Investment Banking Questions

[toy collector123]

ThrowedInTheGame works as an Investment Banker for a BB

 

[twosickjays]

I have a question for you investment bankers.  I plan on opening a high yield savings account sometime soon this year and have been wondering if i have to claim the interest i make in the account as earrings on my taxes at the end of the year?   

 

[twosickjays]

I have a question for you investment bankers.  I plan on opening a high yield savings account sometime soon this year and have been wondering if i have to claim the interest i make in the account as earrings on my taxes at the end of the year?   

 

[joe camel smooth]

Originally Posted by wawaweewa

Originally Posted by JOE CAMEL SMOOTH

haha yeah really dmouth still has a little bit of a rep for grade inflation, not sure how true it is

studying econ

basically theres levels of presitge in ibanking.....BB like GS, MS, etc., then high-level botiques like evercore then less prestigious large banks like PJ and other botiques like blackstone

or so ive heard........someone help me out here. i don't really follow this stuff too closely, i cant quite set my heart on 120 hr work weeks out of undergrad so im not like religious researching this ++++ but thats the gist i get

i have some family who have worked at GS but they all bounced early into PE and other stuff.

Lots of individuals do that and for good reason.
IB is in the limelight now so all the kids wanna try it but imo, it's a raw deal when compared to other venues in finance. Of course the potential is greater at an IB but at the end of the day, all things are relative.

I'm in PE and I have a good friend who's in IB. I just have to laugh at him sometimes. I work at a smaller PE firm and I make more than him (when worked out per hr, inc our bonuses) and I get to have a life. Meanwhile, he's with his companion Excel discussing EBITDA ad nauseum with her.

We both fail though compared to our boy  whose a sales account exec at MTV who has it way better than both of us.
The point is there are many ways to make money but IB is in the spotlight now so more kids flock to it. Same with PE some time back.

yeah if i ended up in ibanking id only do the 2 yr route and then take advantage of all the great exit opps.

but im always reevaluating my life and goals and values and ive been headed on this path for so long but i always question whether its worth it. one life to live and money only matters so much. at the same time its not just the money, i like a competitive high pressure environment, everything but the suicidal hours really appeals to me so who knows.

 

[joe camel smooth]

Originally Posted by wawaweewa

Originally Posted by JOE CAMEL SMOOTH

haha yeah really dmouth still has a little bit of a rep for grade inflation, not sure how true it is

studying econ

basically theres levels of presitge in ibanking.....BB like GS, MS, etc., then high-level botiques like evercore then less prestigious large banks like PJ and other botiques like blackstone

or so ive heard........someone help me out here. i don't really follow this stuff too closely, i cant quite set my heart on 120 hr work weeks out of undergrad so im not like religious researching this ++++ but thats the gist i get

i have some family who have worked at GS but they all bounced early into PE and other stuff.

Lots of individuals do that and for good reason.
IB is in the limelight now so all the kids wanna try it but imo, it's a raw deal when compared to other venues in finance. Of course the potential is greater at an IB but at the end of the day, all things are relative.

I'm in PE and I have a good friend who's in IB. I just have to laugh at him sometimes. I work at a smaller PE firm and I make more than him (when worked out per hr, inc our bonuses) and I get to have a life. Meanwhile, he's with his companion Excel discussing EBITDA ad nauseum with her.

We both fail though compared to our boy  whose a sales account exec at MTV who has it way better than both of us.
The point is there are many ways to make money but IB is in the spotlight now so more kids flock to it. Same with PE some time back.

yeah if i ended up in ibanking id only do the 2 yr route and then take advantage of all the great exit opps.

but im always reevaluating my life and goals and values and ive been headed on this path for so long but i always question whether its worth it. one life to live and money only matters so much. at the same time its not just the money, i like a competitive high pressure environment, everything but the suicidal hours really appeals to me so who knows.

 

[theta]

the more you learn about ibanking, the more you realize that it sounds better than it is. first few years are so so so brutal.

