Quick Questions about Investment Banking:

College Majors Business Major
1

<p>hey,</p>

<p>I have been thinking recently that if I make it into an investment bank, would it be possible then for me to work at the bank for a few years (say like 4 or so), use the excess money that I earn from the bank as savings, and then quit the firm and change careers (ie if I get an engineering degree, continue work as an electrical engineering manager?) I think that investment banking would be an interesting occupation, but the problem is, I'm not sure how much I would like working 120 hours a week for the rest of my lfie, so I'd like to quit working there after awhile and continue working in another career with less stress. The only reason I'd do investment banking for X amount of years is so that I can earn whatever luxuries I want, and then continue living life.</p>

<p>My questions are, is this scenario possible? Do many people do it? If so, how much do they normally work at the bank for before quitting and pursuing other interests?</p>

<p>Also, in my case, since I want to do a degree in engineering possibly, are engineering firms usually good about hiring someone who did I-Banking and now wants to be manager?</p>

<p>thanks (I know thats a TON of questions, but I could really use ur help!)</p>

2

<p>This is a horrible idea on so many levels.</p>

3

<p>You've got such little knowledge ibanking and very little resourcefullness so I personally think that you need to reconsider if you can even GET INTO banking. </p>

<p>Don't count your chickens before they hatch.</p>

4

<p>
[quote]
My questions are, is this scenario possible? Do many people do it? If so, how much do they normally work at the bank for before quitting and pursuing other interests?

[/quote]
</p>

<p>1) Yes</p>

<p>2) Yes</p>

<p>3) 2-3 years</p>

<p>Ibanking has very high turnover. Many ibanking analysts will stay at the firm for 2 to 3 years and then leave to go get their MBA. After their MBA, a reasonable amount of students will pursue more lucrative and/or less stressful ventures whether it be in other areas of finance (Venture Capital), starting their own company, or a host of other possibilities.</p>

<p>
[quote]
Also, in my case, since I want to do a degree in engineering possibly, are engineering firms usually good about hiring someone who did I-Banking and now wants to be manager?

[/quote]
</p>

<p>I am sure that there will be many opportunities for this after you receive your MBA (which, IMO and many others, is the best thing to do after your 2-3 years at an ibank)</p>

5

<p>redsox, read his post again</p>

<p>He's planning to move in to engineering after a 3 year stint at an IB for which his only motive is to earn money.</p>

6

<p>
[quote]
redsox, read his post again</p>

<p>He's planning to move in to engineering after a 3 year stint at an IB for which his only motive is to earn money.

[/quote]
</p>

<p>His plan needs a little mending (get the MBA after being an ibank analyst). His motive is partially faulty (earning good money (not for the amount of work you put in though) is a nice perk of investment banking and will help to pay for the MBA).</p>

<p>Obviously ONLY doing it for the money is not a good reason especially when you are being interviewed (even if the people interviewing you are money whores, which they probably are). You need to embrace the other perks that go along with ibanking if you want to unlock the forceful drive within you.</p>

7

<p>mtrizzle06: Uhhhh I acknowledged that I might not be able to do I-banking just because its hard to get in. Secondly, how can you say I have little "resourcefullness" even though you dont know me? This is especially great coming from someone who can't even spell correctly, so quit being a d-bag. I know u and jnpn are being a-holes because I said that I want to do i-banking for the money, but if you look at what I want to do afterwards, you can see that I want a job afterwards that I'll enjoy (which is engineering). Money IS important to me, which is why I would like to work at an I-bank, pick up some extra cash, some unique job experience, and then go. If you find that superficial, then too bad for you.</p>

<p>Besides, as red sox says, many other people also do this because of how hard i-banking is, so go flame them. Either you two can be tastefully critical, or not atrophy your phalanges typing flames that I don't care about.</p>

<p>Red sox: so from what I understand, you are saying that its totally possible to become manager as long as I get an MBA before I go to an engineering firm. But what are the less stressful venues that people normally pursue after i-banking, and is engineering a common one? Also, in regards to your latest post, money isn't THE SOLE reason I want to try i-banking for a bit, although it is a fairly large part. I DO enjoy the analytical skills it takes, and I think that it would be somewhat interesting to pursue for a temporary period of time, and as I mentioned, it would be great for becoming manager or for other competitive jobs because I-banking is such a unique field.</p>

