It\u2019s always good to have a goal. It gives direction and it provides clarity. Financial milestones are no different. Outlining clear financial goals is a crucial aspect of wealth management for executives and as a retirement saving motivator.<\/p>\n
In my book, Corner Office Choices<\/a>, I explain how milestones are developed out of priorities, which should always be linked to your passions, pursuits and areas of professional interest.<\/p>\n Broadly speaking, most discussions around financial milestones are linked to your stage of life and your personal financial commitments. Women might, for instance, be told that by age 40 they should start putting away $650 a month to build a retirement nest egg of $1 million.<\/p>\n Or how, by 50, you should have already saved five times your salary and should be looking to catch up payments to your 401(k) or individual retirement account. Then, when 60 rolls around, you might want to consider working longer to afford a more comfortable retirement.<\/p>\n All of this is true, and many of the women executives and business leaders who come to us for financial planning, money management and retirement services face similar challenges at these key life stages.<\/p>\n But there are some professions where setting clear financial milestones are even more critical and necessitate planning from your very first salary. The law is one of these professions.<\/p><\/blockquote>\n Why do I single out female lawyers for special treatment when it comes to setting financial milestones? Well, as a lawyer you will know only too well that the way you earn is not as simple or clear-cut as many of your contemporaries in business.<\/p>\n Many lawyers, for instance, don\u2019t take home a set amount each month. Instead, they might bill<\/a> based on hours worked or on contingency, which makes cash-flow planning a challenge. In addition, there are lump-sum distributions to consider. On top of that, depending on where you are in your legal career<\/a>, there will be other financial challenges to consider.<\/p>\n Since many associates enter the workplace owing significant amounts in student loans, it only makes sense that paying down those college debts<\/a> maybe a priority at this stage of your career.<\/p>\n Once a female lawyer has reached this stage there is one big door still to open: that of equity partner.<\/p>\n When a female lawyer has made it to this position she is not only at the top of her profession, but she joins an elite group of women \u2013 just 23.3% – who have achieved equity partner status<\/a>. When you reach this pinnacle, you will need to revise existing financial milestones, and here\u2019s why:<\/p>\n These examples are focused on a particular type of legal career route, but there are many other careers and positions that a female lawyer may attain, from working for private, non-profit organizations to serving as a corporate or government counsel, or as a public defense attorney. Each of these avenues will come with their own financial challenges which should be addressed in your financial plan of action.<\/p>\n Each time I meet with a client we start by updating the simple one-page summary we create together, in which we outline financial milestones and the actions required to achieve them. Over the years I\u2019ve found that this simple outline keeps my clients focused and committed, by enabling them to track their progress through time.<\/p>\n If we need to adjust a goal based on changed circumstances, then we do so. If a financial milestone has been achieved ahead of schedule, then we take time to celebrate what this means to the broader plan – from reaping the benefits of compound interest to potentially exceeding their ambitions for achieving a successful retirement<\/a>.<\/p>\n What helps women in the demanding legal profession to navigate these milestones with confidence is the fact that each stage of their financial plan takes into account specific challenges and considerations unique to lawyers and legal executives. No guessing games, no cut-and-paste financial planning approaches, just tailored and goal-orientated advice.<\/p>\nWhat Sets Women in the Law Apart?<\/h2>\n
Associate level \u2013 The Foundation Phase<\/h3>\n
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Non-Equity Partner \u2013 Preparing for the Big Leagues<\/h3>\n
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Equity Partner \u2013 Risk and Responsibility<\/h3>\n
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Celebrate Your Financial Milestones<\/h2>\n