High Finance or Startups for an 18yo?

Based on previous WSO threads and the most helpful WSO content, here's a detailed breakdown to help you make an informed decision:

Small Regional School:

• Costs: $50,000 over 4 years
• Brand: Decent locally, limited alumni network outside the city
• Potential Career Path: Likely working in Austin or Dallas in the startup/fintech world, possibly investing the money saved into real estate, stock market, etc., for passive income.

Out-of-State Semi-Prestigious State Flagship:

• Costs: $200,000 over 4 years
• Alumni Network: Strong, with successful careers in high finance
• Potential Career Path: Likely securing a job in Chicago or NYC and climbing the ladder in high finance (excluding investment banking and quant). Potentially attending business school to gain credibility and network to become a leader.

Additional Points to Consider:

• Career Ambitions: Torn between a traditional career path in high finance and making an impact in the startup world. End goals include becoming an angel investor, consultant, VC, or working in startups in a business capacity.
• Investment Interest: Fascinated by compound investing and passive income. The money saved by attending the cheaper school could be invested.
• Role Models: Admirers of Naval Ravikant, Chamath Palihapitiya, and similar figures. Aspires to help startups succeed through investing and consulting.
• Concerns: Worried that the choice of college will dictate the future for the next 40 years due to the significant financial investment.

Potential Solution:

• Startup Experience: Considering taking lower salaries in the startup world to gain experience, then using the money saved to invest. Eventually, use the returns to pursue an MBA at a top school. This could help develop a strong network and try to get into VC. However, it might be challenging to get into an MBA program, and firms often prefer recruiting out of undergrad.

Advice:

1. Evaluate Long-Term Goals: Reflect on where you see yourself in 10-20 years. If high finance and a structured career path appeal to you, the out-of-state semi-prestigious state flagship might be the better choice due to its strong alumni network and potential career opportunities in major financial hubs.
2. Consider Financial Impact: While your parents can pay for both schools, consider the opportunity cost of the additional $150,000. Investing this money could provide significant returns over time, especially if you are interested in passive income and compound investing.
3. Network and Opportunities: The alumni network and brand recognition of the out-of-state school could open doors that might not be available through the regional school. This could be crucial if you aim to climb the ladder in high finance or secure a top MBA program.
4. Startup Experience: If you are passionate about startups and making an impact, the regional school could provide a more flexible and less financially burdensome path. You could gain valuable experience in the startup world and invest the money saved.
5. Hybrid Approach: Consider a hybrid approach where you start at the regional school, gain experience, and then pursue an MBA from a top school to transition into high finance or VC. This way, you can leverage both worlds.

Final Thoughts:

• Self-Reflection: Take some time to reflect on your passions, strengths, and long-term goals. Speak with mentors, professionals in both fields, and alumni from both schools to gather more insights.
• Flexibility: Remember that career paths are not always linear. Many successful professionals have pivoted between industries and roles. Your initial choice does not have to dictate your entire career.

Ultimately, the decision should align with your personal goals, values, and vision for the future. Good luck!

Sources: What would you do if you were me? (Medicine vs Business), 3rd year Harvard Medical School student thinking about high finance transition- am I being realisitc?, What would you do?, Why choose Sales and Trading over Investment Banking?, Private Equity or Pizza Equity?