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Indeed, I will be graduating next year with a Master's degree in Economics. I have already held 2 positions in consulting where I made more than the 55-60k range you quoted (no bonus though) so that would be unacceptable. I was hoping 100K would be realistic, but certainly would expect at least 80K.
I'm not the most knowledgeable about how positions are divided up at banks, but I am interested in the research side, hopefully doing some like macroeconomic research (trends analysis, stuff like that).
How is your lifestyle btw as it seems you are mid-level? Better balance than juniors?
Quote:
Originally Posted by SKooT1027
Depends on the bank. Most people have to do the IB route for at least a year or two before being marketable to other positions. It's a teaching program, and also used to weed out people that can't handle the lifestyle.
That said, I'm at a hedge fund and never did the IB route. I can't speak first hand on what they're current paying. My guess, for a jr analyst type role for someone right out of college, is a 55-60k base with a bonus anywhere from 25-100%.
And not to sound negative, but if this was a path you planned to persue, you are starting WAY too late. That alone will be a big negative (like I mentioned, you missed this year's recruiting).
edit: sorry I re-read your first post. Are you graduating this month, or in a year? I took it as you are graduating now and looking to start working in the next couple months. Also saw you said grad degree, and not just a bachelors, that will help and alter my comments so far. Masters/MBA candidates are not in the same analyst training programs as bachelor candidates
Indeed, I will be graduating next year with a Master's degree in Economics. I have already held 2 positions in consulting where I made more than the 55-60k range you quoted (no bonus though) so that would be unacceptable. I was hoping 100K would be realistic, but certainly would expect at least 80K.
I'm not the most knowledgeable about how positions are divided up at banks, but I am interested in the research side, hopefully doing some like macroeconomic research (trends analysis, stuff like that).
How is your lifestyle btw as it seems you are mid-level? Better balance than juniors?
Okay you're in better shape than I initially thought. For starters, if you have the summer free, try to line up an internship. The more experience, the better. Also, keep an eye out starting in the early fall (like October) for the banks to be recruiting. They do hire outside of their main recruiting periods, but not nearly as frequently.
Salary info I gave (which like I said were estimates) were for jr people out of undergrad with no experience. You need to realize that bonus, not salary, provide the majority of compensation if you plan to become an investment professional. In fact, very few people I know who are not senior members make over $100k base. That said, their annual comp is not $100k, that is just their salary. With a masters degree, making $80k or more should be no problem in this industry. However, if you're in a role that is internally budgeted for $150k (hypothetic numbers), don't expect a $150k salary, but more like a $70-80k salary with the rest coming from your annual bonus. Alternately, say you were going for something more like an Accountant role, also at $150k annual, there's a good chance your salary would be around say $110-125k, and have a much smaller bonus to bring you up the rest of the way. The reason being is that investment professionals total comp is more significantly impacted by their and the firms performance, thus larger portion is bonus based, than back office where their actions don't really impact the performance of the firm; they shouldn't be hit as hard on down years, nor expect as large a bump on up years.
As for myself, I'm actually in more of an operations role at my current company and still relatively young (graduated undergrad about 3 yrs ago). I plan to go back for my masters in the next year or so and transition to the investment side. However, lifestyle again depends on the position and the firm. For an IB, expect 80-100hr weeks for the first year or two. Even with a masters, you're going to have to put in your hours. For smaller firms, it can be better or worse. Personally, my firm has a relatively good work/life balance in comparison - for all positions. Other firms I know are even worse than IBs bc of the limited personnel. However, compensation is usually better outside of the BBs - but like I said, in order to get out, you usually need to put your time in there.
Long story short, I wouldn't worry about making under $100k if you get into the type of role you're looking at. Focus on being a great candidate and learn to interview, because you're going to be competing against people with similar (some better, some worse) credentials as yourself.
What do I-Bankers actually do? Create spreadsheets? Write memos?
Play golf and smoke cigars.
Really, it's quite a long answer as there are multiple areas that they can work. Wikipedia probably has a decent summary if you're interested in reading it
^How late is too late to begin a career in the finance and banking industry? I have an AA in Finance but I dropped out afterwards and had a child. I am now 27 and started to continue my education in this field a year ago to obtain my BA, plus I would also like to intern starting next year. Am I past the age mark? Are there not any "late bloomers" or old people in this industry? I also have plans for a Master's. Thanks.
^How late is too late to begin a career in the finance and banking industry? I have an AA in Finance but I dropped out afterwards and had a child. I am now 27 and started to continue my education in this field a year ago to obtain my BA, plus I would also like to intern starting next year. Am I past the age mark? Are there not any "late bloomers" or old people in this industry? I also have plans for a Master's. Thanks.
Most of the older people in the industry that I know of have been in since their 20s and are now relatively senior employees. There obviously isn't a legal age limit (bc it would be discrimination) but they have ways of limiting who they bring in. If I had to suggest what I think would be the best path, and assuming you're not currently in a top 10 business school, is to get into a top 10 business school for your masters. Many banks recruit new hires from only the top schools, basically by limiting applicants to their training programs to only people found from on campus recruiting.
There is a large portion of finance that has nothing to do with banking/investing, and large portions of banking that is outside of their trading floor. My suggestions are for if you're looking to get on the invest side. If you don't want that lifestyle (I don't recommend it if you have a kid, unless you have a wife that plans to do most of the raising and won't mind not seeing you much for 2 years), there are plenty of opportunities w/in finance/banking that don't require ivy league degrees and terrible hours. They also don't require the same sort of internal training, and recruit more openly all year long.
Thanks for the insight! By the way, I am a woman/mother. It's OK though. I have always wanted to go to NYU. I actually wanted to transfer there for my BA but life circumstances as of now wouldn't allow it. Do you think you can direct me towards a job in this field that is more fitting as a parent of a very young child? The schedules of the trading floors, analysts etc require around 60 to 70 hr work weeks, which I can only submit to when my son gets older.
Thanks for the insight! By the way, I am a woman/mother. It's OK though. I have always wanted to go to NYU. I actually wanted to transfer there for my BA but life circumstances as of now wouldn't allow it. Do you think you can direct me towards a job in this field that is more fitting as a parent of a very young child? The schedules of the trading floors, analysts etc require around 60 to 70 hr work weeks, which I can only submit to when my son gets older.
My apologies. Banking is such a male dominated profession that I just assumed you were a male.
To direct you toward a certain position would be difficult without knowing what interests you and where your strengths are. The best approach would probably be to contact someone in the career development area at your school. Also, if you're unsure of exactly the path you want to pursue, another approach would be to go work for a huge company (something like GE) and see what you like. They often not only have more positions, but a very wide range of positions. They also are better at providing any training you may need, as well as opening up options to branch to other positions should your interests change. Many people I work with or have worked with started in a corporate finance position prior to transitioning to banking/hedge funds. The hours will also be much better, often typical 40 hr weeks with potentially flexible hours (which could help with a young child). In comparison, aside from administrative assistants and a few older employees, no one at my firm works 40 hr weeks. A slow week for me is 45-50 hrs, and busy weeks have broken 80. Each role is obviously very different, but the 9-5 life doesn't really exist here.
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