Should I stay on the High Finance path?
Making this post to get some outside perspectives, as I am currently facing a dilemma.
Just finished first year of IB (MM Levfin), with the ultimate goal of recruiting off cycle for a PE/HF role and then starting my own business after a few years of buyside experience.
Have a few friends / acquaintances from back home that started an Insurance Brokerage and they have been killing it. I recently put one of my older family friends in touch with them and he has also been killing it (10k+ a week in commission) immediately after joining. Have also worked with this family friend before (during college) and have prior sales experience.
Ultimately I want to be an entrepreneur / investor. Main reason for going into finance was 1) pay / to support myself (no real family support, am first-gen and family dynamics are not great to say the least) and 2) to learn and gain experience in finance / investing. I’m honestly sick of my current job (feel like a process monkey) and want to transition to private equity (LMM is fine, I really just want to learn how finance professionals view / think about buying businesses, institutionalize them, and the overall process).
If I leave the path and go do insurance sales I’m sure I can make a ton of money in the next 1-3 years, and then maybe I can just do my own investing / businesses ventures. Only issue is this locks me out of institutional finance (or really any non-sales high paying corporate job).
Wonder if anyone else has gone through anything similar and/or has any thoughts to add here. Would really appreciate any advice.
Based on the most helpful WSO content, here's what you need to consider:
Your Long-Term Goals: If your ultimate aim is to become an entrepreneur/investor, both paths—staying in high finance or transitioning to insurance sales—can lead there, but they offer very different experiences and skill sets. High finance (IB to PE/HF) provides institutional knowledge, deal experience, and a network that can be invaluable for buying and scaling businesses. On the other hand, insurance sales can offer immediate high earnings and entrepreneurial exposure, but it may limit your ability to pivot back into institutional finance later.
Private Equity Transition: If you're serious about transitioning to PE, especially LMM, your current IB experience is a strong foundation. PE roles will teach you how to evaluate businesses, structure deals, and institutionalize operations—skills directly aligned with your entrepreneurial goals. However, this path requires patience and persistence, as off-cycle recruiting can be competitive and time-consuming.
Insurance Sales Opportunity: The success of your friends and family friend in insurance sales is compelling, especially with your prior sales experience. If you’re confident in your ability to replicate their success, this could be a faster route to financial independence. However, as you noted, this path may "lock you out" of institutional finance, making it harder to return if you change your mind.
Risk vs. Reward: High finance offers a more structured career path with a clear progression, but it can feel like a grind, especially in roles like IB. Insurance sales, while lucrative, is more entrepreneurial and comes with higher risk—your income will depend on your ability to sell and build a client base.
Hybrid Approach: One potential compromise is to stay in IB for another year while actively recruiting for PE roles. This keeps the door open to institutional finance while giving you time to evaluate the insurance sales opportunity further. If PE doesn’t pan out or you remain dissatisfied, you can pivot to insurance sales with a stronger financial cushion and more clarity.
Networking and Mentorship: Regardless of the path you choose, having advocates and mentors in your desired field is crucial. In PE, this means networking with professionals who can guide you through the recruiting process. In insurance sales, it means leveraging your connections with successful brokers to learn the ropes and hit the ground running.
Ultimately, the decision comes down to your risk tolerance, financial needs, and how much you value the institutional finance experience versus immediate entrepreneurial exposure. Both paths can lead to your end goal, but they require different sacrifices and commitments.
Sources: 30 and a bit lost in career - Advice Appreciated, Newbie Financial Advisor: How To Be Successful., Transitioning from tech to a serious finance job (yes, you read that right), https://www.wallstreetoasis.com/forum/wealth-management/qa-a-bored-financial-advisor?customgpt=1, Switching from IB to AM/WM in undergrad?
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