indexes decide when (and how much of) an IPO to include
• What "float adjustment" means and why these trillion-dollar companies will enter index funds as tiny slivers
• How the Nasdaq-100's approach to IPOs differs from broad market indexes
• Whether index fund "front-running" around IPO inclusions should worry long-term investors
• How factor-based funds like Dimensional handle newly public companies

Key Takeaways for Optometrists

Investing in IPOs right after they go public has historically been a poor strategy. IPOs as a group have trailed the broad market, and when you look at individual companies, roughly 60% lost money over their first three to five years - while a small sliver delivered lottery-like gains that lift the averages. Betting on IPOs means betting you can pick those rare winners.

For index fund investors, these mega IPOs will eventually show up in your funds - but because indexes are float-adjusted, even a $1.77 trillion company may enter as a fraction of a percent of the index. The impact on your portfolio, good or bad, is small.

The bigger lesson: when hype is at its highest, expected returns tend to be at their lowest. Staying broadly diversified, keeping costs low, and not chasing shiny objects continues to be the prudent approach - and if you do want a lottery ticket, be honest about what it is and size it accordingly.

Related Episodes:

• Ep 134: The Case for Index Funds – Why Optometrists Should Embrace Passive Investing
• Ep 135: Beyond Indexing – An Optometrist’s Guide to Factor-Based Investing
• Ep 58: Investing Fundamentals – Understanding Stocks, Bonds, Mutual Funds, and ETFs
• Ep 153: How to Invest Tax-Efficiently and Keep More of Your Returns (After-tax)

Resources for Optometrists

• Loughran & Ritter (1995), "The New Issues Puzzle" — Journal of Finance
• Dimensional Fund Advisors (2019), "What to Know About IPOs" research study
• Dimensional Fund Advisors 2025 video: Do IPOs Have a Place in Your Portfolio?
• Jay Ritter's Long-Run Returns on IPOs (University of Florida)
• 2025: Primary Capital Market Transactions and Index Funds
• Cullen Roche's Article: Three Things – 100s, SpaceX, & Indexing
• Morningstar's Jeff Ptak: Lessons From a Private Markets Bust: Why This ETF’s Investors Missed Out on SpaceX Gains

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. 

Questions? Thoughts? Send a Text to The Optometry Money Podcast! We'll answer your question on the show.

Episode Summary

With the stock market trading near all-time highs again, it's natural to wonder — should you be worried? Is a crash inevitable? Should you hold off on investing?

In this rewind of one of our most popular 2024 episodes, we dig into what history actually tells us about all-time highs in the stock market — and why optometrists should stay the course with the long-term investment plan they've already built.

What You'll Learn

• How common all-time highs actually are historically
• Average S&P 500 returns one, three, and five years after record highs
• How often significant market corrections follow all-time highs
• Why declines are a normal and expected part of long-term investing
• What optometrists should focus on instead of market noise

Key Takeaways for Optometrists

All-time highs sound alarming — but history says otherwise. Since 1950, the S&P 500 has hit roughly 1,250 all-time highs, averaging about 16 per year. Research from Dimensional Fund Advisors shows that average returns one, three, and five years after record highs are nearly identical to returns after any other given month. And data from RBC Global Asset Management found that only 9% of all-time highs were followed by a 10%+ decline within one year — with that number dropping to 0% over a five-year window.

None of this means declines don't happen — they do, and they're a normal part of investing. But for long-term investors, the focus belongs on the things within your control: your savings rate, your practice, your career, and maintaining the right investment mix for your goals. The headlines will always find a reason to worry. Your job is to tune them out and stay invested.

Resources for Optometrists

• Podcast Ep 153: How to Invest Tax-Efficiently and Keep More of Your Returns (After-tax)
• Podcast Ep 140: What Most Investors Get Wrong About Dividend Investing
• DFA: Why A Stock Peak Isn't A Cliff
• RBC GAM: Investing at All-Time Highs
• Have a question for a future episode? Email: [email protected]

Want a more proactive approach to your planning? Let's schedule a call.

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. 

