Total Savings/Net Worth Forum

[Definitely Not North]

Lol. I have over 500k in cash. I’m sure it’s the wrong move, but I can’t find anything that I recognize as a better move. Also I work all the time.

for a very reasonable 1% of your portfolio i am willing to take 15 minutes to open an etrade account for you and buy $500k of SPY at market tomorrow

we would both win since i would get $5k and you would get an average of 7% annually on your $500k every year until you retire

[JusticeJackson]

Lol. I have over 500k in cash. I’m sure it’s the wrong move, but I can’t find anything that I recognize as a better move. Also I work all the time.

for a very reasonable 1% of your portfolio i am willing to take 15 minutes to open an etrade account for you and buy $500k of SPY at market tomorrow

we would both win since i would get $5k and you would get an average of 7% annually on your $500k every year until you retire

I hear you but Im realistically never going to have time to figure out what the fuck SPY is and I’m sure as fuck not putting 500k into something I know zero about.

[Anonymous User]

Lol. I have over 500k in cash. I’m sure it’s the wrong move, but I can’t find anything that I recognize as a better move. Also I work all the time.

for a very reasonable 1% of your portfolio i am willing to take 15 minutes to open an etrade account for you and buy $500k of SPY at market tomorrow

we would both win since i would get $5k and you would get an average of 7% annually on your $500k every year until you retire

I hear you but Im realistically never going to have time to figure out what the fuck SPY is and I’m sure as fuck not putting 500k into something I know zero about.

Stock of the largest 500 companies (not technically true but close enough) in the US, each in a percentage equal to their relative market value with almost no fees. For anyone not paying significant attention, it's the best way to invest. As for if you should buy it today or wait for some sort of "dip", probably today but that's debatable.

[Anonymous User]

Class of 2013, NYC biglaw. Current net worth is just shy of $1.1M. Started after law school at -$90k net worth (essentially no assets and $90k in debt). Almost all assets are investments, mostly total stock market ETFs/funds although some in bond ETFs/funds, with around $40k in cash. Most is in taxable accounts but some in 401k, Roth IRA and HSA (max the 401k and HSA each year but scared of messing up a backdoor Roth so the Roth is just from SA/stub year).

Net worth crossed $1M at the mid-December paycheck (pre-bonus).

[umichman]

Lol. I have over 500k in cash. I’m sure it’s the wrong move, but I can’t find anything that I recognize as a better move. Also I work all the time.

for a very reasonable 1% of your portfolio i am willing to take 15 minutes to open an etrade account for you and buy $500k of SPY at market tomorrow

we would both win since i would get $5k and you would get an average of 7% annually on your $500k every year until you retire

I hear you but Im realistically never going to have time to figure out what the fuck SPY is and I’m sure as fuck not putting 500k into something I know zero about.

Stock of the largest 500 companies (not technically true but close enough) in the US, each in a percentage equal to their relative market value with almost no fees. For anyone not paying significant attention, it's the best way to invest. As for if you should buy it today or wait for some sort of "dip", probably today but that's debatable.

There is a great personal finance thread on what you should do with your absurd amount of cash.

Would like to keep this thread to facts, not advice.

[Anonymous User]

I'm an almost-senior in NYC biglaw and am deeply impressed by the people who have built up so much money while living in New York City. How do you do it? My expenses seem so high that it's hard to build up anywhere near what many of you have saved. Can you describe your monthly and annual spending?

[Sackboy]

I'm an almost-senior in NYC biglaw and am deeply impressed by the people who have built up so much money while living in New York City. How do you do it? My expenses seem so high that it's hard to build up anywhere near what many of you have saved. Can you describe your monthly and annual spending?

I don't work NYC biglaw but have spent enough time in NYC in my life to be equally impressed. My guess is people are keeping rents low ($2,000-$2,500), don't have any terrible vices (e.g. NYC dining/drinking, crazy vacations), and have had very good returns on their 401k/stock investments. Some people might also be getting juiced up because their parents paid for their law school, they've inherited some money, or earned money in a prior career and are really 40 year old 8th year associates and not the typical 33-35 year old ones. Folks with spouses (especially if biglaw/banking/Dr) could also really be getting their numbers juiced up.

[thisismytlsuername]

I'm an almost-senior in NYC biglaw and am deeply impressed by the people who have built up so much money while living in New York City. How do you do it? My expenses seem so high that it's hard to build up anywhere near what many of you have saved. Can you describe your monthly and annual spending?

The better question is: what are your monthly expenses like?

[Anonymous User]

I'll play this braggards game:

~145K NW:

+105K in investments portfolio (ETF/shares)
+80K in retirement funds (401K)
+15K in Cash
-55K in Federal Student Loans (I refuse to pay them - forbearance for past year plus possible Biden forgiveness)

3rd Year NYC Biglaw; started with 75K in student loan debt. I am not good at saving money and spend way too much, but generally my monthly expenses break down like this:
- Rent: $2200
- Student Loans: $1000 (have no paid loans since Feb 2020)
- Expenses (partying/eating out etc. - this expense more or less disappeared during COVID): $3500-4000

[Anonymous User]

Junior partner in non-NY biglaw, married to senior associate at a biglaw firm. No kids, no law school debt. We have roughly 850k net worth - roughly 250k in cash, 350k in 401k, 200k in home equity, and then 50k in other stuff (mostly whole life insurance). We do not have a baller lifestyle but we do enjoy nice food/wine, try to go on at least one significant vacation a year, etc.

