BigLaw bonuses are great—until tax season brings an unexpected bill. See how we helped an attorney estimate and plan for bonus taxes to avoid surprise payments.
Taxes
BigLaw attorneys are anxiously awaiting tax season, wondering if they’ll be hit with yet another surprise bill. If you earned a sizable bonus last year, the answer is probably yes. But why does this keep happening—and how can you avoid it in the future? Let’s break it down.
Debt
This is one of the 3rd rails of financial planning for attorneys. The debt you incurred during your undergraduate and/or law school years may feel enormous and can trigger very real emotional reactions. People don’t like to be in debt, and it often casts an ominous cloud over those that owe money to a lender. Those feelings are very real, very justified, and very normal. It is a good instinct to have to want to avoid getting into or staying in debt. However, there is a way to integrate your student loan repayment with your broader investment plan! Read on.
Income
You’ve put in the hours, even years! You’re finally making the money and the trajectory is only looking up. Congratulations! The key now is to maximize your income so that it can be a powerful tool toward your financial freedom, ASAP. If you’re not sure what types of accounts to invest in, where your student loans take priority over savings, or how these things change with early retirement in mind, read on.
Investing
Academic theory about investing in stocks is a lot like a map of the London Tube. The map can get you from Point A to Point B, but it is not actually an accurate map of the rail line underground. It is only an easy-to-read, simplistic version of what is really going on.
However, just because the map shows a 90° turn doesn’t mean that the rail line actually makes a 90° turn at that specific point in the line. The academic theories behind investing are a lot like this, in the sense that they can often get you to where you’re going over the full route, but if brace yourself for stocks to make a specific turn at a specific time based on the theories, you’re likely to lose your balance, look like a fool, or both. Read on.
Firm
“Concert” is an unusual name for a financial firm, but there’s a reason for it. It serves as an analogy for how you should think about financial planning, what it is, and why you need it. It also helps you put things into perspective when everything you hear about investing in the media is designed to make you feel stupid and scared. You’re not stupid, and you don’t need to be scared. Read on.
