Perspective

Or maybe about the importance of starting to save young. I have a friend here, makes a good amount of money (750kish) and has probably plateaud. Had little savings from his pre b-school career. Hes married, mid 30s, and even at a high salary like this, it's going to take him till his late 40s or 50s at the least to be able to call it a day. His job involves a ton of stress.

Now is he in the upper 1% of earners? sure. Is he way better off than most ppl? yes. But basically my point is, even when you've "arrived" be prepared to work many years in a challenging, stressful job.

That's Jimbo's PSA for today.

 
Jimbo:
zk1085:
I suspect FI trading, as Jimbo is a FI trader. Jimbo, why has he reached the utmost? Surely he's not an MD.

He may have some more room to grow but he's going to have expenses ramp up too....

Pimpin ain't easy.

 

is it because he's used to a certain lifestyle and to keep it up he's going to have to keep working? or is it because of family? Obviously I don't know much about life expenses, im green fresh out of college, but I feel like the better life you get used to the harder you to have work to support it.

 
mykyta:
is it because he's used to a certain lifestyle and to keep it up he's going to have to keep working? or is it because of family? Obviously I don't know much about life expenses, im green fresh out of college, but I feel like the better life you get used to the harder you to have work to support it.

well 750 in earnings leaves you with about 400k. It costs him 100-150k to live with his wife and one child. Even saving 250k a year, it takes a number of years to get up to a large but not outrageous number.

 
Jimbo:
Or maybe about the importance of starting to save young. I have a friend here, makes a good amount of money (750kish) and has probably plateaud. Had little savings from his pre b-school career. Hes married, mid 30s, and even at a high salary like this, it's going to take him till his late 40s or 50s at the least to be able to call it a day. His job involves a ton of stress.

Now is he in the upper 1% of earners? sure. Is he way better off than most ppl? yes. But basically my point is, even when you've "arrived" be prepared to work many years in a challenging, stressful job.

That's Jimbo's PSA for today.

Hopefully he likes what he does. And if that's the case, spend away.
 

thanks Jimbo, the advice I am taking from this is that you always have to have the big picture in mind and think of long-term aspects of your career. Basically, not to jump into something purely for the money because then it'll start wearing on you and the money won't be worth it. Agree ? Disagree?

 
mykyta:
thanks Jimbo, the advice I am taking from this is that you always have to have the big picture in mind and think of long-term aspects of your career. Basically, not to jump into something purely for the money because then it'll start wearing on you and the money won't be worth it. Agree ? Disagree?

Yes that's pretty much it and also, beware being blinded by gross figures.

 

If he saves up $250k a year at a decent ROR, he's not going to have any trouble retiring early. I'd say about 99% of the country would kill to have $1M in retirement savings by age 65; your buddy will have that by 2011 if he is just starting to save now.

 
gomes3pc:
If he saves up $250k a year at a decent ROR, he's not going to have any trouble retiring early. I'd say about 99% of the country would kill to have $1M in retirement savings by age 65; your buddy will have that by 2011 if he is just starting to save now.

that's true Gomes. But to live off the income from $1mm in the nyc area is a bit tough.

He's better off than 99% for sure. my point is even at high earnings rates be prepared to put a goodly number of years.

 

great post as usual jimbo, i feel like most on this board don't really understand A; how much the city costs B; take home pay really isnt even close gross...etc. hit it on the head..

lesson learned, dont get married or have kids!! haha. live the bachelor life. its so odd the pay differences across various desks...there are VP's on my desk who are like 27-30 making 7 figures (and its equities)althoght we are the most profitable equity desk on the floor, but regardless...

 
tekno:
great post as usual jimbo, i feel like most on this board don't really understand A; how much the city costs B; take home pay really isnt even close gross...etc. hit it on the head..

lesson learned, dont get married or have kids!! haha. live the bachelor life. its so odd the pay differences across various desks...there are VP's on my desk who are like 27-30 making 7 figures (and its equities)althoght we are the most profitable equity desk on the floor, but regardless...

Why is it odd? I though it was pretty much eat what you kill in S&T.
 
Best Response

The reason that higher earners get "stuck" in their jobs is simple - as they earn more money, they tend to spend more, thus increasing the principal balance required to fund an annuity stream that keeps them happy in retirement. The need for that larger balance keeps you working longer and so on.

If this guy could save $250k a year for 10 years, with an inflation adjusted return of 7%, he'd have nearly $4.0 million or so, which could fund a nice retirement somewhere other than NYC.

Problem is, no one wants to give up that big city life, expensive cars, Four Seasons vacations, etc. Its quite a bit different from some entrepenuer who reinvests all his profits in a business, living modestly, and then sells for several million. That guy could probably retire (if he wanted), live better than he did and be completely happy.

My point to all you monkeys out there with dreams of big paychecks and early retirement is that the money game is trap. A lot of people are perfectly happy working until 60 and then retiring rich, but if you want to retire at 45 or 40, you better temper your lifestyle expectations and save like crazy - then prepare to be happy living an upper middle class life. The upside is that you aren't working and don't have to worry about money. The downside is that you never own that Ferrari, or drink $300 bottles of wine.

 
nrc_chicago:
My point to all you monkeys out there with dreams of big paychecks and early retirement is that the money game is trap. A lot of people are perfectly happy working until 60 and then retiring rich, but if you want to retire at 45 or 40, you better temper your lifestyle expectations and save like crazy - then prepare to be happy living an upper middle class life. The upside is that you aren't working and don't have to worry about money. The downside is that you never own that Ferrari, or drink $300 bottles of wine.

couldnt have said it better myself.

