Will inherit USD 10m…no motivation

I will inherit USD 10m, and work in IB for the prestige at the moment. Should I not just fucking leave these +100 hours and do something I really enjoy in life? What the hell am I doing here.I like the title and position, but the work as an analyst / associate can be done by a monkey. Work at top BB and all the workflow I see is just really for monkeys…At University everyone wanted to do IB. Now I am here and it's a circus…plug in a ticker and suddenly I have 50+ presentation done automatically…..jeez

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Comments (57)

Sep 30, 2021 - 1:47am

But ya just leave the spot for someone else to become rich. Find something you enjoy and master it. Then invest the money in yourself. There's other ways to become rich.

path less traveled

  • Intern in IB-M&A
Sep 27, 2021 - 10:32pm

You will lose your early 20's as an analyst hoping to get a bonus of 1/100th (1%) of what you will inherit (assuming the record 2020 bonuses continue). I don't know why you would still put yourself through that. I would still work though, but find a job that will bring you more happiness, fewer hours and is associated with something you are more passionate about. If you don't find something that will occupy a significant portion of your free time, you are going to turn into a bum.

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Most Helpful
  • Analyst 1 in IB - Cov
Sep 27, 2021 - 10:48pm

The advice above is all misguided. You're goal should be to barely touch that inheritance so that your kids can inherit $100mm. Use your family's success at a motivating factor to work even harder. 

Sep 28, 2021 - 12:48am

I'd buy some rental properties with the 10M. Way better for passive income. Property values generally go up. You can even hire a prop manager or do it yourself if you want something to do during the day. can be done remotely too so you could travel and still collect passive income.

4-5% yield on that would be ~500k annually. 

Sep 28, 2021 - 2:13am

Irrational exuberance disagrees. According to Shiller, if you bought a house at the average price in 1895, you wouldn't recoup your initial investment until 2003 after adjusting for inflation. RE is good for receiving tenant rent, not for property appreciation.

Sep 29, 2021 - 3:00pm

This works off of a completely misguided understanding of how returns work in real estate.

For example if I invest 100K into a property that costs 500K today even leaving property appreciation to the side I would recoup that 100K in equity paydown by tenant in 12.5 years completely ignoring cash flow.  So this idea that it would take 98 years to recoup that money is a complete fucking joke. 

Sep 30, 2021 - 3:36am

Risk Weighted Ass

Irrational exuberance disagrees. According to Shiller, if you bought a house at the average price in 1895, you wouldn't recoup your initial investment until 2003 after adjusting for inflation. RE is good for receiving tenant rent, not for property appreciation.

Risk Weighted Ass

Irrational exuberance disagrees. According to Shiller, if you bought a house at the average price in 1895, you wouldn't recoup your initial investment until 2003 after adjusting for inflation. RE is good for receiving tenant rent, not for property appreciation.

This is false. You can tell that to my clients who bought properties last year at around 50M and are getting ready to sell at 70M this coming year... but when you adjust for inflation that 20M is still 20M . 2x equity multiple in one year.

Thoughts of a jaded CRE guy

Sep 30, 2021 - 3:36am

Risk Weighted Ass

Irrational exuberance disagrees. According to Shiller, if you bought a house at the average price in 1895, you wouldn't recoup your initial investment until 2003 after adjusting for inflation. RE is good for receiving tenant rent, not for property appreciation.

This is false. You can tell that to my clients who bought properties last year at around 50M and are getting ready to sell at 70M this coming year... but when you adjust for inflation that 20M is still 20M . 2x equity multiple in one year.

Thoughts of a jaded CRE guy

Sep 28, 2021 - 7:51pm

Good luck finding a favorable price/rent multiple in this market...

Passive income isn't that cool when accompanied by loss of principal. 

  • 1
  • Analyst 1 in IB - Gen
Sep 28, 2021 - 1:42am

I'd work (not necessarily in) until I was 28-30 and live off the money I'd earn from my job and let my $10 million double. Then I'd get married and do what that bucket list family does and travel. With 20 million you could live a good like off of $750k a year and not eat into the principle. Would be a hell of an experience.

Sep 28, 2021 - 2:11am

Leave IB. You already proved you can do it and can brag that you used to be an investment banker. Your only in your early 20's once, actually enjoy it b/c the poor fucks like me actually need to work to pay off debts and get to financial freedom. Your already there dude.

Plus, I hate all you rich fucks that go in just for the prestige but hate finance. Y'all increase the supply of workers and keep wages from rising to what they would if it was only finance nerds like me who actually like banking being in the industry.

