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Many of you will think this is a joke or an exaggeration, I assure you it is not. I am also not a kid who was born on third and thought he hit a triple. I come from a quite wealthy family, parents estimated net worth is ball park $130mm, and have always had whatever I've wanted. Currently I'm a second year at a BB investment bank and while I've gotten good grades, it would be foolish to admit that connections didn't help me in getting hired.

My issue is that if you were to assume a 50% estate tax I would have a minimum of $30ish million coming to me (my dad still works so this will end up being more). I kind of struggle seeing the point in working brutal, god awful hours all in the hopes of one day pulling in a million or two a year. It just doesn't seem worth it at all given my position. However, I still really like investing and money and don't want to be known as just a rich kid. What I'm asking for is simple advice on what to do with my life. I know I want to do something in finance but I just won't kill myself to only make a few hundred k.

So given my position, what would you spend your time doing / careers would you pursue? Also, how do you make sure that girls don't want you just because of my money. Thanks to all.

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Comments (86)

  • The Biz Kid's picture

    If you're good you can significantly add to your wealth. I.e. more than just 1 or 2 million. You could also try something a bit more entrepreneurial in finance and build on the platform your parents have made for you

  • Billy Ray Valentine's picture

    Do something for society?

    Try and launch your own start-up?

    Personally I have always wanted to start a restaurant... if I had parents that could give me start-up cash I'd go for that. Either that or some internet business that you can do from anywhere and work the hours you want to work.

  • design's picture

    Why did you go into IB if you have this mindset? Seems like S&T is more for you. You've got some money to play around with also if you ever turn to prop trading.

  • Max Tucker's picture

    Well 30 million, even with interest, isn't nearly enough to retire at 20 unless you live a frugal lifestyle, which doesn't sound like that would interest you.
    I'd recommend looking for a small venture capital firm to join. The hours are better than banking but the pay is less. You can work there for a couple years and can probably make partner at some point. Most VC firms will let their senior employees use 'carry' (you invest your own money alongside the firm). This can greatly increase your bonus and finding the funds to invest alongside your firm won't be any problem for you.
    Also, if your dad eventually retires you could convince him to set-up a small venture capital firm himself but with you in charge. I'm guessing about 100mm would be enough to do this. To be successful you would first need some real world experience at a VC firm.

  • Midas Mulligan Magoo's picture

    grizzlybear123 wrote:

    So given my position, what would you spend your time doing / careers would you pursue? Also, how do you make sure that girls don't want you just because of my money. Thanks to all.

    1) Avoiding anal sex with men at all possible costs

    2) Maximizing vaginal sex opportunities with $500/hour and up professional ladies

    3) Being grateful that you're not one of us sperm lottery losers who had to claw, scratch and kill to get to your level.

    4) Accepting

    5) Moving on

  • grizzlybear123's picture

    Not trolling at all. I never really thought IB was totally best for me but it lets you do so many other things after two years which is why I choose it. Like I said I still have little idea on what I want to do with my life so I figured try to keep as many doors open as possible. VC, starting my own fund or trading all seem interesting. Pretty much I want to do something where I start it or have substantial ownership / equity. And while 30mm might not be enough to live off of it's still almost enough to cover everything I need in life + who knows, maybe I'll find a rich wife too.

  • In reply to Max Tucker
    bulge4lyf's picture

    Choke wrote:
    Well 30 million, even with interest, isn't nearly enough to retire at 20 unless you live a frugal lifestyle, which doesn't sound like that would interest you.
    I'd recommend looking for a small venture capital firm to join. The hours are better than banking but the pay is less. You can work there for a couple years and can probably make partner at some point. Most VC firms will let their senior employees use 'carry' (you invest your own money alongside the firm). This can greatly increase your bonus and finding the funds to invest alongside your firm won't be any problem for you.
    Also, if your dad eventually retires you could convince him to set-up a small venture capital firm himself but with you in charge. I'm guessing about 100mm would be enough to do this. To be successful you would first need some real world experience at a VC firm.

    Are you kidding? $30M a year at 3% is 900K a year.......That's not exactly frugal.

    I'm talking about liquid. Rich enough to have your own jet. Rich enough not to waste time. Fifty, a hundred million dollars, buddy. A player. Or nothing.

