The Student Room Group

Can you make massive money in investment banking?

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Original post by Princepieman
The figures were for IBD (so FO).

You'd be right with that, yeah.

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Do you mind adding a column to your table, stating the number of years of experience one would normally need to have, to get to the respective grade.

On TSR people often talk about IBs pay the most but I was made aware that a partner in one of the Big 4 accountancy firms earn a whopping ..... £1m+!

Having said that, it normally takes around 25+ years WITHIN the same org and the main skill is not academic nor hard working ability but (unfortunately) your social skills.
(edited 8 years ago)
Original post by curiousquest
Do you mind adding a column to your table, stating the number of years of experience one would normally need to have, to get to the respective grade.

Often people on TSR talk about IBs pay the most but I was made aware that a partner in one of the Big 4 accountancy firms earn a whopping ..... £1m+!

Having said that, it normally takes around 25+ years WITHIN the same org and the main skill is not academic nor hard working ability but (unfortunately) your social skills.


MD takes roughly 10-15 years (depends on the bank, your performance and the division of FO you're in) to make and they're already on about a mil, give or take. On the chart, it pretty much delineates how long you spend at each grade ('Analyst 1, 2, 3' etc, the numbers indicate years).

Whereas, Big4 accounting partners take the same amount of time to make Partner, except, they'll be on £250k at the introductory partner level. It usually ramps up fairly well, but the only partners making £1mil+ are the ones that have been partner for 13+ years (i.e. 25-28 years of total experience).

Yep, that's fairly spot on regarding 'selling ability' at the top in IB too. Goes for any high paying industry really, you need to be able to sell yourself (and the organisation) to clients.


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Original post by Trapz99
Why is it not important? Most people go into banking for the money, and to a lesser extent, the opportunities.


Opportunities > money. When you work it out on a per hour basis, banking isn't much better than many other careers. On top of that, having a lot of disposable income doesn't mean much when you rarely have the opportunity to spend it.

Most going into banking are doing so for the opportunities after, whether it's buyside, other exit opportunities such as corporate development, FLDP programmes, startups etc or business school. Of my several friends starting at banks this summer, I don't know any who at this point intend to stay beyond 3-5 years. Furthermore, we all know the hours we'll be working will dictate our lives, and the opportunities to really enjoy the comp that comes with banking will be few and far between.
Original post by Princepieman
MD takes roughly 10-15 years (depends on the bank, your performance and the division of FO you're in) to make and they're already on about a mil, give or take. On the chart, it pretty much delineates how long you spend at each grade ('Analyst 1, 2, 3' etc, the numbers indicate years).

Whereas, Big4 accounting partners take the same amount of time to make Partner, except, they'll be on £250k at the introductory partner level. It usually ramps up fairly well, but the only partners making £1mil+ are the ones that have been partner for 13+ years (i.e. 25-28 years of total experience).

Yep, that's fairly spot on regarding 'selling ability' at the top in IB too. Goes for any high paying industry really, you need to be able to sell yourself (and the organisation) to clients.


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Anyone expecting to become MD in IB or partner in the big four without solid connections is deluding themselves: the odds are well against you no matter how hard you work. Most likely you give up 20 of the best years of your life to become a bitter VP or senior manager before they let you go. I really don't know why people fall for it, is it the money?
Original post by CharlieGEM
Anyone expecting to become MD in IB or partner in the big four without solid connections is deluding themselves: the odds are well against you no matter how hard you work. Most likely you give up 20 of the best years of your life to become a bitter VP or senior manager before they let you go. I really don't know why people fall for it, is it the money?


OMG Thank you! People don't realise the importance of connections in climbing beyond a certain point in the career ladder in high finance/accountancy.

The poster above Prajna was perhaps a bit hyperbolic but was on the right lines.

Talent will only get you so far.

You will probably NOT become a millionaire working in IB, and most likely you'll earn 50-150k before being laid off, or before resigning out of fatigue/bitterness.

This is the ugly truth.
Original post by CharlieGEM
Anyone expecting to become MD in IB or partner in the big four without solid connections is deluding themselves: the odds are well against you no matter how hard you work. Most likely you give up 20 of the best years of your life to become a bitter VP or senior manager before they let you go. I really don't know why people fall for it, is it the money?