Now go start a business or go into real estate while throwing party's on yachts with all your friends on the weekends. And enjoy it for all of us who can't do that shit.

  • Analyst 2 in IB - Gen
Sep 28, 2021 - 3:49am

Haha that's actually a really valid point. Why the fuck should I take up your position if I'm only in for the prestige. I'm out, fuck this. No one should be a slave however, speak up and get the VP to shit his pants. I did it several times just being tough and it worked.

  • Analyst 1 in IB - Cov
Sep 28, 2021 - 3:05am

Assume a lot of people on this forum have ran in to situations like this during their career/schooling.curious what the "right" answer is for someone in IB who is motivated to work hard/have a good career but not necessarily willing to slave away in IB/PE.  Feel like there's a middle ground between complete bum and hardcore finance career that has a lot of sacrifices, that many ignore because of the money. 

Controversial
  • Analyst 1 in IB - Gen
Sep 28, 2021 - 8:05pm

with the current economic policies of the the democrats, and vote rigging they do to ensure they continue to win elections, your 10mm will likely worth about 1-2mm today due to hyper inflation. but no more mean tweets so everything is fine.

id keep your day job op

Sep 29, 2021 - 9:56am

I have a proposition that will keep you motivated. You send me the money. If in 5 years you haven't that much in assets, I keep the money. Deal?

Never discuss with idiots, first they drag you at their level, then they beat you with experience.

Sep 29, 2021 - 9:49pm

10m is a lot of money. 10m also can disappear very quickly so… it's also not a lot of money. It's all relative really. You need a goal to work towards otherwise it's all for naught. What do you like? What are you good at? Find a happy medium and carry on. 

Sep 30, 2021 - 2:45am

As someone who develops algorithms to replace mundane tasks (not for trading algos), I would say 100+ hours is quite an accomplishment in itself

The title of being an analyst and associate, based on my own research is kind of a BS job...(I have no analyst experience in IB, this is strictly based on research and projects)... I find the whole junior analyst/senior analyst, junior PM/senior PM communication line to confirm trade success with traders laughable...

From the sidelines, it seems as though the analyst and traders do not like eachother lol. Furthermore, based on my development:

I find myself developing more "market-segmented" algos than ever before...however you can only have so many probabilities and trading opportunities.

There is nothing profound immediately on the surface, each scenario is based on common rules, to begin with. Quite frankly, there are so many channels that are left out of the equation because of the "project manager for XYZ org. knows better or senior staff want to go in this direction only" 

This doesn't bother me per say, however just like with any job, you start to see where there is room for improvement, and I'm not in the position to be throwing my weight around, as I'm only paid to do what is told to me.

With that said if you really are on top of the food chain, embrace that and go start a company, there are too many older thinking models that just are meant for the future. There will be a shift in regulations I imagine, to try to tighten the opportunities for innovation to just come in publically. However that doesn't stop private opportunities, and that is where I will am shifting my focus to, private firms only. 
 

My two cents: 

  1. Budget for 2021 - 2022 1 million and don't touch the 9million. You don't need a lavish lifestyle during this "covid recovery"...
  2. Find yourself traveling and just enjoy getting away for a while, go to places that are surrounded by people that have normal jobs. (less mental anxiety and ability to relax)
  3. You must get your brain right first, or else you will make some stupid decisions because you'll find yourself looking for "confirmation" not only in your career but in other areas.
  4. MOST IMPORTANT #1: I would find a way to leave your job without burning bridges directly, you never know when the connections you have made will come in handy down the road.

My prediction for 2021 - 2022:

- Excel data entry is great until APIs take over (which they have)...The only edge will come in private knowledge

- Presentations will be automated, it will just be a matter of rule-based data scraping and reporting

- Data scientists have already been replaced by algos

- Sales will be the growing occupation in IB, and portfolios will be more targeted and diversified

- A shift of investments in companies creating a direct impact on the "longevity" of humans and the environment.

just to name a few...
 

sorry for the long rant...I hope it helps a little.

  • Intern in IB - Gen
Sep 30, 2021 - 8:21pm

I'm in a place to inherit a similar amount of money and I disagree with almost everyone in this thread. My family is obsessed with all the kids working and I've always been raised with the notion that I will work until I am old enough to retire. Incoming analyst at BB and hoping to have a career in PE. Old money families will not allow their kids to not work… That's how your family loses its wealth.

  • Analyst 1 in IB - Gen
Oct 13, 2021 - 4:43am

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  • Intern in IB - Gen
Oct 13, 2021 - 8:03am

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