What would you do with a paid year off?

Moderator Note (Andy): Best of WSO - this post originally went up May 2009 and we thought it deserved to go back on the homepage for those who may have never seen it.

So I am one of the few who got a paid deferral until July 2010 in S&T. I am sitting for the CFA Level I this June and plan to sit for CFA Level II next June and also plan to travel Europe for a few months and travel Asia and south Pacific for a few months. Other than that, does anyone have any recommendations of worthwhile things to do?

Obviously the stuff I have listed is pretty selfish and isn't that oriented towards doing something good for the world before starting on Wall St. Though I know the next year of my life is going to be amazing, I am somewhat scared of it harming my resume and/or B-school app. Would teaching English in China be a good idea? or doing volunteer Microfinance work with Kiva? All input or advice is appreciated. Thanks.

 

People always list travel and my question is how do you afford to travel fresh out of college. Basically my summer internships have only been barely able to cover a few months living expenses and the rest being subsidized by poker/trading my PA while I while in school.

"Oh the ladies ever tell you that you look like a fucking optical illusion" - Frank Slaughtery 25th Hour.

"Oh the ladies ever tell you that you look like a fucking optical illusion" - Frank Slaughtery 25th Hour.
 

What? How!? At a very conservative calc, 40 hours a week @ 21 an hour x 12 weeks = $10,000 which would be $8,000 after tax.

My housing is 300 x 10 months = $3000 utils = 100 x 10 months = 1000 tuition = scholarship

You live in buckingham palace or something?

 

No reason you can't bundle the service and fun together - find a service organization that you like in Southeast Asia, work for 5 hours a day, and then do what your heart desires afterwards. Just try to pick a non-traditional cause.

______________________________ Freeze those knees, my chickadees!
 

This summer was 10 weeks @ 600/week. My 2 BB PWM internships both paid horrible like $350/week.

Books/Food were biggest expenses while living on/near campus. Gas was by far biggest expense my last year when I commuted. 14 MPG @ 3.50 Gallon while driving 100 miles a day really starts to kill your pocket.

I didn't have an offer upon graduating so travel was clearly not an option for me. I guess if I had an offer and already got the signing bonus then travel would have been more practical.

"Oh the ladies ever tell you that you look like a fucking optical illusion" - Frank Slaughtery 25th Hour.

"Oh the ladies ever tell you that you look like a fucking optical illusion" - Frank Slaughtery 25th Hour.
 
trade4size:
This summer was 10 weeks @ 600/week. My 2 BB PWM internships both paid horrible like $350/week.

Books/Food were biggest expenses while living on/near campus. Gas was by far biggest expense my last year when I commuted. 14 MPG @ 3.50 Gallon while driving 100 miles a day really starts to kill your pocket.

I didn't have an offer upon graduating so travel was clearly not an option for me. I guess if I had an offer and already got the signing bonus then travel would have been more practical.

"Oh the ladies ever tell you that you look like a fucking optical illusion" - Frank Slaughtery 25th Hour.

Last summer, I only got 20ish hourly rate, which is way lower than the hourly rate offered by those tech companies like google or msft.

 

Agree with trade4size. I couldn't have done any travelling fresh out of uni cashwise, this may be an option for the richer kids only I reckon. However, you could take out a small loan for you to travel (after all, when will you ever have again so much free time!), but not sure whether I'd do that in this current climate with loans being risky and all that.

I did an internship in a different field between uni and my job and found that interesting & learnt a ton. I'd recommend that too: do stuff that broadens your mind. Alternatively, kill the GMAT.

 

You guys are clowns. OP is talking about a PAID full-time deferral for a year. Credit Suisse (or wherever he works...) deferred some of their full-time hires for this summer until next summer, and the perk for accepting this deferral was $40,000. So this guy has $40,000 (less taxes) sitting in his pocket while living under mom and dad's roof - essentially, no expenses. So he's going to do the smart thing with that money and use it to enjoy himself (and maybe save a few bucks).

 

Nice assumption there about him working at CS hence having received $40k. If that's in fact what he has then that's cool, but you wouldn't get that at all places. Also, trade4size spoke generally about how people always list travel etc (I've followed up on that general point), so sorry but think we're not clowns. But then you still have some time at college to develop intellectual rigour, right?

