Season 2 Episode 1

Dangerous Income: Earn Big, Plan Bigger

Where You Can Listen

Description

Host Ruvin Levavi and PFG advisor Chris DeVito discuss the "dangerous income" of a Big Law salary. They explore how a high income can create a false sense of security and lead to a single-goal-oriented focus on your career, rather than on your overall financial picture.

What's Inside this Episode:

The Big Law Dilemma:
While a quarter-million-dollar starting salary seems like a lot, expenses and bills can quickly add up, making the income feel "dangerous".

Lifestyle Creep:
As attorneys advance in their careers and their income increases, their savings rate often stays the same, while their lifestyle and expenses grow. This makes it harder to save later on and to make up for lost time.

The Inversion of Financial Goals:
The first financial benefit people often get from a corporate job is a retirement account like a 401(k), but a 22-year-old is more likely to be thinking about paying off student loans or buying a house than they are about retirement.

Being Intentional:
The solution to dangerous income is to be intentional with your finances. By automating savings and periodically checking in on your financial plan, you can avoid the "get to it tomorrow" trap. Carving out a little time for yourself, about an hour and 45 minutes a year, to work with an advisor on a financial plan can help you become a buyer of your own time and lifestyle, rather than a renter

Read More: PFG Blog

The ability to retire well is about more than just income, it’s about intention. For AM Law attorneys, the stakes are higher, but so is the opportunity. Chris DeVito delves deeper in this blog post.

Disclosure

For education use only- not to be relied upon as financial advice. The information provided is for educational purposes only and is not intended as investment advise or a solicitation for the purchase or sale of any product or security. Investing includes risk, as well as the potential loss of the money you invest. Insurance and other financial products and services could be subject to certain terms, eligibility requirements, conditions and costs, and may not be right for everyone.
 
Past performance is not a reliable indicator of future results. Referenced indices are unmanaged and do not reflect sales charges; it is not possible to invest directly in an index.
 
Securities and investment advisory services offered through Hornor, Townsend & Kent, LLC (HTK), Registered Investment Adviser, Member FINRA/SIPC, 800-873-7637, www.htk.com. Power Forward Group is unaffiliated with HTK. 8480357RG_Oct27