Winter Update

It’s about time for a winter update.  I’ve now been married for a few months.  Everything is going very smoothly and we’ve adjusted to married life quite well.

The other big news is I made partner at my firm!  It’s a non-equity position, which I prefer for the time being.  While my compensation is less than that of an equity partner, I don’t have to buy-in.  That means I don’t have to put up a mid-six figure sum as a capital contribution to the firm.  As a result of the recent collapses of firms like Dewey, Howrey, Heller, etc. I’ve run across more than one partner who’s lost their buy-in.  Heck, I even know a guy who lost his buy-in twice — meaning he lost over a million dollars in a few years just because his firms were run by bozos!  But he made much more than a million in that time frame so he still came out ahead.  I especially feel bad for the brand-new partners who take out loans for their buy-in right before their firms go under.  It must be such a roller coaster to first make partner, then see your firm collapse and lose your capital contribution in the process.  I wonder if they would still personally on the hook for the total amount — I would imagine so.  It would suck having to pay back a loan on a worthless asset!

As for our finances, our net worth has been charging up steadily.  We hit the $800K mark this past month.  We’ve merged our finances in a very efficient manner, as I alluded to in an earlier post.  In the last couple of months, we’ve been seeing monthly gains in the tens of thousands of dollars.  I’m projecting being able to save over $230,000 this year, not counting any interest, dividends, or appreciation.  Even though our savings rate has gone down due to having to pay for two people, I think we’re not too far from being financially independent.  We could be as close as 3 years away, assuming we want a 3% withdrawal rate.

That said, I’m still getting used to the idea of being a partner.  We’ll see if I can stick it out for that long. Sometimes I feel like I’ll be exposed as the emperor with no clothes, due to the way I strategically positioned myself as an associate.  I always presented myself as being very hard working (even when I wasn’t), knowledgeable (even when I wasn’t), confident (even when I wasn’t), etc.  It was all about image and perception.  It worked well as I earned myself a very, very long leash and a great reputation.  That’s not to say I lacked substance, but I probably wasn’t really as good as I wanted the partners to think I was.

Perhaps all of my doubts are due to all growing pains and adjusting to the new position.  I think I just need to overcome my insecurities, which will hopefully lead me to continue to thrive (or at least survive) over the next few years before I reassess where I’m going in life.

One thought on “Winter Update

  1. Great news on your making non-equity partnership.

    I recently switched from a global law firm (100 lawyers or 700 lawyers globally) down to a 4 man shop. They pay is lower but the stress and perspective is different.

    3 years is long enough for partnership. Save that $230K and you’ll soon be done.

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