What Replaces Your Firm Income When You Step Away?

Let’s get honest about something most law firm owners think about... but rarely talk through:

What replaces your income when you retire?

If you’ve spent the last 20–30 years relying on the cash flow from your firm, walking away can feel less like a victory lap and more like stepping off a cliff.

Unlike salaried employees, most small firm owners don’t just retire and collect a pension. Your income doesn’t automatically show up once you stop working.

You’ve likely built a high-income life around your practice, but when it comes time to slow down or step back, the income tied to your day-to-day effort doesn’t keep coming in.

This leads to a few real risks I see all the time:

• Retiring later than you want because you "can’t afford" to slow down
  
  
• Taking a huge pay cut and scrambling to make the numbers work
  
  
• Selling your firm in a rush — or worse, winding it down without extracting its value
  
  
• Getting stuck in limbo: “semi-retired” but still billing hours because the income gap is too wide
  
  

In some cases, I’ve seen attorneys unknowingly take on more risk in retirement — dipping into portfolios too aggressively, triggering tax surprises, or relying on unpredictable firm distributions without a real plan in place.

Let me introduce you to Paul.

Paul ran a successful personal injury firm for 27 years. He earned great money, had a modest lifestyle, and assumed his retirement would take care of itself.

His exit strategy? “Maybe I’ll just sell the firm.”

When the time came, he realized something uncomfortable:
No clear successor. No buyer lined up. And no guaranteed income stream once he stopped settling cases himself.

We worked together to shift his mindset. Instead of trying to sell the firm to someone, somehow, we focused on answering one central question:

How do we replace your $400K income — without requiring you to keep showing up to the office?

Here’s what Paul learned — and what most firm owners need to realize early:

Retirement income for a small firm owner doesn’t come from just one source.
It’s a strategy built from multiple, intentional pieces.

That might include:

• A structured buyout of your firm equity over 5–7 years
  
  
• Passive income from real estate or other investments
  
  
• Distributions from a well-funded retirement account
  
  
• Social Security, taken at the right time
  
  
• Part-time consulting or “of counsel” roles (only if you want to)
  
  

It’s not just about replacing your income. It’s about replacing your confidence that the next chapter is funded.

That confidence comes from running the numbers, planning the sequence, and preparing your assets and your firm for that transition.

This is the kind of work I do with small law firm owners every day.

Not just retirement plans. Not just investing. But mapping out a real, personalized strategy to replace your income and exit on your terms.

If you’re five years or less from stepping away, now is the time to start planning.

You don’t need to have all the answers today — but you do need a direction.

In the weeks ahead, I’ll be sharing more strategies, stories, and questions to help you think through your exit — without the overwhelm.

But for now, I’ll leave you with one question:

If your firm stopped sending you income tomorrow, what would your lifestyle look like?

If that question makes you a little uncomfortable you’re not alone.
Stick with me, and I’ll show you how to turn that discomfort into clarity.

‍

Looking for more?

After years of guiding attorneys through their financial journeys, I've distilled the essentials into my  "5 Step Guide to Financial Freedom for Small Law Firm Owners."

This free resource addresses the unique challenges you face—from managing irregular income streams to optimizing tax strategies specific to law practice owners—and provides a clear roadmap to build wealth while growing your firm.

Remember: every day you wait to implement a financial strategy is another day compound interest isn't working in your favor.

Download the guide today, and let's start making every minute count—both in your practice and in your portfolio.