NYC law partner w/ kids: "$850K gross is not enough to live on"

[Anonymous]

Anonymous wrote:

Anonymous wrote:3 kids is where the crazy property taxes of Westchester start to make a whole lot of sense. She can certainly find a house for around $1.5m with an easy train commute and great schools and local services. If anything many nice NYC burbs are undervalued due to the vast majority of pre-Covid price booms going to city properties instead. It’s crazy that houses in Scarsdale with the best schools in the country 25 minutes to NYC are as affordable as, say, Main Line Philly (albeit with higher taxes).

Scarsdale has nothing on NYC privates. Main Line Philly is nicer than Westchester, bigger lots and more civilized people.

But in Scarsdale you get a nice house, with space for all the kids and great schools and a decent commute

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I'm sorry. I'm new to how lawyers get paid. They don't create anything. Why are new lawyers getting paid $850,000 a year and complaining about it? I don't feel like they're creating anything of value. These kind of salaries seem like a tax on the people that actually do things and create things. This entire discussion reads like a bunch of parasites discussing their next victim. A completely BS profession.

She’s not a new lawyer but a new partner. And may have 300K in educational debt. Plus 850 is not her salary. If you, for instance, are a normal emlpllyee making 100K salary, your full roll up is probably more like 160 with employer side taxes and benefits. Plus she needs to pay into the capital account at her firm. So 850 as a law firm partner is more like 600 or so as an employee at a normal place. But I agree law firm partners are ridiculously overcompensated in many places. And NYC is ridiculously expensive for anyone. Both things are true.

Her monthly draw is 21k— there’s a big gap between that and 850 or even 600.

She probably also takes a quarterly tax draw to pay her quarterly taxes as of course taxes aren’t withheld. So those might total more than 400K. Then the rest goes to her capital acccount. Very few people voluntarily under-draw. There’s no benefit in it.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I'm sorry. I'm new to how lawyers get paid. They don't create anything. Why are new lawyers getting paid $850,000 a year and complaining about it? I don't feel like they're creating anything of value. These kind of salaries seem like a tax on the people that actually do things and create things. This entire discussion reads like a bunch of parasites discussing their next victim. A completely BS profession.

She’s not a new lawyer but a new partner. And may have 300K in educational debt. Plus 850 is not her salary. If you, for instance, are a normal emlpllyee making 100K salary, your full roll up is probably more like 160 with employer side taxes and benefits. Plus she needs to pay into the capital account at her firm. So 850 as a law firm partner is more like 600 or so as an employee at a normal place. But I agree law firm partners are ridiculously overcompensated in many places. And NYC is ridiculously expensive for anyone. Both things are true.

Her monthly draw is 21k— there’s a big gap between that and 850 or even 600.

She probably also takes a quarterly tax draw to pay her quarterly taxes as of course taxes aren’t withheld. So those might total more than 400K. Then the rest goes to her capital acccount. Very few people voluntarily under-draw. There’s no benefit in it.

But she gets an annual lump sum in addition to the monthly draw, correct?

[Anonymous]

LOL at the people who think the Main Line is nicer than Westchester.

[Anonymous]

The COL in nyc is insane. My friends who I estimate earn 800-2m in nyc all live in a 2-3 bedroom apt. My one friend who probably earns around 500 and her DH probably earns close to 1m live in a 2 bedroom/den apt. Their daughter’s room is the “den”. This den is a wall off the living/dining room.

We live in close in dc suburbs (McLean) and live in a 15,000sf house and I’m fairly certain our house is the same price as their apt. Their kids’ rooms are smaller than my closet.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:3 kids is where the crazy property taxes of Westchester start to make a whole lot of sense. She can certainly find a house for around $1.5m with an easy train commute and great schools and local services. If anything many nice NYC burbs are undervalued due to the vast majority of pre-Covid price booms going to city properties instead. It’s crazy that houses in Scarsdale with the best schools in the country 25 minutes to NYC are as affordable as, say, Main Line Philly (albeit with higher taxes).

Scarsdale has nothing on NYC privates. Main Line Philly is nicer than Westchester, bigger lots and more civilized people.

But in Scarsdale you get a nice house, with space for all the kids and great schools and a decent commute

The main line you get a better commute, great public and private schools, and more space for a fraction of the cost. Less traffic too. Scarsdale property tax is a nightmare for what you get.

