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More attorneys choosing gradual retirement

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Indiana Lawyer Focus

Retirement used to mean loading up the Winnebago at age 65 and hitting the open road. For people who have an unlimited amount of money to spend on gas, that freewheeling lifestyle might still be an option. But people are living longer now than ever before, and some are choosing to extend their careers beyond what they originally planned.

It’s a trend that Ogletree Deakins shareholder Ann Carr Mackey has noticed in the legal profession. She has handled employee benefits law since the late 1980s and exclusively for about a decade. She’s seeing more lawyers choosing to transition gradually from practice to retirement.

ann mackey Mackey

“I think it’s a combination of economics, of fewer lawyers and fewer employees generally having a pension plan that guarantees a significant portion of their income for life,” she said. “I think there’s an awareness or concern about the economics of retirement. We’re all living longer, so you’re now looking at: Do I have enough money to live on for 25 years instead of 10?”

Best laid plans

Bob Hamlett, a member of Frank & Kraft who handles estate, tax and business planning matters, said that he is aware of a few major pitfalls in retirement investing.

“I think there are two, and they are opposite sides of the same coin – one is not starting soon enough, and two is not getting good advice,” he said. “If you save the money and start putting it away for retirement, what are you going to do with it? Because, unfortunately, hiding it under the mattress won’t help much.”

Paul Donahue, a certified financial planner and accredited investment fiduciary for Valeo Financial Advisors, explained that the deferred compensation plans that used to be popular for top-level law firm executives seem to be declining in popularity.

Many law firms offer some combination of plans, Donahue said. In firms where a deferred benefit plan used to be the standard, it may have been cut off at some point, with new attorneys enrolling in 401(k) plans instead.

In 2011, the Internal Revenue Service announced that beginning this year, annual elective employee contribution limits for 401(k), 403(b) and 457 plans would increase to $17,000 from $16,500. A catch-up contribution limit of $5,500 means people over age 50 could contribute $22,500.

For senior partners and top-level executives, Mackey said a 401(k) plan is probably not sufficient to maintain the same standard of living in retirement. And generally, people are probably not saving enough, she said.

“Even in these qualified plans, if employees – lawyers – don’t save enough during their working years starting very young, then they get to retirement and they do not have enough money to maintain their lifestyle, or even a similar lifestyle,” she said.

Solo and small firm attorneys may experience additional challenges in funding their retirement.

“The small firms don’t have the kinds of retirement programs that the large firms have and can afford, so individual lawyers are pretty much on their own,” Hamlett said. “Small partnerships can create a profit-sharing plan or retirement plan and be diligent about funding it, and that’ll help.”

Unknown variables

In saving for retirement, planning for the worst may be the best approach.

“Any number of things can happen, and we see it all the time,” Hamlett said. “Fortunately, I’ve been blessed not to have any of those events – a disabling injury where you can’t work. Do you have disability insurance that can replace some of your lost income? Loss of a spouse who is working – again, can you replace that income with life insurance or something like that?”

Mackey pointed out that Social Security and Medicaid funds are quickly drying up.

On April 23, the Social Security Board of Trustees announced that the combined assets of the Old-Age, Survivors and Disability Insurance Trust Funds will be exhausted in 2033, three years sooner than projected last year. The DI Trust Fund will be exhausted in 2016, two years earlier than last year’s estimate. That means that, continuing at this pace, in 2033, Social Security will be able to cover only 75 percent of full benefits scheduled to be distributed.

Working longer

Attorneys can help supplement their post-practice living expenses by continuing to work in some capacity. And for attorneys like Don Knebel, continuing to work after retirement provides an asset more valuable than money.

“I think when you’ve got almost 40 years doing things that keep your mind occupied, winding down and doing nothing is not a very attractive possibility,” he said.

donald knebel Knebel

Knebel, a partner at Barnes & Thornburg, said it’s important for his clients to have someone to turn to when he retires in December 2013, so he has begun gradually transitioning his practice to the firm’s younger attorneys. He will then become more actively involved with the Indiana University Maurer School of Law’s Center for Intellectual Property Research, where he is currently an adjunct professor and senior adviser to the center.

“Teaching law is something I have thought about my entire career, and from time to time, I’ve done guest lectures in other people’s courses and enjoyed that, but having a full-time practice as a litigator, it was impossible to take an appointment like this,” Knebel said.

Knebel will also stay busy with his many civic and volunteer roles, like chairing the board for the Center for Interfaith Cooperation and co-chairing the 2013 Classical Music Competition for the American Pianists Association.

