Biglaw partner net worth?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Early Retired Biglaw partner here. I made equity in a well known DC firm 20 years ago in my early 40s and retired a decade later in my early 50s. My net worth when I made partner was probably in the mid six figures and consistently entirely of home equity and my 401k. My pay started at about 1/5 of what the average partner at my firm makes today and was about 1/3 of what they make today when I left. I never made $1 million in a year but came close near the end. And, yes, I was a partner in 2008 -- my 401k dropped far more than my compensation did that year.

During my ten years as an equity partner I paid lots and lots of college tuition and for very nice weddings and family vacations out of cash flow (no 529s, etc). Other than that we were not extravagant. We did not upsize on houses or cars, for example. And kids went to public schools.

I had a net worth of about 4 million when I quit, and a decade later (not working at all), we're more than double that at 8 million plus. Our standard of living has actually gone up as well, since the college and wedding expenses -- and retirement contributions -- are behind us.

If I was at 4 million a decade ago making less than half what partners are mking now and have $8 million now just from index fund investing and not earning any money at all from a job I cannot even imagine how much biglaw partners at 50 have today. But it is a LOT.

Oh, I paid my capital over time when working and it was all returned to me when I left. That's how I funded the first several years of my early retirement, in fact.

I knew you would post. You happened to retire prior to a huge stock market runup that may or may not be the case for current or future retirees. If I recall correctly, you also have maintained access to health insurance at your firm, which is not typical and a huge savings for you. You got very very lucky, which you don't like you acknowledge.

Excuse me? 2008 happened right smack in the middle of my tenure as an equity partner and my retirement accounts dropped in value by 50 percent — and as I said that and some home equity was literally all I had. So when someone says “remember 2008” I can say yes, I sure do.

As for health insurance, yes my firm covered it and still does, with me paying the full premium, but anyone who thinks that someone with millions of dollars in net worth — which most Biglaw equity partners in the 50s should be — can’t afford health insurance not provided by their employer is mistaken. It’s little more than a drop in the bucket for folks at that level even if it’s $5000 a month, which it isn’t.

But ok. I came from nothing, went to a non-elite law school, worked hard for a long time, took forever to make partner, made less than virtually anyone else at my firm, was careful with my money, and managed to retire early and still do well. All because I was “lucky.” 2008 didn’t happen to me.

You seem very defensive for someone secure in his choices. A lion does not concern himself with the opinion of the sheep.

And that is why I expressed regret over this post. The one thing I am not insecure about is my decision to retire when I did, and the one thing I know is that nothing that I accomplished financial wise had anything to do with luck. So, yes, I agree with you. I was wrong.

Do you feel like perhaps you made the wrong decision or were unlucky when you have a net worth of $8 million and you know there are others who stayed at their firms or became equity partners later who have net worths well over $20 million?

Lest you think I’m just trolling you, I was both a non-equity partner and an equity partner at a firm, and eventually went in-house, and have a net worth of about $15 million, but sometimes it does bother me that I wasn’t enough of a rainmaker to make the really big bucks while in private practice. Are you 100% comfortable where you landed?

[Anonymous]

Anonymous wrote:

Anonymous wrote:Most of my EP friends actually took a pay cut for the first few yrs of partner vs the last 2 years of associate. Several also had to use most of their savings to buy in. Sure they had a good salary for the last few yrs as associate, but it was around then that their law school debt was paid off, so saving didn’t really accelerate until a couple of years in as a partner.
I never understand when people on here ask re retiring so early. I’m in finance, and there’s no way I could have slogged it out through the early years of 100 hour weeks if I didn’t deep down love the job and get a thrill out of working on certain deals, closing things, coming up with strategies, etc. It’s such a career of highs and lows bc so many amazing deals I’ve worked on never got over the finish line, so when things do, it’s thrilling. The longer I work, the easier things get bc of connections and past deal experience. It would be really hard to give all of that up and retire. I’ve never seen someone in law or finance solely for the money actually do well. They’re either not good enough at the job or they burn out quickly or burn bridges bc everyone can see right through them.

