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Why isnt everyone in biglaw retired by 35?
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Date: January 18th, 2017 7:24 PM Author: Appetizing Stead Hissy Fit They make more than enough money in that period (25-35) to comfortably last for the rest of their lives (http://www.autoadmit.com/thread.php?thread_id=3495249&forum_id=2#32402135) |
Date: January 18th, 2017 7:25 PM Author: Adventurous theatre tank (guy who can't count) (http://www.autoadmit.com/thread.php?thread_id=3495249&forum_id=2#32402137) |
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Date: January 18th, 2017 7:25 PM Author: Appetizing Stead Hissy Fit ? (http://www.autoadmit.com/thread.php?thread_id=3495249&forum_id=2#32402143) |
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Date: January 18th, 2017 7:25 PM Author: Canary razzmatazz karate base Thanks Mr. Money Moustache! (http://www.autoadmit.com/thread.php?thread_id=3495249&forum_id=2#32402138) |
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Date: January 18th, 2017 7:25 PM Author: Awkward hyperventilating temple personal credit line J.D. PROGRAM EXPENSES FOR NON-RESIDENTS FALL 2016 SPRING 2017 ACADEMIC YEAR 2016-2017 Tuition and Fees (Total) $26,326.75 $26,326.75 $52,653.50 Student Services Fee (formerly University Registration Fee) $537.00 $537.00 $1,074.00 Tuition (formerly Educational Fee) $5,610.00 $5,610.00 $11,220.00 Berkeley Campus Fee $537.25 $537.25 $1,074.50 Class Pass Fee $70.00 $70.00 $140.00 Professional Degree Supplemental Tuition $13,435.00 $13,435.00 $26,870.00 Law Instructional Materials Fee $15.00 $15.00 $30.00 Non-Resident Supplemental Tuition $6,122.50 $6,122.50 $12,245.00 Living Expenses (Total) $12,427.00 $12,427.00 $24,854.00 Rent & Utilities* $6,558.00 $6,558.00 $13,116.00 Food* $3,506.00 $3,506.00 $7,012.00 Personal (maintenance, clothing, recreation, etc.) $790.00 $790.00 $1,580.00 Transportation $1,573.00 $1,573.00 $3,146.00 Books & Supplies $763.00 $763.00 $1,526.00 Health Insurance Fees** $2,073.00 $2,073.00 $4,146.00 Total Non-Resident Student Budget*** $41,589.75 $41,589.75 $83,179.50 |
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Date: January 18th, 2017 7:27 PM Author: Appetizing Stead Hissy Fit Over 10 years in biglaw you make an average of around $270k a year thats more than enough to pay back your loans and have $650k saved in an index fund (http://www.autoadmit.com/thread.php?thread_id=3495249&forum_id=2#32402165) |
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Date: January 18th, 2017 7:29 PM Author: soul-stirring crawly school goal in life 135K after tax on average per year.
100K after tax after rent on average per year.
100K x 10 years before your student loans are paid off and all other expenses.
650K in an index fund =/= retirement. |
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Date: January 18th, 2017 7:31 PM Author: Appetizing Stead Hissy Fit 650k in an index fund is absolutely enough to retire. That's $26k/yr at first (and likely much more as you age) for the rest of your life. Ive calculated my expenses are around $21k a year or less after retirement (which includes $500/mo health insurance). (http://www.autoadmit.com/thread.php?thread_id=3495249&forum_id=2#32402190) |
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Date: January 18th, 2017 7:33 PM Author: aquamarine plaza cuckoldry lol.
