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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]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.  [/quote]

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.  [/quote]

+1 - I'm not aware of any firm that doesn't let up-through-the-ranks partners buy in over 2-3 years via a reduction in their draw. Lateral partners are a different story, but IME their signing bonuses would cover the entire buy-in anyway.

But this is beside the point, because OP's question was about age 50. Even if there is a dip for a few years after you make partner in order to buy in, most 50 year olds (except those that spent time in government or worked for +4 years before law school) are beyond that. Also, their capital contribution arguably should be included in NW since it is returned 99% of the time. I'm not saying most 50 year olds have been able to save 10m yet, because I agree that private school, trips, social, etc. eat into savings significantly, but their inability to reach 10m would not be due to making a capital contribution.[/quote]

Yeah there is gojng to be a difference between the person who made partner at age 32 or the one who made partner at 40 because they didn’t go straight through etc.  all this varies a lot but I think tens of millions by 50 is not likely.   Also agree with Po that the effective tax rate all in is pretty close to 50% when you consider state, local, fed plus things like SS, etc.  [/quote]

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