37 yr old, single, female, lawyer, living in DC for almost 3 yrs – in NYC for ~10 yrs before that. Just started reading here in the last few months and esp. during this Christmas time off, but I’ve always been a live below your means type.
Went to a top law school and the trajectory from there is a big city law firm where you make top dollar (while working 24-7). You work like that for 8-10 years, and then the firm owners decide whether to make you a fellow owner (partner). Recession hit when I was a newly minted 2nd year associate and I quickly realized that current partners were freaking out about business falling off and were not even looking to keep associates for 8 yrs, let alone allow any new owners to share a piece of the pie. So I always thought – this is going to end and then I will be unemployed/searching for a “regular” job so take advantage of the big money now. But reality is I worked SOOO much, there was no time to spend money anyway though rent etc. in NYC is expensive.
So as expected, I got pushed out in year 8 at age 33, then ended up unemployed for 18 months and then had to move to DC for a government lawyer job, which I hated and still do. When I first started in the government, I had the view of – I’m not staying, I’m out of here in a year etc. We’re at 2.5 years, and I’m still here. Reality is, the market in my industry is REALLY tight and given that it took me 18 months to find this job, it’s not like I’m going to find another one anytime soon.
Plus this job pays well and it’s now occurring to me – I’ve already made it for 2.5 years and at 3 years, there’s another 1% of my 401k (TSP) that is a government match that becomes vested, so why even consider leaving without that. That 1% will only be ~$5500, but I think 6 more months is worth $5500.
I feel weird posting exact numbers, even though this is an anonymous site. Maybe I will, as I grow more comfortable here. But for now:
– Maxed out my 401k to the IRS max 18k (17k back in the day) since graduation in 2005 (except the 18 months unemployed).
– Have only had a match for the last 2.5 yrs in the gov’t though – that (vested) 7% has added up really quick and almost “makes up” for my lack of contribution for the 18 month unemployed stint.
– Plus I aim to save at least 33% of my net each year.
– Some of that savings is invested in a brokerage account, which now amounts to about ¾ of my 401k balance. When I was first building up that account when at a higher salary, I used to move a fixed amount to funds/ETFs every month so I had a great build up thru dollar cost averaging over 3-ish years (2011-2013). In the last 2.5 yrs, I haven’t been doing automatic investment, but still end up putting in a similar amount over the course of the year. As the market goes higher and higher, I find myself buying the dips more. I try to be careful not to go too deeply into individual stocks though – right now the balance is 75% S&P or sector ETFs and 25% individual stocks (blue chips/decent dividend payers w div reinvestment).
Goals
- Get out of this government job, as the unhappiness is sucking the life out of me. IDK if that involves a move back to NYC (much higher COL) and/or a lower salary and most certainly losing the sweet 7% match. Just don’t want to be one of those people who stays in the government for job security and one day I realize that 20 yrs of my life went by bc I was too scared to make a move.
- Corollary to getting out of the job -- do I try to establish a business so I never have a crappy layoff or lousy job situation again? And do I do that now or find a way to stick it out for another 5-10 years at a good lawyer salary and do it then? (I don’t want my own law firm – so no idea what a business would be.)
- Kick the net worth to the next level to make FIRE even more of a realistic possibility (it’s somewhat realistic now but it matters how I handle the next 10-15 yrs). IDK what that entails though – a rental property? More stock? I don’t own my own home and family/friends always pressure me about that, but doing the math the return on the S&P since I graduated in 2005 (including the recession) has outpaced the increase in housing value including in NYC and DC. Plus cash/investments feel more flexible to me. I’m glad I didn’t move to DC and buy ASAP only to find that I hate this job and then be sort of stuck bc you’d have to sell a home if you found a better job in a better city or even 20 miles away (the commutes here are killer and determine precisely where you live). Though I do have a goal of buying/paying off an apartment before retirement to eliminate housing costs in retirement.
Would welcome any thoughts. Just reading this thread has been so helpful.