As an attorney in your thirties, you are likely already established at a law firm and may even be considering joining an in-house legal team or starting a practice of your own. While your income may be rising, law school debt and the very different economics of each career path may make your choices especially important during this period. This is the decade in which your career success can potentially enable you to build long-term financial security. Like all projects that seem overwhelming, starting is the most important step. We recommend breaking this punch list into parts and tackling one every few months.
1. Turn Your Income into a Plan
To prevent lifestyle expenses from consuming a rising income, consider automating a portion of each paycheck, collection income, or bonus—potentially 20%, depending on your circumstances—to accounts earmarked for your financial priorities (debt payments, emergency fund, home down payment, and retirement savings). If you use a 20% savings target, plan recurring spending around the remaining 80%. Depending on your employment status, your retirement saving options may include a 401(k), 403(b), or governmental 457(b) plan, along with an IRA or a retirement plan for self-employment income. This 20%/80% approach limits lifestyle spending to the remaining 80% of your paycheck. If your income includes a year-end bonus, origination credit, or solo-practice collections, base recurring expenses on your most dependable income rather than your strongest year.
2. Choose a Student-Loan Strategy Deliberately
When deciding how to manage your law school loans, consider the repayment options and benefits available to you, along with how each fits your career, finances, family goals, and comfort with debt. The fastest repayment strategy is not always the best one. For instance, if you work at a law firm with reliable income and prefer to eliminate your loans quickly, refinancing your federal loans to a lower interest rate with a private lender may help save on interest, but you would give up federal borrower protections and loan forgiveness options. On the other hand, if you plan to work for a government agency or qualifying nonprofit, you may benefit more by staying with a federal repayment plan that keeps you eligible for Public Service Loan Forgiveness, which may forgive the remaining eligible direct loan balance after 120 qualifying payments while working in public service, assuming that you meet the employment and loan type requirements. Before refinancing federal loans, it is important to understand which borrower protections and forgiveness options would be lost. If you are considering government or qualifying nonprofit work and plan to pursue Public Service Loan Forgiveness, confirm that your employment and loans meet the program requirements and keep your employment certifications and payment records organized.
3. Bolster Your Emergency Fund Account
Your cash reserves should account not only for an unexpected home or medical expense but also for the possibility that a career transition will take longer or cost more than expected. Attorneys also often face delayed start dates, conflicts clearance, bar admission requirements after a move, forfeited bonuses, gaps between roles, unpaid leave, and uneven collections in solo practice. If you are considering a role with lower cash compensation, a partnership capital contribution or starting your own firm, having a larger reserve may also be appropriate.
4. Protect the Income Your Life and Financial Stability Depends On
Your ability to practice law is likely your largest financial asset. Employer disability coverage may be capped, taxable, or lost when you leave your job, so consider reviewing whether individual own-occupation disability insurance is appropriate for you. When comparing disability policies, consider how each policy defines disability. For instance, does it provide own-occupation coverage, cover residual or partial disabilities, can you increase coverage as your income grows, and are there any exclusions or limitations that could affect a future claim? If you become a partner or open a firm, also consider how a disability could affect required capital contributions, your ownership interest, and continuing overhead. For further help evaluating policies, resources such as the American Bar Association, your state bar association, or independent insurance evaluators can provide guidance and sample policy comparisons.
5. Choose Your Legal Career Path Deliberately
If you are just starting your legal career now, talk to others already working in BigLaw, regional or midsize firms, boutiques, government or public-interest roles, in-house legal departments and solo practice, as compensation, hours, benefits, stability, autonomy, advancement and long-term earning potential differ. Your practice area, such as litigation, transactional, regulatory, tax, trusts and estates, intellectual property, or another specialty, can also shape your workload, portability and future opportunities. If you are an already practicing attorney, before accepting an offer or making a transition, look beyond headline compensation to billable-hour and bonus formulas, partnership track, business-development expectations, origination credit, equity vesting, retirement benefits, malpractice coverage, termination provisions, outside-work restrictions and any capital contribution or buy-in.
