Anonymous
Post 04/09/2014 11:32     Subject: Re:50% of my compensation is paid at the end of the year.
OP here. thanks for the advice. I'm not interested in living off $150K/year. I can likely live off $225K-$250K or so/year. So with my other income that comes in over the course of the year, and with cutting back as much as possible (I agree with the other PPs, no big purchases this year), I will still likely run up $10K-$20K in credit cards before I pay it off in December. No way around this year. Going forward I will save $50K of my year-end comp for the next year's living expenses.
Anonymous
Post 04/09/2014 11:25     Subject: Re:50% of my compensation is paid at the end of the year.
Not OP but I have a sales job where I get paid mostly in bonuses three times per year. 0P I agree with other people that you have a cash flow problem. If you are living within your means including your bonus cash flow should not be a problem. If this is your first year at the job then you need to budget accordingly.

Is your bonus guaranteed? If not then you should never count on always getting the full amount.
Anonymous
Post 04/09/2014 11:17     Subject: Re:50% of my compensation is paid at the end of the year.
Anonymous wrote:
Anonymous wrote:
Anonymous wrote:
Anonymous wrote:
Anonymous wrote:As you see you really have to get a year ahead of this. We saved during our senior associate years to blunt the effect of first year partner comp. New partners who go on spending sprees their first year feel like they never recover.


that is great advice but easier said than done.


Because a person capable of being a law firm partner is not capable of saving, planning, or forethought? He or she is only capable of living hand to mouth?


don't be annoying. it is human nature to want to splurge after finally reaching a goal that you likely have had for 10 + years. Get that new house or at least fix up the old ratty kitchen or bathroom, get a new car and stop driving the 6 year old Camry, take that vacation, reward yourself for the sacrifices. Of course it can be done but it is easier said than done. You probably chose the private practice of law in the first place for the money, so now that you have promises of it you have to DEFER that satisfaction for 12-18 months. That can be tough. I've seen it. Good luck OP and congrats!


It may be human nature for some, but even young kids pass the marshmallow test all the time. A middle age, highly educated law firm partner should not fail the marshmallow test.

Plus, a professional making 200-300k/year for several years should be able to save enough to make ends meet for a couple months of expected compensation delay (not loss - just delay).


what are you yip yip yipping about?
Anonymous
Post 04/09/2014 10:30     Subject: Re:50% of my compensation is paid at the end of the year.
Anonymous wrote:
Anonymous wrote:
Anonymous wrote:
Anonymous wrote:As you see you really have to get a year ahead of this. We saved during our senior associate years to blunt the effect of first year partner comp. New partners who go on spending sprees their first year feel like they never recover.


that is great advice but easier said than done.


Because a person capable of being a law firm partner is not capable of saving, planning, or forethought? He or she is only capable of living hand to mouth?


don't be annoying. it is human nature to want to splurge after finally reaching a goal that you likely have had for 10 + years. Get that new house or at least fix up the old ratty kitchen or bathroom, get a new car and stop driving the 6 year old Camry, take that vacation, reward yourself for the sacrifices. Of course it can be done but it is easier said than done. You probably chose the private practice of law in the first place for the money, so now that you have promises of it you have to DEFER that satisfaction for 12-18 months. That can be tough. I've seen it. Good luck OP and congrats!


It may be human nature for some, but even young kids pass the marshmallow test all the time. A middle age, highly educated law firm partner should not fail the marshmallow test.

Plus, a professional making 200-300k/year for several years should be able to save enough to make ends meet for a couple months of expected compensation delay (not loss - just delay).
Anonymous
Post 04/09/2014 09:56     Subject: Re:50% of my compensation is paid at the end of the year.
Anonymous wrote:
Anonymous wrote:As you see you really have to get a year ahead of this. We saved during our senior associate years to blunt the effect of first year partner comp. New partners who go on spending sprees their first year feel like they never recover.


that is great advice but easier said than done.

It is hard to have it both ways. The only way I know to avoid feeling behind is to get ahead. Everyone on partnership track (in any profession) should know what partner comp actually looks like and its costs. These same associates have been earning top dollar for 6, 8, 10 years. If you're surprised that your money runs short your first year as a partner then you're not as smart you thought because you did not prepare for what was known to be coming.
Anonymous
Post 04/09/2014 09:48     Subject: Re:50% of my compensation is paid at the end of the year.
Anonymous wrote:
Anonymous wrote:
Anonymous wrote:
Anonymous wrote:As you see you really have to get a year ahead of this. We saved during our senior associate years to blunt the effect of first year partner comp. New partners who go on spending sprees their first year feel like they never recover.


that is great advice but easier said than done.


Because a person capable of being a law firm partner is not capable of saving, planning, or forethought? He or she is only capable of living hand to mouth?


don't be annoying. it is human nature to want to splurge after finally reaching a goal that you likely have had for 10 + years. Get that new house or at least fix up the old ratty kitchen or bathroom, get a new car and stop driving the 6 year old Camry, take that vacation, reward yourself for the sacrifices. Of course it can be done but it is easier said than done. You probably chose the private practice of law in the first place for the money, so now that you have promises of it you have to DEFER that satisfaction for 12-18 months. That can be tough. I've seen it. Good luck OP and congrats!


Reaching what goal? In many firms partners make only a little more than they did as senior associates in those first couple of years and when you add in self funded benefits, capital buy in, etc it can end up being less. Hopefully people are realistic about budgets and realize they shouldn't be buying fancy new cars when they are earning less. Yes you have to defer satisfaction because becoming a partner does not lead to an instant pot of gold.