Finding
Purpose
Beyond
Practice
Many
lawyers
struggle
with
the
idea
of
retirement.
After
devoting
decades
to
building
a
successful
practice,
often
working
seven
days
a
week,
the
thought
of
stepping
away
can
feel
like
losing
a
part
of
your
identity.
The
legal
profession
provides
not
just
a
livelihood,
but
a
sense
of
purpose
and
standing
in
society.
Instead
of
viewing
retirement
as
the
end
of
your
career,
consider
it
a
transition
to
the
next
chapter
of
your
professional
legacy.
This
mindset
shift
can
make
planning
for
retirement
emotionally
easier.
For
law
firm
owners,
a
complete
exit
isn’t
the
only
option.
You
might
sell
your
practice
or
partially
retire
but
stay
on
as
“Of-Counsel”
for
several
years,
mentoring
the
next
generation
while
gradually
reducing
your
workload.
This
approach
allows
you
to
maintain
your
professional
identity
while
creating
space
for
other
priorities
—
whether
that’s
spending
time
with
grandchildren,
traveling
with
your
spouse,
or
pursuing
long-delayed
personal
interests.
With
thoughtful
planning,
you
can
preserve
your
legacy
while
embracing
new
opportunities.
The
key
is
starting
the
planning
process
early,
ideally
several
years
before
your
target
retirement
date.
Taking
Inventory
of
Your
Financial
Resources
Once
you’ve
mentally
prepared
to
address
retirement
planning,
your
next
step
is
to
assess
your
current
financial
position.
Assets
Make
a
comprehensive
list
of
your
retirement
accounts,
including:
-
401(k)
plans -
Individual
Retirement
Accounts
(IRAs) -
Cash
Balance
pension
plans -
Real
estate
holdings
(noting
whether
you
plan
to
maintain
or
sell
these
properties) -
Brokerage
accounts -
Other
investments
Income
Sources
Identify
potential
retirement
income
streams,
including:
-
Social
Security
benefits -
Pension
payments -
Rental
income -
Law
firm
buyout
installments -
Investment
income
Living
Expenses
Get
a
rough
idea
of
your
anticipated
spending
in
retirement.
Pay
particular
attention
to
after-tax
expenses.
Knowing
how
much
you’ll
need
to
live
comfortably
is
essential
to
designing
a
sustainable
drawdown
strategy.
Valuing
Your
Law
Firm
as
an
Asset
Many
attorneys
underestimate
the
transferable
value
of
their
practice.
With
proper
planning,
your
firm
can
become
a
significant
retirement
asset.
Key
factors
that
increase
a
firm’s
transferable
value
include:
Systems
and
Processes
Buyers
value
firms
that
can
operate
without
the
founding
attorney’s
constant
involvement.
Review
your
operations
to
identify
processes
that
currently
depend
on
you.
The
more
your
firm
can
function
independently,
the
higher
its
potential
sale
value.
Start
delegating
responsibilities
strategically
to
reduce
this
dependency.
Brand
Reputation
Consider
how
much
of
your
success
comes
from
your
personal
reputation
versus
your
firm’s
brand.
Implementing
strategies
to
strengthen
the
firm’s
independent
identity
can
significantly
increase
its
marketable
value.
Financial
Performance
Organized
financial
records
and
predictable
revenue
sources
are
crucial
when
valuing
a
practice.
Potential
buyers
want
to
see
consistent
financials
and
understand
your
client
acquisition
methods.
A
firm
with
stable,
documented
performance
metrics
will
command
a
higher
price.
Converting
Assets
to
Income
–
Tax
Efficiently
Building
wealth
during
your
career
requires
different
strategies
than
drawing
down
assets
in
retirement.
Creating
a
tax-efficient
withdrawal
plan
can
preserve
your
savings
substantially
longer.
For
example,
if
you’ve
accumulated
significant
pre-tax
assets
in
401(k)s
or
IRAs,
consider
strategically
converting
portions
to
Roth
accounts
in
lower-income
years.
A
key
window
for
this
strategy
is
the
period
between
retirement
and
when
Required
Minimum
Distributions
(RMDs)
begin
—
currently
age
73
for
most
retirees.
This
window
is
valuable
because
once
RMDs
start,
they
can
push
retirees
into
higher
tax
brackets.
This
diversification
gives
you
flexibility
to
manage
your
tax
burden
throughout
retirement.
For
the
charitably
inclined,
options
like
Qualified
Charitable
Distributions
from
IRAs
or
establishing
a
Donor
Advised
Fund
can
reduce
your
tax
liability
while
supporting
causes
you
care
about.
Working
with
an
advisory
team
who
specializes
in
attorney
retirement
can
help
you
develop
withdrawal
strategies
that
could
save
hundreds
of
thousands
in
unnecessary
taxes
over
your
retirement
years.
Stress-Testing
Your
Retirement
Plan
The
assumptions
in
your
initial
retirement
plan
will
inevitably
need
adjustment.
Regular
review
allows
for
small,
manageable
corrections
rather
than
major,
potentially
irreversible
mistakes.
Consider
how
market
volatility
might
affect
your
plan.
Using
tools
like
Monte
Carlo
simulations,
which
test
your
plan
against
thousands
of
potential
market
scenarios,
provides
a
more
realistic
picture
of
possible
outcomes.
Implementing
“Guardrails”
in
your
planning
can
add
further
security.
These
are
predetermined
thresholds
that
trigger
increases
in
retirement
distributions
when
your
accounts
perform
well,
or
decreases
when
values
drop
below
certain
levels.
This
disciplined
approach
helps
preserve
assets
during
market
downturns.
Embracing
Your
Next
Chapter
With
comprehensive
planning,
retirement
becomes
not
an
ending
but
a
transition
to
a
rewarding
new
phase
of
life.
The
years
of
knowledge
and
expertise
you’ve
accumulated
don’t
disappear.
Instead,
they
transform
into
wisdom
that
can
benefit
your
family,
community,
and
the
legal
profession
in
different
ways.
By
addressing
both
the
emotional
and
financial
aspects
of
retirement
planning
well
in
advance,
you’ll
position
yourself
to
maintain
your
professional
legacy
while
embracing
new
possibilities.
The
key
is
to
start
the
conversation
now,
even
if
retirement
seems
distant.
Your
career
has
been
defined
by
helping
clients
prepare
for
their
futures.
Now
it’s
time
to
apply
that
same
diligence
to
planning
your
own
next
chapter.
David
Hunter,
CFP®
is
a
CERTIFIED
FINANCIAL
PLANNER™
and
owner
of First
Light
Wealth,
LLC,
a
financial
planning
&
wealth
management
firm
with
a
unique
focus
on
serving
attorneys
nationwide.
David
has
over
a
decade
of
experience
helping
clients
build
financial
plans
and
has
been
featured
in
publications
such
as
Attorney
at
Work,
ThinkAdvisor,
MarketWatch,
Financial
Planning,
and
InvestmentNews.
David
also
writes
weekly
to
attorneys
in
his
popular Money
Meets
Law newsletter.
For
more
about
David,
visit firstlightwealth.com/lawyers or
connect
with
him
on LinkedIn.