Is IB the only way to make good money in the long run ?
Some of my friends who are looking to get into IB were telling me that if I want to make some good money like in my 30s, it would only happen if I start in IB. I diagreed since most of people who are doing well in finance that I’ve spoken with to didn’t do IB but I wanted to ask here since they said you have more exist opportunities and etc. thank you
No.
Only way? No.
More opportunities within finance/exit opps? Yes
You answered your own question when you said you’ve met many people who didn’t start in IB, so I’m not sure what else you want to hear. You also have to factor in the burnout risk of IB (what is the probability you make it to 30’s within this field?)
Additionally, nowadays more industries are offering pretty high pay (tech, etc) and other parts of finance (HF) are hiring more people out of undergrad or without IB experience. So there are many paths.
I didn’t start in IB, I’m in my 30’s, I make great money.
What did you start in?
Started at a smaller consulting firm.
yea it’s the only way
Lmao did a high schooler ask this
Exited IB to work in tech. Took a minimal hit in base salary but got equity worth $900k vesting over 4 years with upside hopefully once company goes public.
What type of role in tech?
Yes, this is finance and strategy manager role
I assume this is Corp Dev/ Corp Strat. I've honestly seen a lot of VP IBs have VP/near C-suite exits during COVID (looks like even mid-level bankers are getting worked to the bone and want to leave). With similar vesting/pre-IPO upside over 4-5 years ($750K-$1M+).
Was it 900k when you made the move?
Or did they offer you 250k or something else and it grew to 900k currently.
Was $600k when it was offered. Subsequent up rounds marked it up to $900k.
Dang. Congrats Man.
IB is an easy, risk-averse way to making mid to high six figures in your 30s. It's very hard to get fired in IB until you hit director, but 99% of the analysts who start out do not make it that far and leave for other jobs.
Are you willing to work the equivalent of 2 full time jobs? If you want to stay in IB, how do you feel about missing all of your kids' soccer games? You make a lot of money in IB but there are real tradeoffs and other paths to making good money. If you're a finance major who doesn't want to learn coding to make it in big tech, and are willing to kill yourself on hours for a few years, IB is a solid place to start out.
Comp is variable and has a deferred component so you can't look at all-in comp and say that's what you earn, because it is not true.
The tradeoffs for IB are immense: lack of time, lack of ability to invest, etc...
Not to mention you need your sector, bank, & the overall market to do well over the course of your career too. Plus, when you get to the higher ranks (VP-Director+) it becomes so much more of a performance based job. I think IB is actually much more variable than people give it credit for. Now, I am not a bear, but If I do think IB is a tougher career than people give it credit for.
Ability to invest, VERRRY important and nobody talks about this downside.
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