No, they didn’t “have to” use virtually all of their savings to buy in. Biglaw allows you either to buy in over time or helps arrange a buy in loan through a bank that’s more than happy to lend.

Again, this idea that buying in is so crippling is just not true. But it’s repeated so often on here that I’m starting to think it’s just wishful thinking — folks are hoping that in one way or another these Biglaw partners who made it when they didn’t aren’t raking in the money.

I have been at three firms. The two lateral positions I funded with loans. Before rates went up a few years ago I paid between 1 and 2 percent on loans. I never paid that down. In theory the loans are for 5 years but they renew for another 5 year term. Interest is also a tax deduction so cost is reduced.

At my first firm the buy in was a mix of money in and loans with reduced amounts for partners with less than five years. It was never a hardship.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Early Retired Biglaw partner here. I made equity in a well known DC firm 20 years ago in my early 40s and retired a decade later in my early 50s. My net worth when I made partner was probably in the mid six figures and consistently entirely of home equity and my 401k. My pay started at about 1/5 of what the average partner at my firm makes today and was about 1/3 of what they make today when I left. I never made $1 million in a year but came close near the end. And, yes, I was a partner in 2008 -- my 401k dropped far more than my compensation did that year.

During my ten years as an equity partner I paid lots and lots of college tuition and for very nice weddings and family vacations out of cash flow (no 529s, etc). Other than that we were not extravagant. We did not upsize on houses or cars, for example. And kids went to public schools.

I had a net worth of about 4 million when I quit, and a decade later (not working at all), we're more than double that at 8 million plus. Our standard of living has actually gone up as well, since the college and wedding expenses -- and retirement contributions -- are behind us.

If I was at 4 million a decade ago making less than half what partners are mking now and have $8 million now just from index fund investing and not earning any money at all from a job I cannot even imagine how much biglaw partners at 50 have today. But it is a LOT.

Oh, I paid my capital over time when working and it was all returned to me when I left. That's how I funded the first several years of my early retirement, in fact.

I knew you would post. You happened to retire prior to a huge stock market runup that may or may not be the case for current or future retirees. If I recall correctly, you also have maintained access to health insurance at your firm, which is not typical and a huge savings for you. You got very very lucky, which you don't like you acknowledge.

Excuse me? 2008 happened right smack in the middle of my tenure as an equity partner and my retirement accounts dropped in value by 50 percent — and as I said that and some home equity was literally all I had. So when someone says “remember 2008” I can say yes, I sure do.

As for health insurance, yes my firm covered it and still does, with me paying the full premium, but anyone who thinks that someone with millions of dollars in net worth — which most Biglaw equity partners in the 50s should be — can’t afford health insurance not provided by their employer is mistaken. It’s little more than a drop in the bucket for folks at that level even if it’s $5000 a month, which it isn’t.

But ok. I came from nothing, went to a non-elite law school, worked hard for a long time, took forever to make partner, made less than virtually anyone else at my firm, was careful with my money, and managed to retire early and still do well. All because I was “lucky.” 2008 didn’t happen to me.

You seem very defensive for someone secure in his choices. A lion does not concern himself with the opinion of the sheep.

And that is why I expressed regret over this post. The one thing I am not insecure about is my decision to retire when I did, and the one thing I know is that nothing that I accomplished financial wise had anything to do with luck. So, yes, I agree with you. I was wrong.

Do you feel like perhaps you made the wrong decision or were unlucky when you have a net worth of $8 million and you know there are others who stayed at their firms or became equity partners later who have net worths well over $20 million?

Lest you think I’m just trolling you, I was both a non-equity partner and an equity partner at a firm, and eventually went in-house, and have a net worth of about $15 million, but sometimes it does bother me that I wasn’t enough of a rainmaker to make the really big bucks while in private practice. Are you 100% comfortable where you landed?

Not PP but what is there to be comfortable about. You land where you land.

[Anonymous]

My husband is a junior equity partner (less than five years). He makes about 900k/year with some fluctuation. Our net worth is only ~ 1M because to get here between the two of us we had six figures each to fund law school (and for him a small slice for undergrad). I just paid my loans off this year. That said a lot of equity partners come from money so have crazy net worths. Not sure why they still work. We are still relatively young, not quite 40, so hoping in time we can build up more of a nest egg.

