Which Option to Choose - Unique Situation

long time lurker, first time poster

brief background
graduated from top school in 07, spent a yr of so at top BB in hy research, laid off 6 months ago, live in NYC

currently considering the following options

option #1
continue living in the city/looking for a job -- ideally at a distressed debt hf
pros - have great apt in city, friends close by, distressed hf ideal job
cons - hf arent really hiring, high costs of living on unemployment alone, eventually have to accept job that isnt ideal only paying 50-60k per yr

option #2
move to miami to start energy drink with friend from college and his older sister
pros - live in miami (sun + talent), dont have to sit behind a desk, upside is huge
cons - move to miami away from all friends/family, no income for 6-12 months, could spent 1-2 yrs and see no results/$$

option #3
move home with parents, work for fathers company (small internet retailer)
pros- save $$ living at home, upside at business (start own division/get equity in firm/eventually take over, etc), commuting distance to nyc (can go into nyc on wknd/go in for interviews as needed)
cons- living at home with parents

i am also considering applying to bschool in the next few years and want to keep that in mind when making my decision. clearly there is no clear cut answer here, but curious to hear peoples thoughts, very torn right now.

 
Best Response

My two cents:

In your option #1, if you already have that 50-60K job lined up, you should take it and run. The job market is so miserable these days and you should be glad to find a new job. Personally, I think that ideal distressed HF job may not come to you in quite a while. Even though 50-60K is not as much as what you used to earn at BB, I think that should be enough for you to live in the city comfortably.

Btw, if that 50-60K is not there yet, don't assume it. The reality is, many laid off ex-bankers and ex-traders cannot find a second job, not because of their qualification, but the frozen job market. I have many friends in a similar situation (few mth/1yr/2yr IB exp and got laid off) and most of them are struggling to find a new job.

 

OK you obviously have never been to Miami or have no faith in your energy gig. Miami is by far the best city of the three and not to mention you won't need much money to live like a king in Miami these days. I have a place in Miami and go down there 2-3 times per year. Cost of living there is ridiculously cheap now and not to mention the scenery is beautiful. I would live there in a second if I had a legit employment opportunity down there. I know this option is the riskiest in your mind and seems the least likely but if you do it you will not regret it.

AM
 
lkb8am19:
OK you obviously have never been to Miami or have no faith in your energy gig. Miami is by far the best city of the three and not to mention you won't need much money to live like a king in Miami these days. I have a place in Miami and go down there 2-3 times per year. Cost of living there is ridiculously cheap now and not to mention the scenery is beautiful. I would live there in a second if I had a legit employment opportunity down there. I know this option is the riskiest in your mind and seems the least likely but if you do it you will not regret it.

i was in mia once briefly but never partied there or spent lots of time there. going to head down in a few weeks to meet with my buddy and his sister and see how viable this idea is. how much less is the cost of living in miami vs nyc (ie i pay ~1700 a mo in nyc for a decent enough place in a good area) -- what are rents like and are restaurants/bars/etc comparable in prices or cheaper

 

the 50-60k job is not lined up, thats why i am strongly considering options #2-3. ive had a bunch of interviews at jobs recently that i wouldve scoffed at 2 yrs ago that i assume would pay in the 50-60k range with no bonus.

outside of a few one off opportunities, the only area in finance i continue to see active recruiting for is retail brokers, which after doing for a summer, i refuse to do again.

 

I mean you can do your research, not sure what area your looking at, SOBE or Downtown, but I will put it this way, we rent our 3-Bedroom pad bay-front not beach front, in the poshest condo in Miami for 4000 and that includes everything except for electricity. So if you are looking for a decent 1 bedroom you can probably find that for around 800-1100. It all depends on the location and building.

AM
 

The energy drink market is yes, probably oversaturated. And yet...it sounds like it'd be fun. If you eventually want to get an MBA, this would be the kind of thing they'd eat up. If you're lucky, you'll be really successful. If you're not, you can go to bschool and hit reset. And then in 20 years tell your kids about how their crazy dad moved to miami for two years to start a company.

Option 1 sounds unrealistic; going to be pretty tough to find a new job. Option 3 sounds boring, and will still be there for you in 6 months to a year if Miami doesn't work out.

 

2 sounds like what i'd do for the following reasons:

a) it's fun as hell b) it's a big contrast to the long hours and structured lifestyle in ib c) it's something you can speak to as far as pursing an idea, developing a business plan, learning how industry works behind the scenes yada yada that might be helpful if things don't work out and you apply to grad school

just my 2c, but what do you have to lose (besides a few grand which in the big picture is nothing)? i'd look at it as though i deserve a long vacation after the stress and grind in ib. do something fun while you're still young. the markets will recover and jobs will open up eventually -- enjoy this opportunity while you have it.

 

I would rule out 1 b/c you can just do #3 while still looking for a job in the city, and save some money along the way.

2 or 3 depends on your financial situation. If you can afford to lose some money and start over in a few years if it doesn't work out. Then definitely do it cause it'll be a unique experience of a life time.

but if you need a steady stream of income or if you're already in debt or some thing, then do 3.

 

I think that option 1 would put you in the same bucket as tons of other former finance professional fighting for the same non-existent job in NYC. Go for 2 or 3, depending on the details - how do you feel about the energy drink opportunity, how much capital do you have, etc.

 

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