First of all, my healthcare is >$900/mo for 3 of us and it has an enormous deductible. |
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Date: January 18th, 2017 7:36 PM Author: Appetizing Stead Hissy Fit Yeah right now. If you had a super low income of less than $30k a year it would be subsidized, and you could pick and extremely high deductible plan assuming you arent fat and unhealthy (http://www.autoadmit.com/thread.php?thread_id=3495249&forum_id=2#32402237) |
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Date: January 18th, 2017 7:38 PM Author: soul-stirring crawly school goal in life and where do you get the $$ for your deductible (http://www.autoadmit.com/thread.php?thread_id=3495249&forum_id=2#32402256) |
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Date: January 18th, 2017 7:39 PM Author: Appetizing Stead Hissy Fit You exercise, eat health and take care of yourself so you dont need it. If you do, dip into your cash emergency fund (http://www.autoadmit.com/thread.php?thread_id=3495249&forum_id=2#32402264) |
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Date: January 18th, 2017 7:40 PM Author: soul-stirring crawly school goal in life basically you don't have deductible budgeted in your oh just get high deductible health insurance plan. (http://www.autoadmit.com/thread.php?thread_id=3495249&forum_id=2#32402270) |
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Date: January 18th, 2017 7:43 PM Author: Appetizing Stead Hissy Fit Yes because if youre a heathy non fatass you wont need it until medicare kicks in (http://www.autoadmit.com/thread.php?thread_id=3495249&forum_id=2#32402298) |
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Date: January 18th, 2017 7:43 PM Author: aquamarine plaza cuckoldry Some of us have/want families. (http://www.autoadmit.com/thread.php?thread_id=3495249&forum_id=2#32402303) |
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Date: January 18th, 2017 7:45 PM Author: Appetizing Stead Hissy Fit You can raise a family on $26k assuming youre willing to live someplace affordable. Edit but not if youre some religious freak who wants 4+ kids (http://www.autoadmit.com/thread.php?thread_id=3495249&forum_id=2#32402310) |
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Date: January 18th, 2017 7:33 PM Author: soul-stirring crawly school goal in life 26K a year is enough now. it wouldn't be enough as you age because of inflation. 26K a year 20 years from now is like 15K.
if you need 26K now, you'll need 40K in 20 years, 70K in 40 years.
all the FIRE blog math ignore inflation. |
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Date: January 18th, 2017 7:35 PM Author: Appetizing Stead Hissy Fit You would be able to take out more then. Your 4% would increase every year assuming you didnt start out negative, in which case you can pick up a part time job. Then when you hit 62 you can supplement with SS (http://www.autoadmit.com/thread.php?thread_id=3495249&forum_id=2#32402229) |
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Date: January 18th, 2017 7:39 PM Author: soul-stirring crawly school goal in life You're assuming 4% returns or not.
If you're assuming 6% returns or something but 4% withdrawal rate, then OK. but retirees are not advised to put assets in equities so the 6% is not longer good. |
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Date: January 18th, 2017 7:41 PM Author: Appetizing Stead Hissy Fit Statistically speaking the 4% withdrawal rate works ~95+% of the time. If you get unlucky with a bad market right after you FIRE just cop a chill part time job for a bit the first couple of years. (http://www.autoadmit.com/thread.php?thread_id=3495249&forum_id=2#32402283) |
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Date: January 18th, 2017 7:42 PM Author: soul-stirring crawly school goal in life 95%+ of the time when people retire at 55+ (http://www.autoadmit.com/thread.php?thread_id=3495249&forum_id=2#32402292) |
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Date: January 18th, 2017 7:44 PM Author: Appetizing Stead Hissy Fit Wrong. Using 4% will last indefinitely. If youre worried that much about it go to 3.5% which is like 99.999% likely to last forever (http://www.autoadmit.com/thread.php?thread_id=3495249&forum_id=2#32402306) |
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Date: January 18th, 2017 7:47 PM Author: soul-stirring crawly school goal in life You're talking returns. I'm talking expenses.
Yes $1m yields 40k indefinitely but you'll need more than 40k in the future if you need 40k now because inflation.
The 4% withdrawal rate everyone talks about is tested over 30 year retirements based on 100% equities and really great economic growth years. You net more than 4% irl and the excess helps pay for higher expenses because of inflation.
Retirement at 35 needs to prep for 60 years. |
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Date: January 18th, 2017 8:15 PM Author: soul-stirring crawly school goal in life https://www.google.com/amp/seekingalpha.com/amp/article/4020461-safe-withdrawal-rate-highly-depends-longevity-asset-allocation?