[Anonymous]

[twitter]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Early Retired Biglaw partner here. I made equity in a well known DC firm 20 years ago in my early 40s and retired a decade later in my early 50s. My net worth when I made partner was probably in the mid six figures and consistently entirely of home equity and my 401k. My pay started at about 1/5 of what the average partner at my firm makes today and was about 1/3 of what they make today when I left. I never made $1 million in a year but came close near the end. And, yes, I was a partner in 2008 -- my 401k dropped far more than my compensation did that year.

During my ten years as an equity partner I paid lots and lots of college tuition and for very nice weddings and family vacations out of cash flow (no 529s, etc). Other than that we were not extravagant. We did not upsize on houses or cars, for example. And kids went to public schools.

I had a net worth of about 4 million when I quit, and a decade later (not working at all), we're more than double that at 8 million plus. Our standard of living has actually gone up as well, since the college and wedding expenses -- and retirement contributions -- are behind us.

If I was at 4 million a decade ago making less than half what partners are mking now and have $8 million now just from index fund investing and not earning any money at all from a job I cannot even imagine how much biglaw partners at 50 have today. But it is a LOT.

Oh, I paid my capital over time when working and it was all returned to me when I left. That's how I funded the first several years of my early retirement, in fact.

I knew you would post. You happened to retire prior to a huge stock market runup that may or may not be the case for current or future retirees. If I recall correctly, you also have maintained access to health insurance at your firm, which is not typical and a huge savings for you. You got very very lucky, which you don't like you acknowledge.

Excuse me? 2008 happened right smack in the middle of my tenure as an equity partner and my retirement accounts dropped in value by 50 percent — and as I said that and some home equity was literally all I had. So when someone says “remember 2008” I can say yes, I sure do.

As for health insurance, yes my firm covered it and still does, with me paying the full premium, but anyone who thinks that someone with millions of dollars in net worth — which most Biglaw equity partners in the 50s should be — can’t afford health insurance not provided by their employer is mistaken. It’s little more than a drop in the bucket for folks at that level even if it’s $5000 a month, which it isn’t.

But ok. I came from nothing, went to a non-elite law school, worked hard for a long time, took forever to make partner, made less than virtually anyone else at my firm, was careful with my money, and managed to retire early and still do well. All because I was “lucky.” 2008 didn’t happen to me.

You seem very defensive for someone secure in his choices. A lion does not concern himself with the opinion of the sheep.

And that is why I expressed regret over this post. The one thing I am not insecure about is my decision to retire when I did, and the one thing I know is that nothing that I accomplished financial wise had anything to do with luck. So, yes, I agree with you. I was wrong.

Do you feel like perhaps you made the wrong decision or were unlucky when you have a net worth of $8 million and you know there are others who stayed at their firms or became equity partners later who have net worths well over $20 million?

Lest you think I’m just trolling you, I was both a non-equity partner and an equity partner at a firm, and eventually went in-house, and have a net worth of about $15 million, but sometimes it does bother me that I wasn’t enough of a rainmaker to make the really big bucks while in private practice. Are you 100% comfortable where you landed?

Shockingly, I actually don’t think you’re trolling.

I can honestly say that I am 1000% comfortable with where I have landed. Obviously, it’s always nice to have more money, but somebody else is always going to have more money than you, right? Apparently my net worth places my household in about the top 2% of American households, which obviously places you at the very top in the world. That is more than enough for me. I no doubt would have cracked the top 1 percent had I been working the last 10 years, but . . . I’d have been working the last ten years.

My decision to walk away from the million dollar rat race was easily one of the hardest in my life. It’s not easy to walk away from such a large amount of money completely voluntarily as I did. But there’s a real price to be paid for the money. I wouldn’t trade the last 10 years of total freedom that I have had for anything.

[Anonymous]

Depending on the equity buy-in amount and the partner draw schedules, the first couple years as an equity partner can present some short-term cash flow challenges. My firm allowed buy-ins over 2 years taken from your draw. Your draw is roughly half of your base compensation--the remainder of your base is at-risk pending on how the firm is doing against its budget. All the while, your living expenses and estimated tax bill don't stop.

