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Author Topic: My postgraduation BigLaw budget  (Read 8446 times)

Texas Tiger

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Re: My postgraduation BigLaw budget
« Reply #30 on: May 10, 2005, 02:27:48 PM »
For those of you debating on where you are taxed...You are taxed in the jurisdiction where you work, not reside.

By the way, I am a CPA in the tax practice of a Big Four...


ormachea

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Re: My postgraduation BigLaw budget
« Reply #31 on: May 10, 2005, 02:37:17 PM »
Lets hope you get a job  :-\

Ouch, thanks. I've done this while studying for a final. I think I should be cut a little slack for not necessarily remembering everything I had in mind when I'm also juggling a LOT of other more immediate information.

ormachea

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Re: My postgraduation BigLaw budget
« Reply #32 on: May 10, 2005, 02:38:11 PM »
For those of you debating on where you are taxed...You are taxed in the jurisdiction where you work, not reside.

By the way, I am a CPA in the tax practice of a Big Four...



Sigh, I guess that means I have to rework all my number again....

SH

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Re: My postgraduation BigLaw budget
« Reply #33 on: May 10, 2005, 02:48:36 PM »
Lets hope you get a job  :-\

Ouch, thanks. I've done this while studying for a final. I think I should be cut a little slack for not necessarily remembering everything I had in mind when I'm also juggling a LOT of other information.

Yeah...understandable...I hope you get a job!
Practice LSAT156 (diag), 163, 162, 165, 167, 168, 172, 164 :(

(all within the last week and a half...which is when I decided to take the LSAT)

limonjello

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Re: My postgraduation BigLaw budget
« Reply #34 on: May 10, 2005, 03:48:13 PM »
Ummm, what the hell level is "really rolling in money?" You'd be making nearly 4 times the freaking national average income.

Limonjello: I do understand your point about charitable giving. And yes, starting earlier is better. The only problem is you've seen my budget. What do you suggest I cut? $125k is a lot of money. The $60k I have after taxes, loans, and savings doesn't afford much beyond a relatively comfortable living in the New York area. Every number I've chosen I've been told is too low. So I can't really drop any of those. And I will not put my retirement at risk just so I can donate.

I really will donate later, I come from a family that has gone through poverty and makes it a point to donate. I know I will, I just don't feel I really can for the first two or three years.


I honestly wouldn't try to determine what areas you are most comfortable with, and as I mentioned before, I don't think there is a prescribed level of giving.  Many people (including me) truly do give more as they make more, which is very natural.  What I do encourage is to get in the habit of giving regularly, whatever it might be.  We usually do ours out of bonuses, income tax refunds, etc.  It's almost found money because most people don't truly budget their full bonuses for safety's sake (your model is a bit flawed by the way because your bonus will be annual, but you have it kind of spread out over the year.  Also, you won't get that bonus for over a year most likely.)

I truly believe you will start giving when you hit more money.  My point is simply that if you get in the habit of giving early, it's just easier.  Hell, just give a few hundred a year at first, just something to make it a natural action.  You'd be surprised how easy it is once you get going.

One thing you are likely to find is that in a few years your partners will suggest that associates join boardsof non-profits for purposes of networking, civic responsibility, general good PR, etc.  You'll probably end up giving your money there and not think twice about it if you believe in it.

ormachea

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Re: My postgraduation BigLaw budget
« Reply #35 on: May 10, 2005, 03:57:25 PM »
Done. Charity is added (240 /yr)

As to the car, I am happy w/ a 30k vehicle.


dave303

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Re: My postgraduation BigLaw budget
« Reply #36 on: May 10, 2005, 08:18:39 PM »
You don't really need a car in NYC, many big firms will provide a chauffeured car to take you home when you stay late at the office. So you can actually take away the car payment and apply it all to your rent if you live in the city. It's not like texas where you can't go to the mailbox without your trusty SUV.

He's going to NYU so I don't think getting a biglaw job will be much trouble.

ormachea

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Re: My postgraduation BigLaw budget
« Reply #37 on: May 11, 2005, 12:03:25 AM »
True, I just felt it would be better to be safe than sorry and included the car.

Oh, now I feel a little foolish for getting defensive about the job comment.

everything

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Re: My postgraduation BigLaw budget
« Reply #38 on: May 12, 2005, 03:46:03 PM »
Limonjello-- Federal income tax alone will gobble up 28-33% of my salary...


This is false. You're taxed on your AGI, not your salary. At a minimum, everyone gets the standard deduction. If you contribute to a pre-tax retirement account or have a mortgage, or do any number of completely legal things, your AGI will often be well below your actual salary.

Even if you only take the standard deduction of $4850, a person who makes a salary of $140,000 will pay about 23 percent of their salary in federal income tax. The tax rates are marginal--you pay 10 percent on the first $7000 of income, 15 percent on the next $21,400, and so on.
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ormachea

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Re: My postgraduation BigLaw budget
« Reply #39 on: May 12, 2005, 03:59:25 PM »
Sweet! I'd forgotten about being able to take money out to lower the Adjusted Gross Income.

Does anyone know the maximum one can save pre-tax? Assuming the firm has something similar to a 401(k) and I set up a Roth IRA?