[Anonymous User]

6th year non-NYC biglaw, graduated with $210k in student loans (paid off):

Approx $1mm NW

$400k cash
$300k 401k/brokerage account (stocks)
$100k home equity
$250k other investments (crypto, real estate investments, etc.)

Lease both my cars, so no real debt there, spouse doesn't work.

[nahumya]

$200k in cash/savings accounts (I know this is too much)

whoa. that's criminal unless you plan to put a down payment on a 1.5mm house tomorrow

Lol. I have over 500k in cash. I’m sure it’s the wrong move, but I can’t find anything that I recognize as a better move. Also I work all the time.

I think like 1.2m total net work (mostly in 401k/IRA).

At the very least put $100k into an HMBradley account so you can keep up with inflation. It's just a savings account, but you get 3% earnings.

[Anonymous User]

This one will make you feel better:

8th year in Texas biglaw. Wife (not working) and kids. Total NW about 300k.

180k in cash (about to buy a house)
170k in 401k, 529s, and HSA
50k in student loans

[Sackboy]

Going to completely disregard the person who doesn't want to make this an advice thread. Any of you people who are carrying more than ~6 months in expenses in cash are pissing away a ton of free money by not investing. 6 months is still a very conservative emergency fund. Hell, bump it to 9 months for those of you sitting on 300k+ if that makes you feel more comfortable investing.

Throw whatever is left after establishing your emergency fund into VOO, which is an ETF/index fund that directly aligns with the value of the S&P 500 (aka the largest 500 companies) (whichever poster said SPY is wasting their money with a 3x higher expense ratio to track the same index). VOO isn't some rocket science. It's also not some witchcraft that people sell. It's the white bread of investing, because it consists of a ton of incredibly large stable companies with low volatility. To further drive home its credibility, VOO has $630 billion of net assets (aka investments). If your plan is to hold this money for a long period of time, it's just the way to go. VOO has an average return of 13.82% over the last decade.

[Lacepiece23]

Are people considering their network in combination with their wife ITT? That makes me slightly less depressed. If not, well, fml I fucked up.

[Anonymous User]

$850k NW, starting 6th year in DC. Might quit and go to government soon, if they'll take me.

Had a scholarship for law school, K-JD, am single, and have lived with a roomie. Inherited $15k and parents gave me $20k in law school, but I've also given away about $65k myself. Assets 90% stocks (mostly VTI/VTSAX), $200k of which is in retirement accounts. Will be 95% stocks after I finish dumping in bonus money. I bought aggressively into the downturn in March, which worked out. Ran out of money to invest before the bottom (whoops) but still ended up way up for the year.

Wish I bought crypto but I believed (and still believe) that it is a socially negative thing most useful to gangs/cartels/people who need to hide money, and I hope one day it gets banned and crashes to zero. Also wish I bought TSLA but I wasn't paying enough attention/brave enough, and now I wonder if it's too high (which is the same thing I wondered two years ago).

To the dude with $500k in cash: you are an idiot; invest that money; it will shave years off your biglaw career (and that's a good thing).

[Anonymous User]

This one will make you feel better:

8th year in biglaw. Houston. Wife (not working) and 2 kids. Total NW about 300k.

180k in cash (about to buy a house)
170k in 401k, 529s, and HSA
50k in student loans

Do you mind providing some insight on how this happened? In 8 years of biglaw and two kids you never bought a house or made any investments outside of tax deferred accounts?

[Definitely Not North]

lol it never occurred to me that biglawyers could be THIS bad with money. can't stop thinking about the ppl with $200-500k sitting in cash

[el madrileno]

Hopping in to represent all the low-income attorneys working at small firms in the suburbs.

NW: 5k

+25k cash
+10k IRA
+5k playground portfolio
+30k home equity
-65k ug/law school debt

[Anonymous User]

300K net worth. 6th year fed gov attorney with no debt due to full scholarship and family paying for housing/COL during school. 120k in 401k/Roth IRA, 100k in stocks, 60k in home equity, 20k in checking/savings.

[Anonymous User]

300K net worth. 6th year fed gov attorney with no debt due to full scholarship and family paying for housing/COL during school. 120k in 401k/Roth IRA, 100k in stocks, 60k in home equity, 20k in checking/savings.

[avenuem]

Are people considering their network in combination with their wife ITT? That makes me slightly less depressed. If not, well, fml I fucked up.

I responded with $1,000,000.
I don't actually have $1,000,000.
I'm sure others responded similarly, albeit with different motivations (mine was jokingly).

