What PA size would you need in order to feel comfortable leaving your HF job and living off PA returns? How would you allocate it - 60/40?
Obviously this number depends on your personal circumstance, type of lifestyle, kids, etc.
| +38 | How much modeling do experienced HF analysts/PMs actually do? | 15 | 2h |
| +22 | Buy Side Credit - Seats / Guide | 8 | 21h |
| +18 | London buy side | 3 | 7h |
| +18 | Hedge Fund Pivot | 6 | 4h |
| +11 | Mid-career shift to buy side with niche background | 3 | 4d |
| +9 | Wfh / work remotely at MMs or SMs? | 5 | 3d |
| +3 | Atlantic Wolf Capital Closing? | 5 | 13h |
| +3 | How old is too old? | 3 | 1d |
| 0 | Walleye Capital | 1 | 2d |
| 0 | Hedge funds | 1 | 4d |
Career Resources
Get instant access to lessons taught by experienced private equity pros and bulge bracket investment bankers including financial statement modeling, DCF, M&A, LBO, Comps and Excel Modeling.
Like 20-30. Keeps up with current income if I can do +10-20% and it compounds over time (I live pretty frugally).
How many houses you got? Lol
100
The context doesn't directly address the specific question of the minimum personal account (PA) size needed to quit a job and live off PA returns, nor does it provide a detailed investment allocation strategy like the 60/40 split. However, based on the insights from the WSO threads focused on career transitions, health priorities, and strategic job exits, we can infer some principles that might guide someone considering leaving their high-finance job to live off investments.
Health and Lifestyle Priorities: One of the top-rated threads emphasizes that if a job is deteriorating your health, leaving is a non-negotiable decision. This principle can extend to considering the stress and personal satisfaction of continuing in a high-finance role versus the potential peace of living off investments. Your health and well-being should be paramount in making this decision.
Strategic Planning for Job Exits: Another thread advises on the importance of strategic planning when quitting a job. This includes recognizing early when it's time to leave and setting a plan in action that benefits you most. Applying this to your question, a thorough plan for living off PA returns would involve detailed financial planning, understanding your expenses, and having a clear investment strategy.
Lifestyle and Expenses Consideration: The context suggests considering personal circumstances, lifestyle, and responsibilities like kids when making significant career decisions. Therefore, determining the PA size would require a deep understanding of your annual expenses, desired lifestyle, and future financial obligations. This would help in calculating the necessary PA size to generate enough returns to cover these costs comfortably.
Investment Strategy and Risk Tolerance: While the context doesn't provide specific investment advice, the principle of aligning your job and investments with your passions, values, and risk tolerance is highlighted. A 60/40 allocation (stocks/bonds) is a common strategy for balancing growth and risk, but the right allocation for you would depend on your risk tolerance, investment horizon, and financial goals.
In conclusion, while the context doesn't specify a minimum PA size or investment allocation, applying the principles from the WSO threads suggests that leaving a high-finance job to live off PA returns requires careful consideration of your health, strategic planning, understanding of personal expenses and lifestyle, and a tailored investment strategy. Consulting with a financial advisor to create a personalized plan based on these principles would be a prudent step.
Sources: How To Quit Your Job (And Still Win), When would you quit?, https://www.wallstreetoasis.com/forum/private-equity/leave-pe-early-or-stick-it-out-2-years?customgpt=1, Talk me off the cliff, Quitting time - views on how to leave your job
$5ml PA would be minimum, $10ml would be ideal
I'm also thinking in this $5-10M range as well. I could live off 10% returns
Atque officiis non maxime fugiat ut quia et. Doloribus aut saepe impedit quo aspernatur. Velit eligendi sit quia repellat ut suscipit voluptatem. Et natus quaerat reiciendis possimus.
Sit repellendus ipsam sit repellendus excepturi quam ut. Numquam consequatur recusandae quo. Iure itaque cupiditate consequatur aut veniam consequatur. Dolores doloribus qui modi commodi ut.
Ut architecto praesentium non nihil at voluptatem dolorem. Autem cum voluptas quibusdam quos. Ullam ad suscipit architecto architecto repellendus quod asperiores. Non mollitia cum nobis aut officia qui ex est. Neque quo sequi et repudiandae voluptatem debitis ab aliquam. Consequatur voluptas eos saepe et magnam corporis quas fugit. Eos aut praesentium repellat sunt.
Et occaecati est reiciendis dolorum. Nulla quaerat reprehenderit ipsa provident eum est veritatis sit. Velit quos sed perferendis sit repudiandae qui saepe quibusdam. Est illo adipisci minima excepturi qui aliquid unde. Quasi optio et minima. Dicta tempore voluptatem placeat voluptas consequatur.
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...