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[quote=Anonymous][quote=Anonymous][quote=Anonymous]Can someone please explain buy-in to me?  DH is currently a non-equity partner and I guess could become an equity partner this year.

What does the transition from non-equity to equity partner look like?  As a non-equity partner, he is considers to be self-employed and we have all of the same issues with taxes, health insurance, etc.  [/quote]

Wife of big law partner here.  Typically when a lawyer has "made" partner, they ask that he/she buy in to the firm with a capital contribution.  Sometimes $1 or $2 million dollars.  Some firms ask you to take a loan to pay them up front, but most will ask that you pay $100000 or $200,000 a year out of your salary to "buy in."  That money doesn't usually ever gain interest, and if one were to leave the firm they would get it back (unless firm goes bankrupt, which has happened in other firms).  [/quote]

Thank you so much.

Realizing that we will have two (2!) children in college the same year DH will have to buy in. He’s at $600K as a non-equity partner.  Not sure how we will make the math work.  DC1 is at a school that is 80K per year (529 takes care of about 1/2 of that) and DC2 likely will be at a similarly priced school with about 1/2 of the payment in 529.  So will have $200K to the law firm and $80K to the colleges. Not sure how this is going to work.  Do people dip into investments for buy ins?  [/quote]

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