Junior associates (and maybe senior associate too, but you probably know this): “Job money is not for spending. Job money is for investing. Investment money is for spending.” Internalize this and your life will be much much easier.

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Generally agree but ain’t nothing wrong with spending a bit of job money every now and then to stay sane and enjoy life.

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But I would rather not sell stock to buy things and incur a tax liability so no I’ll just spend money I already paid taxes on

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Wouldn’t that stock have appreciated over time? Wouldn’t it have produced dividends, that you could either use to purchase things, or reinvest into more stock?

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Maybe I'm not understanding the point, but this seems counter-intuitive. I've built up a pretty nice nest egg from parking money in ETFs and similar investment vehicles I have no plans to sell off anytime soon. Unless you really know what you're doing, buying up stocks just to sell them and use that as spending money is risky business and a good way to get upside down quickly. If what you're saying is that you ultimately want to get to a point where your salary is not needed to live on because you have enough invested and it gives you freedom to do what you truly want, then sure.

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Also, especially at Biglaw firms, direct investing in stocks can get very tricky with conflicts issues. When I was at a V10 you had to get approval for just about any buy or sell, so most invested in passive or FA controlled funds.

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This is not good advice. Plan what you need for retirement. Invest accordingly. Enjoy the rest. Trading stocks is a great way to also get in trouble at your firm.

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F

This person is probably talking about passive income stream that gets taxed anyway (qualified dividends and interest), not unrealized cap gains.

You could always go chiller job. Until a certain threshold (which is different for every person, could be $1m for someone, $100m for another), think it makes sense to keep the day job and keep investing.

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