Dobby is a free elf

I left the path. $650k savings after two years PE. Feel fine to work from that. Have my life back. Cheers bros PE was fun (and by that I mean the worst two years of my life). I learned a lot (by that I mean how to piddle around in Excel and give management unsolicited ideas).

Comments (64)

8d 
2PercentInflation, what's your opinion? Comment below:

650k from two years of PE seems a lot.

  • 2
8d 
user121, what's your opinion? Comment below:

If OP did 2 years banking before that seems reasonable. Made like $200k year in banking  ($400k total) and then like $400k year in PE ($800k total). Total earnings probably around 1.2m. OP found a way to save like 50% of that somehow. 

  • 1
  • 1
8d 
2PercentInflation, what's your opinion? Comment below:

It's a bit unclear whether he meant 650k from 2 years in PE, or 650k savings net after 2 years in PE.

Regardless taxes alone will make that sum a lot smaller.

400k * (1 - .40) = 240 x 2 = 480 post tax

200k * (1 - .35) = 130 x 2 = 260 post tax

740k post tax roughly - 650k savings = 90k spend over 4 years in probably NYC 

If you want +- 100k in the range.

Assuming everything stated is roughly true, the only way I see this is possible is like EVC -> Apollo, which is impressive but also a Lol to most avg people here.

  • Analyst 2 in IB-M&A
8d 

Or 3 years of IB makes more sense

  • 3
8d 
sheldonxp, what's your opinion? Comment below:

What was the worst part about PE?

  • Associate 1 in IB - Cov
8d 

Congrats man. 400k saved here just running up the ranks in banking. At some point there's more to life than work, especially when it dominates all of your waking hours and most of your sleeping hours too. 
 

Curious what's next for you. I'm swallowing a 50% haircut (back down to 225k ish lol) in the next couple of months to actually get my life back in IR. Longevity matters! 

8d 
chimpnotsimp, what's your opinion? Comment below:

225k in investor relations?? What are hours like? And is IB a necessary prerequisite? 

8d 
FinancelsWacc, what's your opinion? Comment below:

$225k doesn't sound insane, depending on the level OP is coming in at.

Hours probably pretty average 8-6ish with the few weeks before earnings and a week or so after as pretty crazy (still not peak IB hours).

From what I've seen IB not necessary but it probably helps and is a bit over-represented given its not an uncommon exit into corporate.

8d 
Faustian, what's your opinion? Comment below:

Pretty common comp for PE IR associates. Don't need IB experience, seen a ton of people from AM sales make the move.

8d 
caprice_wasp0g, what's your opinion? Comment below:

It's a truly beautiful feeling walking away. Feels like waking up from a horrible dream. 

  • 4
Controversial
8d 
jonkemp, what's your opinion? Comment below:

Because these kids are short sighted and think spending a few months traveling Europe will be the answer to life. 

  • 8
  • 13
8d 
Username_TBU, what's your opinion? Comment below:

Because you can say this any time. When you have 2m and you're 32 - why not work until you're 38 and have 6m. When you're 38 - why not work until 45 and have 15m, etc.

That's how people get caught up in the rat race. OP can always go back to work, potentially a different job, and never have to "worry" about money. Sure the lifestyle is different, but at the same time he won't be losing his hair at 30, which is irreversible. He's got freedom and some dough to enjoy his late 20s, which is pretty cool. Go live in a studio on a beach, surf when you want, hang with some friends. As someone in their 30s with kids, I envy his position and am "proud" he took the plunge and sees the bigger picture (especially because at a certain point, when you have a family, you really can't do that anymore)

  • 6
8d 
Rob-the-chimp, what's your opinion? Comment below:

Yes, but I think there's a sensible threshold such as at least buying a house which is like c.$1m. Once you have a roof over your head, you can always make money for food and basic needs. From there you are indeed a free man and can decide what to do with your life. I wouldn't retire with 650k while paying rent. That said i'm assuming a case where a person doesn't inherit a house from parents, etc. But rich kids is a whole different story anyways…

  • Works at Goldman Sachs
8d 

Username_TBU

Because you can say this any time. When you have 2m and you're 32 - why not work until you're 38 and have 6m. When you're 38 - why not work until 45 and have 15m, etc.