  • International Pymp's picture

    Finish your second year and don't be a quitter. Then move into a cushy-er job at a small or family PE office (I'm sure your parents know people and all that). What you want to do is move into a PE firm with a flexible project-level investment program. Investing in PE transactions without carry/management fee is a great fucking way to go from rich to RICH. I'm not nearly as rich as you, but have a bit of capital from the P's to throw in on transactions, and I can already see the multiplier affect getting insane 5-10 years down the line. If you have aspirations to enter the realm of the fabulously wealthy, refine your investment skills and get to work son! If you're happy with basic wealth and an easy life, perhaps you should step back and reconsider your career... but if your dad has 130m I think you should top that shit brother.

  • Eric Stratton's picture

    30 million not enough to retire on? Good one?

    ---------------------
    "Well, you can do whatever you want to us, but we're not going to sit here and listen to you badmouth the United States of America."

  • dUcK's picture

    you know what they say - the first one builds it, the second one carries it on, the third loses it. Go on and lose yourself some 30MM!

    In all seriousness though, if you're the kind of person that gets satisfaction from making something of yourself, then stick it out and choose the hard path - and maybe do some high beta things that those of us without money would not dare attempt (hence we're working in IB and not starting the next Twitter or Groupon).

    Some of the analysts in my office are the kids of very wealthy people and I admire how they check their identity at the door, in the modern investment bank everybody is treated the same and if you relish the opportunity to show what you're made of beyond the family fortune then its as good a place as any

  • Virginia Tech 4ever's picture

    What's the family business? I have first-hand experience with a friend who can't work with his father (they drive each other nuts), but assuming this isn't the case, why not try your hand at the family business?

  • ke18sb's picture

    First you need to think about what you are passionate about. What sectors do you like. Are you a startup/tech oriented person or do you like the idea or more traditional companies. Do you like fast pace and analytical style of trading or are you more of a holistic guy that is also into strategy and operations. What stages of investing interests you.

    You have the luxury of being extremely picky in terms of a job and can probably use your network to get what you want.

    What you should do is identify your interests and go from there. For example, maybe you like consumer products and you like finance and strategy. Then go look for consumer product PE fund. Or maybe you are really into tech so VC is the route for you. Once you have identified you true passions research firms in that sector and go from there.

  • In reply to Max Tucker
    rufiolove's picture

    Choke wrote:
    Well 30 million, even with interest, isn't nearly enough to retire at 20 unless you live a frugal lifestyle, which doesn't sound like that would interest you.
    I'd recommend looking for a small venture capital firm to join. The hours are better than banking but the pay is less. You can work there for a couple years and can probably make partner at some point. Most VC firms will let their senior employees use 'carry' (you invest your own money alongside the firm). This can greatly increase your bonus and finding the funds to invest alongside your firm won't be any problem for you.
    Also, if your dad eventually retires you could convince him to set-up a small venture capital firm himself but with you in charge. I'm guessing about 100mm would be enough to do this. To be successful you would first need some real world experience at a VC firm.

    are you a complete idiot? 30 Mill is completely enough to retire on, that is probably the most arrogant and ignorant thing i've ever heard. Your parents most likely didn't retire on 30 mill and even if they retired at 20 with 30 mill they would have had plenty to take care of a family of 8, let alone a single guy who just wants to have a good time and not work hard... that is just ridiculous... can't retire on 30 mill... stupid

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  • gamenumbers's picture

    I haven't even read the other comments. I don't know if the OP is for real, but I'll believe him and write my earnest comments below.

    I have a very good friend who is in a similar boat to you. Similar path as well, and I am going to assume that you had some type of decent education, which my friend did.

    I can highly recommend you follow his path. He is very successful, works his own hours, and lives an amazing life with a house in the mountains and a great place in the west village. He's worth more than you (parents worth ~$800mm), but honestly with what your inheritance could be, you have enough to life however you want to.

    My advice is to complete your analyst gig and get into a top flight business school. Coming out of bschool, you will have both the credentials, connections, and assets required to launch your own fund. My friend does PE, and he did a year after bschool basically apprenticing for free at a PE fund. You could choose whatever field you wanted after bschool.

    For the first year basically he seeded capital from himself, and raised a few million from friends/family. He teamed up with one business partner. His business partner was a guy from business school. The guy was interested in working hard for a nice paycheck with the added bonus of making a big payout if things went according to plan. So for the first two years they arranged one transaction where they purchased a small company, recapitalized it, turned it around a bit, and sold it. This whole process gave them lots of exposure in the PE world and gained them quite a bit of credibility. He hired a pretty great team to raise capital for a serious fund in the $100-250mm range. That was basically when they started the PE firm in earnest. They do co-investment deals with the big PE firms like Blackstone, which allows them access to big-buyout type returns with a staff of about 7-15. some of these are consultant types, who generally are rich dudes with good connections who raise the capital and launch the fund. some of them are operations guys who actually work with their portfolio companies as a member of the board or as management.

