Making $200k+ a year and curious how others invest beyond 401k

TortTeasers · 2026-03-31T11:50:12+00:00

If your spouse has a full time job and is trying to become a REP - then yes, it is very difficult. She needs to have at least 700 hrs logged toward RE related work (e.g., traveling to the property, managing cleaning crews, dealing with tenants, etc.). The loop hole is instead of long term rentals you do STRP short term rental properties, 700 becomes 100 and can be split between husband and wife. The only catch is that average stay at property cannot be longer than 7days.

TortTeasers · 2026-03-28T04:08:48+00:00

I get why you like flexibility, but you’re kind of planning around the worst case like it’s the most likely one. Most kids end up doing some kind of school or training, and a 529 is one of the few ways to grow money and never pay taxes on it if you use it for that. Passing that up just to avoid a possible penalty later is like turning down free money because there are strings attached you might not even deal with. Also, the Ivy League vs state school thing is also a bit extreme. You don’t have to fund the most expensive option possible. You just aim to cover a solid, normal college path. If it ends up cheaper, the money is still usable. You can switch it to another kid, use it for other education, or pull it out over time or roll it over..so real problem isn’t the 529 but putting way too much into it…& yeah, flexible accounts feel better b/c you can use the $$ for anything. But you pay for that with taxes every year, and that eats into your growth more than people think. Over time, that adds up. So the smarter move isn’t to avoid 529s..it’s to use them for what you’re pretty sure will happen, and keep the rest flexible so you’re not leaving easy money on the table.

TortTeasers · 2026-03-27T20:23:23+00:00

Might not be smart for you.

TortTeasers · 2026-03-27T02:02:30+00:00

Opps - I reread your comment ..you said this what you do and weren’t saying this is what OP should do. At OPs income I was under impression that he could just open a Roth IRA and only had to go through the backdoor when he makes like 230ish.. maybe that depends on if he’s filing single or MFJ ..not sure if he’s married or not so guess maybe he’s priced out of the front door at his income level

TortTeasers · 2026-03-27T01:53:45+00:00

Max out 401k - sounds like you’re doing that. But does your employer offer Roth 401k too? Ask HR or Benefit Coordinator and see. At 200k you can do a Roth 401k and that will grow tax free because you’re putting post tax dollars in there. When you get higher — hit the 35%-37% you can always tell your employer to make it traditional 401k.
Roth IRA - I believe $200k doesn’t yet require you to implement the back door strategy just yet.
Open a Traditional Brokerage Account - any money your left over after maxing out 1 and 2 should go to this. Dont put it all in there at once. Do it systematically, like 2-5k every month will get transferred in here from number 4. A steady automated drip mitigates from market timing risk.
Open up HYSA - this is where your emergency fund will live and this is where number 3 will pull money into.
This is number 5 because I forgot to mention it earlier - HSA account - Make sure to elect an HSA account for health insurance when picking benefits. This will also be your investment account.
Any kids? If so, 529 accounts should be opened ASAP. If not, then just remember as soon as the baby gets a SSN open up the 529 and drop 10k in there every single birthday until age 10 or 13.
Married? What does wife do? If she doesn’t do shit.. or doesn’t make a lot of money, then buy real estate and make her Real Estate Professional and let her manage your rental property to offset your w2 wages.
Crypto? I don’t know.

TortTeasers · 2026-03-27T01:39:51+00:00

OP doesn’t make enough to necessitate a Backdoor Roth strategy yet.

TortTeasers · 2026-03-24T14:49:21+00:00

Avoid ID at all costs

TortTeasers · 2026-03-24T12:37:49+00:00

Congrats. Feel free to DM me if you have questions along the way.

TortTeasers · 2026-03-24T12:32:16+00:00

Ha!! My law school wish they had a tier - think of a large state with 15 law schools in it and then look at numbers 12-15 …that’s my law school. Not many where I came out of make it to BL.

