Episode #675: Losing Agency Benefits When Starting Private Practice

Release Date: August 9, 2025

In this insightful episode of the Abundant Practice Podcast, host Allison Puryear tackles a common and often daunting concern among therapists: transitioning from the security of an agency job to the independence of private practice, particularly focusing on the challenges related to losing agency-provided benefits. Through a blend of financial analysis, practical advice, and emotional support, Allison guides listeners through the complexities of making this significant career shift.

1. Introduction to the Transition Challenge [04:30]

Allison opens the discussion by addressing the fundamental fear therapists face when considering a move to private practice—the loss of agency benefits such as health insurance, paid time off (PTO), and retirement plans. She empathizes with the apprehension, validating that these feelings are both normal and manageable.

"You're not being dramatic, you're not being reckless, you're being thoughtful. And that makes you exactly the kind of person who can run a private practice." ([04:45])

2. Financial Comparison: Agency vs. Private Practice [05:10]

Delving into the numbers, Allison provides a clear comparison between the financial realities of agency employment and private practice. Using US national averages, she outlines how private practice can be not only viable but potentially more lucrative.

• Agency Salary Example: Assuming an average agency salary of $60,000 with benefits.
• Private Practice Projection:
  • Earnings: At $110 per session with 25 clients per week, a therapist can gross approximately $126,500 annually.
  • Expenses: Typical business expenses total around $10,000 per year.
  • Net Income: After accounting for expenses and taxes, the take-home pay could be between $70,000 and $72,000 annually, surpassing the agency salary by about $20,000.

"The free benefits that come with your job are not free. They might be costing you your peace, your health, your career satisfaction, time with your family." ([05:30])

3. Detailed Expense Breakdown [07:50]

Allison provides an in-depth look at the various expenses a private practitioner might incur:

• Health Insurance: Approximately $7,200 per year ($600 per month) for an individual plan.
• Retirement Contributions: Suggests allocating around $15,000 annually through options like SEP, IRA, or solo 401k.
• S Corporation (S Corp) Considerations: For those earning over $80,000 in net profit, setting up an S Corp can lead to significant tax savings by allowing a split between salary and distributions.

"If you're making over $80,000 in net profit, setting up as an S Corp is often a very smart move." ([08:30])

4. Strategies to Mitigate Transition Challenges [09:10]

To alleviate the stress of losing agency benefits, Allison offers practical strategies:

• Health Insurance Solutions: Utilize insurance brokers to find better plans without additional costs.
• Retirement Planning: Engage with a financial advisor to set up retirement accounts tailored to personal needs.
• Flexible PTO Systems: Create customizable PTO to ensure time off without financial strain.

"You get to create your own time off. These are not wild dreams. These are systems that you can put into place." ([09:45])

5. Gradual Transition: Starting Part-Time [10:30]

For those hesitant to dive in full-time, Allison recommends a gradual approach:

• Part-Time Practice: Begin seeing clients during evenings or weekends while maintaining agency employment.
• Building a Client Base: Slowly increase the private practice caseload to ensure financial stability.
• Benefits Buffer Fund: Establish a financial cushion to support the transition period.

"If taking the leap into full private practice feels like too much, you can start part-time and build your caseload slowly while keeping your agency benefits." ([10:35])

6. Mindset and Emotional Empowerment [11:25]

Allison emphasizes the importance of mindset in overcoming fears associated with starting a private practice. She encourages therapists to view the transition as an opportunity for growth and empowerment.

"You are being brave enough to ask for more and you deserve more." ([11:40])

7. Resources and Support Systems [12:10]

Highlighting available resources, Allison points listeners towards her membership program, the Abundance Party, which offers step-by-step guidance, community support, and practical tools. Additionally, she mentions free worksheets and checklists available on AbundancePracticeBuilding.com to assist in the initial stages of setting up a private practice.

"If you want help building that bridge out of agency work and into private practice, come hang out with us in the Abundance Party. We've got roadmaps, community, real talk to get you there." ([12:25])

8. Conclusion and Encouragement [13:00]

Allison wraps up the episode by reaffirming that the transition from agency to private practice, while challenging, is entirely achievable. She urges therapists to take proactive steps, utilize available resources, and trust in their ability to create a fulfilling and prosperous private practice.

"Know that you are not alone. You have options. I'm rooting for you." ([13:00])

Notable Quotes with Timestamps

• "You're not being dramatic, you're not being reckless, you're being thoughtful. And that makes you exactly the kind of person who can run a private practice." ([04:45])

• "The free benefits that come with your job are not free. They might be costing you your peace, your health, your career satisfaction, time with your family." ([05:30])

• "If you're making over $80,000 in net profit, setting up as an S Corp is often a very smart move." ([08:30])

• "You get to create your own time off. These are not wild dreams. These are systems that you can put into place." ([09:45])

• "If taking the leap into full private practice feels like too much, you can start part-time and build your caseload slowly while keeping your agency benefits." ([10:35])

• "You are being brave enough to ask for more and you deserve more." ([11:40])

• "If you want help building that bridge out of agency work and into private practice, come hang out with us in the Abundance Party. We've got roadmaps, community, real talk to get you there." ([12:25])

• "Know that you are not alone. You have options. I'm rooting for you." ([13:00])

Resources Mentioned

• Abundance Practice Building: Access free private practice checklists, worksheets, and more at www.abundancepracticebuilding.com.

• Abundance Party Membership: For comprehensive support, join the Abundance Party at www.abundanceparty.com.

• TherapyNotes Promotion: Try TherapyNotes free for two months using the promo code abundant at therapynotes.com.

This episode serves as a comprehensive guide for therapists contemplating the move from agency employment to private practice. By addressing both the financial and emotional aspects, Allison Puryear provides valuable insights and actionable strategies to empower listeners to make informed and confident career decisions.