Comments (25)

 
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  • Investment Manager in HF - Other
Aug 2, 2020 - 3:16pm

It’s going to depend on what your career path has been so far, what your lifestyle has been, and how much you want/need in retirement (including at what age you want to retire). What you’ll need to retire will depend on what type of lifestyle you’ll want and how much debt (home) you have. I think returning with a steady income of $70-100k is probably enough, so need a few million saved.

This won’t be all that helpful, but I’m in early/mid 30’s, have been living in nyc, and have ~$6mm although mostly in deferred compensation and equity that isn’t immediately accessible. Outside of firm equity (which isn’t always straightforward to value), breakdown is $150k checking, $1mm home equity, $500k investments, $500k in retirement.

Although early on in my career it was very hard to save in nyc, most I was able to do was 401k stuff (tried maxing it out) and maybe $10k a year or so, it wasn’t until I got a few breaks and moved up in my firm that the income made it much easier to save a bunch.

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  • Associate 2 in HF - Other
Aug 2, 2020 - 3:24pm

Are your numbers from a joint account with your SO or only your personal account? (home equity, etc) ?

Do you have kids yet?

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  • Investment Manager in HF - Other
Aug 2, 2020 - 3:29pm

Numbers are individual (well really just divided accounts by 2 for simplicity as accounts are held jointly).

No kids, that would make saving in nyc much harder (depending on private school, etc), definitely affordable now with where we are in our careers, but would have been very tough 5-7 years ago (larger apt, daycare, etc adds up).

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  • Investment Manager in HF - Other
Aug 3, 2020 - 9:10am

I actually didn’t start in IB, to be honest in college I didn’t really understand the hype with IB (I was also pretty ignorant about it all - don’t know if it was just due to “back in the day” or whether I didn’t pay attention). That isn’t to say I didn’t recruit for it (although too late) but I had less of an interest in it and saw what it did to my friends (brutal hours, hated summer internships). Like I said I was a bit lost on what it all meant, and I didn’t really enjoy the accounting technicals, etc. I was very interested in trading markets, math/science, and some tech. I went to a “top/target” school, so I recruited much more along the prop trading and tech side of things.

So I worked at a prop place for a bit, then actually worked in a more tech “research” type role, and then moved to HF. So I skipped the B-school stuff, and luckily the brutal hours (although I probably work 60-70 hrs and did for a long part of my career, but that is nowhere near what some IB analysts have to do). I was introduced to the fund through a friend, and started off mainly just learning about some different asset classes and how it all works (had some understanding but wasn’t a specialist in any way).

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  • Investment Manager in HF - Other
Aug 4, 2020 - 10:43am

The $12mm is in equity or deferred (bucketing together, although to your second question they are different) - keep in mind I am combining with spouse (who has a high paying job and equity shares at her firm - so I am combining stuff a bit to anonymize, although maybe not that important).

As for taxed, most (60-70%) hasn’t been (as another poster called out) as that is the deferred portion, the equity portion is taxed/treated differently.

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  • Analyst 1 in IB-M&A
Aug 3, 2020 - 8:49am

30 y/o couple combined net worth and I am not blowing smoke (like that HF guy probably is) - $100K cash, $600K investments, $2M trust, $350K 401k. This is combined which is how you should look at it as a couple.

combined earnings around $700K

I still stress amount money every single day and live very frugally.

 
Aug 3, 2020 - 9:21am

Analyst 1 in IB-M&A:

30 y/o couple combined net worth and I am not blowing smoke (like that HF guy probably is) - $100K cash, $600K investments, $2M trust, $350K 401k. This is combined which is how you should look at it as a couple.

combined earnings around $700K

I still stress amount money every single day and live very frugally.

How do you stress about money with a combined household income of $700k.....

 
Aug 3, 2020 - 4:36pm

Leverage Hero:

Analyst 1 in IB-M&A:

30 y/o couple combined net worth and I am not blowing smoke (like that HF guy probably is) - $100K cash, $600K investments, $2M trust, $350K 401k. This is combined which is how you should look at it as a couple.

combined earnings around $700K

I still stress amount money every single day and live very frugally.

How do you stress about money with a combined household income of $700k.....

You don't know how long it'll last. That's how you stress out about it. Lots of high-earning couples can make that sort of money for a minute. Very few can feel confident they'll make that much for 15-20 years. If you get used to living on most of your $400-$450k after tax income, and you have $2M saved, you'll burn through those savings real quick if your income falls.

 
  • Associate 1 in RE - Comm
Aug 3, 2020 - 10:05am

26 yo, not NY, but just got a job in a t2. 3 years corp dev/strat in midwest F500, bought a house in cash, then sold it, paid for MBA at EU T10 with it. Worked a year in REPE as an MBA intern to maintain some cash during my MBA.

No debt coming out with ~$25K in savings. We’ll see how it progresses, but shooting for $500k NW by 30yo combined with my wife.

 
Aug 3, 2020 - 5:15pm

I'll chime in. Early 30 y/o here, married and one kid. Have always tried to live frugally and continue to do so to this day. Wasn't huge on "models and bottles" but pretty big on having nice meals, drinks and traveling. FWIW, when I say nice meals, I've been to many of the nice Michelin NYC restaurants, but also did a bunch of $1 slices, Halal Guys, etc. (good meals don't need to cost a fortune, but to each their own). For drinks, I didn't mind paying $18-20 for nice cocktails, but also enjoy going to happy hours to get $5 beers.

Started in IB (came from complete non-target) and still working in professional services. Still living in NYC, but not Manhattan (though not sure the virgins and kiddies of WSO know the difference but oh well).

Me and wife's savings/net worth below, just providing some rough figures:
-Cash: ~$250k
-Investments: ~$130k
-Property (apartment): ~$1.2m (with ~80% of it financed by a mortgage)
-Debt: $0

Float like a butterfly, sting like the bee.
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