Reply to NYC law partner w/ kids: "$850K gross is not enough to live on"

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Reply to "NYC law partner w/ kids: "$850K gross is not enough to live on""

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[quote=Anonymous][quote=Anonymous][quote=Anonymous]Ok her “draw” is 21 / month but she gets huge lump sums throughout the year. Couldn’t she budget those lump sums out to make her monthly take home closer to 30k ish? If you “make” 850 a year - regardless of how it is paid out - it’s up to you to financially plan how to spread that out. Are we saying people in sales / living off sales commissions aren’t able to own homes? [/quote]

I’m not saying it’s not a lot of money but if she’s a new partner she may have to pay into her capital account (and unfortunately you also have to pay taxes on that money you can’t use).  And she has to pay all benefits.  Here in DC, my health insurance for my family of 5 is 40K a year (carefirst PPO on the dc aca exchange).  The self employment taxes really are significant.  In at a tiny firm so my income is much lower but I’m always astounded when I see my K1 because I only see a small fraction of what’s listed as my partner share for the year.  [/quote]

I'm a consultant with my own firm. I pay my own (and family) healthcare, retirement, and the full boat on everything I have to pay in SSI, unemployment, etc. PLUS what a W2 employer would pay on my behalf. There is just less to live on. It takes time to build up the reserves in order to have reliable monthly income.
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