Ok, so you’re talking about a really large RIA or family office. That’s a completely different type of research role than an analyst on a mutual/hedge fund. It won’t help you break into a more traditional buyside analyst position but that’s not to say it’s not a good job. Those places can be fun to work at, and generally compensate their employees well, particularly after sticking around for a while. There’s a good chance you’ll be offered equity in the firm.
So, could be a cool gig but won’t help you become a traditional buyside analyst.
Just don’t get engaged yet. If the future Mrs. Give can’t see the positive NPV of sticking around and waiting another couple years for a ring, do you want her? Also get the cheapest reasonable apartment.
I think the more important guidance relates to this proposal speak. You are what, 22-23, and already looking to tie down the knot? My man, live a little and def read the forum about marriage.
Take it from everyone here that your compensation in the first few years after graduating means little compared to the long term trajectory of your career. We don’t have enough information to gauge the potential of the investment job that you are considering, but hopefully you do. If the new job will result in better compensation in 5, 10 years or more, then paying a small amount of money today can be a very small cost. In any case, it would be short sighted, in my opinion, to base your decision on your ability to pay for an expensive apartment or honeymoon today. Good luck on whatever you decide.
Alright, a few points coming from another youngin’ –
You will definitely feel a difference between 45k and 60k – you are not a BSD, so don’t let these BSDs rationalize for you. I agree with the point that a 15k cut could be quickly earned back, as long as this job improves your career prospects.
The real question here has to be whether or not this job actually improves your career prospects, and if you’re going to be able to stick around there for a year or two at least. There are differing opinions out there, but if your first two jobs on your resume have tenures of less than a year it will raise some eyebrows.
Also, STL, is it actually likely that an entry level analyst will get granted equity in the $30B RIA? Maybe after 5 years…
CFAvsMBA - I’ll go look at your marriage thread, but:
I’ve been dating her for 4 and half years and she’s my best friend. I could not be more confident in a decision that I have had to face than deciding I want to marry her.
STL, why does an analyst position at an RIA not help you getting into buyside (can’t really say it’s a goal anyway)? Don’t you think it would help more than the role I have now as essentially a glorified accountant? This place does sound like it’d be fun to work at, because it’s rapidly growing with only 100 employees and it looks like all the manager level employees have really shaped their career into whatever they wanted it to be. I’m an entrepreneur at heart, so I feel like mixing “small” business and finance could be fun.
The role you’re looking at and being a research analyst on an actual product - mutual fund or hedge fund most likely - have very little in common. Analysts at RIAs, even the gigantic ones, evaluate mutual funds, asset allocation models, ETFs, SMAs, private REITs, etc. That has nothing to do with modeling stocks or being able to discern relative value amonst bonds (i.e. traditional buyside analyst work). Will it help you more than your work as a glorified accountant? Sure, like being in the same state and not just the same country as Kate Upton gives me a better chance to fark her.
Man, all of us older guys here have thought the same thing, said the same thing, and experienced the good result or the bad result. When an elder tells you to hold off, its usually for a good reason. You’re gonna keep growing and she’s gonna keep growing/changing for better or for worse. Live a little now, this is advice from those who have been in your shoes already. Nobody wants to see you go down in flames.
Yes, you should always listen to older people for they know what to do. That’s why I always believe my gramps when he says salt water taffy is better than any of our new fangled candies, he remembers the original tea party and these new guys are just frauds, and how amazing it is what women have accomplished over the last 50 years, considering their disadvantage.
I’m not like most people, so I feel general “life/relationship” advice doesn’t apply to me. What do you guys consider living a little? Because 1) it’s probably not my definition of fun, and 2) whatever does fit my definition of fun is not mutually exclusive to being tied down.
My advise is suck it up most people our age (I graduated last year too) will have to wait to buy a car, house, engagement ring. You have been working 8months settle down and save up. I’m going to share my personal story I took my first job forecasting population numbers for local provincial government education ministry it paid 32k (3month contract and I moved cities for this). I then took a data analyst job at same place but it only paid 27k (Only lasted there 2months? maybe not even). This then lead me to another temporary job in the Compliance deparment of an energy trading floor this one paid 60k. I was pumped and I mean like I was the most thankful human on this planet for that crappy compliance job. I stayed late working and ended talking with lots of the traders as they started their night shifts. I guess you can say I “networked” but I prefer to call it shooting the sh!t. An energy trader position opened up and alot of people applied. I eneded up being offered the job and accepted it. Now I’m an Energy Trader and here they get paid a heck of alot more than 60k. That being said I still drive a $1,500 used Jeep and live in a cheap ass apartment because I know that my income is not guaranteed and that next year I might need to take another job for 32k. I still want to move to Equity Research or some sort of research role but until then I need to pay the bills, save for MBA, and yes I want to purpose to my girlfriend but only when the time is right emotionally and financially. Take advice from somebody that is in very similar shoes. Wait on those big purchases this is not the 1980’s we have to be a little more careful and thoughtful when it comes to buying a house, car, ring. Ask your parents how just graduating was like I bet they will have some hilarious stories of eating KD for a year straight. TLDR/Summary: If I didn’t accept those first few arguably non-finance crappy jobs I would never have gotten here. Those jobs looking back taught me the neccesarry skills that were huge to moving onward. Take the jobs that gives most skills don’t focus on pay.
I like that man. Great story - thanks for sharing. I agree, living frugal for a recent grad is important. I’m living with my parents hahah… so I currently have no rent and I plan to live with them until I get married (probably another year and a half/2 years).
I like your mentality. Taking this position will be humbling for me… will put me in an environment where working hard is ncessary to succeed. My current role, I’m just 1 in 20,000 employees and I can succeed even if I put in minimal effort and networked effectively.
This thread has actually made me much more comfortable with taking a lower paying job. I guess I just need to really make sure that taking it will in fact open doors to the career path I am interested in. At the very minimum, it would do a better job of doing that than my current role.
Ok… after telling you not to listen… here is one piece of advice. Live with the girl first. Living with someone is completely different than dating them. It’s COMPLETELY different. It’s either a lot better, or its a lot worse. My two cents.