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The Necessity of Planning for Retirement
Mark Bassingthwaighte, Esq.
December 20, 2007

Ask anyone in their 20’s if they expect to receive social security benefits when they retire. We all know what the answer will be. I often hear something along the lines of “yeah, right.” While only time will tell, I think it’s safe to say that for anyone of any age to solely rely on social security benefits to carry them into and through retirement would be a significant financial misstep if additional options were available and never pursued. Not surprisingly, I see the failure of an attorney to appropriately plan for retirement, which is the problem I wish to discuss here, as a risk management concern as well.

I continue to meet attorneys who have done, and still do, all that they can to provide quality legal services to their clients for a fair and reasonable fee. This is a good thing. However, add into the mix a desire to provide a decent wage and some sort of benefit package to keep and reward competent and dedicated staff and financially it starts to get complicated. Then there are the realities of life that might include, raising a family, providing a college education for the kids, providing a home for the family, caring for elderly parents, unexpected medical bills, a divorce, that one investment tip that unfortunately led to a large loss, or the vacations that were necessary to keep it all together. You see where this starts to go. Life happens, whether we want it to or not and it happens at a speed that takes so many of us by surprise.

For some, as the retirement years finally near, there is a harsh awakening to the reality that somewhere along the line the retirement plan that they always intended to prioritize, never actually was and that’s a problem. I have visited with attorneys who tell me that they simply can’t afford to retire because life and/or the practice keep getting in the way. Now, let me share that claims and disciplinary matters do arise as a result of financial pressures that attorneys face and the reason can be as simple as an attorney no longer has the energy or desire to practice law but is also unable to afford to leave the practice. When your heart is no longer in it, missteps can and do occur.

When dealing with an “unable to retire” situation, I often wonder whether it could have been prevented with appropriate financial advice and planning. I suspect that some situations truly could have. Too many attorneys fail to develop business plans for their practices, see that their own wills get drafted and signed, or set up retirement accounts just for starters. Perhaps one reason is that they’re too busy seeing that these kinds of things get done for their clients. Be that as it may, there is value in taking the steps to plan for your own future while the advantage of time is still on your side. More importantly, commit to a plan and follow through in its implementation.

There is no one right way to go about this. Certainly seeking advice from a financial planner, reading investment and/or business planning books, working with a CPA and/or an estate planner are all worthwhile ideas. For me, I have tried to teach all my kids the importance of learning to pay yourself first, even with the first job that they land. The investing habits that can be engrained at this point in their lives will hopefully serve them well for years to come if they are able to remain committed to the process. In fact, I wish that I could have learned that lesson thirty years ago as my financial picture would be significantly different today. Regardless, it is never too late to start. Take time to review your personal and business financial plan and if one isn’t developed, establish a time line to get it done.

I am trying to encourage us as attorneys to take to heart the advice that we are always so adamant about ensuring our clients follow. Retirement planning is about being fiscally responsible both personally and professionally, and for some this is one more way to practice law responsibly. In the end, proper financial planning can do wonders by preventing claims and or ethical complaints that can so easily arise when an attorney is faced with unforeseen financial pressures in his or her personal or professional life. Retirement planning can also provide a little peace of mind for you, your family and those with whom you practice. Hopefully, all this will make the effort worth it.

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