True, but it does really depend on the division. In trading/sales you can point to how much direct money you've made for the bank as a scoring board but in somewhere like IBD/Research, it's more nuanced. You'll get office politics in literally any field that has a pyramid structure - it's not a new trend.

Definitely agree that people stall at the VP/Sr. Manager level.
Original post by Prajna
You should not have mentioned me little dove. I am now obliged to educate you.

Shall I walk you through a comprehensive business plan showing that you can probably make 50-150k from a car parts stripping business right now?


Er, that sounds great but seen as I don't even know how to drive, plus I've been working in finance for several years, I don't think it's necessary....

Thanks
The money they give you is a pittance, even if they give you a salary of £1,000,000 - it's still nothing.

You're supposed to use that money to make a hell of a lot more.


Original post by sweeneyrod
They're too useful to be hindered by regulation for too long, it's only a matter of time. I don't really know - I'm not that knowledgeable about financial matters, I just think they're pretty cool.


I'm going to read about this in detail.


Original post by Fickschlitten
You speak sense.

OP, what is your definition of 'massive amounts of money'.

Couple of mm? Possible
Bns? - No.


I meant billions, by learning how the investment banks and their clients make money at the highest levels.


Original post by Kiltennel
Never ceases to amaze me how people hear of the money and suddenly decide they want to work in investment banking, without any knowledge of the industry or roles. Best of luck with that, most of your competition have been preparing to apply for these roles for 12-24 months, longer in some cases.


You could just ace them.


Original post by leavingthecity
Why is it important?

Also, yes, front running is a great idea.


It's important because I want to learn how to make (at least) billions of pounds.

If front running is where you learn the most about how the investment banks and their top clients themselves make money, that's where I would want to be.


Original post by Jeena_hunt5476
Honestly in my opinion I dont think thats a massive amount haha


Same, it's nothing!


Original post by Feel Tha Bern
Unless you're from a really wealthy family, you must be delusional.


It really is a pittance.


Original post by leavingthecity
One old boss used to point at my Michael Kors watch and say "I've got one of them!"....

He had like a solid gold Rolex. Funny!!!!

People throw their Rolexes across the desk to each other to compare, they fly through the air and I hold my breath!


Your watch is worth way more than his solid gold Rolex, because he was stupid enough to pay much more than its worth simply because of its brand name. What a joke!
Original post by King Scorchy
The money they give you is a pittance, even if they give you a salary of £1,000,000 - it's still nothing.

You're supposed to use that money to make a hell of a lot more.




I'm going to read about this in detail.




I meant billions, by learning how the investment banks and their clients make money at the highest levels.




You could just ace them.




It's important because I want to learn how to make (at least) billions of pounds.

If front running is where you learn the most about how the investment banks and their top clients themselves make money, that's where I would want to be.




Same, it's nothing!




It really is a pittance.




Your watch is worth way more than his solid gold Rolex, because he was stupid enough to pay much more than its worth simply because of its brand name. What a joke!


Haha very funny now. I actually liked the way it looked that's why I bought it.
Original post by King Scorchy
The money they give you is a pittance, even if they give you a salary of £1,000,000 - it's still nothing.

You're supposed to use that money to make a hell of a lot more.




I'm going to read about this in detail.




I meant billions, by learning how the investment banks and their clients make money at the highest levels.




You could just ace them.




It's important because I want to learn how to make (at least) billions of pounds.

If front running is where you learn the most about how the investment banks and their top clients themselves make money, that's where I would want to be.




Same, it's nothing!




It really is a pittance.




Your watch is worth way more than his solid gold Rolex, because he was stupid enough to pay much more than its worth simply because of its brand name. What a joke!


Doubt you'll make a billion in anything, let alone finance. The big Hedge Fund founders are the only people that are going to break the £1b mark, but, you need billions to make billions. Without any credibility, track record or experience, no institutional investors are going to be giving you £10b+ to play with any time soon bud.

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Original post by leavingthecity
Haha very funny now. I actually liked the way it looked that's why I bought it.


Sweet (just like you!).


