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Most partners get sucked into the lavish lifestyles (so holiday homes, children at private school, lovely cars and holidays etc) and are then tied to the firm until they retire. Some have challenging home lives (more than one divorce and multiple children to provide for). However, if you can set yourself a realistic target of x years to pay off mortgage and save a reasonable lump sum and then retire so you can enjoy yourself (or take a less stressful role), then that is achievable and is what some partners actually do. However, it takes a driven person to do that because the lifestyle and cash is addictive, and let's be honest, some partners actually love their job, regardless of the punishing hours and sales targets!
Family > Career
What’s typical B4 partnership buyin? I know there are 0 interest loans but still curious.
Tax partners at pwc start off around $500k, regardless of market, and stay close to that for first five years. Run the numbers and see what works for you based on your situation. Keep in mind there are mandatory pension contributions, health insurance is very expensive as you don’t have employee benefits anymore, etc. $500k as a partner is not same as $500k as an employee.
For the record, I’ll take the $500k as partner but just worth mentioning.
I want $5M in savings before I retire and also enjoy traveling so it will take me longer to get to the $5M. Everyone is different so you need run the numbers based on your commitments, requirements, obligations, lifestyle now and what you want it to be in retirement.
To add, you no longer get the 401k and you have to pay self employment tax, plus other misc firm fees. You may have to divest certain investment/retirement accounts as independence is increased. Your partner pension is suppose to make up for this.
Isn’t the mandatory retirement age 55 instead
M1 - lucky you, to be such a youngster!
Runway of 5+ years
Check your retirement vesting schedule. You’d either want to jump a year or two in or wait the 10 or so years until you vest.
The answer to this depends on what size firm you are a partner of (B4, National, Regional, Local).
B4