How to make 50MM by 50 years old??
Hello, I am an incoming SA in IB at a BB in SF/LA. I have been thinking a lot about the future and have decided that my goal is to get to 50MM assets by 40-50 years old so that I can extremely comfortably live off of 1MM (2% interest) each year. What's the best way to do it? I've thought to work in IB for some time, switch to PE, and eventually join/start a smaller fund or startup and hope to get some sort of exit by 50. Does anyone think theres a better way? I know 50MM is no easy feat but I am also not shooting for a billion so I think it is relatively feasible. Would love to hear any comments or
Ah, the classic quest for the golden banana! Aiming for $50MM by the age of 40-50 is a lofty goal, but not out of reach for a go-getter in the high-stakes world of finance. Here's a potential roadmap based on the most helpful WSO content:
Maximize Your Earnings in IB: As an incoming Summer Analyst at a Bulge Bracket in SF/LA, you're at the starting line of a lucrative career. Focus on excelling in your role, securing a full-time offer, and climbing the ranks. The grind is real, but so are the bonuses.
Transition to Private Equity: After cutting your teeth in IB, moving to PE can be a natural next step. It's a path well-trodden by many who have gone before you. In PE, you'll get a piece of the action through carried interest, which could be a significant wealth builder.
Start or Join a Smaller Fund/Startup: This is where the risk/reward can really tilt in your favor. Starting a fund or joining a startup offers the potential for outsized returns, especially if you manage to get in on the ground floor of a unicorn or have a successful exit.
Invest Wisely: Don't just work hard; let your money work for you. Smart asset allocation and investments can help you grow your wealth. Think stocks, real estate, maybe even some venture capital if you're feeling spicy.
Live Below Your Means: It's not just about making money; it's about keeping it. Saving and investing a significant portion of your income can help you reach your goal faster.
Network, Network, Network: The more people you know, the more opportunities you'll find. Networking is key in finance, and it's often the difference between a good deal and a great one.
Stay Flexible and Opportunistic: The best-laid plans of monkeys and men often go awry. Be ready to pivot and take advantage of new opportunities as they arise.
Remember, time is a scarcer resource than money. While you're chasing those millions, don't forget to enjoy the journey. After all, you can't take it with you when you swing from the mortal coil. Now go out there and conquer, young Wall Street warrior!
Sources: Best Time to Have Money, Multimillionaire and retired by 30 Q&A, Money - What is your goal?, Money - What is your goal?, Best Time to Have Money
Start a business or be an early investor in something.
Also you really shouldn’t need $1M annually to live comfortably.
Yah honestly 400k total comp is a good upper middle class lifestyle
there’s two general ways to make that sum of money: 1. do what everyone else is doing and be better at it 2. create your own niche. I know you want a step by step path but that doesn’t exist given that you’re looking for a 5th or 6th sigma outcome. However, whichever path you choose, I can guarantee that if you follow three very simple steps you will make multiples of that sum. step one: identify what the most productive thing you can currently be doing is. step two: do that. step three: repeat the process. it really is that simple, just nobody wants to do it or has the mental fortitude/discipline, myself included, which is why i’m here right now
grind it out in IB/PE, live like a peasant off the least amount of money you can ($40k/year), put everything else into TQQQ and wait
note you'll probably accidentally end up with $20.28bn instead, assuming TQQQ maintains historical returns and you invest a measly $50k a year from age 22-50
Barbour Bateman, you are a truly excellent capital allocator
Horrific advice. TQQQ will crash next year.
At that level you are going to have to throw away all W2/Wage driven jobs even highly paid ones (IB/Big Law).
1) Start a business, scale and sell
2) Have a top percentile PE/HF career you can and start your own firm in your late 30s
3) Become one of the best performing MM HF PMs
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