Anonymous wrote:

Anonymous wrote:10 year = 3M plus paid off all debt

Oh man this is so low. I feel bad for you. You are poor in BigLaw terms.

+ 1 sad

Anonymous wrote:DH has been biglaw partner since 2007.
House worth $2M - $750,000 mortgage
2nd house worth $800K, no mortgage
Retirement accounts - $1.9M
529s/HSA - $395K
Investment/bank accts - $1.1M
Firm capital acct - $500K?

In other words, $6 million net worth, after 11 years as BL partner.

Yes, that's realistic. And not bad

Anonymous wrote:10 year = 3M plus paid off all debt

Oh man this is so low. I feel bad for you. You are poor in BigLaw terms.

My guess is that the average savings is fairly low. They may have some (good) house equity and "assets" (expensive cars, boats, second home....) but as others have opined-- they don't tend to be big savers.

I worked at BIGLAW and left before partnership. I knew (and still know) a lot of partners. As others have stated, there is a big "push" among lawyers to keep up with the Joneses-- cars, houses, neighborhoods, private schools, designer clothes, stay-at-home spouse PLUS nannies, vacations, meals out, latest techno gizmos.... Even as an associate, I found it expensive to be a lawyer at BIGLAW and then you also have this surreal feeling that you are "poor" because you only went on one vacation that year and it was (shreik!!) domestic!

0. dollhairs

Anonymous wrote:DH has been biglaw partner since 2007.
House worth $2M - $750,000 mortgage
2nd house worth $800K, no mortgage
Retirement accounts - $1.9M
529s/HSA - $395K
Investment/bank accts - $1.1M
Firm capital acct - $500K?

What's the average annual income? What was income for 2017?

DH has been biglaw partner since 2007.
House worth $2M - $750,000 mortgage
2nd house worth $800K, no mortgage
Retirement accounts - $1.9M
529s/HSA - $395K
Investment/bank accts - $1.1M
Firm capital acct - $500K?

Anonymous wrote:This conversation clearly involves no biglaw partners, or their spouses. Which is unique, for DCUM.

My guess is some of the replies here have definitely included biglaw people. Whether or not they are partners, perhaps, who knows? Given the nature of the conversation I don't think anyone is going to brag about how much they have saved or admit how little they have saved--that's why it's been "theoretical".

This conversation clearly involves no biglaw partners, or their spouses. Which is unique, for DCUM.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Anyone thinks a 10+ year biglaw equity partner hits $10m+?

So...say you are 24 when you graduate law school...associate for 8 years? Non-equity for 3 years? Equity partner for 10 years...at 45 I would think if you save & invest you could have $10m+.

Pipe dream. Maybe if you have a two big law partner spouses for ten years and are relatively frugal but otherwise no way based solely on the big law salaries. I know those PPP look really nice, but the majority of equity partners won't be getting that average PPP ten years in. And don't forget you need to pay for housing and stuff, you can't just put every penny into investments unless you live in your parents' basement.

So you're saying that two big law partner spouses average perhaps $2m of combined annual compensation for 10 years = $20m. $2m combined seems reasonable to me as less than $2m in earlier partner years and more than $2m in later years. After tax take home of $11-12m. Average spending of perhaps $300k-$500k annually so call it a total of $4m. So that's $7m-$8m not including any investment returns and or savings from the first 10-12 years as senior associates & non equity partners? $10m doesn't seem like a stretch at all. In fact, it seems like it should be typical for two biglaw partner spouses. I could see $15m+ even as a stretch.

It's not linear like that. Very few partners will ever make more than $2M a year.

Sorry perhaps you didn't read what I wrote: combined $2m on average annually over 10 years. We're talking biglaw as in V25 or V50, etc where PPP are $1.5m+. So perhaps the first year if both spouses make $500k each and the last year both spouses make $1.5m each then the combined average for both is $2m.

You're right, I missed the "combined." That sounds reasonable, for double biglaw partner marriages. Not sure how common that is, but however many couples there are like that, I agree they should be fairly rich.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Anyone thinks a 10+ year biglaw equity partner hits $10m+?

So...say you are 24 when you graduate law school...associate for 8 years? Non-equity for 3 years? Equity partner for 10 years...at 45 I would think if you save & invest you could have $10m+.

Pipe dream. Maybe if you have a two big law partner spouses for ten years and are relatively frugal but otherwise no way based solely on the big law salaries. I know those PPP look really nice, but the majority of equity partners won't be getting that average PPP ten years in. And don't forget you need to pay for housing and stuff, you can't just put every penny into investments unless you live in your parents' basement.

So you're saying that two big law partner spouses average perhaps $2m of combined annual compensation for 10 years = $20m. $2m combined seems reasonable to me as less than $2m in earlier partner years and more than $2m in later years. After tax take home of $11-12m. Average spending of perhaps $300k-$500k annually so call it a total of $4m. So that's $7m-$8m not including any investment returns and or savings from the first 10-12 years as senior associates & non equity partners? $10m doesn't seem like a stretch at all. In fact, it seems like it should be typical for two biglaw partner spouses. I could see $15m+ even as a stretch.

It's not linear like that. Very few partners will ever make more than $2M a year.

