3. Failure to account for potential exit from legal profession (and lower earnings resulting from said exit).
This doesn't seem that hard to account for? unless I'm thinking over-simply, which is a possibility.
You could add 2 more fields, a "years spent in biglaw", for example, and a "new income" for your estimate after transferring out. Keep the % increase in salary the same (3% for example), then after year 5 start using the new salary instead of the original salary.
note : Obviously then you'd get into cost of living details, which would be impossible to account for unless this turned into a full blown budgeting tool, which seems like a large scope change to your original product (not saying this is good or bad). If you didn't account for a COL adjustment, then a 120k salary in the midwest wouldn't seem nearly as attractive as 200k in NYC, despite the likely halving of daily expenses.
Well, this assumes that the user will spend time in BigLaw. But that's not going to be the case for many users.
I think the better call would be to let users define future income themselves by manually changing the income in the Calculations tab. I'll write notes in the OP and the spreadsheet recommending this.
As far as COL is concerned, it would be pretty complicated to factor this into the spreadsheet. Not saying it's impossible, but it's not something I'm willing to spend time on. Others can feel free to modify the spreadsheet if they want.
BlendedUnicorn wrote:Confused about this. Who would be providing the data about years spent in big law and new salary? That shit's tough as hell (read:impossible) to come by. Or are you saying people should enter in how many years they'd like to spend/what they think they'll make after they leave?
I think he's recommending the addition of a field in which users could enter the number of years spent in BigLaw and the new salary.
cavalier1138 wrote:I'd still add a caveat about not accounting for loan repayment on a regular 10-year schedule. Earning 10k more per year is meaningless if I would literally be incapable of paying off $300k in debt on that salary.
Well, I include a PAYE tab, which does account for the scenario in which you'd be "literally . . . incapable of paying of $300k in debt on that salary." (Presumably you'd use PAYE if you were unable to pay off your loans on a 10-year plan. Right?)
I suppose I could add another tab that just does the ten-year repayment plan (for those who don't pay upfront but also don't do PAYE). I didn't do it originally because I just wanted to keep things simple, but now that I've done the PAYE thing, maybe it would be a good idea. Not sure that I'll have the time, though. Maybe someone else wants to hop in. Also, if we're doing the ten-year repayment thing, then we should probably account for refinancing (b/c anyone who does BigLaw would be foolish not to refinance at a lower rate). That's another complication.
At any rate, I will note in the OP and spreadsheet that circumstances will be different under a ten-year repayment plan.