Forums > Off-Topic Discussion > a little disappointed

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R A V E N D R I V E

Posts: 15867

New York, New York, US

so I'm a little disappointed to find out the people I've met - friends, people I hang out with - that are "in finance" don't make over 6 figures a year

I know the investment banks only pay the youngins just a little bit (depending on what you are doing), but I thought they compensated with bonuses that would at least put them above $100,000/yr

all of them went to school for it and do it "because the pay" and hate it.

I'm not "in finance" - if someone asked my occupation - but I know way more effective ways of creating capital than they do, and appropriating resources in general.

it makes me think "wow what are you doing then, do something productive then"

and one dude told me he was sending money to his family helping siblings through university, so these being the reason he stays in finance, constricting his income no doubt but I figured he'd at least be making over 100 grand. NOPE

I feel like its just all they know. how sad

they all expect to be making six figures "in a few years", which is great I guess, if you like looking at what the average of other people in the world are earning, but I dont really know about the hierarchy

these guys all have series 7 licenses too, just surprised I guess

Dec 09 12 09:28 pm Link

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Gloria Budiman

Posts: 1683

Beijing, Beijing, China

Maybe they re-invest the bonus in stocks/pension/etc? So they themselves may not realize they make that much... I like it better this way, helps me think twice before spending.

Dec 09 12 09:33 pm Link

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R A V E N D R I V E

Posts: 15867

New York, New York, US

Gloria Budiman wrote:
Maybe they re-invest the bonus in stocks/pension/etc? So they themselves may not realize they make that much... I like it better this way, helps me think twice before spending.

no they just don't make that much, just like a fast food worker doesn't make that much

Dec 10 12 06:34 am Link

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Good Egg Productions

Posts: 15723

Orlando, Florida, US

Those poor poor people with finance jobs sitting in an air conditioned office in a comfortable chair.

-- said no day laborer looking for work ever

Dec 10 12 07:42 am Link

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Koryn

Posts: 36722

Boston, Massachusetts, US

A lot of people, in a lot of different professions, make far less per annum than you would assume.

Dec 10 12 08:03 am Link

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Calli Pygian

Posts: 8092

Atlanta, Georgia, US

R A V E N D R I V E wrote:
no they just don't make that much, just like a fast food worker doesn't make that much

.....


Did you just compare a $100,000 annual salary to a fast food worker and say that they both "don't make that much"?  Or am I missing something?


Does anyone else feel a little sickened that $100,000 a year is considered to be insufficient pay?  What the hell do you need more than that for?  With that kind of money, I could easily afford to have a beautiful house in a nice neighborhood, two nice cars, and three children.  I could go on two nice vacations a year with my whole family and if I have relatives in a different state, visit home for the holidays. 

How is $100,000 somehow now chump change?


Edit:  I didn't notice until after I posted that the OP lives in NYC.  That does change things quite a bit; the cost of living is insane there.  Although now it just makes me more upset that people have to get these ridiculous salaries just to be middle class.

Dec 10 12 08:36 am Link

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ME_

Posts: 3146

Atlanta, Georgia, US

"Finance" covers a lot of jobs. They must have the kind that don't pay over $100K.

I know for a fact that Goldman Sachs pays incoming MBAs over $100K per year, salary, not including bonuses. They have to pay that much in order to compete with places like McKinsey that are also going after those same MBAs. But that's just one kind of finance job. Even a bank teller is "in finance."

Dec 10 12 08:43 am Link

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udor

Posts: 22390

New York, New York, US

R A V E N D R I V E wrote:
so I'm a little disappointed to find out the people I've met - friends, people I hang out with - that are "in finance" don't make over 6 figures a year

I know the investment banks only pay the youngins just a little bit (depending on what you are doing), but I thought they compensated with bonuses that would at least put them above $100,000/yr

The time of the massive big bonus payouts are long gone...

Years ago, Goldman and others didn't pay their junior analysts (entry level with MBA) more than $800/months until they earned their spores... Deutsche Bank was even worse, even for executives... because having worked at Deutsche would mean any other institution will take you with high signing bonus.

You'd be surprised that many traders make $60 - $80K without bonus... or just a little bonus...

The times of Michael Milken and Ivan Boesky are over...

Of course, there are the few who still make multi-million bucks bonuses but those are in the minority.

Dec 10 12 09:13 am Link

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udor

Posts: 22390

New York, New York, US

ME_ wrote:
I know for a fact that Goldman Sachs pays incoming MBAs over $100K per year, salary, not including bonuses.

Those are rare!

I am out of that industry for over a decade, but still have contacts, and for incoming MBA's, unless they are coming from A: Ivy League and B: come from very rich, very connected families (potential clients), $100K plus is not that common!

