Planning for the Soft Landing: Financial Strategies for Attorneys Eyeing Early Retirement
Many attorneys fantasize about retiring early—leaving behind the relentless pace of billable hours, the pressure of client demands, and the constant pull of a demanding career. But unlike tech professionals or entrepreneurs with sudden liquidity events, lawyers often have linear earnings that depend on continued work.
So how do you retire early—or even semi-retire—when your income is tied to your time?
The answer lies in intentional financial planning. Whether your goal is to fully retire at 55, become work-optional at 50, or shift into part-time consulting in your 40s, a soft landing from legal life requires a strategic blend of saving, investing, and lifestyle design.
Here’s how to map out your exit strategy.
Step 1: Define What “Early Retirement” Means to You
Early retirement doesn’t always mean sipping margaritas at 45 and never working again. For most attorneys, it’s about flexibility, freedom, and control.
Ask yourself:
Do I want to stop working altogether, or just scale back?
Would I enjoy consulting, teaching, writing, or pro bono work in retirement?
Is my goal more about escaping stress or pursuing something new?
What does a fulfilling retired life actually look like?
Once you define the goal, it becomes much easier to reverse-engineer the financial plan.
Step 2: Know Your “Enough” Number
To retire early, you’ll need to build a nest egg large enough to fund your lifestyle without relying on ongoing earned income.
This involves:
Estimating your annual spending needs in retirement (adjusted for inflation)
Accounting for healthcare, housing, travel, and hobbies
Subtracting other income sources (Social Security, pensions, passive income)
Applying a safe withdrawal rate (typically 3.5–4%) to your portfolio
For example, if you want $120,000/year from your investments, you'll need roughly $3–3.5 million saved before retiring early.
This is your work-optional number—the amount at which you can afford to walk away.
Step 3: Maximize Tax-Advantaged Accounts
Early retirement planning is a game of tax efficiency. As a high-earning attorney, you likely already contribute to traditional retirement accounts—but you’ll need to go further.
Key Accounts to Prioritize:
401(k): Max out contributions ($23,000 in 2025 if under 50; $30,500 if 50+)
Backdoor Roth IRA: Build tax-free income even if over the income limit
Health Savings Account (HSA): Triple tax benefits + retirement healthcare buffer
Taxable Brokerage Account: Flexible, no withdrawal penalties, crucial for bridging early retirement years
The earlier you start building a tax-diversified portfolio, the easier it will be to manage withdrawals later without large tax hits.
Step 4: Bridge the Gap Before Age 59½
One of the trickiest parts of early retirement is accessing your retirement funds before age 59½ without penalties. That’s why attorneys need to build a “bridge fund”—money you can draw from in your 40s or 50s.
Options Include:
Taxable brokerage accounts with low-cost index funds or dividend stocks
Roth IRA contributions (but not earnings) which can be withdrawn at any time
72(t) SEPP withdrawals from IRAs (complex, but an option)
Cash reserves or bond ladders to cover the first 5–10 years
Smart bridge planning gives you control and keeps you from paying unnecessary penalties or taxes.
Step 5: Slash Lifestyle Inflation (Before It's Too Late)
One of the biggest obstacles to early retirement for attorneys? Lifestyle creep.
You make partner, and suddenly the house gets bigger, the car gets flashier, and vacations become more luxurious. But every new expense raises the bar for what your retirement savings must cover.
Instead:
Set a “lifestyle ceiling” once your basic goals are met
Redirect bonuses and raises toward investment accounts, not lifestyle upgrades
Avoid “golden handcuffs” like high mortgage payments or private school tuition without backup plans
Living well below your means—even temporarily—can accelerate your path to financial freedom.
Step 6: Plan for Healthcare Before Medicare Kicks In
If you retire before 65, you’ll need to fund your own health insurance for several years—often one of the biggest wildcards in early retirement.
Options:
COBRA coverage from your employer (temporary and expensive)
Marketplace insurance plans (often eligible for ACA subsidies in low-income years)
Health Sharing Ministries or private policies (less regulated, use with caution)
HSA drawdowns for qualified medical expenses
Working part-time or consulting can also offer access to group health plans in some cases.
Step 7: Invest for Growth, Not Just Safety
Early retirees may need their portfolios to last 30–40 years—so keeping everything in cash or bonds is a risky move.
Principles for Early Retirement Investing:
Maintain adequate equity exposure (especially in your 40s and 50s)
Use a bucket strategy: short-term cash, medium-term bonds, long-term stocks
Consider international diversification, REITs, and low-cost index funds
Work with an advisor to manage sequence of returns risk
The goal is not just to preserve wealth—but to help it grow well into retirement.
Step 8: Create a Glide Path (Soft Landing, Not Hard Stop)
Most attorneys aren’t wired to go from 60-hour weeks to total leisure overnight. A soft landing allows for a gradual, fulfilling transition.
Ideas include:
Scaling down to part-time or freelance work
Serving on boards or as an adjunct professor
Launching a solo or boutique firm with minimal overhead
Writing, coaching, or speaking in the legal or adjacent fields
A phased approach offers both income and identity continuity—important for both financial and emotional well-being.
Step 9: Model Different Scenarios
Don't leave your future to guesswork. Use retirement planning software or work with a financial planner to run Monte Carlo simulations and stress-test your plan.
Model:
Early market downturns
Higher-than-expected inflation
Health crises
Extended travel or caregiving expenses
Partial retirement or side income scenarios
Having multiple contingency plans makes it much easier to retire early with confidence.
Step 10: Work With Advisors Who Get It
Early retirement isn’t a mainstream financial plan—so you need professionals who understand your vision and career context.
Look for:
A CFP® who has worked with attorneys or FIRE-minded professionals
A CPA who understands retirement withdrawal tax optimization
A coach or therapist if you’re navigating identity shifts post-career
You’ve built a successful legal career—now build a successful exit.
Final Thoughts: Work Optional Is Within Reach
Early retirement isn’t about quitting—it’s about choosing. Choosing how you spend your time, energy, and money in a way that aligns with your values—not just your job description.
With the right financial strategy, intentional lifestyle design, and a long enough runway, attorneys can absolutely carve a path to early retirement or a work-optional life.
The soft landing starts with a firm financial foundation—and a willingness to plan differently than your peers.
Want help building your early retirement plan as an attorney?
Schedule a call with a financial planner who understands both your income potential and your desire for freedom.