[Anonymous]

Anonymous wrote:LOL at the people who think the Main Line is nicer than Westchester.

She said Scarsdale, not a true upscale town like Bronxville or Bedford. That doesn’t even account for good families who go to schools like Episcopal and Haverford on the Main Line. It is much more elegant and a better pace of life.

[Anonymous]

The reddi personshould buy in Greenwich. Taxes are lower than Scarsdale, schools are still great and the town has a beach. There are nice homes for less than $2M. Or she could look in the river towns if she doesn’t live the Greenwich vibe.

https://www.zillow.com/homedetails/24-Rippowam-Rd-Cos-Cob-CT-06807/57305145_zpid/

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I'm sorry. I'm new to how lawyers get paid. They don't create anything. Why are new lawyers getting paid $850,000 a year and complaining about it? I don't feel like they're creating anything of value. These kind of salaries seem like a tax on the people that actually do things and create things. This entire discussion reads like a bunch of parasites discussing their next victim. A completely BS profession. [/
She’s not a new lawyer but a new partner. And may have 300K in educational debt. Plus 850 is not her salary. If you, for instance, are a normal emlpllyee making 100K salary, your full roll up is probably more like 160 with employer side taxes and benefits. Plus she needs to pay into the capital account at her firm. So 850 as a law firm partner is more like 600 or so as an employee at a normal place. But I agree law firm partners are ridiculously overcompensated in many places. And NYC is ridiculously expensive for anyone. Both things are true.

Her monthly draw is 21k— there’s a big gap between that and 850 or even 600.

She probably also takes a quarterly tax draw to pay her quarterly taxes as of course taxes aren’t withheld. So those might total more than 400K. Then the rest goes to her capital acccount. Very few people voluntarily under-draw. There’s no benefit in it.

But she gets an annual lump sum in addition to the monthly draw, correct?

Maybe. It depends how she sets her draw. If shes short on cash for monthly expenses I don’t know why she’d save it up for a lump sum. It might be something like:
21K month draw
35K a month put towards tax expenses, social security etc
5K a month towards health insurances for family
7K a month towards pension contribution and stuff like life insurance policy
3K a month towards capital contribution (I think that would be low for capital contribution actually)

[Anonymous]

Anonymous wrote:The COL in nyc is insane. My friends who I estimate earn 800-2m in nyc all live in a 2-3 bedroom apt. My one friend who probably earns around 500 and her DH probably earns close to 1m live in a 2 bedroom/den apt. Their daughter’s room is the “den”. This den is a wall off the living/dining room.

We live in close in dc suburbs (McLean) and live in a 15,000sf house and I’m fairly certain our house is the same price as their apt. Their kids’ rooms are smaller than my closet.

Lol. You live in a suburban McMansion. My friend who earns 800k in NYC lives in an amazing apartment overlooking Central Park with a world-class city at her feet. Square footage does not determine your quality of life no matter how proud you are of your gift wrapping room.

[Anonymous]

Anonymous wrote:

Anonymous wrote:The COL in nyc is insane. My friends who I estimate earn 800-2m in nyc all live in a 2-3 bedroom apt. My one friend who probably earns around 500 and her DH probably earns close to 1m live in a 2 bedroom/den apt. Their daughter’s room is the “den”. This den is a wall off the living/dining room.

We live in close in dc suburbs (McLean) and live in a 15,000sf house and I’m fairly certain our house is the same price as their apt. Their kids’ rooms are smaller than my closet.

Lol. You live in a suburban McMansion. My friend who earns 800k in NYC lives in an amazing apartment overlooking Central Park with a world-class city at her feet. Square footage does not determine your quality of life no matter how proud you are of your gift wrapping room.

Exactly. High earners living in NYC don’t value square footage; they value being able to walk out their door and have one of the largest cities in the world waiting for them. If they want the big suburban home they surely can afford to move into one.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:The COL in nyc is insane. My friends who I estimate earn 800-2m in nyc all live in a 2-3 bedroom apt. My one friend who probably earns around 500 and her DH probably earns close to 1m live in a 2 bedroom/den apt. Their daughter’s room is the “den”. This den is a wall off the living/dining room.

We live in close in dc suburbs (McLean) and live in a 15,000sf house and I’m fairly certain our house is the same price as their apt. Their kids’ rooms are smaller than my closet.