 

my impression is that many people don't last that long in high finance...they get a number of years and after that it's "move on, we're gonna give the next guy a chance". most people i see on the trading floor are relatively young (

 

The guy needs 150k a year of post tax dollars to support a wife and one child? cmonnnnn

Let's assume he spends 5k a month on housing, that leaves $7,500 a month for everything else. Clearly it is his choice to live that type of lavish lifestyle. You can easily live a less extravagant life on that kind of paycheck.

 

if this guy is a trader making 750k why doesnt he invest his money in real estate or something rather than saving it?

Obviously your never gonna be able to retire in your 40s if you live in NYC and just leave money in your bank.

 

excuse me for asking this...why is this guy only making 750k? I had a post b4 about the truth whether traders make 7 figures and someone said that it's common for ppl in their 30s...or is it 750k b4 bonus?

P.S. Before I get attacked, I'm merely questioning b/c I'm curious not bc I'm greedy and think that 750k is not enough! :-)

 
m8875:
excuse me for asking this...why is this guy only making 750k? I had a post b4 about the truth whether traders make 7 figures and someone said that it's common for ppl in their 30s...or is it 750k b4 bonus?

P.S. Before I get attacked, I'm merely questioning b/c I'm curious not bc I'm greedy and think that 750k is not enough! :-)

I don't know if it's "common" but it certain happens. There are a lot of ppl making in the high 6 figures too.

And no, it's not 750 before bonus? Do you have any idea how base salary works at banks? It's never more than 150k or so in general.

 

150k:

7-8k/month on a mortgage of 1m, decent neighborhood, which gets you the basics for housing a wife and a kid.

25k/tuition for the kid to attend a pvt school that gets him into the pipeline for an Ivy. public grade schools are not consistent, and even if the kid is in nyc long enough to go to stuy, etc, why mingle with the poors when all your colleagues send their kids to dalton, collegiate, spence, etc.

10k/year for two decent vacations.

20k/year for food.

20k/year for clothes and misc.

if he rents instead of buys then he has more money for clothes. there. it's all gone.

 

This is definitely one of the main flaws behind many's thinking that they can just spend a few years in Ibanking and then get out. Once you get used to the lifestyle that exists, with regard to the money earned, you really have no option but to continue working.

 

Yeah, I go out with traders sometimes and they spend a lot. But honestly I think it's too much, meaning you don't HAVE to get absolutely hammered (although its fun) all the time. Just simple crap like that eats at your wallet.

 
Cervantes:
Jimbo, that's true...just making a point that many of these guys (be they traders or bankers) dont practice "moderation"...which often leads to no money, bad relationships, etc...mebbe its just a side effect of the personality they need to be in the biz

yes you are right....not sure it's a personality, but there can be an "easy come, easy go" mentality at first...

 

There are other venues (ATL, Dallas, Chicago) than NYC. Is the big apple a necessity to succeed in finance or do you just need to start there?

i'm mainly thinking about cost of living. ATL is much lower. Not as glamorous, but you're stretching your dollar.

 

Nobis atque et eius dolorem quia rerum ut. Quisquam repellendus sit distinctio labore provident ex ut dolorem. Voluptas voluptatem debitis hic harum doloribus reiciendis.

Autem molestiae hic repellendus sed neque. Dolor occaecati minus et magnam quo ut unde. Ratione nisi quas libero et enim autem et. Magnam natus blanditiis suscipit vero. Amet totam quis quae aut. Repellendus nam corporis velit corrupti nesciunt.

Eum earum deserunt quis modi est perferendis fugit aut. Quis corporis facilis quis qui velit.

 

Vero ad consequatur ut suscipit voluptas veniam voluptate. Corporis qui enim sint aut modi. Dolorem id deserunt tenetur vero est error corrupti voluptatem. Aut aspernatur consequatur fugit ut quae quia.

Quia neque ipsam repellendus itaque provident numquam. Sit consequatur fugiat sunt totam enim voluptate et. Quia laborum dolores aliquam odit nobis. Et sequi enim consequuntur in mollitia recusandae.

Eius architecto libero distinctio expedita culpa velit dignissimos. A quam vero voluptates aut aut et.

Architecto dicta iste commodi voluptatem corrupti. Accusamus porro temporibus saepe qui minus non aliquid.

Career Advancement Opportunities

March 2024 Investment Banking

  • Jefferies & Company 02 99.4%
  • Goldman Sachs 19 98.8%
  • Harris Williams & Co. (++) 98.3%
  • Lazard Freres 02 97.7%
  • JPMorgan Chase 03 97.1%

Overall Employee Satisfaction

March 2024 Investment Banking

  • Harris Williams & Co. 18 99.4%
  • JPMorgan Chase 10 98.8%
  • Lazard Freres 05 98.3%
  • Morgan Stanley 07 97.7%
  • William Blair 03 97.1%

Professional Growth Opportunities

March 2024 Investment Banking

  • Lazard Freres 01 99.4%
  • Jefferies & Company 02 98.8%
  • Goldman Sachs 17 98.3%
  • Moelis & Company 07 97.7%
  • JPMorgan Chase 05 97.1%

Total Avg Compensation

March 2024 Investment Banking

  • Director/MD (5) $648
  • Vice President (19) $385
  • Associates (86) $261
  • 3rd+ Year Analyst (13) $181
  • Intern/Summer Associate (33) $170
  • 2nd Year Analyst (66) $168
  • 1st Year Analyst (202) $159
  • Intern/Summer Analyst (144) $101
notes
16 IB Interviews Notes

“... there’s no excuse to not take advantage of the resources out there available to you. Best value for your $ are the...”

Leaderboard

success
From 10 rejections to 1 dream investment banking internship

“... I believe it was the single biggest reason why I ended up with an offer...”