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Why isnt everyone in biglaw retired by 35?
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Date: January 18th, 2017 7:24 PM Author: Razzmatazz chestnut macaca rehab 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: Violet Anal Meetinghouse (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: Razzmatazz chestnut macaca rehab ? (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: Gold Swashbuckling Step-uncle's House 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: Zombie-like antidepressant drug depressive 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: Razzmatazz chestnut macaca rehab 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: frum pink school cafeteria 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: Razzmatazz chestnut macaca rehab 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: Irradiated Cowardly Patrolman 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: Razzmatazz chestnut macaca rehab 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: frum pink school cafeteria 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: Razzmatazz chestnut macaca rehab 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: frum pink school cafeteria 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: Razzmatazz chestnut macaca rehab 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: Irradiated Cowardly Patrolman 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: Razzmatazz chestnut macaca rehab 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: frum pink school cafeteria 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: Razzmatazz chestnut macaca rehab 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: frum pink school cafeteria 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: Razzmatazz chestnut macaca rehab 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: frum pink school cafeteria 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: Razzmatazz chestnut macaca rehab 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: frum pink school cafeteria 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: frum pink school cafeteria 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: house-broken sanctuary 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: frum pink school cafeteria 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: house-broken sanctuary "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: electric ocher house 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: Zombie-like antidepressant drug depressive (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: mind-boggling offensive dopamine corner 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: frum pink school cafeteria 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: Razzmatazz chestnut macaca rehab 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: charismatic base 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: mind-boggling offensive dopamine corner 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: Vibrant fiercely-loyal indian lodge 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: Zombie-like antidepressant drug depressive 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: frum pink school cafeteria 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: brindle crackhouse 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: Razzmatazz chestnut macaca rehab 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: adulterous mahogany personal credit line 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: Razzle-dazzle Burgundy Locale 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: frum pink school cafeteria 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: fragrant olive church building electric furnace (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: unhinged indirect expression principal's office 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: Naked reading party 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: Submissive Haunting Travel Guidebook 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: Naked reading party 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: 180 free-loading affirmative action 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: Concupiscible translucent sweet tailpipe field 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: Filthy Red Whorehouse 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: demanding thriller lettuce 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: bronze rebellious jewess (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: Zombie-like antidepressant drug depressive 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: Ebony big karate 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: Infuriating vengeful laser beams goal in life (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: crystalline cerebral stage you should be saving AT LEAST 200k every year in biglaw (http://www.autoadmit.com/thread.php?thread_id=3495249&forum_id=2#32408756) |