Wait....WHAT? This investment banking firm is only paying 70k base with 10-60k bonus??? So you're working 80-100 hours for a possible 80-130k, which sounds ridiculously small for IB. Also, are you only looking at IB in Houston? Maybe that's why it's so "low"...I guess I'm comparing to friends on wall street.
No state income tax and vastly less cost of living. NYC pay is no comparable at all. I guess you are not in finance.
That's a great way to lose the money you earn. 20 hours a week isn't enough to learn about stock trading. You have to put in the same number of hours he would be doing investment banking for a few years. Plus stock trading is much much much harder than investment banking.
Yeah you are correct. I didn't get into that. He is getting a pretty low ball offer from my understanding of investment banking pay.
Nah, that's pretty normal for first year analyst (though the signing bonus is on the smaller side, may be a regional thing). Base pay typically increases around 40% for year 2 (and beyond for the next few years), and bonuses can grow even faster. As for the original question, depends what you want. I have a few friends who did it, got out, and are happy, and others who are still in and miserable because of the "golden handcuffs" effect. Private equity hours are typically marginally better than banking hours. It's not like life gets a lot easier by any means.
This and this again. It all depends on what is more important to you. How much do you value money? How much do you value your free time? The decision really comes down to that. It seems like IB will lead to more opportunities later, but it comes with a price. At least the price does yield a higher salary from the jump, as opposed to law school or medical school.
It does depend on that. I wouldn't give up that much of my time to follow money. There are other things much more important. Not bashing A_3PO, just using your post for reference.
Yes the job is in Houston. Keep in mind if you make 50K in Houston you are considered middle class whereas in NY it is 126K. 70K is pretty standard for first year analysts. The only person I know making more is making 75K and 20K bonus in NY for Greenhill M&A. Wall Street should be paying more but once you discount cost of living Houston is more pay. I am still trying to understand how much the end of year bonuses are typically in Houston and how the pay looks after the first year.
That's my thought. There is no profession in this world that I would be able to enjoy enough to work those kind of hours. But, I'm not a live-to-work type by any means. I'd rather make less and work less as long as my needs are taken care of and there's enough left to save for the future and enjoy the present.
Not sure if you want a serious answer here. If you do, I would guess the median is pretty close to the average since ratings typically fall into a bell-shaped curve. The $50K guess is based on bulge bracket numbers, so can't speak to the middle market.
If money is his only goal, he can still get plenty of it in engineering. This all depends on his productivity, discipline, and willingness to live wherever.
If you really want money just become a doctor. Even if you are a crappy doctor you will make like 180k.
Alot of Caveats there . . . . Plus i think the top end is higher over in the Investment Banking Thing How much is eaten up by Malpractice Insurance not to mention stress and responsibility I think he was going medical . .. I'd point in the direction of Dentistry Rocket River
yeah, i was seriously curious. I had assumed investor bonuses would be a classic example of something highly skewed by a few.
Honestly not doing engineering is my biggest regret. For example if he does petroleum he can make 115 out of college. Mechanical will pay 90K salary out of college if he goes to a big oil company. Then he can get his MBA in Finance and make even more money, not to mention the oil company will pay for a lot of the costs of it.