 

[theta]

the more you learn about ibanking, the more you realize that it sounds better than it is. first few years are so so so brutal.

 

[dwyanewadeog]

SEO is really competitive. if youre a freshman or sophomore id get on the Zoologic summer program next summer and apply junior year.

 

[dwyanewadeog]

SEO is really competitive. if youre a freshman or sophomore id get on the Zoologic summer program next summer and apply junior year.

 

[xilegacy]

Originally Posted by Theta

the more you learn about ibanking, the more you realize that it sounds better than it is. first few years are so so so brutal.

How many people make it? You have realize you don't get paid for nothing. I don't think it's worth how much you give up. Maybe in the long run it might be but definitely not early in your career.

 

[xilegacy]

Originally Posted by Theta

the more you learn about ibanking, the more you realize that it sounds better than it is. first few years are so so so brutal.

How many people make it? You have realize you don't get paid for nothing. I don't think it's worth how much you give up. Maybe in the long run it might be but definitely not early in your career.

 

[theta]

Originally Posted by xilegacy

Originally Posted by Theta

the more you learn about ibanking, the more you realize that it sounds better than it is. first few years are so so so brutal.

How many people make it? You have realize you don't get paid for nothing. I don't think it's worth how much you give up. Maybe in the long run it might be but definitely not early in your career.

maybe. youll definitely make bank 7-10+ years into your career. You wont exactly be poor before that either. My issue is with marginal benefit vs marginal cost. Ive driven a $15,000 car, and a $100,000 car. I've lived in a huge house (6200 sq ft) and a small one (my apartment now is ~950sq ft). After a while, it all becomes the same. A car is what gets you from one place to another (provided its not a piece of crap). A huge house is more of a hassle than good.

Idk, in the long run, I'd much rather have a more relaxed enjoyable life, making $150,000-$200,000 a year instead of having to work 100hours a week (some people hit as high as 120) for 500k, 750k, 1M, 5M/year, etc. I guess its personal preference. I was all 100% set on iBanking then fund management until I worked my first 92 hour week. It was unreal. I would wake up early early morning, go to work all day, come home late as hell, shower, sleep for a few hrs, get up, repeat. My weekends were me wanting to just sit around and not do anything. After that, I was just like - wow I just, personally, would never want to go through this every day for 5 years. Once you hit like the 10 year period, youre still working like 75+hrs a week - high pressure type of stuff.

 

[theta]

Originally Posted by xilegacy

Originally Posted by Theta

the more you learn about ibanking, the more you realize that it sounds better than it is. first few years are so so so brutal.

How many people make it? You have realize you don't get paid for nothing. I don't think it's worth how much you give up. Maybe in the long run it might be but definitely not early in your career.

maybe. youll definitely make bank 7-10+ years into your career. You wont exactly be poor before that either. My issue is with marginal benefit vs marginal cost. Ive driven a $15,000 car, and a $100,000 car. I've lived in a huge house (6200 sq ft) and a small one (my apartment now is ~950sq ft). After a while, it all becomes the same. A car is what gets you from one place to another (provided its not a piece of crap). A huge house is more of a hassle than good.

Idk, in the long run, I'd much rather have a more relaxed enjoyable life, making $150,000-$200,000 a year instead of having to work 100hours a week (some people hit as high as 120) for 500k, 750k, 1M, 5M/year, etc. I guess its personal preference. I was all 100% set on iBanking then fund management until I worked my first 92 hour week. It was unreal. I would wake up early early morning, go to work all day, come home late as hell, shower, sleep for a few hrs, get up, repeat. My weekends were me wanting to just sit around and not do anything. After that, I was just like - wow I just, personally, would never want to go through this every day for 5 years. Once you hit like the 10 year period, youre still working like 75+hrs a week - high pressure type of stuff.

