Find all School-related info fast with the new School-Specific MBA Forum

It is currently 23 Jul 2014, 10:34

Close

GMAT Club Daily Prep

Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.

Customized
for You

we will pick new questions that match your level based on your Timer History

Track
Your Progress

every week, we’ll send you an estimated GMAT score based on your performance

Practice
Pays

we will pick new questions that match your level based on your Timer History

Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.

Events & Promotions

Events & Promotions in June
Open Detailed Calendar

question about $$$$$

  Question banks Downloads My Bookmarks Reviews Important topics  
Author Message
TAGS:
GMAT Club Legend
GMAT Club Legend
User avatar
Joined: 10 Apr 2007
Posts: 4320
Location: Back in Chicago, IL
Schools: Kellogg Alum: Class of 2010
Followers: 77

Kudos [?]: 691 [0], given: 5

GMAT Tests User
Re: question about $$$$$ [#permalink] New post 28 Apr 2008, 12:33
terp06 wrote:
riverripper wrote:
I think short term you are better off in law if you went to a top law school and work at a big name firm. Your return on investment is going to be much longer than people making 45k and not loaded down with grad school loans already. Your income immediately after school probably wont be much more than what a corporate lawyer will make, if at all since you will be at the bottom vs another few years at your firm. However, in 20 years if you gut it out in IB you may make significantly more than a partner at a top law firm.


This is untrue. 1st year associates at BB IBs make approximately 2x what a 1st year associate at a big law firm makes. The gap continues to widen every year thereafter. You are correct that any other career path after B-School will make around what a big law associate would, but IB is the exception.


What I said is 100% accurate, no clue why you say its untrue. I said short term because if he works instead of school he will be pulling down around 200k a year vs -75k a year. So his cost of attending is going to be over a half a million compared to someone who might only have a 200k or less cost...its going to take him a lot longer to pay it off. A corporate lawyer at a big firm with 4+ years of experience will be pulling down more than almost every 1st year associate. Long term, a managing director will make more than a partner. Much like law though its tough to make it that high up, you have to gut out terrible hours and loads of stress.

Still dont get how anyone can talk like a million a year wouldnt be enough. I guess I am in the minority here. :roll:

_________________

Kellogg Class of 2010...still active and willing to help. However, I do not do profile reviews, don't offer predictions on chances and am far to busy to review essays, so save the energy of writing me a PM seeking help for these. If I don't respond to a PM that is not one of the previously mentioned trash can destined messages, please don't take it personally I get so many messages I have a hard to responding to most. The more interesting, compelling, or humorous you message the more likely I am to respond.
Get the best GMAT Prep Resources with GMAT Club Premium Membership

SVP
SVP
User avatar
Joined: 11 Mar 2008
Posts: 1634
Location: Southern California
Schools: Chicago (dinged), Tuck (November), Columbia (RD)
Followers: 8

Kudos [?]: 175 [0], given: 0

GMAT Tests User
Re: question about $$$$$ [#permalink] New post 28 Apr 2008, 12:48
riverripper wrote:
terp06 wrote:
riverripper wrote:
I think short term you are better off in law if you went to a top law school and work at a big name firm. Your return on investment is going to be much longer than people making 45k and not loaded down with grad school loans already. Your income immediately after school probably wont be much more than what a corporate lawyer will make, if at all since you will be at the bottom vs another few years at your firm. However, in 20 years if you gut it out in IB you may make significantly more than a partner at a top law firm.


This is untrue. 1st year associates at BB IBs make approximately 2x what a 1st year associate at a big law firm makes. The gap continues to widen every year thereafter. You are correct that any other career path after B-School will make around what a big law associate would, but IB is the exception.


What I said is 100% accurate, no clue why you say its untrue. I said short term because if he works instead of school he will be pulling down around 200k a year vs -75k a year. So his cost of attending is going to be over a half a million compared to someone who might only have a 200k or less cost...its going to take him a lot longer to pay it off. A corporate lawyer at a big firm with 4+ years of experience will be pulling down more than almost every 1st year associate. Long term, a managing director will make more than a partner. Much like law though its tough to make it that high up, you have to gut out terrible hours and loads of stress.

Still dont get how anyone can talk like a million a year wouldnt be enough. I guess I am in the minority here. :roll:


I'm pretty sure raises at big law firms are tiny compared to IB. I don't believe that most 4th years would make over $300k. Yes, the opportunity cost of forgoing this income is huge, and it probably doesn't make sense short-term, but if you want IB long-term, its worth every penny and the pay off will come soon enough.

It all comes down to what you want and how badly you want it. Opportunity cost should be evaluated if you're a lawyer, but it shouldn't be enough to deter you from attending B-School if you want to enter Finance. It should deter you from entering, and rightfully so, if your proposed career track is middle management/MC/etc.

Lastly, I don't think the timeframe needed to earn a good ROI is 20 years like you mentioned. I would estimate it at 6-8 years tops. You'd be making more in IB once you hit the VP level and your debt will be a long-gone thing of the past.

_________________

Check out the new Career Forum
http://gmatclub.com/forum/133

GMAT Club Legend
GMAT Club Legend
User avatar
Joined: 10 Apr 2007
Posts: 4320
Location: Back in Chicago, IL
Schools: Kellogg Alum: Class of 2010
Followers: 77

Kudos [?]: 691 [0], given: 5

GMAT Tests User
Re: question about $$$$$ [#permalink] New post 28 Apr 2008, 13:20
I wasnt saying 20 years for ROI, I was making a generic observation that for someone that stuck out corporate law vs someone who stuck out IB for 20 years that the banker most likely will be making far more. There are doctors and lawyers at all top programs so people definitely find it worth the lost pay and cost of attending but its a longer pay back since he will be getting the same pay as a former engineer who was making a third of what he was.