Sorry perhaps you didn't read what I wrote: combined $2m on average annually over 10 years. We're talking biglaw as in V25 or V50, etc where PPP are $1.5m+. So perhaps the first year if both spouses make $500k each and the last year both spouses make $1.5m each then the combined average for both is $2m.

Anonymous wrote:It's hard to stack coins until the line between oppressor and oppressed is crossed. Depending on the individual, that doesn't happen until late 40s (for those who went straight through) or 50s or later (for those who took a more circuitous route, such as spending a lot of time in government). Only senior partners, esp big rainmakers, make a lot more than they bring in. Many relationships are institutional, and only are inherited late in one's career. Biglaw is not a path to great riches. Don't get me wrong, it's plenty comfortable. But only a small handful get to one percent wealth (currently around $12m in net worth) through law.

I know this guy is at the top of the stack but still:

http://www.yolandaslittleblackbook.com/blog-1/2018/01/21/jeff-hammes-kirkland-ellis-house/

If he's buying a $15m SECOND home what kind of net worth do you think he has? My guess is you probably have minimum of $50m and probably $75m+. Don't know many careers where you can make that kind of money without taking some entrepreneurial risk of losing everything. Big law is one of the only careers you can make that kind of money just by giving advice and not being a principal.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Anyone thinks a 10+ year biglaw equity partner hits $10m+?

So...say you are 24 when you graduate law school...associate for 8 years? Non-equity for 3 years? Equity partner for 10 years...at 45 I would think if you save & invest you could have $10m+.

Pipe dream. Maybe if you have a two big law partner spouses for ten years and are relatively frugal but otherwise no way based solely on the big law salaries. I know those PPP look really nice, but the majority of equity partners won't be getting that average PPP ten years in. And don't forget you need to pay for housing and stuff, you can't just put every penny into investments unless you live in your parents' basement.

So you're saying that two big law partner spouses average perhaps $2m of combined annual compensation for 10 years = $20m. $2m combined seems reasonable to me as less than $2m in earlier partner years and more than $2m in later years. After tax take home of $11-12m. Average spending of perhaps $300k-$500k annually so call it a total of $4m. So that's $7m-$8m not including any investment returns and or savings from the first 10-12 years as senior associates & non equity partners? $10m doesn't seem like a stretch at all. In fact, it seems like it should be typical for two biglaw partner spouses. I could see $15m+ even as a stretch.

It's not linear like that. Very few partners will ever make more than $2M a year.

Anonymous wrote:

Anonymous wrote:Anyone thinks a 10+ year biglaw equity partner hits $10m+?

So...say you are 24 when you graduate law school...associate for 8 years? Non-equity for 3 years? Equity partner for 10 years...at 45 I would think if you save & invest you could have $10m+.

Pipe dream. Maybe if you have a two big law partner spouses for ten years and are relatively frugal but otherwise no way based solely on the big law salaries. I know those PPP look really nice, but the majority of equity partners won't be getting that average PPP ten years in. And don't forget you need to pay for housing and stuff, you can't just put every penny into investments unless you live in your parents' basement.

So you're saying that two big law partner spouses average perhaps $2m of combined annual compensation for 10 years = $20m. $2m combined seems reasonable to me as less than $2m in earlier partner years and more than $2m in later years. After tax take home of $11-12m. Average spending of perhaps $300k-$500k annually so call it a total of $4m. So that's $7m-$8m not including any investment returns and or savings from the first 10-12 years as senior associates & non equity partners? $10m doesn't seem like a stretch at all. In fact, it seems like it should be typical for two biglaw partner spouses. I could see $15m+ even as a stretch.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:So, one multi-millionaire and two kinda-sorta? Isn’t DC loaded with Biglaw people? I thought this thread would be filled with moneybag responses.

Lawers typically have low rate of saving compared to a certain type of wage slaves.

I know people who didn't save a dollar outside of retirement for the first 3-5 years to pay off loans. Sucks, but it is what it is.

Yes but the OP is about the big law partners, who should be past that phase by then.

Of course, but the PP I was responding to is referencing a stat that is not limited to partners. The majority don't make partner, and don't save much when they're associates, not necessarily because they're spendthrifts but because they're risk averse and the debt is the most pressing thing for them.

For the OP's question, I'd imagine that it's years 4-10 that really count (you must have some clients if you haven't been pushed out, you're probably equity by then), so if you can save about half a mill a year for those 7 years you're probably doing well. $3.5 or above (outside of retirement) is respectable for someone who's been partner for 10 years, I think.

The point is those people tend to be big spenders and poor savers, so the ratio of their saving is much lower than others.

Who is "those people" in this post? Because my point is that it is the opposite -- BigLaw lawyers make great salaries but have very high starting debt. Paying that off instead of saving might be the less financially astute move, but it's not "big spender" behavior. Partners make less than people realize in the beginning, and expecting them to accrue $1M per year of partnership (including the first years) or be called out as financially illiterate spendthrifts is not a good read of the situation IME.

Why are you getting so angry? Are you swimming in school debt? If you are frugal, you will get there.

Those people who cannot, which is most, cannot.

No part of my responses have been angry. You're reading that tone into my posts. And not answering the question, which is fine.