 

[db west]

Originally Posted by 21 World B Free 21

If you don't want to transfer or still won't make it in (i'm not that connected to recruiting anymore but are Umich, undergrad I know grad is and Indiana really target schools?) I would suggest thinking about targeting non bulge bracket firms...pick a industry you like or are knowledgeable about and try and score some descent internships there and you can still do big things (as well as have the option for a great b-school in  a few years). You won't have the name on your resume but you do get imo better hands on experience and almost equivalent pay.

Bloomberg Business week ranked their undergrad b-schools 8 and 19 respectively.  I kind of want to transfer though so I'm just going to grind next semester to get in...a lot of my friends and relatives go there, they have a nice campus, and the party scene isn't as bad as I thought.  I need to slow down a bit on the partying anyway.  I definitely will take your advice regardless though and search for non BB firms.  As well as looking into SEO and zoologic as someone else advised.  I appreciate all of the suggestions guys.

 

[db west]

Originally Posted by 21 World B Free 21

If you don't want to transfer or still won't make it in (i'm not that connected to recruiting anymore but are Umich, undergrad I know grad is and Indiana really target schools?) I would suggest thinking about targeting non bulge bracket firms...pick a industry you like or are knowledgeable about and try and score some descent internships there and you can still do big things (as well as have the option for a great b-school in  a few years). You won't have the name on your resume but you do get imo better hands on experience and almost equivalent pay.

Bloomberg Business week ranked their undergrad b-schools 8 and 19 respectively.  I kind of want to transfer though so I'm just going to grind next semester to get in...a lot of my friends and relatives go there, they have a nice campus, and the party scene isn't as bad as I thought.  I need to slow down a bit on the partying anyway.  I definitely will take your advice regardless though and search for non BB firms.  As well as looking into SEO and zoologic as someone else advised.  I appreciate all of the suggestions guys.

 

[wawaweewa]

Originally Posted by JOE CAMEL SMOOTH

Originally Posted by wawaweewa

Originally Posted by JOE CAMEL SMOOTH

haha yeah really dmouth still has a little bit of a rep for grade inflation, not sure how true it is

studying econ

basically theres levels of presitge in ibanking.....BB like GS, MS, etc., then high-level botiques like evercore then less prestigious large banks like PJ and other botiques like blackstone

or so ive heard........someone help me out here. i don't really follow this stuff too closely, i cant quite set my heart on 120 hr work weeks out of undergrad so im not like religious researching this ++++ but thats the gist i get

i have some family who have worked at GS but they all bounced early into PE and other stuff.

Lots of individuals do that and for good reason.
IB is in the limelight now so all the kids wanna try it but imo, it's a raw deal when compared to other venues in finance. Of course the potential is greater at an IB but at the end of the day, all things are relative.

I'm in PE and I have a good friend who's in IB. I just have to laugh at him sometimes. I work at a smaller PE firm and I make more than him (when worked out per hr, inc our bonuses) and I get to have a life. Meanwhile, he's with his companion Excel discussing EBITDA ad nauseum with her.

We both fail though compared to our boy  whose a sales account exec at MTV who has it way better than both of us.
The point is there are many ways to make money but IB is in the spotlight now so more kids flock to it. Same with PE some time back.

yeah if i ended up in ibanking id only do the 2 yr route and then take advantage of all the great exit opps.

but im always reevaluating my life and goals and values and ive been headed on this path for so long but i always question whether its worth it. one life to live and money only matters so much. at the same time its not just the money, i like a competitive high pressure environment, everything but the suicidal hours really appeals to me so who knows.

Yeh. I;m not saying that folks shouldn't go into ibanking. The potential is great and even if someone does last only a few years, most every other job will seem easier. The potential is great but until it's realized that's all it is. The burn out rate is high not only because some can't hack it. Some can and just don't enjoy it. Others can and do enjoy it but there's only so many positions to fill the higher up you go.

It needs to be said though that the culture is diff at each firm. Some are better than others for 1st-3rd year analysts.

It's not even about the hours. I still put in around 75-80 hours a week but I feel I'm fairly compensated and I'm given enough flexibility considering the amount of time I put in. I can't say the same for the people I know in ibanking (1st-3rd year analysts).

