Reply to Net worth over $20 million

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]It maybe feels low to you because I am sure the distribution is very clustered.

I bet 90% of those people live in only like 10 metro markets in the US.

[/quote]

Statewise, it would be Florida, New York and California.[/quote]

Correct...but in the DC area you have an outsized concentration of law partners as an example who can hit that level after just like 7-8 years of partner earnings.

However, outside of DC and NYC and like SF/LA, the BigLaw market is actually much smaller.

DC is also the #5 metro area for F500 HQs.  You have Capital One, Hilton, Marriott, Choice, Boeing, etc.  20 HQs in total.[/quote]

Bullshit.  Hitting that number in “7-8” years as a law partner requires earning $3 million a year, spending none of it and paying no taxes.  [/quote]

Dude...you are a bit unhinged...you do realize you don't go from $0 to $3MM per year right?  You are earning many hundreds of thousands and maybe over a $1MM for years even before making equity partner, and investing a bunch of that.[/quote]

That isn’t right.  Say you make equity partner in 10 years.  You are making $500,000 or less the first five. And probably less than a million for all of it.  Most have law school debt and even if they don’t, are saving for a down payment and paying for day care and schools[/quote]

What do you mean it isn't "right"?  Most people making $500k per year can save at least $100k of that...probably even more.  Now you are slowly moving up towards $1MM and continuing to save more...assume normal investment returns...now you make equity partner and are making $3MM+ (or maybe $5MM or maybe more).  Once you hit partner you are saving like $1MM per year, and again it's all compounding.

So maybe they don't hit a $20MM NW at 8 years...maybe it takes 10 or maybe 12 or 15.  The point is you can definitely get there from being a BigLaw partner and DC has an outsized share of BigLaw partners.[/quote]

We know so many big law partners and not one has $20M. I know they are out there, and could guess a few at my old firm, but not in the dozens we are friends with. This includes a few dual partners. [/quote]

You're responding to a known weirdo who likes to calculate how people can hoard wealth if they live frugally with their high salaries. That poster always needs to be reminded that people earning a lot are by and large NOT frugal. They buy several homes, indulge in luxury travel, pay for expensive privates for their multiple kids, and if very foolish, cheat on their wives and end up with very painful child support and alimony.

So no, lots of high earners do not have the very high net worth that others might expect.

[/quote]

I don't know that high earners "by and large [are] NOT frugal".  Some of us in the law in particular want out as fast as possible, and we had a sizeable networth before even making partner.  A couple of years where you can keep throwing $1-2m into your portfolio on top of millions you already have at work can get you to big numbers fast.  I have no idea how much other high earners save, but I agree that the ones who cheat on their wives and are paying alimony and child support and private school tuition are probably not doing so well.  [/quote]

The question is how many of these people you believe exist in the United states, and you cannot extrapolate this number by looking at your immediate area that may have over-saturation of law partners.  Even then I doubt 7 figure earners who had been doing this for many years to accumulate this wealth even if invested without overspending or doing stupid sh** is high percentage wise compared to the rest of the population.   [/quote]

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