Finance careers - good/bad/ugly?

Desi_by_Nature · Post by **Desi_by_Nature** » Tue Oct 23, 2007 1:56 am

For a while i've been curious to know if anyone here among us works in investment banking, hedge fund, pvt. equity firms etc?

Looks like after spending a couple years in IT, every other desi wants to get an MBA from a top B-school and move into finance and start raking in million $.

From the outside it all looks like a very high profile, lucrative career where third year analysts easily take away a couple hundred thousand $ in bonuses every year - perhaps much more than the average CEO of a non-financial midsize company would be earning at the end of his/her career.

But what's the real story (if there is one)? How is life like in these jobs especially for desis? this is one industry where every white man wants to be in - so i'm sure there stakes and rules for desis are not the same as they in IT. And what does it take to succeed in these careers?

Any thoughts? experiences? stories?

NoChaos · Post by **NoChaos** » Tue Oct 23, 2007 2:10 am

Desi_by_Nature;52806But what's the real story (if there is one)?[/quote]

It depends....

Although there is no difference between desi and non-desi. What you heard is partly correct & it depends what you are doing in this industry? Even some IT people in this area makes tons of money (aka quant). Bottom line is that you have to start it early(25s) and you must be from top 2-5 college. Otherwise base salary of AVP is around $100K and VP is around $120K. Bonus varies from 7% to 200%...

Desi_by_Nature · Post by **Desi_by_Nature** » Tue Oct 23, 2007 2:22 am

NoChaos;52811Bottom line is that you have to start it early(25s)[/quote]

And why is that? i mean what's the disadvantage for someone taking the leap from IT into a top B-school at 30 and then moving into investment banking?

This guy may have to start all over again, maybe even take a pay-cut but within 2-3 years he will probably be earning much more than his peers and exponentially more than them throughout the rest of his career.

MadMax · Post by **MadMax** » Tue Oct 23, 2007 2:33 am

I think this was covered in the MBA thread. The cost of a fulltime MBA from a top tier school in huge. Add to that the loss of pay/savings during the time doing the MBA. This will take a lot of time to recover...and may not make much sense from a financial perspective. It might make sense if your heart is set on it and this is what you want to really really do.

NoChaos · Post by **NoChaos** » Tue Oct 23, 2007 2:44 am

Desi_by_Nature;52814...exponentially more than them throughout the rest of his career.[/quote] I doubt about the exponentially word here (if not from top-tier). Is this your assumption or you have some real story :)

Desi_by_Nature · Post by **Desi_by_Nature** » Tue Oct 23, 2007 3:29 am

NoChaos;52818I doubt about the exponentially word here (if not from top-tier). Is this your assumption or you have some real story :)[/quote]

Stories are all over the place man!

Here's one:

http://www.businessweek.com/bwdaily/dnflash/content/jan2007/db20070108_913716.htm

some exceprts:

For example, dealmakers two years out of their MBA program can earn $400,000-plus a year in base salary and bonus, plus a share of company profits that can be worth much more

A vice-president three to five years out of business school can earn $400,000 to $650,000-plus in base and bonus, along with a multimillion-dollar share of profits. A partner can earn several million in base and bonus, plus millions more in profit sharing. The numbers tend to be larger at big firms.

The average managing director, the investment banking industry term for partner, is earning an average of $1.8 million to $2 million, according to Gary Matus of executive search firm Egon Zehnder. Team leaders and other senior bankers are seeing average bonuses of $3.5 million to $4 million, and vice-chairmen and other superstar bankers are earning bonuses of $20 million or more

NoChaos · Post by **NoChaos** » Tue Oct 23, 2007 3:54 am

Desi_by_Nature;52831Stories are all over the place man![/quote]
And I thought you want to hear real story not the reel story :emwink:. Put these number and determine how much profit you need to generate, how many people are getting this kind of salary? BTW I do know few desi dude whose last year 1040 shows around 500K AGI & he lives in 1BR apartment with other desi :emrose:.

DesBhakt · Post by **DesBhakt** » Tue Oct 23, 2007 5:11 am

NoChaos;52834And I thought you want to hear real story not the reel story :emwink:. Put these number and determine how much profit you need to generate, how many people are getting this kind of salary? BTW I do know few desi dude whose last year 1040 shows around 500K AGI & he lives in 1BR apartment with other desi :emrose:.

and on top of that the "desi dude" was married with a couple of kids :emsmilep:

Ok, I admit that's my imagination stretched too far.... but even the real life example you provided seems like a big extra stretched "bollywood plot" to me. But again, if it's true, every man has a right to do lead his life as he wishes.

Btw, I'm interested in this topic, although I haven't got much answer in the many efforts I have done in the last few years.. so keep going guys.

sunr2i · Post by **sunr2i** » Tue Oct 23, 2007 3:30 pm

I am in IT for top wall street bank. From my experience getting into business side is not that easy but not impossible. Also one does not need MBA, as long as you have strong understanding of financials. Though money is good, you have to spend most of the time in the office specifically when you are new to the business and should impact business bottom line and should be good in influencing others. I have seen many successful desis in my bank.

cyberabadi · Post by **cyberabadi** » Tue Oct 23, 2007 7:23 pm

Most of this is in the MBA thread but, anyways... I have been hearing from few friends in IB that things have not been that rosy lately.

There are talks that BOA will shut down their investment banking division, JPMorgan cutting jobs in IB division, Citi IB not doing well for a while. Bear Stears hit reallly really hard by Sub-Prime... and so on and so forth.Goldman Sachs is the only star out there and maybe a few other smaller hedge funds.