Why would anyone go into investment banking?
Investment banking offers the opportunity to become an expert at building large, complex financial models at the earliest stage of your career. While bankers aren't necessarily great investors, they do spend a lot of time on valuation work, and this can be an excellent way to start your career.
To make sure you're a good fit for investment banking, here is a list of traits that are considered important in the industry: Willingness to work extremely long hours (80+ per week) High attention to detail. Ability to take direction well.
Showcase your interest in the industry
A career in investment banking can be complex, so it's beneficial to reiterate that you understand the role. You may also showcase your knowledge of the industry and how you can apply your experience to the specific position for which you're applying.
It's very common to work 75+ hours per week in investment banking because of the culture and job expectations. If you're in a top-performing group at a top investment bank, you'll constantly be on live deals that require lots of weekend work and late nights.
Investment banks often compete to attract and retain top talent, which drives up salaries. 2. High Levels of Responsibility: Investment bankers handle complex financial transactions, such as mergers and acquisitions, initial public offerings (IPOs), and large capital raising deals.
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.
Investment bankers help their corporate clients secure funds in the capital markets, act as financial advisors, and occasionally help companies navigate mergers and acquisitions. Investment banker positions vary from entry-level to high-level executive. Investment bankers are highly valued in the corporate world.
Say that you could be wrong, but based on your current interest for the Investment Banking industry and the fact that you like to commit strongly whenever you start something, it's fair to assume that you will want to work on M&A deals over the next 5-10 years (or whatever field of interest you have, could be ECM, ...
The skills required to work in investment banking are a combination of technical skills (e.g., financial modeling, valuation, market research) and soft skills (e.g., time management, effective communication).
Investment banking is essentially a financial service provided by a finance company or a banking division to help large multinational corporations in their investment plans. Along with large companies and organisations, this service also helps high net worth individuals and governments to raise or create capital.
At what age do investment bankers retire?
Age Range: It's nearly impossible to reach this level before your early 30's, so we'll say 35-50 for the range. Few MDs continue working until the official retirement age (65-70); it's a stressful, high-pressure job, and past a certain net worth, it's just not worth it.
Bankers, generally speaking, are not sleeping well. Across all respondents to our survey, people working in finance got an average of 6.72 hours of sleep a night.
If you want to work in regular office hours and have a social life, a career in investment banking is not for you. Want to know why? At bulge bracket banks, you would find the analysts working for more than 100 hours a week.
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).
| Position Title | Typical Age Range | Total Compensation (USD) |
|---|---|---|
| Analyst | 22-27 | $140-$190K |
| Associate | 25-35 | $225-$425K |
| Vice President (VP) | 28-40 | $450-$650K |
| Director / Senior Vice President (SVP) | 32-45 | $550-$750K |
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.
Life as an investment banker can be demanding and challenging, but also rewarding in terms of financial compensation and career opportunities. A typical day for an investment banker can involve long hours, with early mornings and late nights being the norm.
The demanding work culture, long hours, and high-pressure environment can take a toll on individuals who are not well-suited to these conditions. However, for those who are motivated by financial rewards and are willing to work hard, investment banking can be a fulfilling and rewarding career choice.
Is It Hard to Be an Investment Banker? While it doesn't take long to get started in the investment banking field, the industry is competitive and being an investment banker can be stressful, said Simmerman. Still, the benefits often outweigh the negatives for workers in this field.
After two years of working for the investment bank, top performing analysts are often offered the chance to stay for a third year, and the most successful analysts can be promoted after three years to investment banking associate. Analysts are the lowest in the hierarchy chain and therefore do the majority of the work.
How many hours a week do investment bankers work?
Investment bankers work notoriously long hours, with the typical work week filling in 60-80 hours per week, and the occasional high-intensity work week that can push a banker to 100+ hours.
Many Analysts might be working more like 80-90 hours per week rather than 70-80. That may not sound significant, but it's the difference between 12.5 hours per day for 6 days with one day off and 12.1 hours per day with no days off.
Preparing for an investment banking interview requires a lot of preparation. Before going into an interview, research the particular bank, familiarize yourself with the deals it has done in the past or is currently working on, and be prepared to talk about the economy and financial markets.
- Don't ask for work, as mentioned above. ...
- Eat healthy whenever possible. ...
- Try to cut back on drinking. ...
- Set expectations with your work. ...
- Like eating healthy whenever possible, try to get exercise in every day. ...
- Be realistic with your friends / SOs.
At the minimum, you'll have to start ~2-3 months in advance to get a good sense for these concepts (assuming no background or limited accounting/finance knowledge). The other question categories can wait until the last minute, but you can't cram and master the technical side in that span of time.
