Should I go for a Phd in Finance?

I am finishing up my degree in MFE and got a job at a top I-Bank. But I am not totally happy with my career as I like the life style of a finance professor. They got paid very well and has a lot of autonomy over what they are doing. I am in my 30s. The opportunity cost is high. I am at a cross road to make a decision as to what to do next. I would appreciate any advice. Following is my pros and cons of get a phd: Pros 1. Highly compensated (150+), nice life style 2. doing prestigious work, self complishment 3. job security Cons 1. I am old, opportunity cost is high 2. My starting salary including bonus is also 150+. Guys, any suggestion what should I do?

I am doing my PhD after I completed MBA. I am more or less of the same age with u. PhD will take all your energy. I saw many MBAs going further toward PhD but quit after 2 year coursework as they feel bored with research life. If u leave after 2 years, Uni will give u a master degree. After u graduate from PhD u have 6 years working as assistant prof. if u have publications in top journals during this 6 years,u will get tenue and become associate prof. then life become nicer. On the other hand, I know quite a lot who did not get tenue after 6 years and end up moving to another Uni as Lecturers (not tenue track ) or have to find job in industry. My advice is u shd go for PhD if u really enjoy doing research, do not go for PhD because of high compesation thoughts. It is easier with PhD life if u r very good at mathematic, quantitative skill, and programming skill as well.

cud i pursue my Phd while i work…i dont care if it takes time…but is it possible…

Hey MBA Finance, I am looking into MFE programs. Where did you go for the program and what do you think of it? Isn’t an MFE sort of a divergence from the CFA path in that MFE is much more for a quant rather than a generalist in financial analysis? What sorts of benefits are there for an MFE graduate who is also a CFA charterholder?

Any serious Phd. program will not allow candidates to work unless it is on campus, generally as undergrad instructors. Every single person I have ever met that has a Phd who is not a tenure track professor says it’s not worth it. Every last one. Note, thats all of about five people. I would say only do it if your truly committed to a career as a researcher, otherwise stay put. If your concerned about money, switch careers into something as lucrative but more interesting to you. Also consider your opportunity cost on a personal level. I don’t know your situation, but I imagine not to many women your age are going to put up with being second to your Phd program. Maybe your IB career becuase you’ll be making cake (slang for money), but less likely when their is no immediate advantage to them. Also, consider how it may affect your other aspect of your life before making the decision. Good Luck.

I am absolutely sure that you shouldn’t - your list of pros is just wrong and don’t include the real pros and include some odd stuff (getting a ph.d. for a better salary? Say what?). A Ph.D. in finance is an academic degree. With your list of pros, you won’t get one. You might not even get in to any reasonable programs without an attitude adjustment. Pros: 1) Being a student is a great lifestyle 2) Learning everything you can about a subject is challenging and interesting 3) Being at the forefront of expanding knowledge is exciting 4) You like teaching

i agree with JDV the only question on your mind should be, “can I push the boundaries of knowledge and how can I influence the way people think about the world”. money and prestige should not be part of the equation. if it is, i put my money on it that you won’t do anything but end up lecturing and being called professor. JDV, this is the primary reason that I have lost a lot of respect for PHDs. i have met countless number of PHD candidates that felt the same way. One guy at U of Michigan PHD program even told me, “i’m getting it now cause i need to be called Dr.”. In the end, they WILL end up getting a phd but respect they will problably never have. don’t get me wrong, there is a lot of honest intellectuals out there, but given the requirements to do a doctorate degree nowadays, its hard to distinguish the real from the fake.

btw, i’m not sure how much finance profs make since i have an econ background. but the profs that got paid 150k plus were all tenure professors who were very talented and had a substantial amount of publications. i hear however that business and finance profs get paid substantially more though i still think 150k starting out would be a bit high for someone without a publishing track record.

The professors that get paid $150K from their school all have named chairs at 1a (pay-scale rating) schools. There is no chance that you can get $150K starting out unless you are an unbelievable academic star (in which case, you should absolutely get a Ph.D. because the world needs your talent there).

JDV, that’s what i thought. A little out of date, but $113k isn’t too shabby. And check out the $115k for new accounting faculty.

I am also thinking about getting my PhD (in Germany). Although it is probably very hard, I could do it while working (prob. takes me 5-7 years). I am in my early 30s and just finished LIII. For me the main pros are: 1.) I like teaching 2.) Like to reduce workload at some point (mid 40s) or at least have more discretion on when to work while still doing interesting stuff 3.) May run a small consulting firm parallel to lecturing 4.) Interested in diving into an interesting topic during the PhD programme The main cons are: 1.) 5-7 dire years 2.) My wife, who would probably kill me for that (not really, but not glad either)

fedge Wrote: ------------------------------------------------------- > > Summary_05-06.pdf > > A little out of date, but $113k isn’t too shabby. > And check out the $115k for new accounting > faculty. You want to be looking at assistant professor salaries since everyone starts out there (or instructor). You can’t start out being an associate professor. There are a couple of things to keep in mind about this: 1) These are business school salaries which are certainly higher than regular faculty salaries. 2) They are for people who were actually hired. When I left my job in academia ten years ago, there were 550 applicants for it most of whom could easily do the job. I tried to get a job in business school once too. It’s much easier to get a job in hedge funds making $500K than to get a job in business school making $120K.

FrankArabia Wrote: ------------------------------------------------------- > One guy at U of Michigan PHD program even told me, > “i’m getting it now cause i need to be called > Dr.”. Does his name begin with the letter R? If so, I know who it is (it sounds like something he would say).

Q. Should I go for a Phd in Finance? A. No. Next … ?

go blue, no, unfortunately it does not. It starts with a J. he is doing it in Marketing statistics or something along the lines of that. its in the business department. i don’t talk to him much.

I investigate the options of going for a Phd degree after master of finance. I checked placement at Chicago and it seems 40% went to industry some stayed in Academia by taking nontenure tracked position. I also checked Stanford GSB placements back to 2001. less than 50% made tenure at their original placement schools. I feel the road in academia is bumpy. It is said there are strong demands for phd in finance. However, from what I found in placement stats, it doesn’t add up. Maybe the demand number includes all the finance faculty position including teaching schools. These positions are generally not going to pay as well as research school: like 150+ as claimed. Am I right? Please comment, as I am at a cross road of decision.

I was contemplating a Ph.D from east coast (Columbia/NYU type) in 2008. My profile is similar to MBAfinance. However, after Ph.D I am less keen to become a Prof, but more keen to work in the industry or research institutions (like NBER etc). I have talked to 5 of my buddies who have done Ph.D and worked as Assoc. Prof & Portfolio Managers. Believe me we had hours of discussions & not one of them encouraged me to go for it. They all unanimously said it was a waste of time. I begged them to be less critical of a Ph.D, but no use. I have dropped that idea, mainly because they all said 36 was not a good age to start a Ph.D & it would be a $$ wasting game with no tangible benefit.

Sorry, my profile is slightly different to MBAFinance, I have double masters (mba finance and ms electrical engg)

cfa_mba_caia, Do you friends think that a phd is worth it if you were in your 20s? At my school, several renowned tenured professors left for major I-Banks: I was told because I-Banks pay them 10 times more. However, I think the story is not simple, professors can always make big bucks by consulting on the side.