8

<p>"If 'ifs' and 'buts' were candy and nuts..."</p>

9

<p>california don't take flames personally its just constructive criticism. to answer your question - no don't go into engineering, just MBA and move to a less tense industry that pays some decent $$$$$.</p>

10

<p>MK: Yeah I dont usually, but when someone assumes that you aren't "resourceful" (hence implying that I'm stupid) without even knowing a person, then how else can you take it. Yeah I know I'm not a super applicant, but I'm not THAT dumb either.</p>

11

<p>california_love8-</p>

<p>If only life were that easy.</p>

12

<p>First of all, I've never heard of anybody doing banking for 4 years and then quitting. I've heard of people doing it for two years, and then moving to another field in finance, but never four years. Actually, when I come to think of it, I don't think that there is any four year path in banking. There is a 2-3 year stint for analysts, and then a 2-3 stint for associates. But analysts don't automatically get promoted to associate, unless they are a superstar among superstars. If you're banking on being this superstar, you really need a reality check.</p>

<p>Secondly, analysts do not work 120 hour weeks. 120 hour weeks amounts to working about 17 hours per day for 7 days, which is in itself unheard of. Bankers are overworked, but NOBODY works that hard. There may been one or two weeks during their whole careers when they work 120 hours, but 120 hours is ridiculous. The only other thing that is comparably unimaginable is pulling a 34 hour shift straight through two days, of which one of my friends did during a major deal. Trust me, research a bit more and you'll find that 120 hour weeks do not happen.</p>

<p>Thirdly, if you're thinking analysts make "bank", you're wrong. A 3rd Year analyst at a major BB in the top bucket will make under 200k, which will probably go up in the time you graduate college (and I assume that someone like you is still in HS. You're forgetting the living expenses that you'll have to take care of, paying rent, paying off your loans, etc. Even if you made 200K for all "FOUR" years that you spent in banking, you'd have a mere 800K. And take away 44% of your salary and 60% of your bonus (NYC's tax rates) and you've got about 370K net. Now, assuming you're a hermit, which you probably are, living expenses, including rent, will be 2K per month, at the very least, esp. in NYC, you have less than 270K. IMO, one cannot live comfortably for the rest of his/her life based off of "FOUR" years in banking. </p>

<p>I'm also taking into account that you won't burn out or get fired during your FOUR YEAR stint in banking, even though ~90% of an incoming analyst class will leave within 3 years. If you do anything for the money, then you're eventually going to burn out.</p>

13

<p>California: I would highly advise you not to go into ibanking if you're looking to "quickly" make a lot of money. In reality, bankers aren't going to be able to save the big bucks until they get to the senior associate/VP rank (This usually takes about 6-7 years +MBA time). The bankers who make the big bucks are ones who stick with it for the long haul.</p>

<p>If you want ibank paychecks but less hours worked overall, consider going into trading.</p>

14

<p>Why bother even responding and giving advice to this kid. He can't appreciate mature criticisms and seems from the original post doesn't have a clue what ibanking NOR electrical engineering entails. It'd be hilarious to hear this kid go around throwing insults like "a-holes" and "d-bags" at his associates and director. </p>

<p>An IBank isn't a free ATM machine where you "pick up extra cash." Turning over to EE afterwards will put you at several years of disadvantage behind other engineers. Getting an MBA will just sink you deeper in the trench you won't get out of--kiss your engineering career goodbye, $$ whore.</p>

15

<p>Sergio wins this thread.</p>

16

<p>
[quote]
$$ whore.

[/quote]
Isn't that why people go into Ibanking?</p>

17

<p>170K is a nice starting compensation first year out of college though, I must admit</p>

18

<p>Starting? Maybe in your third year of IB, you might get something like that.</p>

<p>Average starting is around 100K, not 170K</p>

19

<p>Sorry bro, this isn't 2004 anymore, its 2007. I assure you, median for top BB's is 170-180 for 1st year analysts</p>

20

<p>
[quote]
I assure you, median for top BB's is 170-180 for 1st year analysts

[/quote]
</p>

<p>I can more assuredly assure you that YOU are wrong.</p>