The take-home message

Both Mackey and Hamlett emphasized that the key to successful retirement planning is to begin saving early – and to seek some guidance.

“Depending on the nature of their practice, many attorneys – because they don’t deal with these kinds of issues regularly – are unfortunately just woefully ignorant of retirement planning and those types of things,” Hamlett said.

Mackey said that she understands saving money may be difficult for young attorneys who graduate from law school with significant debt. But starting early may be the key to growing wealth over time.

“For young people, they ought to start doing something, and don’t wait until they feel like they’re in a position to save a lot,” she said. Even a small amount dedicated to retirement savings can result in significant growth if done for 30 or 40 years.•

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  1. Am I the only one who sees that the City is essentially giving away the MSA site AND giving millions to build new buildings on the site when this site would be the perfect place for the Justice Complex? Across from City-County, check; keeping it centrally located, check, etc. It's my understanding that the GM site must be purchased by the City from Motors Liquidation Company. STOP WASTING WHAT WE ALREADY HAVE AND OUR TAX DOLLARS! The Ballard Administration has not been known for it's common sense...never voted for him and never will!

  2. This guy sounds like the classic molester/manipulator.

  3. Louis D. Brandeis was born in 1856. At 9 years of age it would have been 1865. The Brandeis family did not own slaves. My source Louis D. Brandeis: A Life, by Melvin L. Urofsky.

