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Private Wealth Vs. Invesment Banking
 

ibprospective9's picture
(Chimp, 15
 
Points)
 on 7/17/12 at 3:49pm

What are the advantages and disadv of PWM in relation to IB?
Everything in terms of Salary, life, hours etc.

Tags:
CanadianPositiveCarry's picture

lower salary, better hours &

IB
 
Points)
 on 7/17/12 at 4:38pm

lower salary, better hours & thus more life at PWM

CanadianPositiveCarry's picture

I find PWM to be

IB
 
Points)
 on 7/17/12 at 4:40pm

I find PWM to be excruciatingly boring tho

ibprospective9's picture

Is it that much lower though?

(Chimp, 15
 
Points)
 on 7/17/12 at 4:43pm

Is it that much lower though?

BTbanker's picture

It's a sales job, so it takes

IB
 
Points)
 on 7/17/12 at 4:49pm

It's a sales job, so it takes time to build a client list, thus bringing in more fees for you. Don't expect to be making 6 figs in your early 20's. If you like the meritocratic nature of the job, you might like it.

"A man generally has two reasons for doing anything. One that sounds good, and the real one." - J.P. Morgan

TheSquale's picture

CanadianPositiveCarry: I find

AM
 
Points)
 on 7/17/12 at 5:45pm
CanadianPositiveCarry:

I find PWM to be excruciatingly boring tho

Everything you dislike is boring as hell. You can say that doing M&A or trading is boring as well actually if you don't like it. Everyone has to make his own decision on this one.
Nevertheless I agree that it's not the most stimulating job out there.

ste384kee's picture

A cardinal principle of Total

 
Points)
 on 7/17/12 at 5:49pm

A cardinal principle of Total Quality escapes too many managers: you cannot continuously improve interdependent systems and processes until you progressively perfect interdependent, interpersonal relationships.

Futures Trader Man's picture

PWM = less pay and easier job

IB
(Orangutan, 299
 
Points)
 on 7/17/12 at 8:18pm

PWM = less pay and easier job to break into with less hours

"Well, you know, I was a human being before I became a businessman." -- George Soros

SirTradesaLot's picture

ibprospective9: What are the

O
 
Points)
 on 7/17/12 at 11:16pm
ibprospective9:

What are the advantages and disadv of PWM in relation to IB?
Everything in terms of Salary, life, hours etc.

Some thoughts in another thread:
http://www.wallstreetoasis.com/forums/ib-vs-pwm-lo...

The guys in PWM can make a ton of money and the lifestyle is very sustainable. The biggest difference is the failure rate. I estimate that about 80% of the people who start out fail within 2 years; meaning they don't generate enough revenue to maintain employment. So, while the numbers look good, there is enormous survivorship bias.

Also, like someone mentioned this is something for relatively older people. The scenario is basically this: you are given a business card, a phone, and a computer and told to go make money. This is not easy and it is easily the most entrepreneurial position at any large firm. Since you are asking people to turn over their personal money for you to 'manage', they don't want to give it to kids. Also, cold-calling is largely ineffective, so the people who succeed generally have a huge network in place already, that they can tap.

The business model now is generally to put clients into recurring revenue products, aka 'managed money'. Basically, you develop an asset allocation plan and implement it with separate account managers for equities and fixed income, and round it out with hedge funds, private equity, and commodities. All of these generate fees every quarter that the adviser participates in.

The adviser should be knowledgeable about modern portfolio theory, estate planning, and the like. Most importantly, they are a sales person. It is possible to know little about investing and just position yourself as a conduit to the firm and be very successful. I have seen it done many times.

It's a tough business, but if you can make it, it is one of the best jobs on Wall Street with unlimited upside.

FYI -- I am not a broker, but have many friends who are in this business and have sold a lot of product through these channels.

Turbo leverage for capital explosion -- BD Capital

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