Financial planning for attorneys
from first-year associate to equity partner
In re: your money
Law school loans, lockstep bonuses, K‑1 draws, capital calls, and whichever retirement plan your firm happens to offer.
Request for referral
Request a referral to an advisor who works with attorneys
- Law-firm pay does not behave like a salary. Bonuses land in one month, partner draws arrive with no tax withheld, and a buy-in can mean a six-figure loan in the same year your pay changes shape.
- These pages explain those pieces in plain terms, and the schedules below let you run your own numbers.
- When you want a professional, state your circumstances. We review the statement, confirm the particulars with you, then refer you to a licensed advisor who works with legal professionals.
I.How a referral proceeds
Statement
Where you are in your career, what you want help with, and rough ranges for income and assets. Four short steps.
Review
A person reads the statement, then contacts you by phone or email to confirm the particulars.
Referral
To a licensed advisor who works with legal professionals. The request binds you to nothing; any engagement is yours to accept or decline.
II.The numbers behind a buy-in
A capital contribution financed over a few years is a fixed payment that comes out of your draws until it is repaid. Enter the amount, the rate and the term to see the payment, the balance by year and the interest, and compare the firm’s rate with one you could get yourself. Switch to the student-loan schedule to see how long a balance takes to clear at a given payment.
Partner buy-in loan schedule
Illustration only. Your lender’s terms, fees and compounding may differ.
- Monthly payment
- $5,009
- Total interest
- $50,569
- Total paid
- $300,569
- Interest per $1 borrowed
- $0.20
Compared at 9%: $5,190 a month, total interest $61,375 (+$10,806).
| Year | Paid | Interest | Principal | End balance |
|---|---|---|---|---|
| 1 | $60,114 | $17,298 | $42,816 | $207,184 |
| 2 | $60,114 | $13,974 | $46,140 | $161,045 |
| 3 | $60,114 | $10,392 | $49,722 | $111,323 |
| 4 | $60,114 | $6,532 | $53,582 | $57,741 |
| 5 | $60,114 | $2,373 | $57,741 | $0 |
| Total | $300,569 | $50,569 | $250,000 | — |
Method
Fixed monthly payments, interest charged monthly at the annual rate divided by 12. For a buy-in loan the payment is M = P × i ÷ (1 − (1 + i)−n), where P is the amount financed, i the monthly rate and n the number of months. For a student loan the payment is given and the schedule runs until the balance reaches zero, which takes n = −ln(1 − P × i ÷ M) ÷ ln(1 + i) months. Each row charges interest on the balance, applies the rest of the payment to principal, and the last payment is only what is owed. Totals are the sums of the rows. Fees, rate changes, income-driven plans, forgiveness and taxes are not modelled.
III.Table of contents
Ten articles on the money side of a legal career. About four minutes each.
Law School Debt Repayment: Mapping IBR, PAYE, and PSLF Against Standard Repayment
Partner-Track Cash Flow: Living With K-1 Income and Quarterly Estimated Taxes
Planning the Financial Transition From Associate to Partner Compensation
Comparing Law Firm Retirement Plan Structures: 401(k), Profit-Sharing, and Cash-Balance Plans
Malpractice and Disability Insurance for Solo and Small-Firm Practitioners
IV.Get matched with an advisor who specializes in legal professionals
Answer a few short questions. We review your answers, contact you to confirm what you need, and match you with a licensed financial advisor who specializes in legal professionals.
- State your circumstances in four short steps.
- We review the statement and contact you to confirm the particulars.
- We refer you to a licensed advisor who works with legal professionals. Any engagement is yours to accept or decline.
Disclosure
This website is an educational publisher. It does not give personalized advice, recommend securities or manage money. Asking to be matched does not create an advisory relationship: any relationship is between you and the advisor, who will give you their own disclosures before you decide anything. Licensed financial advisors join our network to receive introductions and may pay us for them, through a monthly membership and a fee for each request. The fee does not depend on whether you hire an advisor and is not higher or lower for any particular advisor. Because advisors may pay us, we have a financial interest in the introductions we make. We match you by what you need, and being matched is not a recommendation or rating of any advisor. Nothing here is investment advice.
Please do not include client names, matter details or anything privileged or confidential. Ranges are enough for the money questions.
Conclusion
Reading gets you the questions. An advisor who already works with attorneys can put your loans, draws, bonus timing and firm plan on one page with you.
Find an advisor