Questions? Thoughts? Send a Text to The Optometry Money Podcast! We'll answer your question on the show.

The Department of Education just released its final rule implementing the federal student loan changes we’ve been tracking over the past couple of years — and while most of it lines up with what we expected, two surprises stood out. 

In this episode, we recap how we got here (the official end of the SAVE Plan and the sweeping changes from the One Big Beautiful Bill Act), break down the income-driven options ODs have going forward, and dig into the two surprises in the final rule that could affect your repayment strategy.

If you have questions about navigating these decisions alongside the rest of your cash flow, tax, and practice planning, reach out at [email protected].

What You’ll Learn

•Why the SAVE Plan is officially dead and the 90-day decision window for borrowers still in SAVE forbearance
•How the One Big Beautiful Bill Act splits borrowers into two groups based on the July 1st date
•Why consolidating your federal loans right now could restrict your repayment options
•The difference between old and new IBR — and which ODs qualify for each
•How the new Repayment Assistance Plan (RAP) works, including its payment calculation and 30-year timeline
•The first surprise: new restrictions on who can enter Pay As You Earn before it sunsets in 2028
•The second surprise: how RAP payments are (and aren’t) treated for forgiveness under IBR

Key Takeaway

July 1st is the date to circle. Whether you’re deciding how to exit SAVE forbearance, weighing a consolidation, or trying to lock in Pay As You Earn before new restrictions hit, the window to act on your best options is closing — and the right move depends heavily on your specific path toward forgiveness or payoff.

Resources

• Podcast Ep. 152: Listener Q&A: Practice Ownership, Backdoor Roths, and Student Loans
• Podcast Ep. 151: How Filing Taxes Separately Impacts Student Loan Outcomes for Optometrists
• Ep 143: How the Final One Big Beautiful Bill Act Impacts Optometrists – Taxes, Student Loans, and More!

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. 

Questions? Thoughts? Send a Text to The Optometry Money Podcast! We'll answer your question on the show.

Whether you're five to ten years from exiting your optometry practice or just starting to think about it, the decisions you make right now have a major impact on what your practice is ultimately worth. 

In this episode, Evon is joined by Erich Mattei of Akrinos — a returning guest who specializes in practice transitions and valuations — to break down the key levers practice owners should be focused on long before they're ready to sell. From profitability and expense benchmarks to payor mix, capital expenditure, and add-backs, this conversation gets into the mechanics of how fair market value is actually determined and what you can do to improve it.

What You'll Learn

• How fair market value for an optometry practice is determined
• The two primary drivers of practice value: profitability and capital expenditure
• Key expense benchmarks for COGS, occupancy, non-doctor payroll, and general overhead
• Why growing revenue matters — and why growing the right revenue matters even more
• How payor mix and cash pay percentage affect practice value and buyer negotiation
• What add-backs are and why minimizing seller discretionary spend before exit is critical
• How associate doctors and full-time equivalent coverage factor into valuation
• Why outdated equipment can undermine an otherwise profitable practice

Key Takeaway

The time to prepare your practice for sale is long before you're ready to sell. The ODs who get the most at exit are the ones who ran their businesses like a business — with clean financials, controlled expenses, growing revenue through the right channels, and a practice that a buyer can step into with confidence.

Resources

• Erich Mattei / Akrinos: [email protected]
• Akrinos 360 Due Diligence Resource — reach out to Erich directly or contact Evon at [email protected]
• Akrinos Website
• Podcast Ep 50: Guide to Due Diligence on Practice Purchases with Erich Mattei
• Podcast Ep 80: Intro to Optometry Practice Valuations with Erich Mattei

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. 

Questions? Thoughts? Send a Text to The Optometry Money Podcast! We'll answer your question on the show.

It's tax day — and whether you're celebrating a finished return or still working through an extension, tax payments are on your mind. In this episode, we walk through a practical framework for planning your quarterly estimated tax payments so you're not scrambling, stressed, or surprised come tax time. 

We cover the two ways ODs pay taxes through the year, IRS safe harbor targets to avoid underpayment penalties, and a simple system to automate the whole process so you stay ahead all year long.

