Best City for Investment Banking in terms of pay. Let's uncover this once and for all!
Hey all
I know that investment banking pay is very dependent on firm, seniority, market niche, location, among other factors.
However, I feel like the answer as to which location pays the best on an after-tax base is still quite obscure.
Could you help me uncover this once and for all?
Perhaps a structured approach to the answers would help simply the process:
1. Bank type (MM, BB, EB, Regional Boutique)
2. Country + City
3. Pre-tax salary
4. Cost of rent
5. Income after tax and rent
Thank you all in advance!
Houston.
Street pay with MCOL and no state income tax.
Alternatively, Charlotte.
Lots of groups that also pay street. NC has state income tax, but COL is comparable, if not lower, in Charlotte when compared to Houston. Speaking as someone who's lived in TX and NC over the last 4 years.
MM in Houston. Street pay with no income tax and lower COL really help me bank a lot compared to other location. There’re a lot of restaurants but arguably less places to spend as much money at night as NYC, where I also spent a few years.
The only catch is property tax but it’ll apply when you’re ready to settle down etc. By that time some professionals already take a gig somewhere else and live in suburban area/LCOL area.
Switzerland / HK pay most after-tax and it's not even comparable vs e.g. London/NYC
a 1st yr HK IBD analyst 1 receives more than a London assoc 1 after tax...
What About Dubai? Super cheap COL as well
Richmond, Va is the answer. Above street, all-cash bonus in a very low COL area.
I'd put an asterisk next to Richmond just to note that there's really only one bank you want to work for in the entire city. Maybe two if you count Truist. Sweet deal if you work for HW, but idk if one can realistically set their sites on Richmond and reliably find an opportunity there. Charlotte & Houston on the other hand have enough opportunities that one could realistically plan to move to either and pursue IB.
Has to be Richmond (Harris Williams)
Houston and Charlotte probably next
Houston also has way more banking jobs than other low COL cities with almost every major bank having a group there. I think it’s clear #1 here with Charlotte, Dallas, Richmond coming next.
Surely Dubai? Comp matched to Europe but no tax.
COL cheap AF as well
Charlotte, but your life is indescribably boring
For An1:
1. Bank type - US BB
2. Country / City - HK
3. Pre-tax Salary - HKD900k (~$115k)
4. Cost of rent - None, the bank pays for this
5. Income after tax, rent and other living expenses - ~HKD55k per month (~$7k)
Chicago, Charlotte, Houston, or Richmond
This is it for the U.S.
Actually I would add Miami too. I think a couple banks are thinking of opening small offices there. Don’t know for sure though.
For An1:
1. Bank type - BB
2. Country / City - Singapore
3. Pre-tax Salary - SGD155k (~US$110k)
4. Cost of rent - ~SGD3k/month
5. Income after tax, rent and other living expenses - ~SGD8k per month (~US$6k)
Remote working from your childhood bedroom >>>>>>
COL is negative when Ma Dukes is paying for the groceries.
Also significantly less boredom during meetings. When your windbag MD starts waxing poetic to the client about points he's already made 100 times before, you can spark a dab pen, hop in a Modern Warfare 2 lobby and get a few rounds of Search and Destroy in.
You're making six figures and don't even chip in for groceries? I don't know that makes me feel a bit uneasy. Granted my parents aren't millionaires so there's that.
Haha, I was only there for a few months and they didn't mind. They were just happy to spend quality time, as was I.
Plus I took care of the yard and made sure squirrels didn't eat all my mom's tomato plants. If that makes me a spoiled mamma's boy I plead guilty. But I'll tell ya I guarded those tomato plants with my life!
Some people have that type of relationship with their parents. No matter how much money some people make, they're still mom's baby, and their money is no good with her.
Minneapolis has to be included.
After tax, rent, and maxing out 401K, I expect my take home income to be about 140K this year as a second-year analyst.
Don't spend a ton either so real savings of probably 120K + 22.5K for 401K = ~140K total saved
Where do you live in the city and what would you say is the quality of downtown? Additionally, where are the areas to be avoided (such as where the riots took place)?
I live downtown. Depending on where your office is, I would recommend north loop, assuming you're fine with the walk. Don't walk south/east of downtown at night, it can be sketch. Would recommend having a car
Stephens in Little Rock, Arkansas has to be the move. Can’t imagine it’s very expensive to live there and they pay street.
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