I am a rising junior at a semi-target top-15 LAC and a math & economics double major with a good GPA. I am currently going through investment banking recruitment, although I am unsure if the stress/ work-life balance is worth the compensation and exit opps. On the other hand, I am considering pursuing an economics phd with the hopes of joining a hedge fund as a quant or private equity firm afterwards. That being said, I am hesitant to stop pursuing investment banking because of the instant $$ right after graduation... it would seem crazy to bypass ~$80k+ only to live in poverty for 3-5 more years, but in the long run I am hopeful that my career earnings could catch up and I'm pretty passionate about economics/ want to contribute something meaningul to society (not that ibanking doesn't necessarily).
Have any of y'all faced a similar decision and how did it work out/ do you have any regrets? I know this is an Ibanking dominated forum, but still, any insight would be appreciated.
Make some money --> PhD --> D.E. Shaw PHD Program ---> make REAL money
Leaving Investment Banking to go back to get a PHD is even crazier right? Once you see that type of $$, no one will have the self-control to go back to school for a PHD haha
Once you go through a lovely 100 hour week editing powerpoints you might want to go back to school
which phd program? econ?
Higher education is a scam. Take whichever route has the least of it that still leads to where you want to go, even if it delays you getting there by a couple years.
Higher education is definitely not a scam lol sorry that you went to a shitty non-target business school, but some people went to good schools and took interesting classes that expanded their world view
Thanks for the condolences, dawg. I'm sure that your daddy's ~$350k was well spent "expanding your world view." I'm always amazed at how enlightened 22 year old Ivy kids I meet are as opposed to team dudes I know who've been overseas or anyone who's actually had to work for a living.
It's rough knowing that I spent 10% of what y'all do on college, make more than only ~95% of you do at the same career point, and missed out on the horizon-broadening wisdom which is only dispensed by professors at "good" schools...
I go to MIT, and I have a lot of friends that went the phd route at our school before going to quant funds. I think you are underestimating the stress of working at hedgefund. I'm not sure if you would be content as an analyst rather than a PM, but a lot of people are unable to become PMs. Unlike in IB, in the hedgefund industry, you have to perform and your performance is easily quantifiable. Getting a PhD also isn't cake, strong departments will challenge you and you also have to TA+research on the side just to get funding.
I wouldn't say getting an econ phd would let you contribute meaningfully to society. If anything, doing IB and helping companies and people would let you help society. Authoring theoretical economic papers during your PhD years is highly unlikely to ever impact society. If you really want to help people, try MBB consulting or something and clean up municipalities.
phds are highly stressful. perhaps as much or more so than ib.
sure, ib has ungodly hours, but you still get the satisfaction of completing tasks on a regular basis and there is camaraderie with your team mates. plus you get (a lot of) money for it.
quite a few friends of mine have done or are doing phds, so believe me when i tell you they are fucking hard and very isolating. you get stuck with one project for 5-6 years. if you don't love what you do it will be misery.
in short, doing a phd is not the easy path. if you want to do one, go in with your eyes open.
You are also writing a journal or publishing a study maybe 10-20 people on the planet actually care to read.
legit part of the reason i decided not to be an academic - so few of them actually make any real impact. what a depressing path to follow.
Econ phds are only worth it if you can crack the top 10 (check repec rankings these will differ from undergrad rankings). Look at the placement of these departments and ask yourself if you want those jobs-even the best programs will place maybe 1 or 2 people into finance a year, and these people will not be the lemons, banks/funds/etc really like to feel like they are outcompeting academia on the phd job market. However if you have the stats for a top 10 admission and study the right field, it could be a great path. I work in econ consulting and have spent a lot of time talking to the economists about the econ PhD to finance route so happy to dm about this.
Check Phd placement and talk to Phds. Very few end up as quants in hedge funds.
(note, I have a PhD in Finance, now working in industry, but my path was very non-standard so won't dwell on it, but I know the realm really well)
So, PhD can be a killer credential, but you really have to manage/use it correctly if you want to do a lot of industry work/consulting (i.e make money). I managed to do this, but I can tell you I am the exception, not the rule.
If you want to be optimal for industry work, you will be sub-optimal for academia (i.e. good luck getting tenured, or even hired tenure-track)
If you want to be optimal for academia (tenured), you will be sub-optimal for industry (maybe useless, but this can be managed if careful, can dual-track somewhat)
Don't expect industry to come calling you down, you have to prove your value and fight your way in (really, supply and demand is out of balance, tons of PhDs want industry role, must just suck at doing anything practical to make it happen).
Getting a PhD (even at a "top" school) is no guarantee of good academic job, if you are an average/below median (and 50% are) grad from a "top 10" program, you are still likely to have to work for East Bumblefuck State University in Shitholesville, TN. If you are "top" ranked, you may get a tenure track spot at a top 10 (or more likely top 50) program; then face a 1 in 5 chance of tenure. Don't make tenure, EBSU will hire you!
I'm not really trying to talk down on doing a PhD, personally was the best decision of my life professionally, but it's not an easy path for sure. If you have good mentors/advisors and come in with a plan, it can work, but honestly 95%+ of PhD students don't make use of their "skills". That 5% are badass.
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