Original post by Princepieman
Doubt you'll make a billion in anything, let alone finance. The big Hedge Fund founders are the only people that are going to break the £1b mark, but, you need billions to make billions. Without any credibility, track record or experience, no institutional investors are going to be giving you £10b+ to play with any time soon bud.



You have little faith! Making billions is easy, I'm just working out the fastest way.

I'd make the money myself.
Banks make a small percentage profit on very large trades. This isn't applicable to your private savings.
Original post by Observatory
Banks make a small percentage profit on very large trades. This isn't applicable to your private savings.


Lol, they don't seem to understand that. Individual trading desks go through billions of pounds worth of volume per day at the big banks, a normal Joe Schmidt won't be getting anywhere near that volume in their lifetimes.

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Original post by King Scorchy
Sweet (just like you!).





You have little faith! Making billions is easy, I'm just working out the fastest way.

I'd make the money myself.


Good luck.
na all investment bankers r tramps.
Original post by King Scorchy
The money they give you is a pittance, even if they give you a salary of £1,000,000 - it's still nothing.

You're supposed to use that money to make a hell of a lot more.




I'm going to read about this in detail.




I meant billions, by learning how the investment banks and their clients make money at the highest levels.




You could just ace them.




It's important because I want to learn how to make (at least) billions of pounds.

If front running is where you learn the most about how the investment banks and their top clients themselves make money, that's where I would want to be.




Same, it's nothing!




It really is a pittance.




Your watch is worth way more than his solid gold Rolex, because he was stupid enough to pay much more than its worth simply because of its brand name. What a joke!


You're either a troll or utterly ****ing deluded.
Original post by Kiltennel
You're either a troll or utterly ****ing deluded.


Nope. Making a lot of money is very easy, if that's what you mean.
Original post by Princepieman
Doubt you'll make a billion in anything, let alone finance. The big Hedge Fund founders are the only people that are going to break the £1b mark, but, you need billions to make billions. Without any credibility, track record or experience, no institutional investors are going to be giving you £10b+ to play with any time soon bud.

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Ignore him, he's obviously trolling. The only people who think like that are the sorts of people who live in a really wealthy enclave where literally everyone you grew up with recieves a car worth 4x what most people earn in a year for their 17th birthday. and they don't talk like he does.


The truth is, that's more than most people on TSR will ever earn in a year, even at their peak salary. Investment bankers/those who took the exit opportunities will take home more than pretty much anyone who isn't either a celebrity or a top business startup.

inb4 'Im gonna make CFO' because you're not
(edited 8 years ago)
Original post by Feel Tha Bern
Ignore him, he's obviously trolling. The only people who think like that are the sorts of people who live in a really wealthy enclave where literally everyone you grew up with recieves a car worth 4x what most people earn in a year for their 17th birthday. and they don't talk like he does.


The truth is, that's more than most people on TSR will ever earn in a year, even at their peak salary. Investment bankers/those who took the exit opportunities will take home more than pretty much anyone who isn't either a celebrity or a top business startup.

inb4 'Im gonna make CFO' because you're not


Money is really easy to make, it's just that most people are unaware of how to make it.

I meant working for an investment bank to learn how they (and their clients) make money. But it was just a simple question - there are much faster and better ways of making a hell of a lot of money.

A simple way would be to live dirt-cheap, get as high a paying job as you can, start an excellent business (easier than you think) and devote your life to learning how to make more and more money, investing that money in the same or other ways.

Basically, it's easy to make billions - it's just that most people are ignorant (no joke).
Original post by King Scorchy
Money is really easy to make, it's just that most people are unaware of how to make it.

I meant working for an investment bank to learn how they (and their clients) make money. But it was just a simple question - there are much faster and better ways of making a hell of a lot of money.

A simple way would be to live dirt-cheap, get as high a paying job as you can, start an excellent business (easier than you think) and devote your life to learning how to make more and more money, investing that money in the same or other ways.

Basically, it's easy to make billions - it's just that most people are ignorant (no joke).


so investment banking lol ??

you are making it sound like a stroll in the park, when it really isn't. Starting an excellent business and making more money out of it then IB is a LOT harder than you think.

"its easy to make billions" LOOL that made me laugh

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