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Author Topic: Most lucrative and prestigious law  (Read 4466 times)

->Soon

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Re: Most lucrative and prestigious law
« Reply #50 on: April 18, 2007, 04:06:32 PM »
http://www.lawschooldiscussion.org/prelaw/index.php/topic,86697.0.html

some links im getting for those that re interested in going solo.

feel free to add more  :)
Do you really believe in free speech, or just in speech you agree with?

nocomply

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Re: Most lucrative and prestigious law
« Reply #51 on: April 18, 2007, 04:16:30 PM »
personal injury lawyers get 1/3 of whatever settlement arises, so if you hustle and do your thing you could quite well for yourself.

sure you're going to make plenty of money if you work at a big firm or get into corporate law, but essentially you will be working for someone else. best bet is to go into business for yourself for the long run.

of course everyone doesnt have the balls to do that, many strive to become partner or whatever, and i'm not knocking that, plenty of money could be made doing that.

i guess it comes down to personal preference. for the long run, i'd rather by my own boss, even if i make a little less money.

paul1454

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Re: Most lucrative and prestigious law
« Reply #52 on: April 18, 2007, 04:18:56 PM »
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My friends who are working at i-banks joke that they work eight days a week. In a way, it is true. I have a good friend working at a small i-bank in NYC and had to go home to Hartford for a funeral one Saturday...she had to borrow her bosses laptop to do work on the trainride. I-Banking is perhaps one of the only jobs that makes being a corporate lawyer look easy. In addition, base salaries are often low, especially for associates ($55-$65k, which is nothing in NYC). The real money comes from bonuses which, while often high, are taxed 40% to 50%.

Bonuses are treated no different than ordinary income for tax purposes.

Journeyman

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Re: Most lucrative and prestigious law
« Reply #53 on: April 18, 2007, 04:22:55 PM »
personal injury lawyers get 1/3 of whatever settlement arises, so if you hustle and do your thing you could quite well for yourself.

sure you're going to make plenty of money if you work at a big firm or get into corporate law, but essentially you will be working for someone else. best bet is to go into business for yourself for the long run.

of course everyone doesnt have the balls to do that, many strive to become partner or whatever, and i'm not knocking that, plenty of money could be made doing that.

i guess it comes down to personal preference. for the long run, i'd rather by my own boss, even if i make a little less money.

I think this is what a good number of people strive for, isn't it?  Pay off the loans in BIGLAW and then lateral to in-house for better hours or hang their own shingles to get away from the BIGLAW environment
IU-B '10

Journeyman, I am dumbfounded as to how you got into IU and W&L with your numbers. 155 LSAT and you applied to Vanderbilt? Honestly?

paul1454

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Re: Most lucrative and prestigious law
« Reply #54 on: April 18, 2007, 04:27:28 PM »
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They are in California at least. They are taxed at a higher percentage than regular income.
More is WITHHELD from your paycheck because the bonus temporarily puts you in a higher income bracket.  However witholding and the actual taxability of the income is two different things. When you file your taxes and calculate your tax liability, bonuses are treated EXACTLY the same as ordinary income.  Therefore if too much was withheld initially, it will get refunded back to you (or if not enough was withheld you will end up owing tax because of the bonus). The federal and state governments do not have separate tax rates for bonuses. 


paul1454

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Re: Most lucrative and prestigious law
« Reply #55 on: April 18, 2007, 04:36:24 PM »
Bonuses are included in box 1 of your w-2 (wages, salaries, tips, etc).  When you file your taxes, the information in box 1 is carried over to box 7 of your 1040.  That (along with all the adjustments in-between) are carried down to box 43 on the form 1040. What shows up on line 43 is all taxed at the regular tax rate (35% max for federal, 9.3 max for state of California), bonuses included (less any capital gains which are subject to reduced rates).  I am certain California is no different.  I finished preparation a California resident's return last week at the office with no difference (his state return treated the income identically to that above). 

PS.  You have to make at least $336,550 to get taxed at the maximum tax rates (unless you are married filing separate).

keelee

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Re: Most lucrative and prestigious law
« Reply #56 on: April 18, 2007, 04:53:11 PM »
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My friends who are working at i-banks joke that they work eight days a week. In a way, it is true. I have a good friend working at a small i-bank in NYC and had to go home to Hartford for a funeral one Saturday...she had to borrow her bosses laptop to do work on the trainride. I-Banking is perhaps one of the only jobs that makes being a corporate lawyer look easy. In addition, base salaries are often low, especially for associates ($55-$65k, which is nothing in NYC). The real money comes from bonuses which, while often high, are taxed 40% to 50%.

Bonuses are treated no different than ordinary income for tax purposes.

Tell that to all my friends whose $10,000 signing bonuses and $20,000 year-end bonuses are cut by 40% in New York state.

Here's a nice little blog entry where someone complains about the 40% tax:
http://wellheeled.wordpress.com/2007/01/30/check-please/

In New York City, there is a 40% tax on all bonuses. I have no idea how it is in other states, I thought it was a nationwide thing.
Going to as of now...USC or Fordham.

paul1454

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Re: Most lucrative and prestigious law
« Reply #57 on: April 18, 2007, 05:05:10 PM »
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In New York City, there is a 40% tax on all bonuses. I have no idea how it is in other states, I thought it was a nationwide thing.

The highest tax rate in new york state is 7.7% (if you make over $500,000).  If you live in NYC you ALSO must pay city income tax which is 3.648% (if you make over 50K, 90K if you are married). 

Assuming you are making over 336,550, I agree you would be subject to over 40% tax on your bonus, actually 46% (and all other income for that matter).

But for the rest of us, we may have 40% WITHHELD, but you will not necessarily owe 40% come tax time.

EDIT: I hate hijacking this thread and I'm sorry for causing this off-topic debate.  If you still disagree PM me and we can talk about the topic there. 

Rooster

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Re: Most lucrative and prestigious law
« Reply #58 on: April 18, 2007, 06:13:12 PM »
This thread belongs on XOXO.
In ^_^= UConn, UCLA, Temple, Quinnipiac
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iahurricane

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Re: Most lucrative and prestigious law
« Reply #59 on: April 18, 2007, 06:23:42 PM »
are there ibanks not in new york and do they pay about as much?