We are continuing our series for attorneys and how they can overcome their unique financial challenges. Read about Challenge 1: Time is NOT on an attorney's side. Read about Challenge 2: Attorneys enjoy an (over)abundance of opportunities. Challenge 3: Not every risk is worth avoiding. Challenge 4: It's hard to get off the treadmill and live a little.
CHALLENGE 5: Retirement will happen ... but how?
After navigating past mid-career burnout, attorneys are usually left very aware that success requires pacing, patience and (most of all) planning – especially when preparing for long-term outcomes. These insights apply just as well on the job as they do toward an eventual, satisfying retirement.
Most attorneys can envision wanting to stop working someday. But, while they know success typically demands solid prep work, getting a confident grip on the details of when, how, and how much can be unnerving.
Moreover, retirement planning can be especially complex for attorneys. as their firms often provide myriad retirement plan options, from the traditional 401(k) to defined benefits plans and non-qualified deferred compensation plans. These can be incredibly lucrative opportunities, but they need to be well-managed to maximize their worth. There are tax implications to carefully consider, along with cash-flow constraints, employee matches, investment options, and more. Now multiply each of these issues by the number of other retirement accounts and assets a family may hold, and divide by how well they are integrated into a cohesive strategy.
The Game Plan:
Attorneys are in a unique position because they often have ample resources to save aggressively for retirement, but those resources are often held across a tangle of accounts, representing far-flung interests and based on volatile, often unpredictable payouts. Preparing for a relaxing retirement under these circumstances can be a lot of work, with opportunities lost to improper oversight. “Investing” in a professional advisor to organize and optimize an attorney’s many financial opportunities can be money very well spent.