 
Best Response
m2:
Nice assumption there about him working at CS hence having received $40k. If that's in fact what he has then that's cool, but you wouldn't get that at all places. Also, trade4size spoke generally about how people always list travel etc (I've followed up on that general point), so sorry but think we're not clowns. But then you still have some time at college to develop intellectual rigour, right?

He pretty clearly said he had a paid deferral, correct? It didn't seem all that confusing. Not too many places offered paid deferrals, and though there are different amounts, it's probably going to be at least $20k. And trade4size posted on this thread, but his understanding of what the OP was saying was off - hence the way he responded. I'm sure it would be difficult for most people to go traveling with just the small sums of money they have earned in prior internships - but again, that is not what the OP said.

And no, I do not have any time left to develop "intellectual rigor." You should probably reconsider your statement - keep in mind you did not understand the money he had to travel was not from his past internships but was in fact from his PAID deferral (which he stated in the first sentence of his post).

 
trade_nrg:
So I am one of the few who got a paid deferral until July 2010 in S&T. I am sitting for the CFA Level I this June and plan to sit for CFA Level II next June and also plan to travel Europe for a few months and travel Asia and south Pacific for a few months. Other than that, does anyone have any recommendations of worthwhile things to do?

Obviously the stuff I have listed is pretty selfish and isn't that oriented towards doing something good for the world before starting on Wall St. Though I know the next year of my life is going to be amazing, I am somewhat scared of it harming my resume and/or B-school app. Would teaching English in China be a good idea? or doing volunteer Microfinance work with Kiva? All input or advice is appreciated. Thanks.

I would include teaching in China and volunteer work in the list.
 

I would work on my golf game 14 hours a day and try to qualify for next year's US open.

If you don't play golf then take the $40K and start your own business and try to grow it within a year to a point where you can leave your banking job and work for yourself. If you fail, you still have the banking job in your backpocket.

Travelling and partying is for lazy people.

 

I wish i was in your situation. If I were you, don't stress the b-school or gap. I think traveling the world for a year wont be frowned upon.

I say take the CFA and pass in June. Then travel around the world. It's a once in a lifetime opportunity. I personally wouldn't even worry about the teaching in China, etc. Although i be it would be a good learning experience as well

Also - is CFA worth it for S&T? I would rethink level 2 even (as you would have to come home and study and may not be relevant

 

I might be getting deferred as well.

I'm not too interested in taking the CFA since it doesn't seem especially beneficial at this point. I've already taken the GMAT and done well (750).

I personally think I'd like to teach English in either China or South Korea. Many of the jobs last less than a year, provide free housing and airfare in addition to a stipend that allows you to save money. Additionally, it seems like a good experience to talk about on a b-school application. Alternatively I'd do some sort of less traditional volunteering work in Asia.

If I were really lazy, I'd stay at home, take golf lessons, and party with my local friends who are still in college. Unfortunately I think that sort of thing would harm a b-school application and burn money.

 

I meant in general. I See people talking about travel after graduation and before starting FT a lot and just wondering how they afford it. Jim can we not question my reading ability. Anyone with a 5th grade reading level (about when you learn the word deferral) would be able to understand the OP situation.

"Oh the ladies ever tell you that you look like a fucking optical illusion" - Frank Slaughtery 25th Hour.

"Oh the ladies ever tell you that you look like a fucking optical illusion" - Frank Slaughtery 25th Hour.
 

trade4size, my bad. I can understand where you're coming from - though it seemed odd to post that in this thread instead of a thread where someone said they were traveling before FT. I also am not questioning your understanding of the deferral - it was more a question of your understanding of the PAID deferral. m2 may plead the same intention, though he mentioned the type of travel the OP intends on doing is only for "rich kids." It just seems to me that he did not understand that whole paid part of the deferral. He is able to travel because he got paid to wait a year - see?

EDIT: Left my post unchanged, but this is stupid to argue about so I apologize if I stepped on any toes by calling you guys clowns.

 

I have a friend who was in a similar situation this past year. Definitely make sure you enjoy your year to the fullest, but add to your knowledge/experience at the same time. This is a once in a lifetime chance to do something you always wanted to do (travel to China, start a business, play golf for months straight, whatever). But make sure at the same time you are adding value to yourself/your resume. Like taking the CFA, volunteering abroad or at a local community non-profit, teaching, or whatever you can come up with that seems worth while and interesting. That way you take advantage both personally, but don't harm yourself career wise. In the grand scheme of the world and your career one year is nothing (you have the next 30-40 years to work); however, the chance to do what you wish for a year is truly priceless.

