Investment Banking vs FA

or Register to post new content in the forum

 

Comments

  • Allowed HTML tags: <em> <strong> <blockquote> <br> <p>

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.
Nov 9, 2009 11:30 pm

Hey guys,

If you had the opportunity to be an investment banking analyst at a bulge bracket firm or a FA for a UBS/MSSB, which would you choose?  Also, put yourself in the shoes of someone who does not want to move to New York.

If you were confident that you could be a successful FA, would you give up the job as an investment banker, and why?  I'm just trying to get some perspective. 

Even if you knew you would be a successful advisor, would it be a good idea to do investment banking for a few years to build up your credibility if you are young (20's)?

Also, how feasible is it to get into a top-5 b-school from advising?  I'm guessing it's pretty difficult, but do any of you know anyone who went from advising to HBS, Stanford, Wharton, etc?

Nov 10, 2009 9:19 am

If your career plans include Bschool, then IB is the way to to go.  While you may work in NY, you don't have to live there....

 
You can always migrate to the FA or Institutional Equities side if you want to leave IB. 
Nov 12, 2009 8:46 am

I would absolutely take the Ibanking job and work for at least 1-2 years. If you are young, ibanking is great resume' material. If you decide you want to be an FA, with 2 years of banking experience you would have an easy time finding a job.

Then, if it doesn't work out (like 95% chance of that), you will still have a strong resume.

Nov 16, 2009 8:18 pm

Thanks for the responses.

 
I know that I have a huge opportunity, and I'm going to take it.
 
I have just been questioning my decision because of a guy I know.  He's an independent FA with 100+million AUM, and he is living the life I want.  He probably works nine hours a day (M-F), and he has a hell of a lot more money than he needs. 
 
I know the money in banking is great, but you work like a slave.  I know that after banking and a top MBA, private equity and hedge funds can make you ungodly rich (maybe not so much lately), but I really don't care about being filthy rich.  I would be more than happy making $200,000 a year (gross) and having plenty of free time to enjoy life.
 
I know that people usually say you can just work on the street for 10 years, make a pile of cash, and then retire, but it never works that way.  I know people who went down the PE/HF road, and they still work ungodly hours.  Sure, they have a huge pile of cash, but it never seems to be enough for them to retire.  Once you make 1mil you want 10mil, and once you make 10mil you want 100mil.
 
I would rather work hard to build up my AUM for a few years, and then stay on top of the market and relevant tax issues in order to keep my clients happy while still having plenty of time to enjoy life. 
 
I know that I need more credibility, so I'm going to take the banking job, but I want to be working as an FA after three to five years (depending on if I go to b-school).  I think after IB for two years and a top-5 MBA, I should have more than enough credibility and contacts to do well in this business.
 
If not, I will have a strong resume to do something else.
 
Thanks for the advice!
 
Nov 16, 2009 8:28 pm
Hyak:

Thanks for the responses.

 
I know that I have a huge opportunity, and I'm going to take it.
 
I have just been questioning my decision because of a guy I know.  He's an independent FA with 100+million AUM, and he is living the life I want.  He probably works nine hours a day (M-F), and he has a hell of a lot more money than he needs. 
 
I know the money in banking is great, but you work like a slave.  I know that after banking and a top MBA, private equity and hedge funds can make you ungodly rich (maybe not so much lately), but I really don't care about being filthy rich.  I would be more than happy making $200,000 a year (gross) and having plenty of free time to enjoy life.
 
I know that people usually say you can just work on the street for 10 years, make a pile of cash, and then retire, but it never works that way.  I know people who went down the PE/HF road, and they still work ungodly hours.  Sure, they have a huge pile of cash, but it never seems to be enough for them to retire.  Once you make 1mil you want 10mil, and once you make 10mil you want 100mil.
 
I would rather work hard to build up my AUM for a few years, and then stay on top of the market and relevant tax issues in order to keep my clients happy while still having plenty of time to enjoy life. 
 
I know that I need more credibility, so I'm going to take the banking job, but I want to be working as an FA after three to five years (depending on if I go to b-school).  I think after IB for two years and a top-5 MBA, I should have more than enough credibility and contacts to do well in this business.
 
If not, I will have a strong resume to do something else.
 
Thanks for the advice!
 
 In my honest opinion, Good chioce!
Nov 20, 2009 8:34 am

If this is truly your plan...(this is from someone who interned at an Investment Banking firm, worked at a Bank for 1.5 years, and now is a new FAA at MSSB)...go into I banking, I completely agree about the resume booster...while in I banking with the limited amount of time you will have interacting with people...network like a mad man.  Talk to everyone, get everyone to know you, go to functions, etc.  They don't have to know your plan is to become an FA, but use any extra time you have to get involved in associations, etc.  I know chances are I fail as an FA, as well as others in my field, but I've given myself a chance because I've been networking since before that I Banking internship (which is how I got the interview for it...networking) over 4 years ago and been networking ever since, and my family has owned a business here for over 50 years.  So, that is what I would do during those years at a I Banking job.  You will have access to super rich people in that industry and you will learn a strong work ethic at the very least.  If you can transition and land some of the directors and analysts that worked with you during your I banking experience, I would say you have a good start.  I've already reached out to one of the managing directors of that firm for lunch in a month.  You to be strategic in this world.  PM me if you have any questions.

Nov 20, 2009 8:37 am

Also, maybe when you get out of I banking you can be an understudy for the guy you know, learn from him, and take over his book when he retires.  I would reach out to him as a business mentor, ask him to meet you for lunch every other month and get his guidance regarding your professional life as it progresses.  I did that as well.