Only 2 Lucrative Paths in Finance?
It seems like Finance has massively deteriorated with the AI, Quant and Tech careers.
Now I'm here and thinking is this even worth it anymore, and if so, which path?
After thinking, there are only 2 possible career paths in Finance which are acceptable. The rest are straight up bad.
A) Chase the Cash: This is where you join a Boutique, PE, Bank or other job which maximises for your cash comp. In my opinion carry is volatile and uncertain, so I discount it. The go to top career here would be Q, CVP or any top paying boutiques. Ideally you try to maximise for WLB as well.
Prestige here is secondary so firms like Ardea are totally acceptable, as these jobs pay so much the exits will be worse anyway (except if you want to go for path B) and Finance has become an undesired job outclassed by tech bros and quants.
Joining a low paying Goldman early in your first years is fine, but then it is material to lateral into a money chaser role. Anyone who is a career banker at shops like Bofa etc or even Goldman itself is written off. In my opinion, there are really no arguments for low payers like JPM, except for the very little few who want and CAN!!! become MDs.
And no, your career is already ruined (because you went into Finance and have no real transferable skills) and you won't become a founder or anything meaningful anyway (as you went into Finance which makes it extremely likely youre untalented), so shops like Ardea and riding it out are your best choice here.
B) Play The Game: Here you try to join a path in Finance which acts meritocratic and where you are paid based on performance (i.e. Hedge funds, etc.). This is a bit more of a risky path, but can pay significantly better if you are talented. This is also where you can find some talent, as your comp is based on your performance.
In my opinion, all other options in Finance are straight up bad (except maybe for WLB Maxxers and Permarotters at LO shops or Corp Dev shops which for some reason pay signfiicantly above market).
Interested to hear other perspectives on this.
Rotting in Corp Dev is awesome bro come try it
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Your perspective highlights a growing sentiment in the finance world, especially as tech, quant, and AI careers continue to overshadow traditional finance paths. Based on the most helpful WSO content, here’s how your two paths align with broader industry insights:
A) Chase the Cash
This path resonates with the traditional "maximize comp" mindset, which is still a dominant driver for many in finance. Investment banking, private equity, and boutique firms like Qatalyst (Q), Centerview Partners (CVP), and other top-paying boutiques are indeed lucrative options. However, as you noted, the trade-offs include intense hours and potentially limited exit opportunities if you prioritize cash over prestige.
B) Play the Game
This path aligns with the "buy-side" focus, particularly hedge funds and performance-based roles. Hedge funds, private equity, and even some proprietary trading firms reward talent and performance, making them attractive for those who thrive in meritocratic environments.
Other Considerations
Final Thoughts
Your analysis is sharp, and the two paths you outlined—cash maximization and performance-based meritocracy—are indeed the most viable for those aiming to thrive in finance today. However, it’s worth noting that finance still offers a variety of niches (e.g., corporate finance, investor relations, etc.) that can cater to different priorities like stability, WLB, or intellectual fulfillment. The key is aligning your career path with your personal goals and risk tolerance.
Sources: Accounting vs Finance: Part 1 – Career Paths, Accounting vs Finance: Part 1 – Career Paths, Finance Career Path & List
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Why aren't we focused on happiness and sustainable satisfaction? Chasing money for money's sake feels like a mental illness.
I'm sorry, but I guess I just don't understand it. I came to this industry out fo interest (desire to look at cool tech and keep learning new things), make an impact, work with interesting people, and have a defensible set of hard skills.
But increasingly I feel like I made the wrong choice in industry altogether.
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