Confused about salaries
I'm new in the field. Thus, before I post my question I would like to sincerely request people who want to answer to forgive me for my naive or stupid question. Please don't attack me.
I have this friend working in proprietary trading in UK. He is 30 years old and is holding a directorship position at a quite reputable bank. He said that last year he made 10 times his annual salary. So, I'm assuming that he probably made somewhere around $1-2 million in bonus assuming that his salary is around $100-200 thousand (Is this too little, I don't know how much directors make)? He has a very lavish lifestyle: designer clothes, watches, apartment in Paris, house in London, and just recently bought an apartment a 4000 sqft in Upper West Side (so around $10 million?)
My question is:
-Is it possible to be offered directorship at 30 ... from my feelings, he's not really that good or some kind of superstar in the office. Is this a rare thing or what?
-Is it common for people who's been in the business that long to make greater than $1 million? I'm confused b/c there are a lot of conflicting salary range in this forum, some overestimate and some underestimate. What is the truth? Is he boasting or what? Btw, he said he paid cash for his new apartment.
He's obviously very successful but how can you be worth that much at such a young age? Is this common? Am I just to naive or pessimistic?
Thanks in advance!
Your friend might not be lying... there is a shit load of money to be made in this business especially as a trader... google an article called "gluttons at the gate"... most people do not know but as a trader you have the ability to make more than an investment banking analyst because of the nature of the job and the lifestyle is a lot better
Ummm... maybe I got the wrong "gluttons at the gate" article but it isn't about trading at all. It's PE.
just remember that bonuses are taxed at a much higher rate than a regular paycheck is. Like 50%.
If you are talking about the United States, you are 110% wrong.
If you are talking about UK, I can say with 95%+ certainty you are wrong.
Your bonus checks are WITHHELD at a higher rate. Withholdings are NOT the same as taxes. You would know that if you actually had any experience with it. But clearly you do not, yet you still feel the need to chime in with bad information.
This is why good people leave the forum; a bunch of wet behind the ear college kids take bad information and then parrot it.
i'm pretty sure you are flat out wrong about the taxation issue
your bonus is withheld probably at 44%, or whatever the tax rate would be if you made the amount of that check 26 times a year, then you would get most of that back, but the bonus does put you in an overall higher bracket, so you won't get as much back because you have to compensate for the amount you have been withholding on the rest of your lesser checks. so for example you get $2400 a check - i dont know what the tax is on that, but just say 25% so 600 is withheld, then you get 100K bonus that is taxes 44% so youve paid in 44,000 + 15,600 = $59,600. but now you owe 33% for the year so you owe like $52,000 total and youre only getting 7,000 back.
Nisi exercitationem praesentium facilis veniam et voluptatibus quisquam consectetur. Omnis repellat quam itaque velit nemo voluptatem eum. Minima nihil non excepturi sed nulla est. Dicta cum et magnam omnis suscipit repellendus sit.
Ut culpa sunt tempore molestiae ut. Et asperiores animi nulla iusto quas. Sed nisi minima perferendis est corporis ullam nobis.
Voluptatum deserunt totam natus ea. Quis id aperiam sunt sapiente consequatur hic accusamus. Autem culpa illo quas eligendi placeat minus.
Sit aut occaecati numquam nulla eum non. Molestiae atque dolores consectetur maiores. Et est rerum eaque. Quaerat qui debitis aut laborum vel. Fuga voluptas ad tempore asperiores. Ducimus ut vero et non. Perferendis sit a mollitia quod omnis pariatur porro.
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...