Here’s a treat for you lawyers out there.
This is an answer to a question we get asked by many self-employed lawyers looking to start building their wealth from their practice.
So, if you’ve landed a successful case: here are 3 strategies to amplify that income for life.
This article is a 7 min read.
First of all, congrats! 🎉
You’ve received a whopper of a case, are finally getting fees worth your time, and you are now ready to reap the financial reward. However, that lingering question still hovers at the back of your mind – “What exactly should I do with this?”
Rest assured friend, you’re not the first to ask this question. As lawyers, when you rise in seniority, the larger cash payouts are the fruits of your labour. However, we both know that fruits can go rotten, and we’re sure you’ve met many broke lawyers who though are always busy – are also always cash strapped.
We don’t want that for you, and you don’t want that for you. So, today, we’re going to dive right into 3 strategies that you can use to amplify that payment into a wealth generating machine!
You know that feeling when you’ve submitted your submissions, and then realise that the other side are representing themselves? They don’t even know the pitfalls and traps they will easily fall into, because they’re so focused on conquering what they think they know… but are clueless to all the things that they don’t know that can gravely hurt their case. You know where I’m going with this. The truth is, that same situation happens in finance. There are some things that honestly, you need an expert in the field to help you navigate.
Our strong suggestion here is to hire a financial planner for yourself to map out the perfect strategy for you and your life. This is a roadmap as to what you should do with not just this cash payout, but the many more business transactions you will be having in the future. You don’t want to have only a couple thousand dollars to show for your literal decades of hard work. Get that trusted financial counsel.
This is something that we can help you with here at Firstline Securities (schedule a call with us right here), however we are not the only ones that do this service. There are many other financial advisers you can reach out to in Trinidad and Tobago. Have a look around, interview, and select your best fit.
At Firstline, we are experts at creating, growing, and maintaining wealth in Trinidad and Tobago.
With some of our staff working for over 4 decades in the financial industry, in addition to the success stories, they have witnessed many a person’s finances rise and fall or stagnate, and there are specific actions taken by those who keep their finances rising over their life, compared to those who were not as proactive.
Enter you email below to gain access to our masterclass video that outlines what it truly takes to transform your current savings into true wealth in Trinidad and Tobago.
For strategy number two, we focus on fulfilling your short-term cash requirements. To do that, you need to put a portion of that large fee payment into something accessible (liquid), but that is still working for you. We can’t give you any percentage figure as it truly depends on each person, their goals, and what they want out of their life.
While this is something you can ask your new financial advisor, I’ll still quickly cover what you should be looking for generally.
Generally, a half-percent interest rate is not something that is really pushing your money to make it work for you. A great place to begin is to look at all of the various savings vehicles you currently have and actually find out their interest rates. If you don’t have one already, a mutual fund or Credit Union account may be your next stop here. We suggest having a good look around as to who has the best interest rates while still allowing you to withdraw at any time without penalties.
What this will do is free up your day to day spending, (so you know that you’re covered for your expenses), and it means that your profits will get the workout that they were made for in Strategy Number 3.
What we mean is take what’s remaining of your lump sum fee payment and invest it. Let the money start making its own money for once.
There are many ways to jump (float, wade, dip your pinky toe) into the pool of investing. You can decide to go conservative and let that money be put away in a slow burner that has a principal guarantee but you know will still multiply over time because compound interest is your patient friend. You can also put the money in a series of different investments with varying risk profiles and tenors so you have the potential for greater returns as well as more opportunities for re-investment.
Those are just two non-exhaustive examples because there are many different ways you can play at this point to build your long-term, “I’m a Financially Successful Attorney Finally!” wealth. Your personal financial advisor would be able to guide you here as to all the different opportunities available and which ones you should capitalize on based on your goals.
We know that “law is life”, but we also know that you may have hobbies and other ambitions. From hiking Kilimanjaro, to scuba diving the Mariana Trench – your dreams and goals are not trivial. You’ve put in the work – let us help you to really reap the rewards.
Get your financial team, strategise your way to wealth, and be that attorney who can genuinely go on a life fulfilling adventure, take all their loved ones with them, and not have their whole practice collapse all around them.