If you consider that most of the actual millionaires are probably partners, it's not bad. We will be there too at that point, if we spend/save/invest wisely. Average biglaw associate has made at least $2.5 million before the time it takes to become partner (assuming they stay in biglaw, obviously).

[Anonymous User]

Going to completely disregard the person who doesn't want to make this an advice thread. Any of you people who are carrying more than ~6 months in expenses in cash are pissing away a ton of free money by not investing. 6 months is still a very conservative emergency fund. Hell, bump it to 9 months for those of you sitting on 300k+ if that makes you feel more comfortable investing.

Throw whatever is left after establishing your emergency fund into VOO, which is an ETF/index fund that directly aligns with the value of the S&P 500 (aka the largest 500 companies) (whichever poster said SPY is wasting their money with a 3x higher expense ratio to track the same index). VOO isn't some rocket science. It's also not some witchcraft that people sell. It's the white bread of investing, because it consists of a ton of incredibly large stable companies with low volatility. To further drive home its credibility, VOO has $630 billion of net assets (aka investments). If your plan is to hold this money for a long period of time, it's just the way to go. VOO has an average return of 13.82% over the last decade.

This IS actually helpful. I'm one of those mid-levels in Big Law with over $300k sitting in savings accounts and/or CDs. Why? I grew up in a low/middle class household and worked my butt off in school to go to a good college/law school; once there, I worked a lot and saved. It's my fault, but I never took classes in, and was not naturally interested in, investing/personal finance. And I don't have rich friends for whom that is a background feature of life. So it's not something that occurred to me as a live and relevant thing for me.

Now, I work a ton and don't have the time to look into stuff like this. Maybe this thread will spur me on to do the research and take out some time for this. I literally have never heard of VOO and only have a basic understanding of what an ETF/index fund is, or who to even contact about investing. So thank you for the encouragement!

[Anonymous User]

Going to completely disregard the person who doesn't want to make this an advice thread. Any of you people who are carrying more than ~6 months in expenses in cash are pissing away a ton of free money by not investing. 6 months is still a very conservative emergency fund. Hell, bump it to 9 months for those of you sitting on 300k+ if that makes you feel more comfortable investing.

Throw whatever is left after establishing your emergency fund into VOO, which is an ETF/index fund that directly aligns with the value of the S&P 500 (aka the largest 500 companies) (whichever poster said SPY is wasting their money with a 3x higher expense ratio to track the same index). VOO isn't some rocket science. It's also not some witchcraft that people sell. It's the white bread of investing, because it consists of a ton of incredibly large stable companies with low volatility. To further drive home its credibility, VOO has $630 billion of net assets (aka investments). If your plan is to hold this money for a long period of time, it's just the way to go. VOO has an average return of 13.82% over the last decade.

This IS actually helpful. I'm one of those mid-levels in Big Law with over $300k sitting in savings accounts and/or CDs. Why? I grew up in a low/middle class household and worked my butt off in school to go to a good college/law school; once there, I worked a lot and saved. It's my fault, but I never took classes in, and was not naturally interested in, investing/personal finance. And I don't have rich friends for whom that is a background feature of life. So it's not something that occurred to me as a live and relevant thing for me.

Now, I work a ton and don't have the time to look into stuff like this. Maybe this thread will spur me on to do the research and take out some time for this. I literally have never heard of VOO and only have a basic understanding of what an ETF/index fund is, or who to even contact about investing. So thank you for the encouragement!

The anon with $200k in cash here - I understand why it should be invested (and usually I just keep a year of expenses in cash, and not three plus), but I have just been nervous about the pandemic and didn't want to do anything like, buy at the top of the market right before a crash that also includes me somehow losing my job (things were really dicey last March, in case people have forgotten). I watched my parents lose jobs and burn through all their savings until their bank accounts hit literally $0 during the recession, so I am overly cautious and paranoid about what could happen if I lost my job (especially with no parents to back me up, and no spouse to balance any expenses with). When things settle down I'll take the excess and invest it. Like the other anon said, it's helpful to hear that maybe I've been a little too cautious, and to think about getting this invested sooner rather than later, even if it slightly derails the thread. Thanks!

[Anonymous User]

The anon with $200k in cash here - I understand why it should be invested (and usually I just keep a year of expenses in cash, and not three plus), but I have just been nervous about the pandemic and didn't want to do anything like, buy at the top of the market right before a crash that also includes me somehow losing my job (things were really dicey last March, in case people have forgotten). I watched my parents lose jobs and burn through all their savings until their bank accounts hit literally $0 during the recession, so I am overly cautious and paranoid about what could happen if I lost my job (especially with no parents to back me up, and no spouse to balance any expenses with). When things settle down I'll take the excess and invest it. Like the other anon said, it's helpful to hear that maybe I've been a little too cautious, and to think about getting this invested sooner rather than later, even if it slightly derails the thread. Thanks!

I think the smart thing to do would be to pick a day each month (or two months) and invest something like 15k each time, regardless of if it’s up or down. That way you’re averaging out when you’re buying and not buying at a high or low.