Is IB really worth it?
Hey everyone, this is my first post but just wanted to get a few different opinions on my current situation. I'm just gonna get straight into it. Please read the whole post before giving input, thanks!
21 year old here - I recently completed my Bachelor's and graduated from a top 5 Business School in Europe. Throughout my studies, I quickly realized IB is something that interests me (for the same reasons most ambitious, money hungry kids want to get in). I did an IB M&A internship last summer in NYC, and this year I'm in Equity Research at an I-Bank in Europe (also did Accounting before that so I have 3 internships under my belt).
The thing is this - my parents grew up middle class, but worked their way up the corporate ladder (MBB, Tech) and have now accumulated their net worth up to roughly 7-8M. Obviously this isn't generational wealth, but it's still a LOT of money. Before anyone comes at me saying im a brat - I truly am greatful of the life I've lived and how blessed I am, and I make sure they understand that I don't take anything for granted. I still want to be very successful myself and I don't plan on wasting all their money on dumb shit.
I've just been reading some posts of people who have been in the business for quite some time, and none of them really seem happy. Yes they earn a significant amount of money, but at the cost of what? Horrible working hours, a miserable social life, and a toxic work environment? Maybe I'm wrong and that the culture actually isn't that bad, but I want to enjoy my 20s to at least some extent. In 30 years, what will make me happy?
Or should I just thug it out and jump into IB head-first?
Hope I don't sound like an asshole, but would be happy to hear some thoughts from you guys.
No, it’s not worth it. I’m not coming back after my internship ends, I realised within the first week this shit sucks.
Based on the most helpful WSO content, your question about whether IB is worth it is one that many aspiring bankers grapple with. Here's a breakdown of the key considerations:
1. The Trade-Offs of Investment Banking
2. The Upsides of Investment Banking
3. Your Unique Situation
4. Alternative Paths
5. Final Thoughts
In 30 years, happiness will likely come from a mix of professional success, meaningful relationships, and personal well-being. If IB aligns with your goals and you're prepared for the sacrifices, go for it. If not, there are plenty of other ways to achieve success without compromising your quality of life.
Sources: Was it worth it?, banker career/lifestyle....not all that great? worth it?, Why work up to MD in Investment Banking?, https://www.wallstreetoasis.com/forum/investment-banking/not-sure-if-investment-banking-is-for-me-anymore?customgpt=1, The Allure of Investment Banking
No just recruit for MBBs—They actually respect you there, you will outperform every native biz analyst/associates if you come from an IB background, the alumni network is supportive there if you leave, the hours and benefits are better. As long as you are competent, you will be fine or if you are incompetent, they will find you an exit instead of laying you off most of the time. This comes from someone in IB who loves it, but can’t fight with the reality.
i think it really depends. i think firm/group/deal team culture is utmost important. you will be working long hours in banking that’s a guarantee. what is most critical imo is who you’re working with. that can really make or break the IB experience.
Personally, I think it’s worth it. The hours are real and sure sometimes there may be times that suck especially because of the environment or a deal that you work on or the hours itself, but I feel like the value in terms of working on live deals, modeling, meeting people, and making solidified connections is all a benefit at the end of the day other than the comp.
No lol. It’s maybe the stupidest job ever. People in this job are constantly trying to justify their decision to pursue this career, more so than anywhere else.
No
Was going to ask a similar question. Starting MBA in a few weeks and considering pursuing IB/PE as end goal (will be early 30s coming out of MBA). Parents are worth roughly 40mm (not made in banking so no connections) and have heard so many people say the work life balance (or lack thereof) isn't worth it unless you need the money. Would welcome any thoughts.
you really must just have some existential need for corporate acceptance to get an MBA to do IB with a family NW of 40mm.
I want to have my own success - not married to IB/PE post-MBA, more so want to find something interesting and fulfilling. Also, my parents live well below their means so I have a hard time understanding the reality of my situation.
Nope
what do you consider generational wealth to be if your family has a current NW of almost 8mm?
An amount where neither I, my sibling, my children, siblings children, grand children and so on would never have to work a day in their life. Realistically this isn’t the case. Like I said tho,not trying to sound like a prick
It's worth entering the industry for 1-2 years if you're below 30. Trying to be an MBA associate at 30 is insane to me. The hours + the BS tasks + the level of disrepect you typically get as a junior...I couldn't handle all that shit as a grown ass adult. You can take most things with a shit eating grin for 1-2 years in your early 20s.
I'm going to play devil's advocate here. It's more often than not usually worth it to start your career in IB. The trade-offs you make at 22 (especially as a young man) aren't that high for a year or two, and you learn skills that are transferable to every job. My efficiency in PowerPoint and Excel, and just general knowledge of finance and markets, serve me to this day. I knew I didn't want to be working the hours long-term so I switched to corp dev, unfortunately got laid off (tech correction, it happens), but now run my own business in my late 20s, spend most of my life traveling (lived in Colombia, Brazil, Vietnam, Thailand, and good ol' Kentucky this year), and couldn't be happier, but IB gave me that financial freedom and experience needed to do this.
Just be VERY careful of golden handcuffs. I make a little under $200k per year, and could live off this if I lived in the States 100% year-round, but for my friends with more extravagant lifestyles, this isn't the case.
Thank you! This is probably the answer I was looking to hear. Don’t see myself doing IB long-term but honestly it does make sense to start a career there, learn, and then run my own company. Working for myself does sound like a dream, I just don’t think I know enough at this point to become an entrepreneur - wouldn’t know where to start.
I recommend working ~5 years before becoming an entrepreneur. It gives you the credibility, skills, experience, and network you need to get your ideas rolling
Can you please share what your business you started is?
College admissions and career consulting. I felt a lot of really talented people just didn’t know how to properly present themselves. My main goal was to find something where I could work remote, as I feel culturally, I am very disappointed in what America has become. I’m apolitical, but the fact that people use political ideologies solely for community, I think is a strong comment on how religious n and faith have declined in our communities, and I was a bit scared for what this country would become for my children. I still love America and I’m so grateful to have been born there, but I’m just moving on now, still have my house in Kentucky though. I think because I went to a target school and have what is traditionally considered prestigious, work experience, it results in people taking my word, very seriously and wanting advice for me, so I wouldn’t trade my past experiences for the world, even though they weren’t the most fun thing in the moment
Truly awful - don’t recommend
As someone who has actually worked in the industry for several years…no not worth it anymore
If this was 10+ years ago, sure
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