Won $800k lottery — going into BB IB in July. Is it worth it anymore? Genuinely torn.
Background: business degree, signed offer with a EBB, start in July as a FT analyst. Girlfriend of 1 year, met in school. Consider myself a pretty simple guy, don't need a penthouse / Porsche (I don't hate on those who want that lifestyle), genuinely happy with a solid apartment, a nice dinner out on weekends, and not hating my life.
Then five weeks ago I won $800k in a scratch ticket. Covered my student loans and after taxes, call it ~$400k liquid.
Here's my thing: I was going into IB because I needed the ramp some money, a brand name, the exits. Now I'm sitting here wondering if I actually need any of that. $400k invested conservatively throws off maybe $20k/year. I could take some mid-tier corporate job, live simply, actually see my girlfriend, and have a totally fine life.
IB was always a means to an end for me. The end was financial security and optionality. I have a version of that now without the painful 2 years.
Am I being an idiot? Is the "IB or bust" crowd going to roast me? Would appreciate takes from anyone in the industry or not
Depending on the corporate job, could be reasonable, but nobody really takes on IB just for the immediate pay, more so for the opportunities it opens and the network is provides.
Lots of good jobs with better hours you could pursue if that interests you, but, while 400k is a life changing amount of money, keep in mind it still won’t afford most houses and disappears pretty quickly with large expenses. I’d do IB for the opportunities it brings. Besides, if you find out it really isn’t for you, it’s a lot easier to switch out of (happens all the time), than into; especially with 400k in an index fund.
Ofc, also, congrats on winning the lottery
Based on the most helpful WSO content, your situation is a classic example of re-evaluating priorities after a financial windfall. Here are some key considerations to help you decide:
1. Reassess Your Goals
2. Lifestyle and Happiness
3. Financial Perspective
4. Opportunity Cost
5. What Matters Most to You?
Final Thoughts:
You’re not an idiot for questioning the path forward—this is a smart and mature decision-making process. If IB was always a means to an end and you now have a version of that end, it’s worth considering alternatives. However, if you still see value in the skills, network, and opportunities IB provides, it might be worth sticking it out for at least a year.
Ultimately, the choice depends on your priorities and what you want your life to look like in the next 5-10 years. Whatever you decide, make sure it aligns with your values and long-term goals.
Sources: https://www.wallstreetoasis.com/forum/venture-capital/founding-a-startup-exit-opps-if-things-go-under?customgpt=1, The Allure of Investment Banking, The Allure of Investment Banking, Was it worth it?
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Do you have an IB offer already? If so, Would just do a year or 2 of IB. But don’t bother aiming for top bucket.
Make some connections, cash the check, and leave when you’re done. Any corporate job will feel like a breeze after IB so might as well challenge yourself while you can, but don’t need to bend over for your seniors like most juniors have to.
To put it in perspective, $400k is what probably around what many IB senior ASC have in savings, you’re ahead by ~5 years, not 10+.
Agreed, do your SA and/or a year or two just to bolster your exits. Then walk off with the extra cash, prestige, and skill.
What eb intern would buy lottery tickets
Do it for the training. But man invest in Data centres, SMBs and good ‘ol RE
Yes. You didn’t get life changing money but you got a 5-10 year head start on high earners trying to save. Invest it and forget it then life your life as usual. Your 30 year old self will thank you. You could withdraw 2-5k a year for a splurge purchase/vacation without doing significant harm to the compounding returns.
Agree with the above. It’s not life changing but it certainly changes how you should think about your career. Theoretically you could probably never invest another $1 and be fine. That said, a lot of people in IB start with an equivalent saved or in NW from a trust or expected inheritance, but they still do IB. I would recommend still doing it as it will make things a lot easier in the future for you—easier to get that corporate job, run your own business, get an investing job, etc. Where I think the money changes things is you don’t have to sweat over getting top vs medium bucket, you don’t have to stress about getting to associate, etc. You’ve significantly de-risked your life. You can go into a stressful job with a perspective to hopefully let you do the job without getting sucked into the pressure cooker. That said, I’ve done well for myself and try to keep this mindset but often let myself get sucked in. But you seem level headed about what you want in life. I would do IB and then exit to an allocator role or corporate role. Congrats!
And one other thing: I would avoid trying to dip into distributions on your portfolio already. I’d suggest investing it, putting it on a DRIP, and leaving it alone for the foreseeable future. Start using the distributions when you’re ready to take a step back or have a family or some other life situation that requires it. Otherwise I’d suggest plowing more into those savings or at the least avoid drawing anything from them.
I promise once you have a chunk that large, it can grow quick. It grows even quicker if you leave it alone and let compounding do its thing. In 5-10 years it could 2-3x. Then a 1% distribution on that would be the same as a 3% today.
Bank the lottery earnings and use the yield to treat people around you without revealing your lottery winnings.
With some of the yield, buy people coffees, lunches, and beers. Don’t hesitate to spend up to $1,000 a month on this.
This will enhance your experience and strengthen your relationships.
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