I did the math and I need to make minimum of $13M in my career to support my future family, lifestyle, etc. This comes out to $371k per year.
Ideally I want to earn $20m+, though.
I am 23 and want a solid 37-42 year career (retiring between 60-65.)
I am currently in engineering consulting (5% owner of a business with a valuation of $5m) at 23. (I started as second employee of the company at 15 yo and grew it with the now CEO and COO.)
^no nepo, based on teaching myself to code early
There is a potential to exit but in 5 years the company will most likely sell for no more than $10m at its current growth rate, meaning I'll get 500k max. I plan on pivoting away from this company because it's a service business and isn't growing fast enough for my ambitions. Next role either VC analyst or FAANG or series-C or later startup engineering role pre-mba.
I am also going to Darden in a couple of years (FYS admit.) Average career earnings assume I follow standard path is $8.2m according to payscale data. (I am reapplying for H/S and other M7s in a couple of years.)
So how do I get to the very high end of the career earnings distribution?
I'm thinking the following to get to minimum $13m with the potential of much higher earnings late career:
Engineering consulting -> 1 more year
VC Analyst / FAANG / Series-C or later startup engineering role -> 1 year
H/S MBA (with Darden as backup) -> 2 years
IB to VP level -> 7 years
Transition to PE Analyst, stay in PE to MD level -> 15 years
Semi-retire, take board seats at portfolio companies -> 4 years
Enter fray again: C-suite at one of the portfolio companies I'm on the board for -> 7-12 years
What do we think of this path in terms of total career earnings? Think this is a logical path and think it could easily yield $371k per year+ on average?
Let me know.
Your title is super misleading... you want to earn $400k+? Doable in a lot of careers. If you have MBA acceptance, just go to MBA as soon as you can after 2-3 years work experience, no need to do FAANG if you'll have enough work experience already.
Also MBA -> IB -> VP -> PE analyst is not a possible path, period. You can stay in IB and make absolute bank (far more than your yearly target) but never see your family/kids. Or leave after 2-3 years for corp dev, MM/LMM PE (not getting into a large PE firm from banking ASO) and still make a good bit of money
I would work on a 5 year plan rather than a 50 year plan. Getting into banking is the logical start.
Its more that the clock starts ticking at 25 and I have to make an average of $371k to meet the 13m threshold over the course of my career. I assume it will take ~5 years to reach $371k comp.
You think I should go to Darden ASAP instead of try for H/S again?
For IB you think I'll be fine going to bschool in 1 year (don't think it will be a problem to recruit IB without experience in some kind of finance role pre-MBA?)
That's why I'm thinking I hit up my VC mentors and get a VC analyst position prior to bschool so I can place IB easier.
Whatever makes me the most money is what I'm going to do though.
Fine to not have finance experience, engineering -> finance makes plenty of sense.
H/S are VERY unlikely. Darden is top 15, you will have plenty of IB optionality from there. Sooner than later is better since IB is basically a clean reset button, so as long as you have the minimum 2-3 years of experience you should go as soon as you can.
What I don’t understand is why go into IB?
You’re already in one of the most exciting and cutting edge fields and have amazing and desire able skills in tech, AND have a life and free time. Why go into a space that you have 0 relevant skills or background in, and that will make you absolutely miserable?
>I did the math and I need to make minimum of $13M in my career to support my future family, lifestyle, etc.
bruh the cringe of it all
buddy relax and take it easy. you're doing better than most. set goals 2-3 years ahead and then see what happens/reevaluate every year. there's no possible way to plan 50 years rn
Et qui debitis atque et voluptatum consequatur. Deleniti odio expedita aperiam.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...
Doloribus ut amet quo. Dolore qui tempore accusamus perferendis non explicabo illo.