Lol. You live in a suburban McMansion. My friend who earns 800k in NYC lives in an amazing apartment overlooking Central Park with a world-class city at her feet. Square footage does not determine your quality of life no matter how proud you are of your gift wrapping room.

Exactly. High earners living in NYC don’t value square footage; they value being able to walk out their door and have one of the largest cities in the world waiting for them. If they want the big suburban home they surely can afford to move into one.

Yep. That is why I have zero sympathy for the whinging law partner. If she wanted a 5000 sq ft house with great public schools 30 minutes from her job, she shouldn’t have moved to NYC. complaining that NYC housing is smaller than McLean housing is like complaining NYC has more traffic and less green space from the suburbs. Hello, you chose that - it has nothing to do with economics.

[Anonymous]

Bizarre to see the Main Line fetishizing on here. First of all, it’s the suburbs of a dangerous, declining city, not like NYC or DC. Pennsylvania is also a poor wreck of a state. Even the most well-heeled districts in PA are not immune to devastating budget cuts and MAGA book banners pressuring school boards. Even the train that the “Main Line” is named for is being threatened with a shutdown for financial reasons. These things are simply unthinkable in Bronxville, Rye, or yes, Scarsdale.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:The COL in nyc is insane. My friends who I estimate earn 800-2m in nyc all live in a 2-3 bedroom apt. My one friend who probably earns around 500 and her DH probably earns close to 1m live in a 2 bedroom/den apt. Their daughter’s room is the “den”. This den is a wall off the living/dining room.

We live in close in dc suburbs (McLean) and live in a 15,000sf house and I’m fairly certain our house is the same price as their apt. Their kids’ rooms are smaller than my closet.

Lol. You live in a suburban McMansion. My friend who earns 800k in NYC lives in an amazing apartment overlooking Central Park with a world-class city at her feet. Square footage does not determine your quality of life no matter how proud you are of your gift wrapping room.

Exactly. High earners living in NYC don’t value square footage; they value being able to walk out their door and have one of the largest cities in the world waiting for them. If they want the big suburban home they surely can afford to move into one.

800k in nyc isn’t a “high earner” and earners of all stripes in NYc fight and tooth and nail for more space. Those with tens of millions in Manhattan (really the minimum to be considered wealthy, arguably 20mm doesn’t cut it) don’t have their kids share bedrooms or lack closet space.

There is a world of difference between a McLean McMansion and a 12k a month 2BR rental overlooking central park with a doorman. For that cost you can buy a townhouse in Georgetown or a huge spread in Brickell. Not everyone has to choose between the most urbanized area of the U.S. or some gauche suburb.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:The COL in nyc is insane. My friends who I estimate earn 800-2m in nyc all live in a 2-3 bedroom apt. My one friend who probably earns around 500 and her DH probably earns close to 1m live in a 2 bedroom/den apt. Their daughter’s room is the “den”. This den is a wall off the living/dining room.

We live in close in dc suburbs (McLean) and live in a 15,000sf house and I’m fairly certain our house is the same price as their apt. Their kids’ rooms are smaller than my closet.

Lol. You live in a suburban McMansion. My friend who earns 800k in NYC lives in an amazing apartment overlooking Central Park with a world-class city at her feet. Square footage does not determine your quality of life no matter how proud you are of your gift wrapping room.

Exactly. High earners living in NYC don’t value square footage; they value being able to walk out their door and have one of the largest cities in the world waiting for them. If they want the big suburban home they surely can afford to move into one.

800k in nyc isn’t a “high earner” and earners of all stripes in NYc fight and tooth and nail for more space. Those with tens of millions in Manhattan (really the minimum to be considered wealthy, arguably 20mm doesn’t cut it) don’t have their kids share bedrooms or lack closet space.

There is a world of difference between a McLean McMansion and a 12k a month 2BR rental overlooking central park with a doorman. For that cost you can buy a townhouse in Georgetown or a huge spread in Brickell. Not everyone has to choose between the most urbanized area of the U.S. or some gauche suburb.

Ok well the point is, nobody of any income category should move to NYC thinking they are entitled to comparable square footage as the suburbs. OK? And of course the high salaries are mostly in NYC anyway. It’s not like you can just move your M&A law partnership to Cleveland.