What is your actual net worth at age 25 and 30 if you stay in IB?
I'm not asking about salary or like total career earnings– obviously, living in big cities is expensive with rent, taxes, etc. What is like a normal / expected net worth factoring in post tax savings, investments, etc. by your mid 20s to early 30s if you stay in an investment banking role? Curious to hear ranges. I feel like I make a decent amount of money but struggle to save and build real wealth.
Ur not gonna build “real” wealth working a salary job. Just a fact
Thanks mr obvious
If you can't build wealth with a career in IB you have 0 spending discipline
Do you actually think people should save as much as possible?
I always had the impression, that it would make sense to save a bit less and invest in the future, by spending money on everything that makes your early years in banking more bearable and "healthy".
We need more info.
Did you have winners for parents?
Or losers that made you take out college loans and will never help you with things like down payments and car notes?
With good credit you can get private student loans at sub 5% rates. Or at least you used to be able to, now I imagine that's a little bit higher.
Either way, it can be a pretty nice source of cheap leverage.
You definitely cannot get private student loans for sub-5%, especially if you don’t have your parents to co-sign. Four years ago I took out a private loan at 8.99%, and that was with a co-sign from my parents (who albeit have shitty credit). Government loans were at high 3s and low 4s my first year, but now they’re almost 7% for new borrowers. My little sister had to take out private loans this year, and they were at over 14%. Even with reporting new income (IB street) and choosing the most aggressive amortization schedule, I can only refinance at ~6.5%.
It’s crazy you think all parents even have that ability to do that lol, hopefully you were joking bc if not you have no grasp of reality outside of NYC, I know several friends who’s parents make less than 60,000 a year combined and just can’t do that
Found the poor white kid from a Bible Belt state!
You're such a piece of shit man. "Winner for parents." Go fuck yourself you insensitive dog
Found another poor white kid. Let me guess, you’re hoping Donald and Bannon subvert the law for a third term?
I'll add my situation. Live in T2 city, live with GF and cover all dinners/most of trips/buy her some stuff, etc., my portion of rent is just under 3K, pay for parking ($450/month) but no car payment. Fortunate enough to graduate with no loans.
Likely spend more than the average but nothing crazy. Most expensive purchase has been a couch, so no 10K watch or anything.
26 now, just started my second full year as associate (currently at 200K salary level) and NW is a little north of 360K (including 401K). On pace for 1M by 30/31 based on my estimates (assuming I don't purchase a condo)
How many years did you work in total?
I started banking in July 2021 so ~4 years total.
Same age and identical net worth (although in NYC and did buy a 10k watch)
How much did you save as an analyst? Assume you would have needed to save ~$60K per year to hit that NW 4 years out. Saving way more than that now as an A2 but I mean… was just saving the bonus + 401k as an analyst.
As an analyst I was investing $1-2K a month into the market. Then would dump 85% of my bonus into the market as well. Also maxed out 401K each year
As an associate 2, I'm putting 3K monthly into the market (total monthly savings closer to 4-5K) and still putting 85% of my bonus into the market as well
As2 in TX, 28 now and 6 years out of undergrad all spent in banking. Current net worth is ~$630K. Would likely have much more saved if I invested during the run-up over the last few years, but kept most of my individual brokerage (non 401K funds) in a money market waiting for a recession that never happened.
Very good standard of living, my portion of rent is $2.5K. I don't budget for vacations, going out, big purchases, etc.
Waiting for a recession that never happened is so real. I’ve kept my An1 bonus in my hysa since august and mannnnn the appreciation just since then..
Time to come to the buyside folks. 29 and NW just under 2m. NYC. Used to room with friends paying 2k. Live alone paying 7/month now.
Comp each year?
Varied between 500k and 1.5m. Ups and downs. Comp doesn’t move only up in HF.
You're living my dream dude congrats. Could you tell us more about your path to the buyside/what kind of HF you work at/comp/hours?
I mean most of us were lucky to have a few bonuses saved up when the Covid crash happened so net worth is kind of weird to compare.
Literally dumped everything into spy and bought 90 dte calls to scalp prems around day 60 to avoid theta burn every month lol. Absolute money cheat code
24 and 280k. I think 300-400k is pretty average by 25.
No it’s not average. You’d have to have no student loans and save basically $100K a year to do that.
"I'm poor so everyone else must be too"
Congrats - how did you save ~$100K average per year in your first two years out of school? I’m guessing a lot of ramen and a couple good investments? 🤣🤣
Sounds like you aren’t in NYC
I think the salary progression is pretty well known for IB and you can estimate what your expenses and investment returns will be
Thats probably the best way to estimate all this rather than relying on a forum where most ppl are going to lie or only post if they want to brag
I’m 3 years in and have ~$250k saved. Had to pay off some cc debt when I started but nothing crazy.
Had minimal student loans but had to support family, haven't increased my spending much though and obviously huge bull market over the past decade or so. Keep in mind I am in my 13th year out of college: at 25 - 100k, 30 -~1MM, 35 - ~4.5MM (not counting any equity options). Hoping to hit 10MM by 40 if equity options hit and with compound interest, but we will see. Comp ramps up post-analyst years, as does savings, especially if you avoid huge lifestyle creep. Also, I will note that I am unmarried, have no kids, and am splitting rent with my partner, who is also in a high-paying job (so there won't be a significant increase in rent despite moving to a nice one-bedroom apartment).
i am also in corp dev. Do you mind sharing how you maximized earnings like that? ~$4.5M is insane at 35 in corp dev, is it not?
Did IB for 12 years and 1 year of Corp Dev so far, NW is all IB salary and investments basically, since I am not counting my initial equity grant option. Will say Corp Dev equity is pretty high if at acquistive PE-backed shops since it's in the best interest of everyone involved to have comp be more equity-based, and since more risk is taken, more comp is given, if that makes sense.
Edit: revisiting this to say: I think 4.5MM in corp dev is theoretically possible given equity options, assuming you're last role from 30-35 was a director role and you exited investments at a high IRR and/or had a management rollover, but would only be possible with ITM equity options factored in. Tbh, NW figures are going to be very different based on luck, parents' support, and actual spending level. Know PE/IB guys with way less NW than me and others that are 1.5-2.0x mine.
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