Can you really be rich by working as an investment banker?
I know this is kinda weird to talk in WSO...
The forum had helped me a lot finding my first job in capital market, a very decent job. However, what I figured after a while is that...the cost of living, the tax and the time I am selling to the firm is like a rip-off. I could not even save 30K USD by year end(I have pretty high salary compared to other graduates and we save pretty much the same. Many cost that I have never considered when I am a student).
My dad invested in real estate and did REALLY well. He almost gained 100% ROI every year(leveraged of course), he is building his asset like rocket and I am stlll in the rat race.
I have quit my job and decided to be a professional investor. TBH I did not really have a dream career but just wanted to make enough to enjoy life. Maybe I quit too early, so I did not have a chance to experience what an MD's life is like.
All I feel about my career is a joke, that I tried so hard and gained so less. All because I picked the wrong way to build the financial base, by working, not by investing or creating.
Can you really be rich as an investment banker?
To answer your question. No. Not really. To be rich requires ownership. Bankers are not owners, they're salaried employees. But it is possible that it could be a platform on which to build by gaining the means to ownership.
Also, I read your post in a Chinese accent.
Ding ding ding, we have a winner. HNWI and UHNWI usually have large % of their net worth in equity aka (usually) business equity - but yeah agreed it can be a platform to get experience / build up a network.
Hahaha, I also read his post like Mr. Washy Washy from Family Guy, or Mickey Rooney from Breakfast at Tiffanys, both are pretty bigoted so take your pick.
Hahaha hahaha
Or the City Wok guy from South Park...but i do love Mr. Washy Washy.
How much did you save in a year? Less than 30k? So something like 20k?
That's not bad for a first year first job. Like mentioned above, you will want to get into the ownership game (companies, real estate etc). If you're making and saving a lot, which it sounds like you are, working as a salaried employee for a little while isn't a bad way to accumulate the capital needed to really get onto the ownership side of things.
Also I'm assuming you are not from America, 100% ROI on RE seems pretty high unless these are over periods of more than a couple years or unless he's investing in "emerging markets."
Gordon Gekko quote "The richest one percent of this country owns half our country's wealth, five trillion dollars. One third of that comes from hard work, two thirds comes from inheritance, interest on interest accumulating to widows and idiot sons and what I do, stock and real estate speculation. It's bullshit. You got ninety percent of the American public out there with little or no net worth. I create nothing. I own. We make the rules, pal. The news, war, peace, famine, upheaval, the price per paper clip. We pick that rabbit out of the hat while everybody sits out there wondering how the hell we did it."
25k+ for my first year, it would take 10 years to get downpayment for the first apartment in Jersey City, IF the price never changed...
I applied for personal loans, high-interest rate commercial loans, and even borrowed from relatives' personal loans just to start the RE speculation. I guess Gordon's quote applies to the whole world, not just America. We are all in the same boat and only smart/brave rats get out of the game. I seldom see people gain tickets to huge ownership in investment banking jobs, overall, why would someone shares their ownership with you? What have you brought to them? They are not altruist..
250k for a downpayment for an apartment in Jersey City? I'm not in real-estate but, that seems a bit too high no?Aren't downpayments 20-25%, unless the first apartment you are investing in is $1.25M... Bold move for someone with
I don't know why you decided to go into investment banking if your dad achieves 100% ROI on property investing. Go back to China and work for your dad.
Really though.
I am not here for stirring up hatred.
that is rude
His rudeness is unsurprising considering the fact that he is a primate with more body hair than a typical Asian. I can’t imagine any girl who likes his primitive body hair.
I'm very surprised that you got 7 SB.
Go back to Long Island and continue to be an idiot. Your worldview (or lack of) is really showing. Perhaps your business partners (if self-employed) or employer (if employed by a company) should see your true nature. Since you aren’t afraid to express your true opinion on this forum, you should not be so chicken about showing your true nature to the rest of the world.
Go back to Long Island and continue to be an idiot. Your worldview (or lack of) is really showing. Perhaps your business partners (if self-employed) or employer (if employed by a company) should see your true nature. Since you aren’t afraid to express your true opinion on this forum, you should not be so chicken about showing your true nature to the rest of the world.
Yes, you can become rich as an investment banker. Managing Directors makes $1M+ per year. If you make Managing Director by your mid-to-late 30s then continue to work for another decade or so, you can retire by the time you're 50 with $15M+ net worth and potentially a multiple of that if you invest wisely.
You'll just never be as rich as your clients.
My boss made around $2M+ a year. Considering the tax rate of NYC and the cost of maintaining relationships with clients....I would rather not say he is rich. A two-bedroom apartment in some cities costs around $2M, at age 50 he might be able to purchase it after three or four years hard work. How would this represent rich? Also, what is the purpose of getting a yatch at 50 years old? Why don't you rent a yatch when you are 20 or 30 for couple days when you need? At least you've gotten the youth to enjoy what money brings you.
You do understand that you wouldn't buy a condo in all cash right?
Other than that I'm with you. Why everybody doesn't just decide to be rich in their 20's blows my mind. I mean shit there's tons of 100% ROI real estate deals just sitting out there ripe for the picking.
Thank you - this is the most realistic post here. I would argue in fact that banking is the easiest way to develop this type of net worth. Not saying it's easy to make MD, but assuming you can make it into banking in the first place, you've got an easier path to MD and 7 figure annual comp than you do at any given F500. You know how many fat and happy middle managers making $150K they've got at Dow Chemical?
Sure, it's not easy to make $100M in banking, but it's not EASY to make than in any field, and those that do, even in banking (hello Mr. Moelis) are always outliers. So the idea that there's some sort of path to follow to that type of money is stupid on its face.
