Dobby is a free elf
I left the path. $650k savings after two years PE. Feel fine to work from that. Have my life back. Cheers bros PE was fun (and by that I mean the worst two years of my life). I learned a lot (by that I mean how to piddle around in Excel and give management unsolicited ideas).
Good work - I assume MF or UMM with that savings rate?
Congrats. What are you thinking about doing next?
Spending a couple of months shit talking my old bosses and then moving on with my life
650k from two years of PE seems a lot.
If OP did 2 years banking before that seems reasonable. Made like $200k year in banking ($400k total) and then like $400k year in PE ($800k total). Total earnings probably around 1.2m. OP found a way to save like 50% of that somehow.
It's a bit unclear whether he meant 650k from 2 years in PE, or 650k savings net after 2 years in PE.
Regardless taxes alone will make that sum a lot smaller.
400k * (1 - .40) = 240 x 2 = 480 post tax
200k * (1 - .35) = 130 x 2 = 260 post tax
740k post tax roughly - 650k savings = 90k spend over 4 years in probably NYC
If you want +- 100k in the range.
Assuming everything stated is roughly true, the only way I see this is possible is like EVC -> Apollo, which is impressive but also a Lol to most avg people here.
Or 3 years of IB makes more sense
.
What was the worst part about PE?
Congrats man. 400k saved here just running up the ranks in banking. At some point there’s more to life than work, especially when it dominates all of your waking hours and most of your sleeping hours too.
Curious what’s next for you. I’m swallowing a 50% haircut (back down to 225k ish lol) in the next couple of months to actually get my life back in IR. Longevity matters!
225k in investor relations?? What are hours like? And is IB a necessary prerequisite?
$225k doesn't sound insane, depending on the level OP is coming in at.
Hours probably pretty average 8-6ish with the few weeks before earnings and a week or so after as pretty crazy (still not peak IB hours).
From what I've seen IB not necessary but it probably helps and is a bit over-represented given its not an uncommon exit into corporate.
Pretty common comp for PE IR associates. Don’t need IB experience, seen a ton of people from AM sales make the move.
It’s a truly beautiful feeling walking away. Feels like waking up from a horrible dream.
Lol. It actually does. That's a good description.
Congrats Dobby! Curious to see what you end up doing after the vacation. The world is our oyster.
Hilarious seeing these PE associates saying stuff like this. 2 years in PE and now the world is your oyster.
The world is your oyster independent of career path choices
Congrats Dobby. Where are you parking your cash? Hopefully not in your socks
Why not working for 5 more years or so to get a nice carry of a few $mm and have a nice life?
Because these kids are short sighted and think spending a few months traveling Europe will be the answer to life.
Dawg, I’m getting close to 30. I can make big boy decisions
Okay gluten free soy only headass
Because you can say this any time. When you have 2m and you're 32 - why not work until you're 38 and have 6m. When you're 38 - why not work until 45 and have 15m, etc.
That's how people get caught up in the rat race. OP can always go back to work, potentially a different job, and never have to "worry" about money. Sure the lifestyle is different, but at the same time he won't be losing his hair at 30, which is irreversible. He's got freedom and some dough to enjoy his late 20s, which is pretty cool. Go live in a studio on a beach, surf when you want, hang with some friends. As someone in their 30s with kids, I envy his position and am "proud" he took the plunge and sees the bigger picture (especially because at a certain point, when you have a family, you really can't do that anymore)
Yes, but I think there’s a sensible threshold such as at least buying a house which is like c.$1m. Once you have a roof over your head, you can always make money for food and basic needs. From there you are indeed a free man and can decide what to do with your life. I wouldn’t retire with 650k while paying rent. That said i’m assuming a case where a person doesn’t inherit a house from parents, etc. But rich kids is a whole different story anyways…
PRP injections, finasteride, hair transplant.
Delay family till late 30s
Easyyy man, couple drops of Rogaine a night works wonders
Guarantee that if he waited another 5 years he wouldn’t leave before he was 40
Lol that’s how you end up 40 and miserable. I’ve seen it time and time again. People chasing one more year for one more carrot. Firms love them some golden handcuffs
Let's assume OP is 26. They'll likely have to fit a 2 year MBA in during that unless they're at a fund which doesn't require one (low probability). So they have to leave to do an MBA, they graduate at 28 and have run down their savings considerably. Now they need to recruit for another fund, which may give them a few $M DAW, but they'll need to stay for several years for that to result in actual $ cash, and then walk away from a lot more before they get sucked in by the carry number and keeping up with PE / MBA classmate Joneses. OP is now mid-30s, likely has a lifestyle matched to their income and which can't be sustained if they leave PE, and probably pretty miserable if they're miserable now. If they did save and didn't live lavishly, they're still in the mid 30s and have missed pretty much all of their 20s / early 30s while working in a very demanding role which they didn't enjoy. That sucks, really sucks.
Well done OP, enjoy the travel and take the time to think through what you want to do next. Travelling at your age where money isn't an issue really is a great feeling. You can still live a great life off the earnings you'll likely get in your next role.
Just based on the title of this alone I know you didn't do Apollo or KKR. But all the same congrats buddy. I hope the air is thicker on the other side.
So the grass isn’t greener god dammit
Pack a bag, book a flight to Asia and go chill for six months. One of the best things I've done.
Whereabouts in Asia did you go? Hoping to do the same between this job and the next
Anywhere Bali is a safe choice and cheap.
BKK might work too but no beach - you'd have to travel further from that.
Taipei is a fun city too
🧦🧦🧦
Go and enjoy life my man
Really happy for you dude. I took a break after PE and it was amazing.
I'm trying to sprint to $5-10M myself and FIRE (care way more about the FI part than RE)
You should come to the dark side (HF) where you can make decent money and have a pretty good wlb :)
The only thing you need is a lot of risk tolerance or to not really care which it seems like you already have
Very misleading, it sounds like you have not been in a risk seat. “You have to not care” lol what a clown
there is no such thing as good wlb at funds unless you are talking northwest mutual… it is gruelling, the hours are very long and you are always thinking about markets and trying to maintain/find an edge.
Ok well I'm in a risk taking seat at a SM fund where I have good WLB and pay. I know others who are in similar seats with even more skewed WLB-pay. You realize publics investing is not a linear return on time right? You're not going to find your edge by working that extra 20 hours a week over someone who works 50 and just understands things better. Good investor working 20 hrs >>>> bad investor working 100.
How'd you go from PE to HFs, if you don't mind me asking. There were never any HFs in my region (non-US) in previous years, but there seem to be more and more setting up offices.
You goddamn right you are, you free motherf#cker
I do not know you, but I just want to say congrats. There is a lot of speculation on this thread as to whether or not you did the right thing. I, however, have no doubt you did for one simple reason; you know yourself and your position better than anyone else in the world. I have no doubt you grinded out many brutal years with your head held high, making calculated decision after decision and exited at the time most optimal for you.
My only recommendation would be ignore all the people in the comments questioning your decision, most of them would kill to be in your shoes. Hoping the next few months / years are much more relaxing, and you get your life back.
Sincerely,
Someone looking to make a similar transition not too long from now
Nice savings, friend!
Congrats dude
Made this move a few months ago and have never felt better. Felt like I had a new lease on life and a huge weight was lifted over my shoulders.
Still waiting for the second thoughts some users on WSO told me I'd have. Those certainly haven't kicked in, but my increased travel and free time has.
Who gave you the sock ?
whyd you leave?
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