So here is a bit of my background so people can give me some decent advice.
My work experience is mostly in corporate finance / financial reporting and I am pretty good at what I do having just recently received a promotion to manager level with all in comp of probably C$150 - $200K depending on my performance and company profitability. I am happy in my role / learning different things and get to be involved in corporate development, external reporting, internal controls, corporate finance and etc. On the personal side, I have a wife and a new baby. My wife earns something comparable to what I earn but we have a more traditional relationship where she wants to move into something more “cushy” and wants me to advance in my career so she can eventually stay home with kid(s).
While completing my charter, I always had interest in moving into the banking side, particularly ER / Corporate Banking and I think I have enough financial acumen and a decent enough network to get my foot in the door somewhere as an associate (realize I would need to start at the bottom again). I had originally planned to conduct a job search in ER / Corporate Banking for the next 6 months to make a move, but now I feel really conflicted with my promotion, additional learnings associated with the role and expectations from the wife.
Am I foolish to think about leaving my role with a good boss / mentor for an entry level role in something that I may not enjoy or might not be very successful in with less pay?
Given your level of compensation, recent promotion, relationship with your boss / mentor, and difficulty of entering ER in Canada (per this board), I’d say it would be foolish to think about leaving.
Some would for sure. I definitely don’t think I take my position for granted… in fact, i am pretty thankful for where I am. However, I wonder if I will regret not trying it 10 years down the road when I am really too old to make a move?
If I were you, I’d maximize financial and intellectual gains from your current job (which sounds like you’re doing really well in and are happy with), and focus on the family more and thinking about retiring early if you can. Also depending on your location (Bay Area for example), even that $200K salary (after your wife stops working) might not be enough once you factor in increased family costs (although that might not be the case if you have a solid bank balance). So you might HAVE to continue here without risking potential short-term pay-cuts (and/or not liking it as much as you thought, aka grass-is-greener syndrome) from starting over in a different line. I turned 30 recently too. I feel like I’m in a similar boat (happy with management consulting role, but always wondered if the grass is greener in ER). What keeps me going is the constant battle to live within my means and save enough for an early retirement while maximizing everything I can get from my current job. I tend to think that no job is perfect and one can never be at a position where commuting two hours/day is justifiable long-term.
Where do you live kid? If it’s in some major city then hell no you shouldn’t move out of your current role. You’re in a good spot and I would just dominate the job you’re currently in.
Even if ER or Corporate Banking are superior careers, the “step down” will probably be pretty significant and it might take you 5-10 years to recover. If you’re already successful in your current role and believe your career has an upward trajectory, it probably makes the most sense to stay where you are. Every company CFO was an accountant at one point. Of course, there’s nothing to stop you from learning more about other jobs and making an educated decision over time.
Yeah, I don’t really see ER or Corporate Banking as superior careers from a knowledge / learning perspective. No offense to anyone in ER but it takes substantially more accounting knowledge to put together a set of FS and MD&A and financial models / write up are far more detailed in corporate development / planning relative to the models / reports that I have seen from I-bankers / ER primarily due to asymmetry of information. That’s not to say people in ER have more broad knowledge, insight into other companies and stronger network in the industry., which is a big part my attraction to the role.
No real desire to be CFO and I don’t think my career potential is that high. I am pretty sure I will be tapped out at VP Corporate Development / Treasurer / Corporate Controller in my 40s if I stick to my career path and eventually be put out to pasture in my 50s for a younger / smarter version.
Thanks for the advice. Financially, I think I should be fine. My wife and I are nearly mortgage free and if my wife stayed home, we would save on daycare and other related expense, so net differential wouldn’t be substantial. Although, my wife probably has a number in mind for my comp. in order for her to stay home.
You are probably right. No job is perfect… and I might be over thinking things. As for early retirement though, I doubt I can pull it off. I would be too bored.
To clarify, I did not mean that I believed that ER or Corporate Banking are superior careers. “Even if ER or Corporate Banking are superior careers”. What I wanted to say is that, if another field, which can be anything, is perceived to be more desirable, the switching cost might wipe out any benefit from moving.
Anyway, if you don’t think those careers are better than corporate finance, then why are you considering the move in the first place?
Stick with it. You’ve got a wife and kids and a decent trajectory which will pay you good stable cash flows unlike ER. At your projected numbers you’re already doing better than most 2-3 year IB associate pre bonus in Toronto. ER is horrible as an associate - think they’re starting around 85k now (MBA grad) at one of the five, bonus unknown. Exit ops for both are limited and highly competitive in this city. I certainly wouldn’t leave your job for Corporate Banking, the work isn’t that interesting, nor is the forgone salary worth it. I’m sort of in the similar position, and while I love looking at stocks, talking about the market, and tinkering with the portfolio, that is stuff you can do on your own time where your job isn’t on the line and you don’t have to worry about the business cycle’s effect on your employment status and bonus.
As for the wife scaling down and staying home… if she’s used to a quick pace and high performance, she’s probably going to go stir crazy at home and you’re going to take the brunt of it.
To clarify my post… I am saying corporate finance and financial reporting is superior from accounting knowledge / financial modelling / company specific knowledge perspective. I think ER is far superior in terms of networking / broader industry knowledge which I mentioned were the factors attracting me to the sector.
I would compare my situation as one of those contests where you have the option of taking a brand new Honda or something that is behind a mystery door.
It looks like your current situation is going along really well and you have had a lot of success - I would stay in the current path you are on. If you were able to switch and go down into ER / Corp banking, your pay would decrease in the short-term (I’m not sure by how much) which is going to piss off the wife, which also means she isn’t going to be able to stay at home to look after the house and baby. You may also end up working longer hours (insert wife not happy again) and the role may be everything you hoped for… or not. The how would you feel? Overall it sounds like a very risky move to me with limited upside but a lot more downside.
I’m a little older than you (37 tomorrow) and in similar circumstances. After we had our first baby my wife reduced her patient load from 5 days to 4 days per week and it does really help with the work / life balance. She can spend time with our daughter on Friday’s / getting stuff done (and its still busy but it helps).
i agree here. unfortunately you are too high up in pay/level already. if you pursued ER etc you’ll be starting much lower, and that’s IF anyone will hire you at all.
if you really want a boost, try to learn as best as you can yourself and invest your own money