- Create a Back-Up Plan for Those Who Depend on You – If others depend on you financially, consider whether life insurance and an updated estate plan are appropriate for your circumstances. As your income and family responsibilities grow, consider coordinating life insurance with an estate plan that may include wills or trusts, guardianship provisions, durable powers of attorney, healthcare directives, and current beneficiary designations. The goal is not simply to replace your income; it is to give those you trust clear instructions and access to resources they would need if you became unable to manage your affairs.
6. Balance Today’s Goals with Retirement
A larger home, private school tuition, childcare, and college savings can all become meaningful goals. Still, commitments like these should be tested against retirement savings and debt reduction. Before assuming future bonus or compensation years will be strong, decide what financial commitments you can comfortably support on reliable income. If you may change firms, take on partnership contributions, open your own practice, or move in-house, consider testing the housing budget against that possible transition before committing.
7. Prepare for Partnership, Equity Compensation and Estimated Taxes
If a partnership role is on the horizon, work with your financial advisor to evaluate how the capital contribution and ownership interest would affect your cash flow, liquidity and broader financial plan, and with your tax and legal professionals to understand the K-1 income, tax distributions, estimated payments, potential multistate filing obligations and partnership terms before accepting. If you are considering going on your own, be sure to set aside money for estimated taxes.
8. Don’t Forget to Check Your Credit
A lower credit score or adverse credit history may affect borrowing costs and, depending on applicable law and the type of coverage or position, may also be considered by certain insurers or employers. For information on how to request your credit reports and understand and improve your score, click here.
9. Learn About Investing
Now that you are starting to save, you should also know how to evaluate your investment performance and determine whether your asset allocation fits your needs. Let us know if you would like to participate in a Basics of Investing workshop or want us to take a second look at how you’ve structured your investments. If you are ready to open an investment account and take advantage of the power of compounding, watch our short video here to get started.
10. Make Financial Planning a Regular Family Conversation
If you have a spouse or partner, consider setting aside time at least once a year to review your debt, savings, insurance, estate documents, career plans, and the goals that matter most to your household. Written priorities make it easier to decide how to use a bonus, whether to pursue a partnership, move in-house, enter public service, open a firm or accept another position, and how much lifestyle growth is reasonable. By the end of your thirties, the goal should not be financial perfection but rather to create a long-lasting system that works for you, even when life and your legal work become more demanding.
Higher income can give you more choices, but only if the financial commitments you make along the way leave room for them. A career change, partnership opportunity, home purchase or other major decision can look very different depending on the savings and flexibility you have already built. Beacon Pointe helps attorneys coordinate saving, investing, debt, protection and career decisions as their financial lives develop. If you want a second look at whether the decisions you are making today are preserving enough flexibility for the choices ahead, schedule an introductory conversation with Beacon Pointe.
No matter where you are in your financial journey, thoughtful planning can help you prepare for what lies ahead. Explore our tailored financial tips for those in their forties, fifties, sixties, and seventies to learn more about the key priorities and planning opportunities to consider during each decade.
If you could benefit from a conversation with our advisory team, we would be happy to provide a complimentary consultation.
Important Disclosure: Beacon Pointe Advisors, LLC (“Beacon Pointe”) is an investment adviser registered with the U.S. Securities and Exchange Commission. Registration does not imply a particular level of skill or training. Beacon Pointe does not provide legal or tax advice. This material is provided for general informational and educational purposes only and is not intended as individualized investment, tax, legal, accounting, insurance, healthcare, or employment advice. The considerations discussed may not apply to every individual and depend on personal circumstances, applicable law, and the terms of relevant employment, ownership, compensation, benefit, insurance, and estate-planning documents. You should consult the appropriate legal, tax, insurance, healthcare, and other professional advisers before taking action. Investing involves risk, including the possible loss of principal. Beacon Pointe is not responsible for errors or omissions in materials accessed through links to third-party websites and does not necessarily approve or endorse the information provided in those materials.