The times 25 or divide by 4% is a simplifying rule of thumb given to older retirees and now much abused by certain fire blogs. |
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Date: January 18th, 2017 7:38 PM Author: honey-headed center The 4% rule implicitly accounts for inflation. (http://www.autoadmit.com/thread.php?thread_id=3495249&forum_id=2#32402261) |
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Date: January 18th, 2017 7:40 PM Author: soul-stirring crawly school goal in life The 4% asset return assumes inflation yes. So you have to include inflation on the liability side too (i.e. your expenses).
Without inflation you'll have issues hitting 4% asset returns obviously. |
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Date: January 18th, 2017 7:38 PM Author: honey-headed center "which includes $500/mo health insurance"
That's close to what a fairly high deductible plan for a dude in this 30s costs. |
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Date: January 18th, 2017 8:02 PM Author: Impressive round eye If you're the type of person that is willing to strive through 10 years of ultra-competitive, soul-crushing big firm practice at the expense of health, family and personal relationships, it is very unlikely that you will be satisfied retiring at 35 on the salary of a Loan Operations Specialist II. (http://www.autoadmit.com/thread.php?thread_id=3495249&forum_id=2#32402393) |
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Date: January 18th, 2017 8:06 PM Author: Awkward hyperventilating temple personal credit line (http://www.autoadmit.com/thread.php?thread_id=3495249&forum_id=2#32402406) |
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Date: January 18th, 2017 7:33 PM Author: Greedy indecent sneaky criminal hospital 35k for rent/year is extravagant (http://www.autoadmit.com/thread.php?thread_id=3495249&forum_id=2#32402210) |
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Date: January 18th, 2017 7:34 PM Author: soul-stirring crawly school goal in life studios and 1 beds rent for 3K right now (http://www.autoadmit.com/thread.php?thread_id=3495249&forum_id=2#32402217) |
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Date: January 18th, 2017 7:37 PM Author: Appetizing Stead Hissy Fit Rent a place in one of the outer bouroughs and take the train in. Im sure you could find something in Jersey City for $1500 or less (http://www.autoadmit.com/thread.php?thread_id=3495249&forum_id=2#32402244) |
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Date: January 18th, 2017 7:37 PM Author: hideous university pistol no, if you're willing to compromise a little you can get in the 2000 range (http://www.autoadmit.com/thread.php?thread_id=3495249&forum_id=2#32402250) |
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Date: January 19th, 2017 4:37 PM Author: Greedy indecent sneaky criminal hospital one might consider not living in a congested coastal shithole (http://www.autoadmit.com/thread.php?thread_id=3495249&forum_id=2#32408787) |
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Date: January 18th, 2017 7:29 PM Author: Cracking corner how are you supposed to 'retire' on 650k at 35 (http://www.autoadmit.com/thread.php?thread_id=3495249&forum_id=2#32402175) |
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Date: January 18th, 2017 7:30 PM Author: Awkward hyperventilating temple personal credit line JUICE JUICE JUICE BIRDSHIT (http://www.autoadmit.com/thread.php?thread_id=3495249&forum_id=2#32402180) |
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Date: January 18th, 2017 7:30 PM Author: soul-stirring crawly school goal in life these FIRE blogs are annoying as fuck. it's clickbait for people who hate their jobs. (http://www.autoadmit.com/thread.php?thread_id=3495249&forum_id=2#32402181) |
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Date: January 19th, 2017 2:47 PM Author: Talented kitty cat they are total flame. many make money from their shitty websites, which is what they actually live on, and the rest have their spouse working "part time" (http://www.autoadmit.com/thread.php?thread_id=3495249&forum_id=2#32407777) |
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Date: January 18th, 2017 7:32 PM Author: Appetizing Stead Hissy Fit Withdraw 4% a year for the rest of your life which is way more than enough to live on (http://www.autoadmit.com/thread.php?thread_id=3495249&forum_id=2#32402194) |
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Date: January 18th, 2017 7:26 PM Author: Exciting quadroon a lot of them probably waste a shitload of money. bet many are workaholic strivers who could never retire early though (http://www.autoadmit.com/thread.php?thread_id=3495249&forum_id=2#32402154) |
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Date: January 18th, 2017 7:37 PM Author: Autistic Floppy Coffee Pot The ONLY thing that makes biglaw bearable is being able to splure occasionally. Lol @ living like a monk, there would be mass tranny junior suicides 100% (http://www.autoadmit.com/thread.php?thread_id=3495249&forum_id=2#32402247) |
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Date: January 18th, 2017 7:27 PM Author: soul-stirring crawly school goal in life no taxes rent student loans (http://www.autoadmit.com/thread.php?thread_id=3495249&forum_id=2#32402162) |
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Date: January 18th, 2017 7:28 PM Author: amber pozpig (http://www.autoadmit.com/thread.php?thread_id=3495249&forum_id=2#32402168) |
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Date: January 18th, 2017 8:16 PM Author: Useless knife 45 is doable if you're willing to become a farmer in are country (http://www.autoadmit.com/thread.php?thread_id=3495249&forum_id=2#32402447) |
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Date: January 18th, 2017 8:19 PM Author: Tan dog poop heaven i kinda did this but i didn't put my money in index funds i bought rental properties. i still work but i could get by without, in theory. would get boring (http://www.autoadmit.com/thread.php?thread_id=3495249&forum_id=2#32402459) |
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Date: January 19th, 2017 4:30 PM Author: Ruby generalized bond Could you help an xo brother looking to do the same? I want to do this but I'm unsure about the strategy.