What You'll Learn

• The two ways ODs pay federal taxes through the year — payroll withholdings vs. quarterly estimated payments
• Which payment method applies based on how you practice (W2, sole prop, S Corp)
• The three IRS safe harbor targets that protect you from underpayment penalties
• How to calculate your quarterly payment amount step by step
• How to set up a dedicated tax savings account and automate deposits
• Where quarterly tax payments fit in your practice's cash flow priority order
• How to adjust your payments as income changes through the year
• The importance of working proactively with your professionals

Key Takeaway

The biggest tax payment headaches come from not having a system. Pick your safe harbor target, calculate your quarterly amount, automate deposits into a dedicated tax account, and adjust as you go. It's not glamorous — but it's how you move from reactive and stressed to in control.

And keep in close contact with your financial and tax professionals to make sure you're making proactive decisions with tax payments and planning throughout the year!

Resources & Links

• IRS Pay Online
• IRS Form 2210 — Underpayment of Estimated Tax
• Schedule a call with Optometry Wealth Advisors

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. 

Questions? Thoughts? Send a Text to The Optometry Money Podcast! We'll answer your question on the show.

In this replay of a popular 2023 episode, Evon revisits an important topic for optometry practice owners and independent contractors - the differences between different business entities!

How do the different business entities work? How are they taxed? How are they different?

In this episode, Evon provides optometrists a basic guide to the differences between:

• Sole Proprietorships
• Partnerships
•  Limited Liability Companies (LLCs)
• S-Corporations
• Corporations

If you own an optometry practice or are an independent contractor, hopefully this episode brings some clarity around how the different types of businesses operate. 

Have questions on anything discussed or want to have topics or questions featured on the show? Send Evon an email at [email protected].

Check out www.optometrywealth.com to get to know more about Evon, his financial planning firm Optometry Wealth Advisors, and how he helps optometrists nationwide. From there, you can schedule a short Intro call to share what's on your mind and learn how Evon helps ODs master their cash flow and debt, build their net worth, and plan purposefully around their money and their practices. 

Resources mentioned on this episode:

• The Optometry Money Podcast Ep. 47: An Optometrist's Guide to How Income Taxes Work
• IRS.Gov Reasonable Compensation for S Corporation Officers
• IRS.Gov How to Apply for an EIN

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. 

Questions? Thoughts? Send a Text to The Optometry Money Podcast! We'll answer your question on the show.

Remote optometry is growing fast - and there's quite a range of opinions on what that means for optometry. In this episode, I sit down with Dr. Crystal Edison, a remote optometrist practicing across nine states from her home office, to break down the ins and outs of providing comprehensive remote care. 

We cover contracts and compensation of remote ODs, how to navigate multi-state licensing, the technology involved, and Crystal addresses some of the most common myths about the quality and credibility of remote optometry.

Whether you're a practice owner struggling to find associate coverage or an OD looking for more flexibility and independence, this one's worth a listen.

What You'll Learn

• What comprehensive remote optometry actually looks like and how it differs from screening-only models
• How remote ODs are compensated - W2 vs. 1099 roles and the financial trade-offs of each
• Key contract negotiation considerations including malpractice coverage and reimbursements
• How to navigate multi-state licensing without a national compact (and tools like ARBO's CELMO that help)
• The technology investment needed on both the practice side and the remote OD side
• How practice owners can use remote staffing to fill empty chairs and reduce reliance on locums
• Common myths about remote care quality - and the clinical reality behind modern tele-optometry

Resources Mentioned

• Crystal Edison on LinkedIn
• Edison Remote Strategies — Crystal's course, The Remote OD Blueprint
• Crystal's Independent Strong article - Tele-optometry for Owners and Associates
• CELMO through ARBO — Council on Endorsement Licensure Mobility for Optometrists
• Podcast Ep. 2: Financial and Tax Planning for 1099 Optometrists
• Podcast Ep. 51: An Optometrist's Guide to the QBI Deduction
• Podcast Ep. 66: Retirement Plan Options for Independent Contractor Optometrists

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. 

