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Question of the Week

What’s Your Retirement Game Plan?

Posted Jan 7, 2009 1:43 PM CST
By Sarah Randag

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We've had a couple of posts this week touching on lawyers and their expectations for retirement. In the first 28-year-old Chicago lawyer looking at $200,000 in debt and not enough earnings available to contribute to a 401(K) went on American Public Media's Marketplace last week saying he is "fairly convinced that retirement is a scant possibility" for him. He says he's accepted this fate and wants to focus on his debt and getting his kids through college.

Meanwhile, a 64-year-old lawyer laid off by Holland & Knight in 2002 says that termination violated his partnership agreement, and that he is still entitled to the retirement benefits set forth in that agreement—amounting to around $5,000 a month for life. (In the meantime, this lawyer is still working.)

The disparity got us wondering: What's your retirement game plan, and how do you feel about it? Are you staring down too much debt to consider it, or do you know at just what age you'll be able to comfortably retire?

Answer in the comments section below.

Read last week's question and answers about outlandish claims.

Our favorite answer from last week:

Posted by R: "I defended my agency against a pro se lawsuit brought by a plucky little old lady—first name of Thelma—who claimed to have been injured well over 20 years earlier. She refused to believe that there was such a thing as a statute of limitations.

She did all her own legal research and filed countless motions, stringing legal citations and quotes together with no apparent rhyme or reason: contract cases, criminal law, you name it.

She was completely fearless. We had a settlement conference in front of a kindly judge who tried to explain that she could become liable for attorney fees, but she held her ground and said what’s right is right.

My favorite motion was her “Motion to Squash.” Thankfully, it was denied.

She finally agreed to drop her lawsuit (with each side responsible for its own costs—she was judgment-proof anyway) on one condition: that I take her out to lunch. I readily agreed."

Comments

1.

B. McLeod
Jan 7, 2009 2:44 PM CST

Not really planning to for another couple of decades, but I could stop at any time.  I paid-as- I-went in school, with some scholarship assistance, and so had no student debt when I entered practice.  I still do things that way, so I still have no debt.  Over the decades, I have set up good reserves, and when the bear market hit, it was all sheltered in fully-insured deposit accounts.  It should be an easy home stretch, unless the hyper-inflation shoe drops on our economy as it did in Weimar Germany.  I’m still working on the back up plan for that contingency.

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2.

Steve Perkins
Jan 9, 2009 6:03 AM CST

I plan to relax.

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3.

Evelyn Golden
Jan 9, 2009 7:08 AM CST

I’ve worked for either State, Local or Federal government for most of my career(over 30 years), with the exception of a few years in private practice; between leaving and returning to government service.  I’ve lost some money in the stock market, but not enough to dampen my plans to retire at age 62.  I will be a triple dipper with a social security check, a state and federal pension, plus personal savings for a six figure income.  I will have more disposable income in retirement than I have now.  Not bad for a public servant.

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4.

Susan Hoekema
Jan 9, 2009 7:16 AM CST

I retired in my mid-50’s in 2005.  The impetus was the opportunity to spend a year of study in Africa with my professor husband.  The plan was to learn to live on his professor’s salary, which our retirement savings will more than cover in the long run, even at current levels.  The plan is working wonderfully well.  It helps that the whole country is now into the “new frugality.”

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5.

JMH
Jan 9, 2009 8:34 AM CST

My plan used to be to work at a big firm and put away a lot of money so I could eventually relax.  Then my son started to ask whether I would be home this week or next week.  Now my plan is to work in-house and have a son who grows up knowing me and not just my checkbook.

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6.

Willliam A. Wheatley
Jan 9, 2009 9:00 AM CST

My plan: Work until I drop. That way I don’t have to worry about it, and I enjoy my work.

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7.

Dave Hols
Jan 9, 2009 9:39 AM CST

The practice of law is uniquely suited to someone who wants to “work until I drop.” If leisure isn’t for you, why not keep practicing assuming you’re good at it and get paid well for it. In my case I prefer leisure and that’s the way it’s been for the last 8 year. I drink coffee and read the paper and that’s on a busy day. Each day I get up and think “this day is all mine to do with exactly as I please.”

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8.

alan garfinkel
Jan 9, 2009 10:21 AM CST

I agree with W. Wheatley’s course of action. Otherwise, I would either have to shorten my life expectancy after retirement or work until 4 yrs after my death!

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9.

Theresa Petrey
Jan 9, 2009 10:48 AM CST

I’ll be working part-time into at least my eighties, but I started later than most . . . .

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10.

LawStudent 2L
Jan 9, 2009 10:59 AM CST

I will graduate owing around $150K including undergrad loans (call me dumb, but this is my dream job). So I am planning on winning the lotto. Should that fail, then I guess I will just not retire. No retirement for those under 40 that went to law school on financial aid!

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11.