Dec 10 12 09:18 am Link

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ME_

Posts: 3146

Atlanta, Georgia, US

ME_ wrote:
I know for a fact that Goldman Sachs pays incoming MBAs over $100K per year, salary, not including bonuses.

udor wrote:
Those are rare!

I am out of that industry for over a decade, but still have contacts, and for incoming MBA's, unless they are coming from A: Ivy League and B: come from very rich, very connected families (potential clients), $100K plus is not that common!

I think you're wrong about that, but it is true that all of the people I know who worked at Goldman came from Ivy League schools. Maybe GS pays them thousands more for the same job than they pay to non-Ivy MBAs and nobody ever makes a fuss about it. It's possible. According to the below article, GS hired only five MBAs out of 295 total students from Sloan '2009, so I'd call that rare for sure compared to all the jobs at GS.

http://www.bloomberg.com/apps/news?pid= … FgbCvM44FA
"Starting Salaries

The median starting salary for 2009 Sloan graduates who entered investment banking was $100,000, according to a survey on the school’s Web site. Eleven percent of the 295 Sloan students looking for jobs took positions at investment banks. Goldman Sachs, which doesn’t disclose its starting salaries, hired five.

At Harvard Business School in Boston, the 2009 median investment-banking salary was $95,000, plus a median signing bonus of $40,000. Six percent took jobs in investment banking, according to the school’s Web site.

That compares with Harvard students who took jobs in consulting at a median salary of $125,000, plus a $20,000 median bonus, while students going to nonprofit and government jobs received median pay of $90,000."

Dec 10 12 10:36 am Link

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R A V E N D R I V E

Posts: 15867

New York, New York, US

Calli Pygian wrote:

.....


Did you just compare a $100,000 annual salary to a fast food worker and say that they both "don't make that much"?  Or am I missing something?

yes, in response to the comment that "maybe they put their huge bonuses in a pension plan"

I am saying there is no hidden bonus in their wage just like a fast food worker wouldn't be expected to have a deferred income stream that is simply being reinvested while they make single digits an hour.

Dec 10 12 04:57 pm Link

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R A V E N D R I V E

Posts: 15867

New York, New York, US

ME_ wrote:
"Finance" covers a lot of jobs. They must have the kind that don't pay over $100K.

I know for a fact that Goldman Sachs pays incoming MBAs over $100K per year, salary, not including bonuses. They have to pay that much in order to compete with places like McKinsey that are also going after those same MBAs. But that's just one kind of finance job. Even a bank teller is "in finance."

haha but bank tellers don't have series 7

my friends are wasting their time.

Dec 10 12 04:59 pm Link

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Kincaid Blackwood

Posts: 23414

Atlanta, Georgia, US

R A V E N D R I V E wrote:
it makes me think "wow what are you doing then, do something productive then"

Because everyone knows that unless they're earning 6 figures they aren't doing anything productive.

You should rethink your priorities and the presumptuous manner in which you use them to assess how much others earn.  An individual can earn $85K per year and live very comfortably in Brooklyn, NY.  Or over in NJ, if they want to have a house and a yard.  If that individual happens to be married to someone who earns about the same, then suddenly you have a household with an income over $160K.  Based on the latest census data from NYC, the median household income was just under $53K.  That's median household income.  That means your friends (hypothetically) in the two-income household earn triple that.  It's a reasonable assumption that earning triple the median household income in any city will afford you comfortable living.

Now, why that is so disappointing to you, I'll never know and ultimately, it's a little beside the point anyway.  Your opinion is your opinion, whatever the reason.  Are they okay with their income?  If not, do they have goals and are working towards them?  Outside of that, what you think doesn't really matter and is more of a reflection on you than on them.

Dec 10 12 06:03 pm Link

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R A V E N D R I V E

Posts: 15867

New York, New York, US

Kincaid Blackwood wrote:
Because everyone knows that unless they're earning 6 figures they aren't doing anything productive.

false premise so I'm dismissing the rest of your post

everyone knows that the degenerate gambling "risk analysis" investment bankers do is not productive, and since these kids hate it, and are not making much even though they have unparalleled access to the financial system then they should be doing something... productive instead, even if it isn't lucrative but preferably if it is

Dec 10 12 06:16 pm Link

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Kincaid Blackwood

Posts: 23414

Atlanta, Georgia, US

R A V E N D R I V E wrote:
false premise so I'm dismissing the rest of your post

Get over yourself.

Dec 10 12 06:39 pm Link

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R A V E N D R I V E

Posts: 15867

New York, New York, US

Kincaid Blackwood wrote:

Get over yourself.

One out of four tax dollars in this entire state comes from below 14th st in Manhattan

thats just reality, these kids actually in the investment banks not even taking advantage of it AND hating their jobs? wasting their time

Dec 10 12 08:00 pm Link