Questions? Thoughts? Send a Text to The Optometry Money Podcast! We'll answer your question on the show.

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. 

Questions? Thoughts? Send a Text to The Optometry Money Podcast! We'll answer your question on the show.

As an optometrist—especially a practice owner—you face real liability exposure from both your professional work and your business. So how well are your retirement accounts and investments actually protected if something goes wrong? 

In this episode, we walk through the different layers of liability protection available to ODs and dive into exactly which retirement and investment accounts are shielded from creditors, which ones aren't, and where the common gaps and misconceptions are.

What You'll Learn

• Four common layers of liability protection available to optometrists (entities, insurance, titling, and federal/state law)
• Why umbrella insurance is one of the most common gaps in OD insurance planning
• How ERISA law protects 401(k) and cash balance plans—and why it's the gold standard
• Why solo 401(k) plans do NOT carry the same ERISA protection (a common misconception)
• How SEP IRAs and SIMPLE IRAs fall short on liability protection compared to full 401(k) plans
• How Traditional and Roth IRAs are protected in bankruptcy (and the current dollar limit)
• What happens to liability protection when you roll a 401(k) into an IRA—and a best practice for keeping those dollars separate
• How HSAs, taxable brokerage accounts, and 529 plans are (or aren't) protected
• Steps ODs should take now to review their liability exposure

Key Takeaway

Not all retirement accounts are created equal when it comes to liability protection. ERISA-covered plans like 401(k)s and cash balance plans offer the strongest, unlimited federal protection—making maxing those contributions both a tax strategy and a liability strategy. 

But accounts like solo 401(k)s, SIMPLE IRAs, and traditional/Roth IRAs don't carry that same blanket protection, and the gaps are highly state-dependent. Understanding where your dollars sit and how they're protected is an important part of your overall financial plan.

Resources

• Submit your questions for upcoming Listener Q&A episodes: OptometryWealth.com/podcastquestion
• Reach out: [email protected]

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. 

Questions? Thoughts? Send a Text to The Optometry Money Podcast! We'll answer your question on the show.

Congress created a brand new investment account for kids called Trump Accounts, and the questions from optometrists have been flowing in. In this episode, we break down exactly what these accounts are, how they work, who can contribute, and - most importantly - whether they actually add anything new to the lineup of options you already have for investing on behalf of your kids.

What You'll Learn

• What Trump Accounts are and how they work
• Who can contribute, how much, and when
• How contributions are taxed (and why the after-tax structure matters)
• How employer contributions work - and potential hurdles for practice owners contributing to their own kids' accounts
• What happens when the child turns 18
• How Trump Accounts compare to existing options like UTMA/UGMA accounts, 529s, and custodial Roth IRAs
• The best use cases for ODs, including the $1,000 federal seed money and Roth conversion planning

Key Takeaway

Trump Accounts aren't a game-changer, but they can definitely be a benefit for our kids. The biggest win is the $1,000 seed money for eligible kids and the renewed attention on starting retirement savings early. They don't replace anything already in your toolkit - think of them as one more option alongside 529s, custodial accounts, and Roth IRAs.

Episode Chapters

• [00:00] Introduction
• [01:00] What are Trump Accounts?
• [02:00] When they're available and how to open one
• [02:30] Who can contribute and contribution limits
• [03:00] Why contributions are after-tax (and why that matters)
• [05:00] Employer contributions through your practice
• [06:00] Can practice owners contribute to their own kids' accounts?
• [07:30] Government and nonprofit contributions & the $1,000 pilot program
• [08:30] Investment options inside Trump Accounts
• [09:00] What happens when the child turns 18
• [10:00] Withdrawal restrictions and the ABLE account exception
• [10:30] How Trump Accounts compare to existing options for kids
• [14:30] Best use cases for optometrists
• [17:00] Final thoughts: The real positive of Trump Accounts

Resources Mentioned

• IRS Form 4547
• trumpaccounts.gov
• Submit podcast questions: www.optometrywealth.com/podcastquestion
• Contact: [email protected]

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.