That's how people get caught up in the rat race. OP can always go back to work, potentially a different job, and never have to "worry" about money. Sure the lifestyle is different, but at the same time he won't be losing his hair at 30, which is irreversible. He's got freedom and some dough to enjoy his late 20s, which is pretty cool. Go live in a studio on a beach, surf when you want, hang with some friends. As someone in their 30s with kids, I envy his position and am "proud" he took the plunge and sees the bigger picture (especially because at a certain point, when you have a family, you really can't do that anymore)

PRP injections, finasteride, hair transplant.

Delay family till late 30s

8d 
caprice_wasp0g, what's your opinion? Comment below:
Rob-the-chimp

Why not working for 5 more years or so to get a nice carry of a few $mm and have a nice life?

Guarantee that if he waited another 5 years he wouldn't leave before he was 40

  • 1
  • VP in PE - Other
5d 

Let's assume OP is 26. They'll likely have to fit a 2 year MBA in during that unless they're at a fund which doesn't require one (low probability). So they have to leave to do an MBA, they graduate at 28 and have run down their savings considerably. Now they need to recruit for another fund, which may give them a few $M DAW, but they'll need to stay for several years for that to result in actual $ cash, and then walk away from a lot more before they get sucked in by the carry number and keeping up with PE / MBA classmate Joneses. OP is now mid-30s, likely has a lifestyle matched to their income and which can't be sustained if they leave PE, and probably pretty miserable if they're miserable now. If they did save and didn't live lavishly, they're still in the mid 30s and have missed pretty much all of their 20s / early 30s while working in a very demanding role which they didn't enjoy. That sucks, really sucks.

Well done OP, enjoy the travel and take the time to think through what you want to do next. Travelling at your age where money isn't an issue really is a great feeling. You can still live a great life off the earnings you'll likely get in your next role.

8d 
jackwestjr, what's your opinion? Comment below:

Pack a bag, book a flight to Asia and go chill for six months. One of the best things I've done. 

3d 
PommesQT, what's your opinion? Comment below:

Anywhere Bali is a safe choice and cheap.

BKK might work too but no beach - you'd have to travel further from that.

  • Prospect in IB - Cov
3d 

Taipei is a fun city too

  • Analyst 2 in IB - Cov
8d 

Go and enjoy life my man

7d 
d4c, what's your opinion? Comment below:

Really happy for you dude. I took a break after PE and it was amazing.

I'm trying to sprint to $5-10M myself and FIRE (care way more about the FI part than RE)

You should come to the dark side (HF) where you can make decent money and have a pretty good wlb :)

The only thing you need is a lot of risk tolerance or to not really care which it seems like you already have

7d 
yung buck, what's your opinion? Comment below:

Very misleading, it sounds like you have not been in a risk seat. "You have to not care" lol what a clown

there is no such thing as good wlb at funds unless you are talking northwest mutual… it is gruelling, the hours are very long and you are always thinking about markets and trying to maintain/find an edge. 

6d 
d4c, what's your opinion? Comment below:

Ok well I'm in a risk taking seat at a SM fund where I have good WLB and pay. I know others who are in similar seats with even more skewed WLB-pay. You realize publics investing is not a linear return on time right? You're not going to find your edge by working that extra 20 hours a week over someone who works 50 and just understands things better. Good investor working 20 hrs >>>> bad investor working 100.

  • 1
3d 
PommesQT, what's your opinion? Comment below:

How'd you go from PE to HFs, if you don't mind me asking. There were never any HFs in my region (non-US) in previous years, but there seem to be more and more setting up offices.

Most Helpful
7d 
Deal Team Six, what's your opinion? Comment below:

I do not know you, but I just want to say congrats. There is a lot of speculation on this thread as to whether or not you did the right thing. I, however, have no doubt you did for one simple reason; you know yourself and your position better than anyone else in the world. I have no doubt you grinded out many brutal years with your head held high, making calculated decision after decision and exited at the time most optimal for you. 

My only recommendation would be ignore all the people in the comments questioning your decision, most of them would kill to be in your shoes. Hoping the next few months / years are much more relaxing, and you get your life back. 

Sincerely,

Someone looking to make a similar transition not too long from now

5d 
lolrofllmao, what's your opinion? Comment below:

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3d 
Jamie_Diamond, what's your opinion? Comment below:

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