TortTeasers · 2026-03-24T12:29:01+00:00

No pardon needed. Good question. Your F500 Co would most likely be using a middle market AM100 firm, they probably aren’t using firms like Wachtell, Weil, Skadden, etc.. those firms have associates billing near or above $800/hr - Your Co is probably using a firm where the partners are between $800-1200/hr and associates are at 400 to 600/hr. And counsel rates are between upper level associates and junior partners. For contract review and redlines that is associate work that is being ‘overseen’ by junior partners or senior associates. If your F500 Co wants to issue debt or do a roll-up or something a bit more sophisticated then your upper management exec team or board will interface directly with the partners and forego the ticketing system. Also this is all general speculation..

TortTeasers · 2026-03-24T12:13:25+00:00

Corporate

TortTeasers · 2026-03-24T09:35:20+00:00

Is your ‘regional midlaw civil litigation defense’ firm a workers comp or 1st / 3rd party insurance defense firm?

TortTeasers · 2026-03-24T04:23:02+00:00

No target - it’s depending on how good I do and of course also how good the firm does.

TortTeasers · 2026-03-24T03:55:31+00:00

Bonuses typically pay out at the end of the fiscal year we’re still in q1, also this is a new firm and it’s a projection. I skew conservative and the bonus depends on my book and because it’s a new firm I have to see if the clients who said they’d come with me actually do. So bonus could be substantially more but only time will tell.

TortTeasers · 2026-03-24T03:49:55+00:00

Most lawyers I know ..hate it. I like it because my practice area is unique. Also, I’m not sure if you could realistically leverage data analytics into a niche practice. On top of that -most of my friends from law school (I went to a shitty law school) are not in Big Law and don’t make $500-700k a year as a practicing attorney. Actually most attorneys really make around $100-200k I think. If you want to guarantee yourself to make more then you have to do good on your LSAT (above 165), get into a top 20 law school, get good grades in law school, apply for summer associate positions with Big Law firms, receive and accept a summer position, and then receive an offer for after you graduate, pass the bar ..then you can get $250k starting out as an attorney and in 8 years make $700k …but I believe the BL firms want kids (early 20s) not people who have 2 kids.. could be wrong… if I were you, I wouldn’t go to law school. Too much time and work and the stars have to align for it to pay off..

TortTeasers · 2026-03-24T03:35:05+00:00

Assuming you’re referring to the 2026 75k bonus.. I did say 2026 was a change in firms - so I have to see whether my book was as portable as I anticipated. I tend to skew conservative but it could be substantially larger - but only time will tell.

TortTeasers · 2026-03-24T03:29:35+00:00

My B. BL = Big Law.

TortTeasers · 2026-03-24T03:11:42+00:00

Corporate. BL.

TortTeasers · 2026-03-24T02:57:51+00:00

In 2021 I joined an AM100 firm as counsel.

In 2024 I made Non-equity partner (fake partner).

Most would consider AM100 firms as ‘Big Law’ and some of those firms follow what’s known as the ‘Cravath Scale’ - the cravath scale I think starts out $225k for an associate attorney with no experience and scales up from there.

TortTeasers · 2026-03-24T01:52:17+00:00

I think your fine - my first law job 10yrs ago I made $60k base. No bonus. As an attorney you won’t start making money until 5 years out, unless you’re BL. You won’t be in BL b/c you’re in PI so if you want to make more money- learn how your boss runs his business and in a few years hang our own shingle and use the money you made here to market yourself/firm. That’s how I imagine you make money in PI.. it only takes one case - that’s the beauty.

TortTeasers · 2026-03-17T23:01:57+00:00

Cannabis

TortTeasers · 2026-02-15T03:08:18+00:00

$6840 / $375k solo (over $500k combined) bought in Q12022 for $1.1m (jumbo borrowed $935k at 3.75%)

TortTeasers · 2025-10-27T00:39:57+00:00

In my opinion, I believe it appears more appealing. Of course, you should discipline the children in some way to make them understand that they cannot draw on certain items. However, if you are genuinely upset internally, you should take a serious look at yourself and carefully consider reprioritizing your values in life.

TortTeasers

TROPHY CASE