I’m 45 and only been practicing law for 5 years. Spent the majority of my professional life working in a non-lawyer public sector role in the South on a modest income. Graduated law school at age 40. My net worth is $500,000 (which includes liquid, home, and retirement accounts). I’m married with two school-age kids. The COL in the South is less than most places. But is it too late for me? Am I screwed for retirement? I keep seeing people say that $3M to $5M is the target. There’s no way…

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“Therefore do not be anxious about tomorrow, for tomorrow will be anxious for itself. Let the day’s own trouble be sufficient for the day." Matthew 6:34

likeupliftinghelpful

Strongly agree! Thanks for sharing!

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You will be okay! You’re doing great

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Is it too late to get to $5M? Probably. Unless you have a string of incredibly successful investments. But that’s water under the bridge. All you can do now is save as aggressively as you can in tax-advantaged accounts and keep your COL under control and you can still end up with enough to live a comfortable retirement, though not one as flush as others who had the benefit of more time in the market.

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You’re doing okay. The target isn’t $3-$5m net worth, it’s $3-5m in 401k/investments

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LC1: Not in a single 401k necessarily but overall investments of $3MM - $5MM in your fifties? Doable.

You will be fine. Wanta a favorable comparison? Myself—graduated law school 2004 at age 45 with less than 100k net-worth with wife and three kids— 1-4 years olds. So, wife had to take care of them. 4 years later, 2008 came and wiped out what little we got because of housing collapse. Moved from DC to the south. I gave you dates so you can date me. So, needless to say i didn’t hit 500k until after i turned 50. Of course, inflation makes the numbers incomparable. But i got 15 years of solid earnings and maximized my retirement savings. My net worth is about 3mil now. You may wonder why law school that late with no net worth then. I am an immigrant— got green card as 38 year old. So, limited employability before that despite having a phd in science from an elite institution. The delay in start also gets translated negatively by potential employers. My first job was at entry level despite having 4 year experience including 2years as post-doc. So, my career as scientist completely stalled and i went to law school, which turned out to be the best career decision i ever made.

That was the hand i was dealt! Anytime i look up, i remind myself to look down and i see i am fine! You will be fine too.

likeupliftingsmart

Your net worth is 2x the national median for your age and it sounds like your highest earning years are ahead of you. Nice work!

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I think it very much depends on your long term goals. You may want to have an in depth conversation with your spouse and a financial advisor. While I'm sure there are people in this bowl who manage their retirement planning on their own, you really need to go over the numbers with someone and have some hard conversations about your future.

likehelpful

I’m 40 and my net worth is less than that with kids and also my spouse doesn’t work rn and we just bought a house we can’t afford in a HCOL and we are still gonna be fine when my wife goes back to work. Sounds like you’re doing ok to me

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Comparison is the thief of joy. Having a law degree and continuously learning and building skills will serve you well as you can always work as a lawyer. Building money for security is good but also invest in your health and your relationships with your kids and spouse because that is true wealth

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The numbers you gave are high. Higher than what the average person will do. You still have time even to retire at 60, which is early. Plus it’s a multiplier of your spending you *should* save and not someone else’s numbers. Lastly being 5 years out of law school isn’t much. Your salary will grow with more experience. I graduated in 2009/2010 era and clawed myself out of the huge recession nightmare where I barely made more than I did as a paralegal prior to law school.. All that to say, spend wisely, save, and enjoy your life and your kids. The fact you care and are saving is the start you need.

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Keep saving and investing. Do not trade in and out. You will be fine.

You theoretically have 25 years left to work. Plenty of time to keep saving.

I don’t even have a spouse. Do I think I am in trouble? No

How much of the 500,000 is from your home?

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