Anonymous User wrote: ↑Tue Feb 16, 2021 1:31 pm
Anonymous User wrote: ↑Mon Feb 15, 2021 4:54 pm
These results surprise me, too. I just did some quick math:
I plugged in Cravath-scale salary + bonus to compute taxes for a single person living in Manhattan (along with a pre-tax 401(k) contribution equal to the max) for seven years of biglaw. Assuming 60k in annual expenses for each of these 7 years, this associate would annually have this much left over:
I believe most people include their 401k into their net worth which it doesn't appear you did. So 8 years of $19.5k invested at 10% ROR is $223k. Looks like 7th and 8th years nears $1mm with that math.
Not to be "that person" but the 401(k) contribution limit changes with inflation, so 8 years ago someone couldn't have put in $19.5k
But I've maxed my contributions every year since I was a first year, with no employer contributions, and after 8 full years of practicing I'm currently at $250k-ish in my 401(k). Mostly due to the giant gains in the past year, but I agree that the $225ish number is on target.
