Financial planning for lawyers.
Law school debt, partnership track, IOLTA.

Section 1 · The debt situation

• Median law-school debt for private law school: approximately $130,000 to $160,000 verify×DON'T TRUST, VERIFYClaim: Median law-school debt for private law graduates is approximately $130,000+.Verify at: ABA Section of Legal Education ↗ABA Standard 509 disclosures provide school-by-school debt data..
• Federal graduate-student loan rates apply.
• Public sector or public interest starting salary: approximately $50,000 to $80,000.
• BigLaw starting salary (scale market): $225,000 (Cravath scale).
• Median lawyer salary (all settings): approximately $145,000 (BLS).

Section 2 · Public Service Loan Forgiveness (PSLF) strategy

PSLF is highly relevant for lawyers in government (federal, state, local), public defenders, legal-aid organizations, and nonprofit law organizations. After 120 qualifying payments on an income-driven repayment plan, the remaining balance is forgiven tax-free verify×DON'T TRUST, VERIFYClaim: PSLF forgives the remaining federal student-loan balance tax-free after 120 qualifying payments while employed at a qualifying public-service employer.Verify at: studentaid.gov/pslf ↗Forgiven amounts under PSLF are not federal taxable income..

Section 3 · BigLaw financial strategy

The first-year mistake

$225,000 gross becomes approximately $140,000 to $155,000 take-home in a high-tax city. Many first-year associates spend immediately to "reward" themselves after years of law school. Lifestyle inflation in year 1 is the single largest wealth-destroyer for BigLaw associates.

The correct year-1 approach

• Max the 401(k) ($24,500 in 2026).
• If under the income limit Year 1: max the Roth IRAIndividual Retirement Account (IRA)A personal retirement savings account with tax advantages. Two main types: Traditional (tax now, pay later) and Roth (pay now, tax-free forever).Full definition ($7,500). Otherwise backdoor Roth in subsequent years. See backdoor-roth.
• Pay aggressively on student loans if not pursuing PSLF.
• Live like you earn $100,000 for 3 years. The student-loan and savings compounding advantage is enormous.

Partnership track

BigLaw partnership track takes 7-10 years. Income at partner level varies by firm and book of business: $500,000 to $5M+. Tax planning becomes critical: Roth conversions in lower-income years, QBIQualified Business Income (QBI)Income from a self-employed business or partnership that may qualify for a 20% tax deduction under current law.Full definition deduction if partner at a pass-through, and deliberate Bitcoin capital-gains management.

Section 4 · IOLTA accounts

IOLTA (Interest on Lawyers' Trust Accounts) is a separate account lawyers are required to maintain for client funds. Not your money. Client funds held in trust.

The interest on IOLTA accounts goes to the state bar's Legal Services Corporation (or equivalent), not to the lawyer.

Common ethics mistakes

• Commingling personal or business funds with IOLTA.
• Failing to maintain complete IOLTA records.
• These are ethics violations that can result in bar discipline.

IOLTA is not a financial-planning tool, just a professional obligation to manage correctly.