    They recently raised a third, huge real estate fund and launched a REIT. Their firm evolved over the course of about 6-7 years. Unless you have a high tolerance for risk, you will want to start off small and learn. Once you get set up you won't be using your own money anymore.

    During the entire time, my friend was able to call the shots completely. He had competent people around him. His hours are great, and the work is very personal, very fulfilling. It sheds all the crap busywork from your day and the only things you really take care of are the important issues. And the networking opportunities are fantastic.

    You could launch a hedge fund, or one of these funds that invests in hospitals for kids in africa. Whatever floats your boat. But with your BB experience, people will truly believe that you are credible. And you should go to business school. Seriously. Nobody will ever think of you as just some rich kid. They'll think of you as a guy who is very successful.

    So then you get to keep a cool place in the city, have a respectable and rewarding career, travel to your heart's content, and purchase and actually *use* a second home (in the mountains or at the beach). He lives a sick lifestyle, which is entirely paid for by his work, so he doesn't have to dip into savings.

    If you are the type who feels a need to work to justify living a nice lifestyle, this is the path you should follow.

  • New Yorker's picture

    only $130 mm?

    where did you prep? exeter?

  • manbearpig's picture

    This probably means very little coming from me, since I'm not remotely in the same situation. My father's net worth is around 2.5 million, but still, I've lived a very comfortable life and have never needed to struggle financially. My parents could definitely afford to pay for undergrad and grad school, but told me it will be much better for me if I find my own way to pay it. This forced me to work much harder, and develop a strong work ethic, and also develop a strong ambition to be successful independent of my father.

    I honestly think that you should use the resources your parents have provided you, and make the most of it and try to be even more successful than them. The hard work now will seem inconsequential 10 years from now when you feel much more fulfilled after finding your own way to be successful.

    -MBP

  • Faustus's picture

    I suggest finding something you love. There are plenty of very wealth individuals who grew up with money -- Rupert Murdock, Ted Turner, Donald Trump -- who made more. If you don't like banking, don't do it. I don't think someone could stay in banking with those hours for the money, at least while being good at it. Likewise, if you like banking stick with it, the end goal is not making a mil or two, it is about being a baller for lack of a better word (being a confidant of CEOs, joining clubs, etc.) Find something you like and put all your weight into it.

    fdba Emory Blaine and BBA or otherwise trying to find the perfect pseudonym.

  • BigBucks's picture

    whats really sad is you are a rich kid who doesn't know what work is or the value of it, and you used your connections to take a job away from a kid who actually WANTS to work hard and NEEDs the money. Life is unfair and you are a perfect illustration of this.

  • 2x2Matrix's picture

    I give you a 50-50 chance of being a troll. But just in case you're not:

    grizzlybear123 wrote:
    My issue is that if you were to assume a 50% estate tax I would have a minimum of $30ish million coming to me (my dad still works so this will end up being more). I kind of struggle seeing the point in working brutal, god awful hours all in the hopes of one day pulling in a million or two a year. It just doesn't seem worth it at all given my position.

    Unless your parents are old as fuck, you're not pocketing that $30 million any time in the next two-three decades, so you are a long way away from having your own fat bank account. Which means that unless you're content to beg money from your parents for the majority of your adult life, you should not quit the BB job or torpedo your career.

    grizzlybear123 wrote:
    So given my position, what would you spend your time doing / careers would you pursue?

    The family VC/PE suggestions above are all very good. S&T, not so much; your success in S&T has nothing to do with your own assets, and it doesn't sound like you want the training so that you can go be a day trader.

    One of those lights, slightly brighter than the rest, will be my wingtip passing over.

  • In reply to BigBucks
    bfin's picture

    BigBucks wrote:
    whats really sad is you are a rich kid who doesn't know what work is or the value of it, and you used your connections to take a job away from a kid who actually WANTS to work hard and NEEDs the money. Life is unfair and you are a perfect illustration of this.