[Anonymous]

I've known some that are really big spenders, which is the problem. Less so here but in NYC where they are trying to keep up with the finance crowd or SF where they are trying to keep up with the tech crowd.

[Anonymous]

Anonymous wrote:My husband is a junior equity partner (less than five years). He makes about 900k/year with some fluctuation. Our net worth is only ~ 1M because to get here between the two of us we had six figures each to fund law school (and for him a small slice for undergrad). I just paid my loans off this year. That said a lot of equity partners come from money so have crazy net worths. Not sure why they still work. We are still relatively young, not quite 40, so hoping in time we can build up more of a nest egg.

Are you both attorneys?

[Anonymous]

Anonymous wrote:Depending on the equity buy-in amount and the partner draw schedules, the first couple years as an equity partner can present some short-term cash flow challenges. My firm allowed buy-ins over 2 years taken from your draw. Your draw is roughly half of your base compensation--the remainder of your base is at-risk pending on how the firm is doing against its budget. All the while, your living expenses and estimated tax bill don't stop.

So you take out a loan.

[Anonymous]

Lots of variables, but Chat says it’s typically $10 million by 50 and $20 million by 60.

[Anonymous]

Ha! My spouse is a non-equity partner who went to law school late, and the initial hiring firm merged in 2008, and then the second firm cut a ton of jobs. 50's now are Gen X'ers who got kind of screwed with the dot com bust in 2000 and then the recession in 2008. We're still rebuilding tbh! Net worth just over $1M and our kids are in high school so lots of college left to pay for. Clearly don't cry us a river, but we're definitely not rolling in it. Not sure if equity will be in the cards ever or not. Part of me hopes so, but... mo money mo problems.

[Anonymous]

Anonymous wrote:Ha! My spouse is a non-equity partner who went to law school late, and the initial hiring firm merged in 2008, and then the second firm cut a ton of jobs. 50's now are Gen X'ers who got kind of screwed with the dot com bust in 2000 and then the recession in 2008. We're still rebuilding tbh! Net worth just over $1M and our kids are in high school so lots of college left to pay for. Clearly don't cry us a river, but we're definitely not rolling in it. Not sure if equity will be in the cards ever or not. Part of me hopes so, but... mo money mo problems.

Cool story bro. Not relevant to OP’s question though.

[Anonymous]

Anonymous wrote:

Anonymous wrote:My husband is a junior equity partner (less than five years). He makes about 900k/year with some fluctuation. Our net worth is only ~ 1M because to get here between the two of us we had six figures each to fund law school (and for him a small slice for undergrad). I just paid my loans off this year. That said a lot of equity partners come from money so have crazy net worths. Not sure why they still work. We are still relatively young, not quite 40, so hoping in time we can build up more of a nest egg.

Are you both attorneys?

Yes. I don’t work at a firm so don’t make nearly as much.

[Anonymous]

Anonymous wrote:My husband is a junior equity partner (less than five years). He makes about 900k/year with some fluctuation. Our net worth is only ~ 1M because to get here between the two of us we had six figures each to fund law school (and for him a small slice for undergrad). I just paid my loans off this year. That said a lot of equity partners come from money so have crazy net worths. Not sure why they still work. We are still relatively young, not quite 40, so hoping in time we can build up more of a nest egg.

Do you guys have an expensive house and send your kids to private school / expensive vacations? Just a bit surprised at your net worth. My non lawyer DH (who makes less than 200k and started at 45k immediately post college) and I reached 1M by the time I was a 6th year associate (admittedly I only had 5-figure loans due to a law school scholarship).

[Anonymous]

Anonymous wrote:

Anonymous wrote:I think the other big law compensation thread is a lot closer than these outliers making $4m for decades.

Didn't the other one say equity partners were making $3-4 million as only 4th year partners??? Or are you referring to even a different thread than that?

No, it did not say that.

https://www.dcurbanmom.com/jforum/posts/list/1131461.page