Single family homes, condos, duplexes, or something else?
Are tenants a pain in the ass? I'm afraid of 2 AM calls to plunge toilets.
What income demographic are you aimed at?
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Date: January 19th, 2017 4:44 PM Author: Tan dog poop heaven Homes and 1 duplex, tenants are fine really, i have a guy i call if things need fixed, its rare, and not too expensive. Had a water line freeze the other day and he sorted it out for $60. Have had to evict one but its painless.
Demographic is shitpoor whites |
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Date: January 18th, 2017 8:24 PM Author: Swollen Sadistic Meetinghouse Wrinkle In are country and assuming no debt, cheapskatery, wise real estate investment and betting some of my obvious stock hunches with none of the bad bets I might've considered, I think OP is plausible. Basically could've banked an average of like 150k for 10 years and been too much of an aspie poor to make partner but enough of a good worker bee to last until 10th year push out and then retire. End up with like $2M in the bank, and live off like 60k per year after taxes. I could afford a shit poor lifestyle in are country for another 50 years like that and just spend my days jerking to internet porn, smoking weed and troll calling/texting sportstalk radio shows. (http://www.autoadmit.com/thread.php?thread_id=3495249&forum_id=2#32402481) |
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Date: January 19th, 2017 1:17 PM Author: Wild Orchestra Pit no one lasts 10 years in biglaw. you get pushed out years 4-5. there are no year 10 associates. if you're lucky, you might hit break even and have a zero net worth by the time you're 30. (http://www.autoadmit.com/thread.php?thread_id=3495249&forum_id=2#32407112) |
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Date: January 19th, 2017 2:55 PM Author: racy lime abode That is so 2006. Lots of super senior associates now. (http://www.autoadmit.com/thread.php?thread_id=3495249&forum_id=2#32407856) |
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Date: January 19th, 2017 2:57 PM Author: disturbing saffron resort stop triggering imanagecat. (http://www.autoadmit.com/thread.php?thread_id=3495249&forum_id=2#32407886) |
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Date: January 19th, 2017 3:54 PM Author: Bat-shit-crazy toilet seat (http://www.autoadmit.com/thread.php?thread_id=3495249&forum_id=2#32408362) |
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Date: January 19th, 2017 2:58 PM Author: Awkward hyperventilating temple personal credit line CR (http://www.autoadmit.com/thread.php?thread_id=3495249&forum_id=2#32407895) |
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Date: January 19th, 2017 3:02 PM Author: misanthropic property dopamine Why didn't Tom Brady retire at 35 with a few hundred million in the bank?
Eye of the Tiger |
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Date: January 19th, 2017 3:52 PM Author: Mind-boggling Mildly Autistic Partner Stag Film (http://www.autoadmit.com/thread.php?thread_id=3495249&forum_id=2#32408355) |
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Date: January 19th, 2017 4:33 PM Author: mustard passionate crackhouse you should be saving AT LEAST 200k every year in biglaw (http://www.autoadmit.com/thread.php?thread_id=3495249&forum_id=2#32408756) |