Trading Vs Engineering
Has anyone heard of engineers, undergrad MS and PhD level, (electrical, mechanical, computer science) being able to ensure themselves the same lifestyle as the average equities/fi trader or analyst?
It seems that all these undereducated (just BA,BS) degrees which, while very intelligent, haven't invested in a proper education and have total compensation which makes an excellent very educated (MS,PhD) engineer's job seem like a waste of time. Supposedly the country has problems attracting new talent to engineering, I'm not surprised because compared to the street they are paid garbage for the actual value they add.
finance vs engineering: lifestyle expectations
When discussing lifestyle expectation you’re usually discussing disposable income. The difference between hours worked in investment banking when compared to engineering is obviously night and day. However, you can see the same contrast when comparing compensation.
Working in banking or trading will undoubtedly lead to a higher income potential long term. Indeed, even in the short term junior traders and bankers will likely make more than twice than an engineer. The only exception to this would be software engineering at high levels in tech companies like Google or Facebook. However, a senior wall street official still has greater earning potential than a senior silicon valley engineer. Advanced degrees are not required to make 6 figures in finance. However, reaching management levels in both career paths will likely require an MBA.
from certified user @abacab"
For a true engineering product, it takes many years and many engineers to design something. Then when you finally have a finished product, lot of cost goes in labor, material, equipment, etc, leaving not a whole lot to distribute among the many engineers.
Compare that to jobs like trading, banking, consulting, lawyer, sales - not a lot of overhead. Don't need many to generate a lot of revenue = Good pay.
Ex Engineer who figured it out when I was 21 and got out of engineering.
This might be the fault of the engineering firms which hoard the profits at the top, as opposed to trading firms who let their brainiacs eat more of what they kill. Not saying it's right or wrong, but that strikes me as the way it actually is.
As an Engineer who works with Engineers of higher levels (MS and PE levels) on a daily basis, I don't think an engineering salary potential is that great compared to some of the careers available in finance, banking, trading, etc
I know engineers who are PHds, have their masters etc etc who are barely even approaching or crossing 6 figures after 20+ yrs of work experience. Shit I don't even know if the technical director my place of work (small cap public company) clears 200K and hes got his MBA & MS + BS in engineering plus 30+ yrs of work experience at huge name companies like Pratt & Whitney, etc.
Compare that to a analyst or associate salary within the first 10 yrs of experience, yeah its a huge difference
In addition, since most engineers lack the management skills to move to higher level positions, I think the MS in Engineering degrees are a waste of time if you don't want to be an engineer for the rest of your life. In order to move up anywhere you WILL need an MBA.
In highschool and undergrad I always was told "oh yeah engineering salary is great, 55K a year staring is fantastic"...yeah its fantastic until you realize the amount of work you put into school, if you had only gone to a target and got a liberal arts degree you could be clearing 100K your first year as an analyst.
Sorry for the rant, i'm disgusted with myself that I found out about the world of finance so late in my life (22 yrs old), now I have to bust my ass to even have a slight chance of breaking in. Oh well.
Good luck
idrag why dont you go to mfin at princeton or MIT if ur a quanty engineer? easy enough. well maybe not BUT ya know what i mean.
My goal is to get into IB and I believe the quant heavy stuff is geared more towards S&T
I am actually in the process of applying for Dukes MMS and UVA's MS in Commerce which is more in line with what investment banking entails, and along the lines of what I really want to learn to prepare me for IB
hope you aren't just going for IBD because you think it has the best pay...
idragmazda: Same boat here, but slightly older, 26 with MS in engineering, was on route for a phd at a target and learned about the finance industry, skipped out for a startup and now looking for opportunities. Sure plenty of engineers lack social or even world view skills which places them in a box, and ive noticed that after getting some more exposure from working with the marketers, lawyers and business side and why they specifically keep engineers at bay. However i still feel an engineering degree is awesome but only when you also posses the well polished soft skills and can use the quant and problem solving skills you have developed to your advantage.
Its just unfortunate how many excellent engineers and problem solvers are heading into finance instead of solving societies technological problems and "designing good bridges", which ive actually noticed is left to the mediocre engineers that cant tell aluminum from steel or cant think of a problem in a real world situation instead of finding the 10th integral of some useless function.
I think it is hilarious that you guys think 26 or 22 is old.
I think most engineers are underpaid for how hard they work / how smart (many) of them are. Consulting/Banking/Trading are all nice alternatives for good engineers.
For a true engineering product, it takes many years and many engineers to design something. Then when you finally have a finished product, lot of cost goes in labor, material, equipment, etc, leaving not a whole lot to distribute among the many engineers.
Compare that to jobs like trading, banking, consulting, lawyer, sales - not a lot of overhead. Don't need many to generate a lot of revenue = Good pay.
Cum ducimus est quaerat. Iste dicta natus ad enim quasi sunt quo. Et doloribus et nam.
Laudantium reiciendis laudantium praesentium dolor doloribus. Reprehenderit dicta et sit sit. Facilis optio in perspiciatis voluptatibus suscipit autem doloribus. Ad nemo et eligendi voluptatem ut veritatis.
Sint explicabo placeat adipisci consequuntur. Dicta debitis tempora qui veniam culpa est. Expedita nam iure culpa est sit possimus quos. Id consectetur voluptatem ipsum voluptatem. Excepturi aut iusto id vero hic et et. Quia molestiae quidem in voluptatum sit exercitationem fugit.
Eveniet qui asperiores et tempore voluptatem et ea. Et quis incidunt et quidem.
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...