If you want to get rich, you need to do at least one of three things: 1. Get into the upper levels of your profession. 2. Come up with a great idea, follow through on it, and then cash out. 3. Cheat/do something illegal. Don't do this one.
There's a common bond between all three: you have to work really hard. For the first two, it's sweat equity and acquisition of knowledge. For the other one, it's making sure you don't get caught (which will become nearly impossible over time).
Are you going to work hard if you dislike your job? No, almost assuredly you won't. So here's the coup de grace, you will not become rich if you don't like your job so don't do something just for the money or the prestige. Finance is great but if you don't find it generally intellectually stimulating then you will burn out.
four ways of getting rich in my opnion: 1, capital gain/investment gain 2, salary work praying some day your connection can save you 3, inheritance 4, marriage
3 and 4 are basically the same
no, not anymore. 25-30 years ago it was possible. Think that the average 1st year associate bonus in 1994 was 250k, back then it was a lot of money. Then you invest wisely and you can get really rich.
Also, now a VP average total comp is the same as the average total comp of an associate 10 years ago. Now a banker is just upper middle class, need to work and save for years in order to buy a house.
10-15 years ago bankers would go and buy houses in cash after the bonus.
didn't know pay was that good back to 1994...thanks for sharing. The speed of the salary increase never get in match with property price increase.
who makes more per year: Ken Moelis/Roger Altman/Joe Perella or the guy who flips houses in Tampa?
They are all business owner
Almost seems like this question isn't as much about investment banking rather than cost of living in NYC. Granted, most IBD is in high COL cities but I think in comparison to other careers out of college IBD is great. Creating/starting a business is easier said than done. I don't plan on buying a $2m apartment if lets say I'm working in Chicago.
I think real estate is a great space but just like anything that's if you're successful at it. Good luck just entering RE and making a 100% return, you will be greatly mistaken. You won't become rich overnight doing IB, but it presents opportunity at a young age relative to almost any career that cannot be understated.
price $2M in some cities, NYC, London, Zurich, Beijing, Hongkong, Tokyo..people who work in these cities all seem to have a decent salary but the living cost eat up their income, just like any other middle or small cities, in another words, never get rich. I understand what you mentioned, an IBD job provides the youth opportunity...I think only when you have equal resources, then the opportunities became meaningful, otherwise it is just opportunity, means nothing. One of my family member works for a big name for decades, management position, now she is trapped in it, she can not leave because she relies on it, neither can she afford a private school for her son, no matter how she wants. When you are getting older, your daily expenses increase, when you have baby, you can not stop working or shifting your life path.
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It's all about the network, after that it's up to you to decide your fate.
%
So in order to get rich you need some kinda of ownership - say I work my ass off and become CEO of this bank I work for, does that count for ownership??
Bank CEOs make tens of millions of dollars or more per year, so that looks fine for me.
You can work your ass off trying to become a CEO but end up not kissing enough ass so you get your ass kicked to the curb.
That's a lot of ass for one sentence.
it's salaryman job, even though you're dealing with rich people everyday, doesn't mean you're equivalent-rich.
The authority with which people say some things on this forum astounds me. Def. of rich varies BUT having been raised by parents on 50k a year, yes you can be quite "rich" in banking. Now back to the warped world we're in, there's plenty of MDs in their 30s who have a net worth of 5-10mm with a big house and some other nice toys. Not all of them are happy. There's also MDs in their 40s not doing that well but regardless, 250K-500K base as an MD with some semblance of a bonus puts you above a significant swath of the population.
You're never going to be a billionaire in banking unless you're one of like 10 guys I can think of but frankly, you're not exactly a pauper.
The more important part is how much money do you need / want to be happy?
This board is detached from reality. The fact that we have jobs that pay over $50k a year puts us in the 1% of the world. That's pretty well off if you ask me.
Why don't you just go back to China and sell poisoned milk to infants, or reuse gutter oil, or steal copy rights.
You come to this clean country with your deceitful ways and expect to make it.
edit: obviously trolling here.
Thank you for your monkey shit Xie Peng Mai;
at least I now know that it won't be in the fried rice that I order from your dodgey takeout.
cheap just cheap. cheap products, cheap currency, cheap everything.
Perhaps your business partners (if self-employed) or employer (if employed by a company) should see your true nature. Since you aren't afraid to express your true opinion on this forum, you should not be so scared about showing your true nature to the rest of the world. Actually, why don't you show your comment to your family, friends, and potential romantic partners too? It is funny how you can continue to live with yourself despite acknowledging who you truly are. The comment exposed you as subhuman and a total waste of space. You are worthless. You might as well go fuck your mom's ass! Hahaha
Perhaps your business partners (if self-employed) or employer (if employed by a company) should see your true nature. Since you aren't afraid to express your true opinion on this forum, you should not be so scared about showing your true nature to the rest of the world. Actually, why don’t you show your comment to your family, friends, and potential romantic partners too? It is funny how you can continue to live with yourself despite acknowledging who you truly are. The comment exposed you as subhuman and a total waste of space. You are worthless. You might as well go fuck your mom’s ass! Hahaha
BAML recently poached an MD from one of the EB firms and paid him 50mil to make the jump.
You tell me if it's "possible".
And could probably have gotten more than 50 mil tbh. BAML breaks even after only 2-3 big deals
Maybe. I heard this from someone at BAML in the same group, I don't know the name.
If u make MD, you'll definitely be rich. But if you want to be stupid rich then you probably would want to break out of IB and go into HF or smt that has higher potential payoff.
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