London: Top MM Hedge Fund - Compensation - financial planning
I just started working for a top hedge fund (think Point 72, Citadel, Millennium, Balyasny) in London. This is with little experience (c1 years in Equity Research / IBD)
I am currently making a financial plan and I was hoping that some of the more experienced HF people could provide their thoughts on the compensation numbers I am assuming in my calculations.
Please note that I am aware that bonus depends on performance, PMs etc - these are just average / rough estimates as I have to use some sort of numbers to plan.
Do these numbers (in £) look reasonable? Should they be adjusted up / down?
bump
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Why do you think you are worth paying 1MM+ bonus?
I don't think you should be assuming to ever make ~£2MM when financial planning. It's definitely possible but it's much better to be a bit more conservative while planning and then be positively surprised if you do end up making that much.
My financial plan is to start winning the lottery. Annual income $5M from lottery wins starting next year. Assuming I'm a lottery winner, does this seem reasonable?
You're out of your mind if you think you can plan your earnings 8 years out in this career path, particularly this early on.
It's probably optimistic to assume career stability, but to assume you're going to more tham 10x your annual income.. dangerously delusional. Please don't make spending decisions based on those projections or you'll be broke before you know it.
Planning 8 years ahead seems ambitious given the volatility of total comp in the sector and therefore there is a high probability that the guesstimate is going to be far off. Sure you could be having a stroke of luck and make 2 mil (or even more) by year 9, but it's no guarantee regardless of your intrinsic talent as luck is also involved. Assuming career stability, the evolution of base comp (easier to forecast) offers a floor for the amount you can safely spend without depending on your bonus (i.e. which you can use for budgeting big expenses like housing or mortgage, etc.).
Also on a side note, I would appreciate if you could detail the interview process at the MMs for analysts with around 1 year of experience in London as I have a similar background. PM me if you prefer.
This is a meme post right? Has to be
How can I PM you?
I'm gonna assume you're a bit deluded and not just memeing. £65k base looks about right for 1st year, if not a bit on the low end. Beyond y1 its more performance based. y2-4 you could be making £70-100k base as an analyst.
very entertaining troll post, I actually caught myself thinking about it for 5 minutes.
Hahaha...now plug it in with an 18% annual investment return since I'm sure you're a PA legend as well.
Sometimes I like to play with numbers and imagine that I’ll be a successful PM just because I’m a dreamer but this made me lol
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