Conclusion
Given these lurking threats to the long-term feasibility of continued early retirement programs for law firm partners, it is critical that partners, either independently or in collaboration with an experienced financial counseling team, clearly define their long-term financial and life goals, accurately assess their current assets and resources and identify and implement the actions necessary to realistically bridge the financial gap between their goals and current assets. As discussed, proactive planning becomes even more critical in light of the new norms for future life expectancy, rates of return and spending assumptions. The earlier in their careers that partners begin planning under this new paradigm, the more likely they are to weather the storm effectively, as long-term and realistic planning decisions such as intelligent cash-flow management can significantly increase the likelihood of a successful early retirement. Thus, while they do face an imminent perfect storm, law firm partners are not without the prospects of safety if they plan ahead and plan prudently.
Michael J. Nathanson, J.D., LL.M., is chairman, chief executive officer and president of The Colony Group LLC.
Patrick S. Donnelly, CFP, is vice president and senior financial counselor at The Colony Group LLC.
Michael T. Wright, J.D., CFP, is a financial counselor at The Colony Group LLC.