Before diving into this week’s post, let me start by saying how honored I am to have you reading our blog. Even if this is your first time visiting, we’re thrilled you are here with us. A little more than a year ago, I broke away from my partnership at a traditional wealth management practice to chase my dream of running my own firm focused on high powered Millennials in and around New York City.
In this short period of time, we’ve been able to provide meaningful financial content and materials so that individuals (not just Millennials) can have the knowledge and power to invest in themselves and toward their financial goals. We hope you’ve found our blog, infographics, worksheets, newsletters, media features and, of course our book, The Millennial Money Fix, helpful in securing your own financial future.
Moving forward, we will not only continue to produce meaningful financial content, but we are now going to organize and synthesize it into something that’s a bit more tailed to our respective audiences. If you have read our last few blog posts, you have noticed that Marie, our VP of everything here at Bone Fide Wealth, has now taken control.
All the amazing things she’s going through in her life (i.e. buying home, having kids and being an organizational boss) make for some extremely relatable Millennial content that we know will continue to help our broader Millennial audience.
Meanwhile, I will be writing monthly posts that will be geared towards the themes and financial issues that my clients have and continue to face throughout their lives and careers (think older Millennials). Lastly, you will also see the transformation of our Downloads page into a #FitLit System that anyone can have for free. I am super excited about adding greater context to our already amazing content. Stay tuned for that and enjoy the post.
The True Cost of Making Partner
About 10 years ago, I fled the warmth of South Florida for New York City. I remember it well. There are few experiences in life quite like a “My First New York” experience. Sure, I could have done without the entire economy melting down the moment I jumped off the airplane at JFK but surviving The Great Recession has become an essential component to my personal and professional growth.
The same happens to be true for many of my clients. Together, we went through an insanely challenging time in our lives. We overcame severe financial and economic obstacles just to put ourselves firmly back on track so that we could someday achieve some of the great things in life. For some of us, one of those great things includes attaining partnership at a company or firm, which is often considered the pinnacle of professional accomplishments.
From high profile law firms to some of the most sought after private equity firms in the world, I’ve had the privilege of having a front row seat to see what it takes to reach partner status. I’ve personally witnessed the work that goes into earning a seat at the table as well as the spoils that await those who made it. Moreover, I’ve helped my clients navigate their financial lives before and after reaching this impressive accomplishment.
Oh, some of the stories I could tell you! But you already know I won’t be naming any names. After all, confidentiality is a must. However, I will share with you some of my observations on what it could take to make partner. Don’t say I didn’t warn you.
Time
The first thing I will share with you is that these folks aren’t messing around with their work week. There’s basically no “punch card”. Saturday and Sunday morning might as well be Monday morning. Say bye-bye to your weekends. But that’s just the beginning because when your life is consumed by your work, the impact goes deeper than just the loss of your free time.
This sacrifice of time does taps directly into your quality of life, which is something our generation seems to value quite a bit. The level of dedication required to make it to the top not only diminishes your ability to have a personal life but, as a result, it can place significant stress on your interpersonal relationships like your friends and loved ones.
The pathway to partnership is a savage beast as I’ve seen it cause countless of break-ups, several divorces and, sadly, create a handful of absentee parents. That can be downright depressing, but the sooner you wrestle with the fact that you might not have a normal social life (or even a normal life altogether), the better you can mentally prepare for the realities of what it means to make partner. Clearly, this lifestyle is not for most people.
Additionally, if you think that once you make partner you will get some of your precious time back, guess again. In fact, most of the partners I work with tell me that there’s even more pressure on them once they’ve made it. For some, it’s in the form of constantly needing to develop new business. For others, it’s having to deal with new managerial responsibilities. So, while your income and level of professional achievement may be going up, the time you’re spending in your career could be as well.
Money
Speaking of money, not all partnership opportunities comes with a fat sack of cash the day you make partner. At least not right away. Not only could you find yourself committing even greater amounts of your life to the cause, but you might also find your financial commitments increasing as well through events like equity buy-ins and capital contributions.
While all firms are different when it comes to “buying in”, many will require you to make significant financial contributions to the partnership. So, just as you’re getting read to sock some serious cash away for retirement or put a down payment on that house you’ve always wanted, you may just find yourself putting it right back into the very hands that feed you.
However, keep in mind that the larger idea is that, somewhere down the line, you’re going to get more out of the partnership than what you put in by sharing in the profits of the firm or by directly investing in the firm’s investments.
Indeed, the burden of these financial commitments won’t last forever, but for many freshly minted partners, it could be years before you start seeing the rewards from your investment(s) in the partnership. On the bright side, I have also seen firms increase compensation and bonuses (and even offer financing) to help their junior partners soften the blow of their required contributions.
Energy
Is it all worth it? That’s not for me to say. I know many who have made it and they will tell you they’re “living the dream!” On the flip side, I could also share stories of those who look back and have more questions than answers. Some wonder what they could have done with the time they spent on pursuing partnership. Either way, one thing is for sure. The amount of energy it takes to achieve this level of professional growth is immense and it’s worth thinking long and hard about what it is that you truly want for yourself before going all in.
Therefore, so many who attempt to climb Mt. Partner burn out well before getting there or lack the stamina to remain seated at the table. Again, it goes well beyond logging hours and sacrificing your personal life. The physical exhaustion of it all is one thing, but the mental energy that goes into competing day in and day out while enduring personalities and stresses of all kinds, is a whole different test of fitness.
Also, keep in mind that those above you in the organization are usually the very people you’re trying to become (current partners). Do you think they care how tired you are? Most won’t because they have already been through this and, of course, they think they had it worse than you did. So much for that.
Uncertainty
Look, nothing is certain in this world and that 100% includes making partner. Even if you possess the talent, put in the time, cough up the dough and expend the energy, there’s zero guarantee you’re going to make it. That can be downright frightening when you’re about to invest a solid decade plus of your life sacrificing and hustling you butt off.
But no risk comes without its rewards and I can tell you that those who have made it never allowed their emotions get the best of them. Ironically, their anxiety has proven to be their best motivator. They use it as a secret weapon to push themselves further than they thought they could. Sometimes it’s right up to the point of breaking, but it’s quite amazing, and downright humbling, to watch them find their resolve and grab the brass ring.