Should I pursue IB if I already have a nest egg?
Hi, all. I'm a 2018 HYP graduate who initially pursued law after graduation via a 9 month legal aid clerkship.
After finishing the internship, I decided against going to law school in favor of recommitting to finance.
In the middle of my accounting and valuation review, my dad became terminally ill with cancer and I spent the following 1.2 yrs handling his care, death, and estate.
When he died, I inherited a low-mid 7 figure sum, which is managed by our family office and will grow/compound in perpetuity.
I'm not relying on my investments to live and want to take full advantage of compound interest in growing the inheritance.
I have the option to work in CRE finance or commercial insurance underwriting, both of which pay decently and have far batter work life balance than IBD.
At this point, it's hard to justify ~90hr weeks when I'm not depending on a career to build wealth.
Is b-school and/or IBD worth it for me? Should someone with money spend their 20s in this career?
My college buddies say normal IB grind + work form home/covid has made the "life" untenable.
What more, if anything, would I gain from this path?
Yeah I think it would be insane for you to do IB. if you’re in your early 20s now, that nest egg will easily reach 10mil by the time you’d start thinking about raising a family in late 30s/early 40s. You are going to be a rich man no matter what, so what kind of rich man would you like to be? If you say banker you’re a goon.
Thanks, man. I swear this isn't a troll post. I've spent my whole life chasing "prestige" and never expected to become wealthy early and from tragedy.
I feel like ibanking wouldn't be worth the hassle, but that other options don't carry prestige commensurate with my past expectations/education. Truthfully, I find insurance, and especially the specialty commercial lines, to be pretty interesting.
IB could be good experience, but if you dont think its worth it then dont. Hell, if i was you i'd pursue a passion and then start to build a RE portfolio with some of the money while letting the rest compound...could keep you busy and end up multiplying your wealth.
But good experience for what exactly? PE? What would that deliver for me other than more money. I'm not sure that the incremental dollar is worth the lifestyle sacrifice when I don't really have an intrinsic passion for corporate finance.
I mean, working hellish hours as a 1st year for an extra $50k seems goofy to me...
I would do what you are genuinely interested in. The good thing about an inheritance like this (putting aside the family tragedy that led to it in the first place) is that it de-risks your career path and gives you the freedom to pursue what you are interested in vs. chasing the golden handcuffs.
Damn I was born in the wrong family
This young king literally lost his father. I did some precedent transaction comps and through the annals of history, the best comp is King Tut and his father Akhenaten. The young king died 10 years after gaining his nest egg, at the age of 9, was inbred, malarial, weak and impotent. I don't really know where I'm going with this but my analysis suggests tragedy.
Yikes...
I’d do IB for less than 6 months if I was you. You learn 90% of the stuff in 6 months and you won’t kill yourself. if you like re investing, maybe do re pe. At that level, so what you like
It may be a good opportunity to learn about how the other side lives, relatively speaking. It sounds like you’ve had a fairly privileged life and being in the trenches could provide perspective. Just my two cents.
Sorry about your dad, but dear God, do not do IB. So many other interesting paths you can go down that won’t suck your soul from you.
Only reason im doing IB is because my family is poor as fuck, so I need money to help them out and start my own family some day. If I were middle class and my parents had their own savings, I would never do banking. And im not smart enough for some quant job
I feel you. As a humanities major with no STEM inclinations, IBD would have been the most lucrative path for me sans grad school. However, in college, I missed the boat during OCR and wasn't interested enough to put the legwork into networking. As an off-cycle post-grad prospect, my opps would have been really limited anyway. Prob a false choice to even consider, but I was trying to decide if the goal was even worth pursuing.
Me to :) my ass would have become some sports trainer or something, game developer
What's with all this rich kids and their posts recently?
"DaD iS a TrIlLiOnAiRe BuT i WaNt To Do Ib" head ass. Go ask your damn butler and fuck you!
No, do not do IB. /close-thread
Sorry for your loss. Having that sum of money means only one thing—that you’re free to choose a career than genuinely interests and excites you (I.e. not chase $$). If you think learning the banking industry via IB and working those hours is of value to you, then do it. If not, choose something else. Unlike a lot of people on here, you have the luxury of quitting at your convenience without worrying about the money. So if you’re so curious, why not try it and just dip if you hate it?
I feel like it’s the network and opportunities that IB offers (not the money), which paired with trust fund wealth could position you and your family really well. Though I guess that not an issue haha. Idk I’d still pick prestige
Don’t pursue IB. I was in a similar situation (dad has ~500M net worth) and made the mistake of going into Investment Banking. I was the top performing analyst in my group, and I quit. It is already terrible if you’re truly motivated by the amount of money you would make in the job, but becomes unsustainable if you know you don’t have to do it. I’ve learned nothing truly significant, got depression and anxiety from the job, and my physical health has also taken a significant toll. I can’t in good faith recommend this job to anyone, let alone those who don’t need this money. Seriously, rethink how you can use this safety net you have to work on something that makes you happy. The “prestige” the comes with IB is not it, the job is mind-numbing, and you really don’t want to risk end up mentally as bad as I did. I’m lucky to be alive, and I know other friends of mine are in similar situations, and also very close to quitting.
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