<p>dcfca-I never said explicitly or implicitly that it was easy.</p>
<p>Sheesh. Do I need a disclaimer for every single post I write?</p>
<p>polo:</p>
<p>why wouldn't ibanking get you to make a seven figure salary? do you know how much managing directors at banks make?</p>
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dcfca-I never said explicitly or implicitly that it was easy.</p>
<p>Sheesh. Do I need a disclaimer for every single post I write?
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</p>
<p>It's not that, it's the fact that in almost thread you just talk about it as if it's a cakewalk to get into HF's and PE.</p>
<p>Haha, do you know how HARD it is to be a managing director??? It's not even funny =_=</p>
<p>that's true, but the ones who do make it to managing directors make seven figure salaries. Polo was saying that going this route won't make you seven figure salaries. And if you get a job in trading and you're really extremely amazingly good you can make 7 figure salaries in your mid twenties.</p>
<p>Ok kids this year at Goldman Sachs there were over 10,000 job applications for 20-25 analyst openings. These 20-25 people are only offered a 2 year contract, and only about 5 of them will be extended a third year contract. These 5 will have the option of having their MBA paid for them if they promise to come back after getting their degree. Five years down the road, when the associate contract has expired, only 2 of these 5 will be promoted to the VP level. These VPs might stay VPs forever (most get a large bonus for quitting when they reach middle age though). Plently of time will pass until the partners find the most competant VPs to be promoted to the MD level. Lets say they took 5 years to find an MD. These 7 figure stars are 1 in 50,000. When you walk into work the first day as an investment banker, just think, 1 in 100 of the people making up the top 5% at ivy league schools with the top networking skills will eventually be making 7 figures. Your chances are better at the casino unless you were a true star at investment banking. Most people do other things less stressful but still rewarding such as hedge funds and PE after their 2 year contract is up.</p>
<p>Make a BIG Innovative Software and then start ur own Tech Company. If u want to become a Millionaire quickly, sell ur start-up to Microsoft, IBM, Google, etc... and become a multi-millionaire in 4-5 years. :)</p>
<p>lol ronty if only it was that simple!!</p>
<p>hmm... its simple :D Tech companies like to go crazy! ;)</p>
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why wouldn't ibanking get you to make a seven figure salary? do you know how much managing directors at banks make?
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The problem with this route is that it relies TOO much on someoneelse's review of you. It's very very easy to get blocked from promotion this way. Plus, if you're one of the supermajority that doesn't make it past their third year in Ibanking, you'll probably have to find another industry to work in.</p>
<p>That's why I say that engineering is the best undergraduate major. It leaves you many options. Then eventually, you can get your MBA. The difference between this and someone who was strictly an econ major with an MBA is that if you both don't make it in the Ibanking industry, the engineering undergrad will have more options than the econ undergrad.</p>
<p>
[quote]
that's true, but the ones who do make it to managing directors make seven figure salaries. Polo was saying that going this route won't make you seven figure salaries. And if you get a job in trading and you're really extremely amazingly good you can make 7 figure salaries in your mid twenties.
[/quote]
For the time that is spent working in the Ibank industry, its $ per hour return is not as high as some other methods. And on top of that, you don't learn anything that would allow you to stand out in other fields besides Ibanking.</p>
<p>
[quote]
Ok kids this year at Goldman Sachs there were over 10,000 job applications for 20-25 analyst openings
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</p>
<p>Uh, I find it highly doubtful that there are only 20-25 analyst openings a year at Goldman Sachs, simply because I can name about 10 people who were former GS analysts who are now at HBS or the MIT Sloan School. And that's just the people I know. I'm sure there must be plenty more people that I don't know. Granted, these 10 people didn't all get into GS in the same year, but still.</p>
<p>I think maybe there are 20-25 analyst openings per year for one office of GS. But GS has many offices.</p>
<p>
[quote]
Five years down the road, when the associate contract has expired, only 2 of these 5 will be promoted to the VP level. These VPs might stay VPs forever (most get a large bonus for quitting when they reach middle age though). Plently of time will pass until the partners find the most competant VPs to be promoted to the MD level. Lets say they took 5 years to find an MD. These 7 figure stars are 1 in 50,000.
[/quote]
</p>
<p>I believe that a logical mistake was made here. You seem to be presuming that only those 5 people who worked for GS as analysts will be able to become associates. Just off the top of my head, I can name 5 people graduating from MITSloan who were offered associate positions at GS (although they won't all take the offer, for example, I know at least one of them has turned down GS to enter a doctoral program). None of these people had ever worked for GS before. And that's just the people I can think of right now, and just at Sloan. If I include HBS, that will obviously include plenty more people. </p>
<p>Also, you presume that if only 5 people are offered thee opportunity to hang on for their 3rd year and then get their MBA's paid for, that the other 20 are out of the industry. Hardly so. Many of them will get their MBA's (paid for by themselves) and then become banking associates. Just because you don't get picked for that 3rd analyst year doesn't mean that your banking career is over. Far from it, in fact. I know a number of people who never got an offer for a 3rd year and yet are graduating from B-school and going right back into banking. Some of them are going to GS. </p>
<p>Furthermore, the biggest factor you are neglecting is that you don't have to work at GS. GS is not the only game in town, you know. There are a number of other bulge-bracket banks. You might not get hired at GS, but you might still get hired at MS or ML or one of the others. You can become a millionaire at those places too. In fact, GS is actually one of the LOWER paying bulge-bracket banks precisely because GS knows that people will take lower pay from them just to get the prestige of working for GS, because they know that prestige can translate into greater pay from some other bank down the road. </p>
<p>Look, we all agree that banking is a tough industry. Nobody disputes that. But there's no need to overplay the difficulty,</p>
<p>Read these books:</p>
<p>"The Millionaire Next Door" (1996) & "The Millionaire Mind" (2001) are not How To books. They may however, correct some of your misconceptions about millionaires. They may also provide some keen insights. BTW, youll have a tough time buying that $15M house on a $1M salary. With an after tax net of approx $50,000/month, it will take 3 years just to save a 10% down payment (provided you remain frugal). But, you still wont be able to afford the monthly mortgage payment on a 30 year mortgage. Of course, dont forget your maintenance costs. Theres insurance, heating, electricity, etc. And I suppose youll need to furnish it as well? And eat?</p>
<p>After youve read them, then perhaps you can make a more informed decision about your career goals. BTW, someone on this thread mentioned becoming MD at GS. My brother-in-law is a Managing Director at Credit Suisse. He works 24/7. I wouldn't trade places with him.</p>
<p>GS in New York hardly recruits outside of HYP MIT NYU-Stern Columbia and Wharton.</p>
<p>doesnt matter, they hire more than 25 people</p>
<p>No, Banker88, they take from Baruch too. =)</p>
<p>Keep in mind that just because they might recruit at certain schools does not mean that all those positons are for front office. Some can be back or middle office.</p>
<p>What's front/middle/back office?</p>
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GS in New York hardly recruits outside of HYP MIT NYU-Stern Columbia and Wharton
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</p>
<p>Nah, that can't be true. I know several people from both Berkeley and Stanford who got to GS New York. I am almost positive that I heard Alexandre said that they come to Michigan.</p>