 

On-topic, I agree with the poster above. I'd take the summer to relax at home, spend time with friends (it's likely they'll be home from school and there will be a gap between FT and graduation), and just treat it as one last summer before the real world. If you golf, I'd play 3-4 days a week - hell, if I were lucky enough to have the year deferral, I'd probably buy some new sticks and crush it all summer - golf during the week, beach on the weekends... Man, I'm jealous just thinking about it. Lucky bastard.

When the summer ends and your friends are hopefully off working, I'd travel. In between rounds of golf and trips to the beach during the summer, I'd find some volunteer opportunities in the location(s) you want to go to and set those up. In the fall, travel and volunteer. You can actually spend two months in China and spend a pretty small sum of money to live there (two of my friends did it last summer and it only cost them ~$5,000 each for two months). Come home, enjoy the holidays, and then maybe do some more traveling. This is basically free money they are giving you - it'd be nice to save some of it, but in the grand scheme of things, it'd be more important to really enjoy this last year and do some things that few people get to do.

 

Teaching english in a foreign country sounds like a great idea to make a difference and travel.

Think about the fantastic opportunity that you have right now. Use it to really make a difference.

If you intend on going to business school sometime in the future, doing something different and exciting in this gap year would really help differentiate your application to others.

Volunteer for something you're passionate about. It does not need to be in your neighborhood. You can travel to a new country and do something there. Try to see if you qualify for a study abroad program. Some schools offer programs where you can study abroad and they will help arrange internships. It may be a bit more difficult to do after graduation but you can probably get an exception.

 

...You are really lucky and this is truly a once in a lifetime opportunity. Literally, you will absolutely never get the opportunity to take this kind of time off again without jeapordizing your career until you are old and gray. So make the most of it....do whatever you have always wanted to do but never had the time or money.

However, be aware that you are gauranteed nothing but the check you are given. A promise from an investment bank is worth absolutely nothing (even a signed, seemingly legally binding promise)...i know this from experience (or at least other peoples' experiences). I would say there is a 25% chance that you have no job next year and that probability will rise exponentially if we go "back into the soup" economically. So keep that in mind!

 

If I had a paid deferral for a year, here's some of what I would do:

1) Spend the winter working in a Bar in some small ski resort town at night, and either work on the mountain or one of the mountain shops + ski and board the rest of the time 2) Design and build something I haven't done yet (I'm thinking a full set of matching bedroom furniture, as in a Bed, Dresser, Desk, redesign the closet to match in style, maybe a bookcase depending on the size of the room, a night stand, you get the idea) 3) Drive cross country and visit friends around the US. 4) Spend a week at my Alma Mater visiting, boozing and being a general jackass alumni. I still have a few friends from my fraternity days that are still there. 5) Learn to fly fish. It's something I've started to do, but have never devoted enough time to doing.

The list goes on, but you have the ability to try new things that you've never done before. Go for it! You will never get another shot at this. I'd have done this in a heartbeat if I could have when I started.

 

Why so much emphasis on teaching? From reading this board it seems like everyone and their Mom teaches English in China/Asia/Latin America.

Do something you really want to, man. If I was you I would work with an organization doing something about global/regional hunger issues. That said, I would also be scared as shit about my job. As bondarb said the promise means nothing...so while I would definitely take a few months to "do what I want to", I think it's in your best interest to think about/pursue a plan B as well.

You can have an awesome time skiiing, being a bartender, teaching in China, and so on, but what are you going to do come next year if your offer gets rescinded? They'll pay you some cash, then what?

 

Historically, did some people with deferrals eventually have their offers rescinded? That would be surprising to me because during 2010 recruiting, banks will know how many analysts they have on deferral, so they'll know how many fewer FT analysts they need to recruit. So unless the economy gets worse (which I suppose is certainly possible) such that banks once again overestimate how many analysts they need or the specific firm gets into trouble, I wouldn't expect the deferral option to be too risky. And if the economy gets worse, a deferred person wouldn't be finding another IBD job anyway, so Plan B would need to be something completely different.

