Is 27 too late to become an investment banker?
If you have more than 2 – 3 years of full-time work experience after university, it will be very difficult to get in at the Analyst level (estimated age cut-off of 25, but it may be more like 27 – 28 depending on when you started the degree).
| Position Title | Typical Age Range | Base Salary (USD) |
|---|---|---|
| Analyst | 22-27 | $100-$125K |
| Associate | 25-35 | $175-$225K |
| Vice President (VP) | 28-40 | $250-$300K |
| Director / Senior Vice President (SVP) | 32-45 | $300-$350K |
"Most people who get entry-level jobs in banking are aged 20 to 25 years-old," says one former trader. "Once you get beyond 28 years-old, it becomes a lot more difficult to get a front office job (in trading, sales or M&A) in a bank," he adds. "Of course, there will always be exceptions, but it's tough."
Becoming an investment banker requires several years of higher education in addition to licensure. It also requires strong mathematical and analytical capabilities, which may be challenging for some people.
| Position Title | Typical Age Range | Timeframe for Promotion |
|---|---|---|
| Associate | 25-35 | 3-4 years |
| Vice President (VP) | 28-40 | 3-4 years |
| Director / Senior Vice President (SVP) | 32-45 | 2-3 years |
| Managing Director (MD) | 35-50 | N/A |
But if you're 28, you graduated from university at 22, and you have 6 years of full-time work experience, you're highly unlikely to get in as an Analyst. You'll probably need a top MBA at this stage.
Ways to make a lot of money in this world
Sure, anybody can make a good living being a doctor or a lawyer or an investment banker where you can make ~$200-500K per year a few years after you finish with your studies, but you hit a ceiling very quickly unless you start your own practice (aka start your own business).
The world's biggest banks reportedly slashed more than 60,000 jobs in 2023. It was a year in which investment banks suffered their second year in a row of declining fees amid a downturn in dealmaking and companies going public, the Financial Times (FT) reported Monday (Dec.
The lucrative and fast-paced career of an investment banker is a highly competitive one. For instance, in a recent year, 236,000 applicants competed for roughly 3,500 internships at Goldman Sachs. This is common across the industry where acceptance rates for programs are typically less than 2%.
Investment banking is extremely competitive with way more applicants than available positions each year. You will often be up against students from Ivy League universities, with a high GPAs and multiple internships under their belts.
Do investment bankers make 7 figures?
Raw recruits expect six figures. Successful mid-career investment bankers can make tens of millions of dollars a year.
The short answer is: no. There is no age limit that formally disqualifies you from starting a career as an investment banker. It is possible to join the field at 22, 27, 34, 38, or even 50 and above. That being said, it is true that the younger you are, the higher your chances.
Investment banking is one of Wall Street's most coveted roles. It is also one of the hardest. It is no surprise that the average day in an investment banker's life is long and stressful. Those who manage to survive the adjustment period often go on to have long and financially rewarding careers.
At the VP level, the base compensation is typically between $250,000 and $300,000. Regarding the variable bonus portion, on average, bonuses range from $200,000 to $400,000 at bulge bracket investment banks and elite boutiques. The all-in comp for 1st year VPs comes out to around $400,000 to $700,000.
Master's in Finance: MIT, Princeton (more of a quant program), UT Austin, UVA, Vanderbilt, WashU, Notre Dame, USC, Claremont-McKenna, and maybe a few others (best to look at employment reports here). MBA: The M7 schools, Yale, Stern, Haas, Ross, Tuck, Fuqua, Cornell (Johnson), and possibly a few others in the top ~20.
Age plays a huge factor in the decision-making process. Wall Street is an up-and-out industry. Unless the goal is senior management, most people in finance are out of there by age 50. That's not at just the biggest investment banks, either.
Only 37 percent among those who started jobs while ages 25 to 32 ended their jobs that quickly. A LinkedIn report recognizes that people change careers for many reasons at all stages of life, so starting a career at 27 fits into the norm.
$374K (Median Total Pay)
The average Investment Banking Vice President base salary at J.P. Morgan is $218K per year. The average additional pay is $157K per year, which could include cash bonus, stock, commission, profit sharing or tips.
The hierarchy at Morgan Stanley was: managing director, principal, vice president, associate, analyst, secretary. There was no senior/junior distinction among vice presidents or associates.
Hedge Fund Manager
To make this one of the jobs that pay $1 million dollars a month, you'll need to be one of the absolute best in the world at it.
What is a good salary in 2024?
| Annual Salary | Hourly Wage | |
|---|---|---|
| Top Earners | $86,000 | $41 |
| 75th Percentile | $68,500 | $33 |
| Average | $44,910 | $22 |
| 25th Percentile | $24,500 | $12 |
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I have spent over two decades working in US investment banks; during that time I have both been fired myself and I have hired people who have been fired. When you work in financial services, this is something you must expect.
Investment bankers often work closely with other bankers in order to prepare presentations, conduct research, create financial reports or meet with clients. They also aim to be receptive to their clients' desires. The bankers develop collaborative strategies regarding each client's input.
The well-known bulge bracket banks like Goldman Sachs, J.P. Morgan, and Bank of America tend to work analyst-level investment bankers at the industry standard scale of 60-80 hours per week.
