I’m fortunate to be in this position at this age. From a combination of a financially supportive family and personal savings/investments, I’ve managed to build my savings to just under $25k which is nearly all invested across: AAPL, NVDA, BA, JAZZ, MSFT, PENN, PEPSI. I’m not a very frugal person, but things have just worked out well across my portfolio with this bull run.
Unfortunately, I could have had an additional ~$200k from bitcoin but that’s a different story…
I’m going to be working in IB at a BB next year, so I was wondering what you would do in my position? Diversify my holdings away from tech with rates rising? Post grad europe trip? Keep my investments as is and continue to save?
Open to any ideas and suggestions because I’m a little clueless and would like to hear from an older person with perspective.
Following, in the same position
I agree with the above, spend a small chunk ($5-7k) on an awesome trip to Europe/Asia/wherever you want after you graduate.
FYI most BBs prohibit trading any single name stocks at all, so if you want to sell any of your holdings do it before you start or you'll have to hold them forever. At my BB you can only invest in diversified ETFs. Something mindless like SPY is the move if you just want to dump and forget about it.
Unpopular opinion but I would go max risk-on. If you anticipate your income rising significantly over your career, the 25k you have will not make a dent in your retirement by the time you’re 45, even if you compound It at 10%. Model out your net worth/savings based on your expected career compensation (less taxes and forecasted expenses) and you will see that the majority of your wealth will be earned in the last few years of your career. Since the 25k doesn’t make a dent in your future, either go max risk on in crypto/some other investment that could 10-100x, or simply spend it on something enjoyable -My 2 cents.
Surprised you didn’t suggest TQQQ
Is risk taking optimal? Understand the upside if it works out and could really boost my savings. On the other hand, feel like that $ could be used to improve QOL during analyst years.
Yeah, I guess it all depends on what QOL means to you. I sold my car at Carmax for $21K and moved to NYC and spent that $21K largely all on clubs, restaurants, and alcohol in 4 months.
Spend 25% and invest the other 75%. My focus is in healthcare and innovation so I’d probably prioritize cell and gene therapy and cold chain solutions
Forgot your password huh?
Nah bought in at 250 and then gambled it away lmao
As someone who didn't start in IB but in PWM: Sit on it. Budget out what your living expenses are for six months post-graduation and keep that as a minimum in savings. If you want to keep that in your equities portfolio, totally your call so long as you keep an eye on what your non-discretionary cost needs are and make sure that's met. Anything beyond that limit, do whatever the hell you'd like. As you mentioned, indulge in a trip or other graduation gift, make some more aggressive investment plays.
It's great to think about what you can and want to do, but it makes it a lot easier to do without worrying about how you're going to cover expenses until that income comes online in at least a month from now after a life changing event.
Sounds like you're not working full time yet so if you haven't, hit the retirement accounts. I would put $6k into a roth for at least 2021. You may not have access to one for much longer. Then go on a trip with friends before you start work because it'll be a while. I didn't take one and wish I did 1000%. Keep the rest invested
3k on the euro trip and invest the rest
I’d focus less of your effort on finding the optimal asset allocation and more effort on making sure you have a solid grasp on your spending habits, which means your ability to delay instant gratification. Building the foundational habits of living below your means will allow you to keep costs low and invest the difference. This is way more likely to increase your total NW over the long term.
You’ll find countless examples of analysts on this forum who blow through their paychecks recklessly on clubs, and other expensive shit once they start making IB money. It’s all bullshit to compensate for the fact that they’re likely miserable at their jobs. Be mindful of this when you start the job and don’t get into the habit of spending money to make yourself feel better, which many others have fallen into in this job.
As far as what to do with the $25k, it can really be quite simple. Throw 3-6 month expenses if a cash account for emergencies. Maybe treat yourself to something nice or anything you’ll need for your new career (work clothes, suit, etc.) Invest the rest in a diversified index fund and forget about it.
10k to Europe
I'm in almost the exact same position. I've saved up around the same due to some good (though stupid) investments. I'll be at a BB this summer too, and take this with a grain of salt, but this is what I'm doing: 20k in portfolio, 67% invested in VOO (ETF tracking S&P 500), VUG (Tech-heavy Growth Index), and the rest sidelined as cash. Then, I have about 5k for spending money this upcoming semester/summer, and the rest is saved up for taxes/paying for housing, etc. I might allocate some to crypto if it crashes (also I feel you on BTC, I put 2k in doge with one of my friends as a joke before it was cool... Sold mine when it went up to .03, my friend held and was up almost 6 figs on the same investment) but I don't particularly want it where it's at (just my opinion I could easily be wrong). I think going risk-on is good, but I don't feel the need to do anything super crazy like levered ETFs because I plan to contribute plenty to these ETFs after this summer and throughout my career.
Buy a Rolex
That's enough for 5 atm GME LEAPS and and still have some left over for shares. I'd do that.
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