Currently work in BO and hate it (what else is new) recently started networking within my current company in hopes of moving to the investment side. Would have to take a pay cut & demotion to basically start as an analyst but the work would be significantly more interesting and likely give my career more upside.
My question is basically should i be looking at basically anything in investment management (manager research, asset allocations etc) or should I hold out and try to get a more specific portfolio analyst role which I would be more interested in.
My initial thought is to just get out of BO as quick as possible and moving within those other groups would be easier. Is that correct?
Assuming you are not trollololling us, I think by now, you should know how infrequently such opportunities arise. If you pass on this, the next chance might come in years if ever. In addition, moving to the “investment side” in any capacity might help move to another position if you need to later.
Things to be cautious about - be aware of the actual growth opportunity in the new role, and how it compares to your current position. How many years will it take to recover your compensation, how old are you (if you are in 20s, it’s more upside than in your 40s), whether this “analyst” role is actually good or is it actually operational in nature, and all that stuff.
Not trolling at all and thanks for the input. Wanted to make sure I wasnt thinking crazy in general.
I am late 20’s, turning 30 later this year so I am trying to be cognizant of the step back and impacts that may have. I have a pretty clear path to making pretty comfortable comp numbers in BO (although in NYC) so jumping to a lower comp level in a lower cost market would be lame. Need to learn more about the role though
Well what’s the pay cut? Would you be able to make that up in bonus or are we talking all-in comp? Generally it’s not a great idea to take a huge pay cut but if it’s something you want to do, just make sure the role is what you think it is so you don’t regret it later. But if it’s a small cut then I would be all for it tbh, back office is miserable.
Its hard to totally gauge because id be moving to a much lower cost area which makes this more difficult. Id certainly be mindful of the difference in $ before moving too far forward. Currently make ~90k in NYC, based on looking online the position I would be looking at would be around 60k (guessing) in a lower cost center.
Obviously the COL is significantly lower not in NYC, which impacts the salary and makes it hard to tell what this would be in real terms. I certainly think the ability to get some experience in a more FO role would add value and create the ability to get higher future earnings but thats obviously up in the air and who knows.
Sometimes you have to take a cut to get what you want. I took a >50% cut from my cushy job to move cities for an entry level job in finance but I knew that if I did that in a short time I’d be better off. Another way I thought about it was I plan on working another 30 years, plenty of time to recoup. Hope you find what you’re looking for, good luck!
Keep in mind it’s very difficult to network and get interviews if you move to some place out of nowhere . Are there any FO opportunities you can get in NYC?
Doesnt seem that way, been trying to network and wiggle my way in somewhere but havent had so much as a nibble even with the economy turning up. Plan as of now would be to work this role for a few years then jump back hopefully. Ive seen via linked in a few people go from BO to FO in my firm then end up at different banks/funds once they get some experience so i suppose thatll be the game plan as of now
Sorry, bit of a tangent, but can you live comfortably (as in be able to save in the double digit %) in NYC on that salary? I’m assuming you have to live in surrounding boroughs?
I’ve been in a similar situation, this is what I’d consider:
Your age, attachments in NYC, what it is you truly want to get into, and if MBA is a possibility (GMAT, GPA, story), what the long term pay off could be. You might be able to skip the MBA if you’re really lucky but you need a really strong network, a lot of hustle, and even more luck. Ohai’s right; these opportunities rarely come up. IMO, the paycut hurts but it’s better than working the rest of your life in the BO. There’s a reason some companies pay such a high premium to stop people from leaving.
Makes sense and good points. I dont see an MBA as a particularly realistic option at this point for me for a number of reasons but I think if given the opportunity ill likely make the jump.
As for living comfortably, thats a somewhat. Its tough to save a lot but I make do. Currently live in Manhattan with my gf but cant wait to get out. Manhattan is boring and full of crappy food, outer boroughs are way more fun. If the rest of my life was going to be at this salary I would worry but I am def in the running to make a significant pay jump to the 110-130 range in the next few years. The only positive about BO work I see is that its easy to move up if you arent a complete idiot (because the majority of people I work with are)
Thanks for all the input everyone, kind of what I was expecting and I dont think I am too concerned about the pay cut but wanted to make sure I wasnt crazy. If I get an opportunity to make the jump within my firm I certainly will
I took a pretty drastic pay cut to move into the investment field, then another to get on the buy side. This was in my late 20’s into my nearly mid-30’s.
Now in my late 30’s I’ve been getting those nice bonuses finally, and I enjoy the work and respect what I am doing. All worth it. Do it man.
take the job mate - do what you want to do or do what you think you want to do. Trust me, back office jobs will be waiting for you if this “investment side” work does not pan out for you. Some cut in salary is worth way more than “i should have or I could have or what if I did make that move 10 years ago…”
Coming from BO at a hedge fund
On a side note (irrelevant since you are not worried about upside salary potential of BO) controllers on avg in NYC make all in 200k and director of ops/finance make all in ~450k. Don’t take my word, ask any reputable recruiter and these numbers will not be far from what they tell you. CFOs make double that of director of finance/ops
FO on the other hand at funds can make anywhere from 400k-1.1mm. Although anything more would have to be from a bigger fund. I have only worked at funds with AUM between 400-900mm.