Personal Finance 101 for Young Lawyers

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zot1
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Re: Personal Finance 101 for Young Lawyers

Postby zot1 » Tue Mar 28, 2017 2:21 pm

My FICO score went up. Time to use my credit again.

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North
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Re: Personal Finance 101 for Young Lawyers

Postby North » Tue Mar 28, 2017 3:00 pm

buckiguy_sucks wrote:Is the "private banking" that law firms list as a benefit on their NALP page basically just higher fees to be told to invest in index funds or is it like relationship rates on mortgages and savings accounts and stuff?

My firm's turned out to be the bank trying to sell you slightly discounted financial advising.

Porkypots
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Re: Personal Finance 101 for Young Lawyers

Postby Porkypots » Fri Mar 31, 2017 1:58 pm

quick question, i'm in a special situation. i have a full time job but I'm in law school. my job doesn't offer a 401(k) until you've been there one year. should I start saving into an IRA or continue to pay my debt (college/CC) considering that I plan on working part-time by mid 2018.

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Tiago Splitter
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Re: Personal Finance 101 for Young Lawyers

Postby Tiago Splitter » Fri Mar 31, 2017 2:51 pm

Porkypots wrote:quick question, i'm in a special situation. i have a full time job but I'm in law school. my job doesn't offer a 401(k) until you've been there one year. should I start saving into an IRA or continue to pay my debt (college/CC) considering that I plan on working part-time by mid 2018.

There's no one right answer but I'm a fan of using your tax-advantaged space while you can. You can save $5500 in an IRA now and $5500 again next year, but if you miss this year you can't just put 11k in next year to make up for it. So I'd fund the IRA.

That said the analysis doesn't change between the IRA and the 401k unless they offer a 401k match. Without a match a 401k is basically just an IRA with higher contribution limits.

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swampthang
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Re: Personal Finance 101 for Young Lawyers

Postby swampthang » Fri Mar 31, 2017 3:19 pm

Tiago Splitter wrote:
Porkypots wrote:quick question, i'm in a special situation. i have a full time job but I'm in law school. my job doesn't offer a 401(k) until you've been there one year. should I start saving into an IRA or continue to pay my debt (college/CC) considering that I plan on working part-time by mid 2018.

There's no one right answer but I'm a fan of using your tax-advantaged space while you can. You can save $5500 in an IRA now and $5500 again next year, but if you miss this year you can't just put 11k in next year to make up for it. So I'd fund the IRA.

That said the analysis doesn't change between the IRA and the 401k unless they offer a 401k match. Without a match a 401k is basically just an IRA with higher contribution limits.


All of this is credited. Whenever you do get around to paying off debt, make sure to pay the HIGHEST INTEREST RATE loans off first!

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airwrecka
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Re: Personal Finance 101 for Young Lawyers

Postby airwrecka » Thu Apr 13, 2017 4:20 pm

thank you for this!




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