Theta is exactly right in this case regarding marginal cost v marginal benefit. It's far from a bad job though. That's not what I'm saying.

 

[wawaweewa]

Originally Posted by JOE CAMEL SMOOTH

Originally Posted by wawaweewa

Originally Posted by JOE CAMEL SMOOTH

haha yeah really dmouth still has a little bit of a rep for grade inflation, not sure how true it is

studying econ

basically theres levels of presitge in ibanking.....BB like GS, MS, etc., then high-level botiques like evercore then less prestigious large banks like PJ and other botiques like blackstone

or so ive heard........someone help me out here. i don't really follow this stuff too closely, i cant quite set my heart on 120 hr work weeks out of undergrad so im not like religious researching this ++++ but thats the gist i get

i have some family who have worked at GS but they all bounced early into PE and other stuff.

Lots of individuals do that and for good reason.
IB is in the limelight now so all the kids wanna try it but imo, it's a raw deal when compared to other venues in finance. Of course the potential is greater at an IB but at the end of the day, all things are relative.

I'm in PE and I have a good friend who's in IB. I just have to laugh at him sometimes. I work at a smaller PE firm and I make more than him (when worked out per hr, inc our bonuses) and I get to have a life. Meanwhile, he's with his companion Excel discussing EBITDA ad nauseum with her.

We both fail though compared to our boy  whose a sales account exec at MTV who has it way better than both of us.
The point is there are many ways to make money but IB is in the spotlight now so more kids flock to it. Same with PE some time back.

yeah if i ended up in ibanking id only do the 2 yr route and then take advantage of all the great exit opps.

but im always reevaluating my life and goals and values and ive been headed on this path for so long but i always question whether its worth it. one life to live and money only matters so much. at the same time its not just the money, i like a competitive high pressure environment, everything but the suicidal hours really appeals to me so who knows.

Yeh. I;m not saying that folks shouldn't go into ibanking. The potential is great and even if someone does last only a few years, most every other job will seem easier. The potential is great but until it's realized that's all it is. The burn out rate is high not only because some can't hack it. Some can and just don't enjoy it. Others can and do enjoy it but there's only so many positions to fill the higher up you go.

It needs to be said though that the culture is diff at each firm. Some are better than others for 1st-3rd year analysts.

It's not even about the hours. I still put in around 75-80 hours a week but I feel I'm fairly compensated and I'm given enough flexibility considering the amount of time I put in. I can't say the same for the people I know in ibanking (1st-3rd year analysts).

Theta is exactly right in this case regarding marginal cost v marginal benefit. It's far from a bad job though. That's not what I'm saying.

 

[curiousgeorg3]

what is it that ibankers do early on in their careers that require so many hours/week?

are they traders? or selling products to clients? something else?

 

[curiousgeorg3]

what is it that ibankers do early on in their careers that require so many hours/week?

are they traders? or selling products to clients? something else?

 

[db west]

Originally Posted by CuriousGeorg3

what is it that ibankers do early on in their careers that require so many hours/week?

are they traders? or selling products to clients? something else?

There are three branches of investment banking.  Mergers & Acquisitions, Research, and sales and trading (kind of like brokerage).  I think traditionally M&A comes to mind when people think of I-banking.  M&A bankers make pitch books, do financial analysis in excel, make power points and other stuff related to mergers.  Not anything too crazy but the hours are ridiculous and it's a lot of work to get hired for a job in IB.

 

[db west]

Originally Posted by CuriousGeorg3

what is it that ibankers do early on in their careers that require so many hours/week?

are they traders? or selling products to clients? something else?

There are three branches of investment banking.  Mergers & Acquisitions, Research, and sales and trading (kind of like brokerage).  I think traditionally M&A comes to mind when people think of I-banking.  M&A bankers make pitch books, do financial analysis in excel, make power points and other stuff related to mergers.  Not anything too crazy but the hours are ridiculous and it's a lot of work to get hired for a job in IB.