what do you guys consider "good" money?
I've read a lot of threads on here where people complain about low comp or not getting carry or whatever. I'm not in this world, so I don't have much context. I'm assuming you all have pretty skewed views of what constitutes good money.
I'm in law school and shooting for big law, in which a 1st year makes ~250k. That's equivalent to a second year asso in PE (2 years IB first); what would the comp look for this?
2nd year associate comp at large cap (10+ bn fund size) PE in New York is ~400-500 depending on fund. Top of range Apollo, CD&R, Warburg Pincus and Veritas per another thread
That is not average though. Would say average for ASO2 is $300 and also has a worse mix of base vs bonus than big law.
Big law you could also be making $250k in a lower COL city like Chicago
Average for a ASO1 is $300 in MM PE and $400 in MF. Never seen an ASO2 get paid less than $300, unless it's a tiny LMM PE shop (if so, they'd probably be getting carry).
Also FWIW, ASO1 at a BB / MM is prob at ~$300-350. $400 if you're at an EB
Depends on where you're living. If you live in a Midwest city you can live like a king for about $300k a year in a massive house, drive luxury cars, travel, etc. but that amount of money in a city like LA, NYC, or Boston is the equivalent of like $125k in a Midwest city.
There's also a facet that isn't really talked about on here very often, but rich parents raise their kids in very nice houses, buying them name-brand clothes, and setting their kids' standard of living very high. Naturally, when the kid goes off and gets a job, they expect to maintain their rich lifestyle and unless they have their parents' financial support, they need to quickly adjust expectations or be disappointed that they aren't making "good money" as a 23-year-old. You don't typically hear kids that grew up lower-middle class complaining about not making enough as a 23-year-old making $150k+ since that is a better lifestyle than they grew up with in the first place.
That’s way too aggressive cost of living comparison but generally agree and la/Boston are a different beast than nyc (really Manhattan) which is just ridiculous
As a Chicagoan, WAY too aggressive of a CoL comparison. Don’t get me wrong a dollar in Chicago goes further, but that’s mainly just rent. I could get something comparable in NYC for ~$1-1.5k more monthly. A cocktail here is $18 and a cocktail in NYC is $20 (I’m obviously generalizing but I go to NYC multiple times per year). If you were in Milwaukee/Indianapolis, different story.
Man. Feels like "good money" in Manhattan is now like $600k+ ($350k+ in big southern cities)
Insane
Finance generally blows lawyer comp out of the water and it’s not even close.
In the time you take to become a law clerk making 200 or whatever (with a six figure debt on your balance sheet) you could have made 180+ a year for three years as an analyst and then gotten a promo to Associate where you’d clear 300-400 your first year.
Now whether that constitutes good money is a matter of opinion. Personally I think it’s great money and you have to have a pretty objectively warped perspective to disagree, but of course that doesn’t dissuade some people from being jilted about their comp.
The janitor works hard too - having perspective is important to being well rounded and happy in this life.
Depends tbh in M&A bankers make way more but in RX/BX lawyers make way more.
Yes, I would agree that the comparison becomes more nuanced and product specific once you reach the absolute highest echelon of a couple very lucrative niches. My comment is more about the bulk of the distribution than the tail.
Quis est quas numquam ipsa dolorem ad eos. Officia velit praesentium reprehenderit et. Vitae corrupti sint voluptas rerum. Repellat a dolorem vitae in aperiam similique id.
Ex molestias facere ducimus culpa. Et neque animi enim ut omnis optio fuga. Sequi aut ipsa ut esse laboriosam ipsam quam. Quae animi sit quae quia aut quo est. Corrupti quam minus maiores sunt. Sit quam esse voluptatum. Officia deserunt dignissimos autem et molestiae.
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...