Remember when you hear of guys at Goldman making 20+ million that is a very small minority of bankers. I know career folks at IB and for every making 5+ million there were a lot making closer to a million. Thats a ton of money either way but dont go into banking assuming you are going to be pulling down 50 million a year when you are approaching retirement. Thats one way to be sorely disappointed with your career.

Personally I think the money shouldnt be the driving factor, if a lawyer hates the life he has in corporate law and has a strong desire to do something he loves more then more power to him. I mean if someone wants to go from law to CPG and its more about quality of life then I have a lot of respect for that decision. I dont think anyone aims at going to b-school to be middle management...thats why I found the long term goal to be an odd question. I know my goal is to be senior management (read C-level), at which point if I make that I will be pulling down far more than I can even imagine now...I know any executive vp and above in my desired industry are in the 1+ million in total compensation and top CEOs are 15+ million. Yes the pay trails banks up to that point but I am not a person to sneeze at 200k.

Sure far fewer people make the huge bucks in most fields than will at banks but the exit options are a lot better if you hate your job in 5 years than if you are an IB.

_________________

Kellogg Class of 2010...still active and willing to help. However, I do not do profile reviews, don't offer predictions on chances and am far to busy to review essays, so save the energy of writing me a PM seeking help for these. If I don't respond to a PM that is not one of the previously mentioned trash can destined messages, please don't take it personally I get so many messages I have a hard to responding to most. The more interesting, compelling, or humorous you message the more likely I am to respond.
Get the best GMAT Prep Resources with GMAT Club Premium Membership

SVP
SVP
User avatar
Joined: 11 Mar 2008
Posts: 1634
Location: Southern California
Schools: Chicago (dinged), Tuck (November), Columbia (RD)
Followers: 8

Kudos [?]: 175 [0], given: 0

GMAT Tests User
Re: question about $$$$$ [#permalink] New post 28 Apr 2008, 13:32
riverripper wrote:
I wasnt saying 20 years for ROI, I was making a generic observation that for someone that stuck out corporate law vs someone who stuck out IB for 20 years that the banker most likely will be making far more. There are doctors and lawyers at all top programs so people definitely find it worth the lost pay and cost of attending but its a longer pay back since he will be getting the same pay as a former engineer who was making a third of what he was.

Remember when you hear of guys at Goldman making 20+ million that is a very small minority of bankers. I know career folks at IB and for every making 5+ million there were a lot making closer to a million. Thats a ton of money either way but dont go into banking assuming you are going to be pulling down 50 million a year when you are approaching retirement. Thats one way to be sorely disappointed with your career.

Personally I think the money shouldnt be the driving factor, if a lawyer hates the life he has in corporate law and has a strong desire to do something he loves more then more power to him. I mean if someone wants to go from law to CPG and its more about quality of life then I have a lot of respect for that decision. I dont think anyone aims at going to b-school to be middle management...thats why I found the long term goal to be an odd question. I know my goal is to be senior management (read C-level), at which point if I make that I will be pulling down far more than I can even imagine now...I know any executive vp and above in my desired industry are in the 1+ million in total compensation and top CEOs are 15+ million. Yes the pay trails banks up to that point but I am not a person to sneeze at 200k.

Sure far fewer people make the huge bucks in most fields than will at banks but the exit options are a lot better if you hate your job in 5 years than if you are an IB.


Well put. And for every senior banker who "only" makes $1 million, there's another 5 who got burned out and decided banking wasn't for them. The successful people pull in the bacon, as in every industry.

_________________

Check out the new Career Forum
http://gmatclub.com/forum/133

Manager
Manager
avatar
Joined: 25 Jan 2008
Posts: 166
Location: San Francisco, CA
Schools: Wharton, Chicago
Followers: 1

Kudos [?]: 12 [0], given: 0

Re: question about $$$$$ [#permalink] New post 28 Apr 2008, 14:12
It would probably be more relevant to see what post-MBA associate bonuses were (as % of salary) in 2001-2003 vs 2006-2007 to project what you can expect in the next couple of years. By the time (s)he'd make VP, the economy, and transaction market, will most likely have rebounded, but I think the 2006-2007 compensation numbers are going to be difficult to match for quite some time. A lot of lawyers make great bankers, so I say if you're going to work the insane hours, you might as well make the most cash.
Re: question about $$$$$   [#permalink] 28 Apr 2008, 14:12
    Similar topics Author Replies Last post
Similar
Topics:
2 Experts publish their posts in the topic Question about DS questions liranmaymoni 1 10 Feb 2014, 07:07
9 Experts publish their posts in the topic Questions about trickier exponent questions? dominion 6 27 Jan 2008, 09:24
Experts publish their posts in the topic Questions about EMBA ankrishn 1 05 Nov 2004, 22:01
General Question about schools just4fun 1 20 Oct 2004, 08:56
Experts publish their posts in the topic Question about recommendation letter gmatblast 7 15 Sep 2004, 04:23
Display posts from previous: Sort by

question about $$$$$

  Question banks Downloads My Bookmarks Reviews Important topics  

Go to page   Previous    1   2   [ 25 posts ] 



GMAT Club MBA Forum Home| About| Privacy Policy| Terms and Conditions| GMAT Club Rules| Contact| Sitemap

Powered by phpBB © phpBB Group and phpBB SEO

Kindly note that the GMAT® test is a registered trademark of the Graduate Management Admission Council®, and this site has neither been reviewed nor endorsed by GMAC®.