 

basically rent out a beach adjacent apartment or house.

set up a hammock between two palm trees (a beach chair would work just fine as well) and sleep the year away.

then again ive been working for the last three years so probably doesn't apply to you.


I'm making it up as I go along.

------------ I'm making it up as I go along.
 

What happens if you take a year off, maybe start a business as someone suggested, and then don't feel like going back to work. Do they take your $40k salary away?

Unrelated: $40k seems pretty high for a deferral. That's 2/3rds of base. Assuming the person wont have to live in NY, etc, it seems as if they're treating you really nicely when, as someone just from undergrad, you have essentially zero value. Why wouldn't these banks just renege on these offers and hire more monkeys if they need them next summer.

-Just curious.

 

With CS, I suppose that it is a reputation thing. True, they are not getting much actual value when they could have just axed whoever they needed to. But when word gets around that they take care of their people, that is a benefit that you can't really measure in dollars and cents.

 
PussInBoots:
And big LOL @ "start your business."

And that is why you will always be someone's little bitch at some shitty white collar job staring at the monitor all day long.

If I got $40K and 15 months, I would immediately start my own business. If it doesn't work, I still have a job in IB next year. But more importantly I would learn a lot from my failure, which would allow me to open a successful business next time after saving up some money from the IB stint.

And if the business is successful with promising growth prospects, there is no way in hell that I would still want to work in IB and would renege on the IB offer and continue growing the business.

Sorry pussinboots, but I do not see anything funny with this idea. Maybe because I don't have your "loser" mentality.

 

Damn pussinboots, you're not too bright are you? I will explain what I meant, because you don't seem to get anything:

If i just graduated from college AND got (received) $40K to start a full-time job in investment banking 15 months from now then I would start my own business... Let me know if you still do not understand and need more explaining.

And no, I am not having trouble finding $40K, but the difference is that I have a lot of other "responsibilities" that recent college graduates don't have. But more importantly if I quit my job today, I DO NOT have an IB offer in my pocket to start next year as a backup plan.

And starting your own business is not as hard as you make it sound just because your dad is struggling. I used to help a local CPA firm prepare financial statements for their clients, and I can tell you that most of those clients were uneducated, illiterate and overall not too smart, not to mention that they have no clue what a business plan even is; and they made more money in a year than you will make over the next five years combined.

It is not hard to start a business if you have a good idea, some common sense, do your research, and put in the hard work.

 

Sounds great your hired.

"Oh the ladies ever tell you that you look like a fucking optical illusion" - Frank Slaughtery 25th Hour.

"Oh the ladies ever tell you that you look like a fucking optical illusion" - Frank Slaughtery 25th Hour.
 

if you reneg on the deferral offer 1 year later (ex: found a better job), will you still get to keep the sign-on bonus and 15k from the deferral program?

you're suppose to give back the sign-on bonus if you quit within a year, but technically it's ubs that broke the original contract first.

what do you guys think? anyone here had to deal with giving back sign-on/relocation bonus?

 

They told me that if we decide to cancel the contract anytime in the next year, then "we will talk about it" - referring to me having to give the money back. I was surprised that they didn't just come out and say, "yes, you will have to give the money back". So they might not actually enforce that part of the contract. I am not planning on canceling, but if I did, I would make sure I have enough money to give the money back. If I were to go to another firm, I would make sure that my sign-on bonus with the other firm was sufficient to pay back the bank.

 

No-brainer for me.

I always wish I had spare time to broaden my horizons in so many things I've wanted to do. I have a fucking running list in my iPhone called "A Few Words on the Myth of Free Time"...

I'd do a few things, like:

Learn to quickly solve a Rubix cube with one hand while doing push-ups with the other hand. Learn basic Mandarin Chinese. Make some Youtube tutorials on things I can do well (auto electronics, Linux/iOS JB tuts, etc.) Patent and explore some inventions I've been thinking about. Work on C++ programming with Apple's iOS developer program (member already, just no time to learn)

And of course travel... I've always enjoyed cruises with the family or with friends. As an adult under 21, I'd pick one that allows gambling over 18 but below 21, like Royal Caribbean.

A ski trip would be nice, but I'd like to make up for lost time from my senior year in high school and take my dad with me or something.

 

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"Come at me, bro"- José de Palafox y Melci
 

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