R
Jan 9, 2009 12:22 PM CST

I WAS looking forward to a happy, healthy retirement living off the proceeds of my Madoff Securities nest egg.

Now I’m looking forward to becoming the world’s oldest living Wal-Mart greeter.

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12.

R
Jan 9, 2009 12:23 PM CST

Hey Evelyn Golden: RUB IT IN, why dontcha? :-)

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13.

Bob
Jan 9, 2009 12:25 PM CST

My wife and I are planning to quit working in 1.5 yrs and move to a Buddhist retreat center, help build it.  We are in our early 50s, and expect to be doing mostly administrative work, for free.  We expect to live frugally, on almost no income, for the next 10-15 years until our full retiirements kick in.  I think this lesson in frugality will be good for my son, who will be 12.  Our daughter will be in college, and she has a trust fund to finance most of her undergraduate education, and if she is careful, part of a post-graduate education (tho’ not law school at Harvard!).  We recognize the uncertainty of my wife’s and my retirement plans, funded by a state government, but I am expecting the economy to cycle and improve by the time we reach retirement age.  I wiill maintain my law license in a least one state, and may do some part-time practice on the side, but there are no plans for big yachts, sunny beaches or golf, which I believe would be self-centered and greedy to pursue.  I believe our society needs a major change in mindset about what life is about, and what we expect to gain from it, and cotnribute to it.  The segment that needs to focus on this the most are corporate managers, financiers, bankers and lawyers.  Who in their right mind feels deserving of multi-million dollar salaries while others are jobless?

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14.

Duane
Jan 9, 2009 12:34 PM CST

I was an engineer for 20+ years.  I retired, got bored, went to law school.  I intend to practice law until I die - unless I get bored and decide to go to medical school…..

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15.

L
Jan 9, 2009 1:19 PM CST

I have almost no debt (less than $9,000, on a new car and a nearly new motorcycle), make a decent living, save 9% of gross income in IRAs plus taxable savings, and have been building the IRA since I was 22.  I’m nearly 39.  However, I doubt I’ll every actually be able to retire comfortably enough to suit me.  I love my leisure, but I also like my job (I picked it well, thank you), and I always sort of suspected that I’d be one of those 90-year old lawyers tottering off to the office at least a few days every week until I drop dead.

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16.

Diana
Jan 9, 2009 2:44 PM CST

One of the reasons that I became a lawyer at 40 years old was to eliminate some young “suit” from telling me I was no longer worth a dime because of my birthdate.  Being a lawyer is one profession where a person can have a meaningful career without being tied/chained to a corporation who will sacrifice wisdom for the new, the young, the lower salaries.  I am a solo who represents employees against these types of narrow minded employers.  I pray that I can work at my profession right up to the moment of my death, hopefully after giving a killer closing argument.

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17.

James Du Pre
Jan 9, 2009 2:45 PM CST

I’m an Army lawyer who in 5 more years will have earned a retirement.  I was able to use my pre-law work (in the army) towards my retirement and I’ve only practiced law for 8 years.  I’ve also paid off all my student loan debt and am debt free.  Now I hope to now specialize in an area that I actually enjoy and remain in that area of practice for the remainder of my military legal career and my post military legal career.  I interviewed with Clifford Chance right after law school (for the London office) and now I thank God for the job security I have in the Army…and I’m writing from Iraq.  My son is 5 years old and with the new GI Bill that Congress just passed, my son’s college education is now paid for.  My retirement is secure as long as the US government survives me and I don’t catch a bullet.

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18.

Christine Tharp
Jan 9, 2009 3:30 PM CST

While I would love to retire by the sea and live in peace,  I will probably retire when I drop dead at my desk while listening to a client whine about attorneys fees.  Hopefully I will have my daughter through graduate school by then   so she can pay for her own designer duds.

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19.

RNA
Jan 9, 2009 5:31 PM CST

My retirement plan is, “And then, a miracle happens…”

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20.

Jim
Jan 9, 2009 6:06 PM CST

A few years ago, I was able to retire a week before I turned 50.  However, it wasn’t because of my “stellar” career (NOT!!) but because I was a smart investor.  I stayed out of debt and lived responsibly. 

It took me 25 years to build a diversified solid portfolio consisting of cash, securities, and real estate.  Before the 2008 stock market crash, I made sure my portfolio was 40% cash.  (No, I didn’t see it coming, but I was mindful of my grand dad doing the very same thing just before the 1929 crash, and it looked to me like we had history getting ready to repeat itself again - which it did.)  I still maintain my law licenses, and a mortgage banking license I also possess, in case I get bored.  And, no, I didn’t write any of those option arms, Alt A paper, or No income verification (aka:  liar loans) stuff, preferring to practice law during those years instead.  So, I have no off balance sheet risk whatsoever from the mortgage lending crisis.

I will live comfortably for the rest of my life, provided that my very expensive health insurance premiums (individual health policy) and my other insurances don’t increase exponentially - as I have no protection against that.  Maybe the geniuses in Washington will eventually fix health care.  Doubtful, but as RNA said:  “And then, a miracle hgappens…”

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21.