  4. My name is Matthew Lucas Major, I recently went through a jury trial in Bloomington , In. It was the week of Feb 19-21. Although I have been incarcerated since August 5, 2014. The reason I 'am writing to you sir is on the 21 of February the jury came in with a very excessive and wrongful verdict of guilty on 6 child molesting charges against my daughter who was 9 at the time I was accused. I also had 2 other Felonies one of Intimidation and 1 of Sexual Vicarious Gratification. Judge Marc Kellam on the second day of trial gave me a not guilty on those 2 felonies. The jury was sent out during that time and when brought back Judge Kellam told them to not concern themselves with the 2 Felonies that he ruled on them. They were told to not let evidence they had already heard influence there verdicts. I never in my life touched any child sexually and definitely not with my own daughter. When I was arrested Detective Shawn Karr told me I would be convicted guilty just on my daughters word even without evidence. That's just what happened. my public defender did me so wrong he never once proved to the court and jury all the lies the child told, and Jeremy Noel my public defender could of proven the lies easily. The stories in Serenity's depositions and Forensic interview changed and were not consistent as Prosecutor Darcie Fawcett claimed they were. Yet my attorney never mentioned that. The facts that the child accused me of full penetration in her vagina and rectum was proven lies. Doctor Roberta Hibbard of Riley hospital in Indianapolis confirmed Serenity's hymen intact, no scars, no tearing, no signs of rape to her. Yet my attorney didn't use that knowledge . the DNA was all in my favor. I tell you I will spend my entire life in prison going through rape and beatings etc. even Judge Kellam abused his authority by telling the jurors to listen and believe what the prosecutors side in evidence like my daughters testimony. In one interview with the detectives my daughter got flustered with her mom and said on camera " I'm saying what you told me to mom"!! Yet Mr. Noel said nor did anything to even resemble a defense attorney. Judge Kellam allowed edited version of a taped conversation between the child and her mother. Also Judge Kellam allowed the Prosecutor too bring in to my case a knife found under my seat, the knife wasn't part of my case. She was allowed by my attorney and the judge to put a huge picture of it on the screen and huge picture of my naked privates in a full courtroom and open court. Ms. Fawcett says to jury see how easy Mr. Major could reach the knife and cut his Childs throat. Even though I had no weapons charge against these cases. This gave the jurors prejudice thought against me thinking I threatened her with that knife and how scared she would of been knowing i could get it and kill her. On my sentencing court March 19, 2014 my public defender told Judge Kellam he wish to resign from being my attorney and wished for the court to give me outside council to file a error to trial or appeal. We were denied. Now after openly knowing my public defender don't want to represent me he has to. Well when as parents we make our kids clean a room when they really don't wish to, well the child will but don't mean she will do a good job, that's where I'm at with Mr. Noel. please dont ignore mine and my families pleas for your help . we have all the legal proof you could need to prove Im innocent. Please dont make my spend years in prison innocent when you can fix this wrong. Im not saying Im a perfect man or that I was a perfect dad to my 2 children none of us are. Ive made some bad choices in life and I paid for them. But I didnt ever touch or rape my daughter . I love my children with all my heart. And now through needing attention and a ex-wife who told my granny several times she wish she could put me in prison to get me out of their lives. Well my ex finally accomplished her goal. Sad part is she is destroying our daughter with all this horrific lies and things she taught my daughter to say. My daughter will need therapist to ever hope for a chance of a normal life after what she had done to her by her mom and their side of the family. My daughter told everyone even on stand she had a dream months before i supposedly molested her in this dream I was molesting her and when I finally did it matched her dream perfectly. She admitted to watching movies about little girls being molested and watching U-Tube videos about child molesting all before it happened supposedly to her. Doesn't that sound very unusual that a non molested 9 yr old would need to know so much about being molested? The only reason I could think a 9 year old would need so much information is to be prepared to know what to say and be able to say how it felt what took place etc.. So when questioned by authorities she would be prepared. And there again sir if a parent is pre grooming a 9 year old child she would need intimate details . Like telling her daughter about a couple moles on my private area. The child admitted to sneaking my cell and looking many many times at nudes of me and my girlfriend even one where my penis was entering my girlfriends vagina. In that picture my moles are obvious. Yet when prosecutor showed everyone in court my privates and pictures of the moles she said the only way the child would know about them is if she saw them for herself. My attorney once again said nothing about the pictures my child saw. Or could a ex-wife be able to describe my moles to help her case against getting rid of me? I beg you help me. This is my very existence. Ive lost everything , a good job, a wonderful girlfriend, my freedom, but worse thing Ive lost is my children. They were my reason to get up every morning and strive to be better. The wonderful bond I had with my Serenity is gone. After this I would be afraid to even hug her for fear of what next can they do to me. I'm not afraid to tell you I sit here in this cell and try to hold back my tears. Everyone knows you cant show weakness in prison. My life has already been threatened here at Wabash Valley Prison. After only 3 days of arrival. I was tricked into signing a waiver now Im in G Block General Population with 6 child molesting felony charges. Mrs. Hart as a 18 year old I almost died hooked to machines in hospital almost 1 month and now I know that fear was childish compared to this . I cant help but put emotions in this, after all Mrs. Hart Im human and God help Me I never been more afraid in my life. I didnt hurt my little girl I didnt touch her sexually. As much as it shreds me and fills my mind what Im facing I worry more about my mom and granny because of their great love for me mam they are suffering so deeply. I aint done this things but my loved ones suffering right along beside me and If you take my case you will be in essence freeing them also. I sent momma this letter and asked her to email it to you. I'm scared I have been done so unjustly by our legal system and I need you to fix this and give me freedom. I ask you please don't just ignore my pleas. Here in America its nice to be able to trust our legal justice system, well they destroyed my and my loved ones trust in our justice system . And I'm trusting in You !!! My entire family is suffering this nightmare with me. My 77 year old granny had a stroke and isn't doing so well. My single mother that raised 3 kids alone is dying from Lupus and since my arrest has stayed so sick and weary. Our lives torn to peices by a government I was taught I could trust in. my momma has tried so many innocent project and wrongfully accused and cant get anywhere. please please help me. A quote from the late Nelson Mandela: To be free is not merely to cast off ones chains, But to live in a way that respects and enhances The Freedom Of Others. I have Faith in you and your clinic to cast my chains off and give me freedom I do deserve as a wrongfully accused Man, son, brother, father, friend. Matthew Major DOC# 246179 Cause # : 53c02-1308-FA-000779 God Bless you. Please contact me with your decision so I know you made a life changing decision for me , just please at least write me so I know you care enough about your citizens to respond to cries for your help. You can speak openly with my mother Charlotte Spain (828) 476-0406: 71 Lakeview Dr. Canton, NC 28716 Thank You Matthew Major I know yall get thousands of request and inmates claiming innocence, and each person who are innocent deserve to have organizations like yours willing to fight for them and I give yall so much Thanks and I thank God everyday yall are out there caring enough to help free the innocents. Since discovering firsthand how easily lives and families can be destroyed by Poor Defense attorneys not doing their job . And Prosecutors allowed to do as they please in court

  5. Frankly, it is tragic that you are even considering going to an expensive, unaccredited "law school." It is extremely difficult to get a job with a degree from a real school. If you are going to make the investment of time, money, and tears into law school, it should not be to a place that won't actually enable you to practice law when you graduate.

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