Current role unrelated to investment finance (more accounting/corporate finance). It’s an entry level role, but at a company that pays really well even for an entry level accounting role.
Currently looking at a few options, but the fastest moving option would be a pay cut as an investment analyst for a small investment advisory firm (100 ish employees) with roughly $30 bill AUM. They’re a pretty conservative firm, but their business is growing pretty fast by word of mouth from client satisfaction. HR says they’re a smaller company and don’t have the same resources to pay as well as my current company. I’d likely get a 15-20% pay cut.
All of my other options are at publically traded companies and the salary I’d be looking at is a good 20% higher than my current role, but I might have to wait a few months for things to pan out. My interviews with the smaller company went really well and there’s a good chance I’d get an offer. Honestly, I just want to get out of the role I’m in now (I’m bored out of my mind). This is kind of pushing me to want to accept this small company’s offer. It would be a really douchey thing to accept the offer and then peace out if anything materializes with the other companies, wouldn’t it?
What do you think? Should I go for it? Take a job I’d likely be happier with, to get in the industry I want to be in, but for a pay cut? Or… should I wait it out for other options down the road.
*Edit (Additional Info): I’m 23 and just graduated 8 months ago. Current job pays 60k, new job probably expect 45-50k (closer to 45 more likely).
Of course. I know someone who was doing back office operations work but left for a front office gig making almost half of what he earned. It took 2 years to blast through his back office compensation.
Really? That easy of a decision for you? How did he blast through his first job’s compensation in 2 years? My thing is… if they’re going to be paying me little to begin with, what are realistically the chances of me making much more through advancement? The team is only 100 people and the investment analysis/strategy team is a whopping 5 people. A promotion would be my managers job lol (Director of Investment Analysis). Where could salary advancement fit into that picture?
Just work there for a year or two, rebrand yourself as a researc guy (bust ass and finish the CFA tests) and then move on to the next job. It’s really hard to get into any research role at all, don’t worry about the money for now.
Agreed, if age is not your issue. I know in some countries there are age discriminations and employees tend to hire younger graduates for the entry level.
I think if the actual nature of work is something you find interesting and would continue in a different company, then go for it. A friend of mine did the same thing, left a good firm on the BA side and moved to a buy side position at a big bank but for lower pay in a lower cost area. The nature of work is the most important thing.
This has me a bit puzzled too. A company of this size should not be citing a lack of “resources”. Perhaps this job doesn’t come with the level of responsibilty that you are anticipating?
Clarify “investment advisory firm” and that will clear up the $30B number. Technically all mutual fund companies are investment advisory firms and $30B would be a smaller fund company.
Right it’s not exactly entirely investment research. It’s 40% supporting the wealth advisors’ clients by conducting monte carlo simulations and portfolio support. 60% investment research (annual market assumptions, supporting analysis to guide investment strategy for the year).
They are staunchly in favor of passive indexing and strategic allocation, so there no active investing or equity analysis. Still… the job would be more enjoyable than what I have now. Taking this job though would make my prospects better down the line, wouldn’t it? I don’t know if I can take a few more months of my current job, haha.
I curently make $60k for an entry level corp finance/accounting role… and I’m guessing I’d be getting 45k ish, maybe 50k (that’s a stretch) at this place.
Oh, and to give a bit of background. I graduated in June of last year… so I’ve only been in the work force for about 8 months. I guess I still have my entire life to make up this pay cut right?
NPV’ing it makes it more appealing, I agree hpracing007.
Gotta risk some to make some…If you graduated last June you shouldn’t even be worried about ‘pay cuts’ its all about starting your career. If you are single and have no kids you shouldn’t even feel a difference between 45k , 50k, and 60k. Imagine if you said I’d rather work at McDonalds because going to university is a pay cut
Currently single, but looking to propose this year (rings are freaking expensive - just look at CFMvsMBA’s thread!) and I bought a newer car because my parents took my old car and gave it to my high school brother. Probably be looking for a place to either pay rent or a downpayment on something next year. So some of my biggest expenditures to date and life happenings will be while I have this lower paying job. What does that mean, cheaper honeymoon, cheaper ring, not as good appartment??!??