    Although I agree with this I think its EXTREMELY harsh but in the same sense he is using his resources. He has the ability to use his connections so he uses them, to the point of not knowing what the value of hard work is how exactly could you judge that? Most people wont want to work hard for something they don't enjoy doing. Life is unfair hence why we have people on wall street who are multi-billionaries(at least they have some talent), we have actors/actresses that are multi-millionaries what talent do they have? Memorization skills? Then you have everyone else who puts in a hard days work and makes an average salary.... So your right life is unfair, but don't knock someone just because they are born into a life.

    The answer to your question is 1) network 2) get involved 3) beef up your resume 4) repeat -happypantsmcgee

    WSO is not your personal search function.

  • BigBucks's picture

    I knocked him not because he is born into a certain life-style, but because he took a job he didn't want instead of leaving it to ppl who actually want and need it just to feel better about himself and not be like the typical "rich-kid". That is tripe.

    p.s. the tone of the original post says all it needs to say about how he values work, hence my comment regarding that.

  • banked's picture

    your dads an idiot if he is paying 50% on his estate.

  • In reply to BigBucks
    manbearpig's picture

    BigBucks wrote:
    whats really sad is you are a rich kid who doesn't know what work is or the value of it, and you used your connections to take a job away from a kid who actually WANTS to work hard and NEEDs the money. Life is unfair and you are a perfect illustration of this.

    Let's not forget that most people put up with the insane IB hours because they're motivated by the millions to come. The OP is already loaded beyond belief so it's unfair to expect him to have the same motivation.

    He couldn't have know he would dislike IB until he tried it, so it's unfair to expect him to have turned down an offer so that some less fortunate kid could have his dream fulfilled.

    -MBP

  • craigmcdermott's picture

    Some points in this thread are good and some aren't. The OP is a second year analyst so he has already dealt with the awful hours of banking for a year. That is a year longer than most of the people judging him. Claiming that he doesn't know the value of hard work is silly. Additionally, nobody deserves a job because they need the money. The OP didn't steal anyone else's job.

    The idea of furthering your pedigree and raising a fund are good but understand that you will be looking at $1-10mm investments, not huge buyouts. If you can get a PE role with co-investment capabilities that would be ideal. Don't just start a company to start a company. If it's something that you don't love then you probably won't be successful with it.

  • brotherbear's picture

    There's no way you should be paying anywhere near %50 estate tax. The only people who really pay estate tax are people who don't understand how to set up a trust. Talk to your private wealth manager--they don't manage money well, but they're pretty good at setting up trusts.

  • SAC's picture

    Only 1 person mentioned this, so I'll ask you again, what are you passionate about ? Are you interested in PE investing or are you more of an operational guy ? with that kind of money you can do anything you want to do, it doesn't even have to be related to Finance.

  • ke18sb's picture

    To address the comment about the girls. I have a wealthy friend he has told me that he intentionally does not look/act flashy and does not discuss money with girls he is interested. I suggest you employ the same strategy. That is unless you are a flashy guy then you reap what you sow.

  • Max Tucker's picture

    shaniqua, rufiolove:

    This guy is in his early to mid 20s. His life expectancy is 75-85.
    How much do you think 900k a year will be worth by the time he is 60? Not anywhere near as much as it is worth today. This guy claims that he is used to getting everything he wants from his parents. Assuming he isn't a troll then I don't think that retiring now is a suitable option for him.

  • Eric Stratton's picture

    Do you know how much of that money he can reinvest each year? He can live lavishly off 200k as a single in his 20s and reinvest the rest.

    ---------------------
    "Well, you can do whatever you want to us, but we're not going to sit here and listen to you badmouth the United States of America."

  • YoungHedge's picture

    If you like ibanking stay there. If not, find your true interest and either pursue a career doing that or start your business doing something you are passionate about. Your parents have more than enough to give you start up capital so you have a big edge over other entrepreneurs.

  • mike55555's picture

    Move to a tropical place and start your own hedge fund.

    Men are so simple and so much inclined to obey immediate needs that a deceiver will never lack victims for his deceptions.

    -Niccolo Machiavelli

  • Eamon's picture

    Wait, I don't understand why some of you find this situation so hard to believe.

  • grizzlybear123's picture

    A few responses and in general there has been some really good responses - I truly appreciate it. In response to those that stay I am stealing a hard working kid's job, I would disagree. I work just as hard if not harder than anyone in my analyst class. I do not mean to say that I don't like working but I can only do the work if it has a purpose. For me the purpose is to bust my ass so that whatever I choose next will be attainable. I was merely saying that I can't see the point of busting my ass for 10-20 years and end up making a decent amount of money, but still not ever see my family and be generally unhappy. This describes the vast majority of MDs I know.

