Reply to How many of you JDs do not work anymore because it is not worth it financially?

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[quote=Anonymous][quote=Anonymous][quote=AnonymousI find that all law jobs with halfway family-friendly hours pay only $ 40-50k.. .My net income would be $ 20-25k, while daycare costs $ 18k. The thought of working for nothing is so depressing.

Thanks in advance![/quote]

Here is where you lost me.  If you earn $40-$50, your net income would e more like $30-$35 and daycare is far cheaper than $18k per year.  And, even when you dont earn much money, you are increasing your future prospects - retirement savings, SS contributions, experience to get yourself a better job.  You sound like you are trying to justify not working, not like you are looking realistically at your options.  [/quote]

I don't think so.  She's already in the top income bracket because of DH's income, so all of her income is taxed at the top rate of 35% for federal, plus 8.5% if she lives in DC, plus 7.65 percent payroll taxes, which equals just over 50%.

As for daycare costs, $350 per week comes out to $18K per year.  I know that I was initially paying about $400 per week five years ago, so $18K is well within the range.

Now some would say it's not fair to count her income at the top bracket, but it's certainly a valid way to look at it in order to compare her financial situation between staying at home or taking a $40K job.  Economically, taking a $40K job makes little sense in the short run, but as PPs have said, she gains experience and avoids the "never had a job" stigma.  If Biglaw were an option, she could look for a regulatory practice rather than litigation and maybe have better hours.  The same would be true in small- or midlaw.  Alternatively, she could try for the government, where she would do slightly better than $40-50K.  Another thing to consider is that the low paying jobs she's considering often have good benefits like fully paid health care.  DH is likely not getting subsidized health care at all with that salary, so that could be worth $10K a year alone.[/quote]

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