AC
Jan 9, 2009 9:24 PM CST

I didn’t lose any IRA or 401(k) money—I felt uncomfortable ine summer about the markets and moved one to a guaranteed annuity and the other to cash. Unfortunately, neither is a lot of money. So I’m expecting to work to my late 60s.

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22.

bankrupt
Jan 10, 2009 10:21 AM CST

I’ve gone bankrupt so that takes care of my credit cards.  (paying rent, food, expenses with cash advances).  I’m sticking to my plan to pay my law loans off in the next 15 years (if interest rates hold) by paying a third of my income toward it.  If I can keep working these lousy temp doc review jobs and they don’t cut my hours below 60 pw I can save another 30% for retirement.  That won’t be enough but if I move to a cheaper state I may not need to take an overdose.  (one of the considered options)

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23.

TennRN
Jan 10, 2009 5:33 PM CST

Retirement?  What’s that?  My spouse is unemployed.  My previous employers had little in the way of retirement benefits.  I’m continuing to put money away for retirement, but I’m watching the amounts go downhill every week.  Maybe the answer is to put money in a mattress?

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24.

Susan
Jan 11, 2009 6:56 PM CST

I do not believe that i will ever be able to afford to retire.  Our firm does not match anything on our 401k, which is worthless, and provides no retirement benefits.  Part time work in the far future is the best this single female 46 year old attorney can hope for.

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25.

Andrew McBurney
Jan 11, 2009 10:46 PM CST

I’m 37 years old and almost a year out of law school. “Retirement” for me will refer to the day my student loans are paid off.  And that’s about it.

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26.

Pete
Jan 12, 2009 9:13 AM CST

The beauty of our profession is that we can work until we can’t get out of bed anymore (and by that time, I’m certain that cyber-practices will be more common, and I will then continue to work from my retirement home) as opposed to laborers whose careers are often cut short due to age.  My goal is pay off all my loans, make enough money to travel extensively, take care of my family, and I will die broke.  Dying broke means giving my wealth to my heirs while I am still alive, and dying with just enough to pay for my funeral expenses.

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27.

B
Jan 12, 2009 11:58 AM CST

Although I’ve put away lots of money for retirement, I don’t think I’m going to get to retire, since our increasingly socialist society needs those few productive people like myself to keep working so we can pay nice pensions to public servants like Evelyn Golden.

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28.

Cat Tufts
Jan 13, 2009 7:03 PM CST

I’m a tribal government attorney (which I love!)and I plan to keep doing the same thing until I turn 70 (that’s about 26 years from now).  Then I’m just going to raise and play with horses and dogs and do pro bono defense work for juvenile delinquency cases, since I’m still a juvenile delinquent myself (and by age 70, will probably be even worse).

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29.

Kim B
Jan 16, 2009 4:28 AM CST

I went to a Gerry Spence three day seminar and saw grown men weeping all weekend long when they finally admitted to themselves that their children and wives never saw them because they put their practice first.  I felt sorry for them becuase I had made a decision years ago that I would work from my home so that my son would have me at home during his teen years. (I kept thinking of those parents who claim they didn’t know their son was in the garage making pipe bombs to blow up Columbine High.)  Well, I managed to score big on a case that I handled out of my house and put my money into an annuity that is now paying out.  I’m semi-retired taking lots of trips, writing novels, white water rafting and putting my family first, just as I did when I was working. I’m 50something.  LOL I don’t think you should wait to retire to get your priorities straight.  Too many of my clients have died before they started to live.  This is life, there are no rehearsals.  So, save a little, but live a lot.

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30.

MommyEsq
Jan 16, 2009 9:32 AM CST

My 401(k) and IRAs values have tanked recently and I’m currently putting only 1% into my 401(k) so that I can make ends meet.

My current retirement plan - as sad as this sounds to my feminist self - is to stay married to my husband, who has great retirement prospects.  He is a former attorney who is now a police officer with great benefits including a pension (not paid by taxpayers, he has to pay into it), which he will receive at around 55.  He also is blessed with an inheritance that he will receive at around 55 (God willing since it’s tied up in stocks at present).  Fortunately I love the guy so the money is not the real reason I’m staying with him!

What is very sad is that in his line of work, they are responding to a lot more DOA calls for suicides of older people who have lost everything in this current financial crisis.  I am thankful that he and I are still young (early thirties) so we have a lot longer to build our retirement savings and have our investments recover from this mess.

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31.

Bhagwan Ahuja
Jan 17, 2009 12:11 AM CST

I am lawful permanent resident of the United States for the last 2 years and there are three more years to apply for US Citizenshi and USCIS takes at least one year to process Citizenship application. I am 62 years old. Is there any category where I can request for my US Citizenship because I want to be US Citizen before I die.

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