    Here is a shot at my interests. I am intrigued by value investing, trading, real estate and start-ups. I know that's a wide range of interests but that's what I have so far. I realize that I can afford to take more chances in my career but I still am annoyed at how I have no clue what I want to do....and honestly this forum is the only place I feel comfortable discussing it because of the anonymity of the internet. I think the lifestyle of the kid whose parents had 800mm seems great and I aspire to something like that.

    In terms of girls, no one would know that I come from means. I am purposely very discreet about everything and I don't even think anyone in the office knows much about my family - I also plan to keep it that way.

  • gatsby's picture

    completely agree with @mikegj1 simply setup and run a hedge fund in a tax haven somewhere with kids smarter than you are that you probably went to school with anyway and call it a day!

  • MissingNo.'s picture

    I think what you are interested in, is high performance automotive builds. And I can appreciate that.
    The best career path for you at this juncture is to shoot me a message, we can discuss what area of the country is going to be best for us to set up shop (traditionally Cali is where big money exotic owners will send their whips) and we can live comfortably working slowly and collecting a few hundred k in profit on a yearly basis, cruising around in one-off supercars and getting models bobbin for bottles in the console.

    You bring the cake mix, I got the recipe and industry experience, cali supplies the tan lines.

    Still not sure if I want to spend the next 30+ years grinding away in corporate finance and the WSO dream chase or look to have enough passive income to live simply and work minimally.

  • shorttheworld's picture

    have your dad die this year so theres the gap in the estate tax. duh.

    AMIRITE?

  • happypantsmcgee's picture

    If I ever even thought something like this I'm pretty sure my Dad would have just beat my ass and written me out of his will. Rich or not.

    Don't you want to be able to say, "I did X, Y, or Z," instead of, "Yea, I sure hope I die before I burn through all my dad's cash." Seriously dude, you are in the most enviable position most people could ever imagine. There are countless ideas already posted so I won't rehash them. That being said, do what you want but make your own mark don't just ride the coattails provided for you.

    If I had asked people what they wanted, they would have said faster horses - Henry Ford

  • eokpar02's picture

    How old are your parents? If they are in their late 40s or early 50s they will most likely be alive for two or three more decades. You won't be rolling in it until their unfortunate demise.

    I am not cocky, I am confident, and when you tell me I am the best it is a compliment.
    -Styles P

  • rafiki's picture

    How secure is your inheritance really? I would suggest you take a look at Marshall vs. Marshall, otherwise known as Anna Nicole Smith's case against her step-children following her husband's death and work out some ways to make sure you don't have those issues before you leave finance.

    That said, I have no idea if trust writers have taken this into account since that case and this is no longer an issue.

  • Guest1655's picture

    bang 2 asian chicks at the same time.

  • In reply to Guest1655
    happypantsmcgee's picture

    Guest1655 wrote:
    bang 2 asian chicks at the same time.

    Pretty sure this can be done for 1/1,000,000 of your capital in many asian countries.

    If I had asked people what they wanted, they would have said faster horses - Henry Ford

  • yesman's picture

    Warren Buffet is a proponent of the estate tax precisely because of shitheads who aspire to do nothing with their lives. He believes the wealthy ought leave their kids enough to "do anything except do nothing."

    I would get out of finance altogether and do something truly risky - peace corps, art, government/diplomacy, journalism, etc.

    I think WSO is the worst forum you could come to for advice on what to do with your life outside of finance. People here (me included) are, on average, very shallow.

  • Coco Nut's picture

    I'm having a hard time sympathizing with a whiny twenty something year old who has 30MM to burn. Man up, build some real skills, and go do something valuable with your life. Business school would be a great bet for you, and I suggest you at least build some professional investing skills and take an internship with a VC before you go ahead and start your own fund. If none of this works out for you and you're just as confused when you graduate, at least you will have put off joining the real world for another couple years.

    And to those who think 30MM can last this guy a lifetime - I can think of a number of ways you can squander 30MM in no time. If you have no skills to preserve your wealth, you can very easily wake up one day with nothing to leave behind for your kids.

  • MJP338's picture

    Pay my student loans

  • JulianWells's picture

    Stick it out for a few years and don't half ass it. Then explore every interest and skill you've ever wanted to develop. Then devote some time (rather than money) to helping others. Then get wifed up and promptly go back to spending all day, everyday in an office.

  • workerbee's picture

    Get married, then divorced. There goes half.

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