Is banking the safest path to becoming modestly rich ($10mm-$20mm)?

Rumple4skin's picture
Rank: Gorilla | 605

Howdy y'all,

I have been thinking about this question for a while - is climbing the hierarchy in a banking group (traditional M&A / capital raising) the surest way to reach a net worth in the eight digits? Of course, the number of bankers who have breached nine figures and above can be counted on one hand, but I have heard many claim that banking still offers the best risk-adjusted return out of any occupation.

I've been thinking about this a lot, especially in the context of weighing A2A versus recruiting for the buyside, so I would appreciate any thoughts on the long-term career implications of that decision as well. I remember an AMA thread with a banking MD, who claimed that out of all the analysts of his class year, the ones who stuck with banking had achieved the most in their careers. I don't mean to imply that money and career success are the same thing, but it does seem like sticking around in banking offers the surest path to both.

Comments (6)

Jun 12, 2019

10-20 MM modestly rich lol

    • 1
Jun 12, 2019

Lol. Seems reasonable for the typical successful MD (i.e., not Ken Moelis).

Jun 12, 2019

Maybe for a single, fiscally conservative MD at a BB/EB who is 50. I bet you most 40 year old MDs don't have 10 MM saved/in assets, regardless of lifestyle or location. Most of the rainmakers blow money and live in NYC / LA, which really adds up. Factor in all the costs of marriage, children, etc., and suddenly your net worth is probably between 2 - 4 MM. Curious as to what more knowledgeable users have to say

Jun 12, 2019

This thread gave me cancer.

    • 1
Jun 12, 2019

Use your modest 8 figure savings to pay for healthcare

    • 1
Jun 12, 2019
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