As a illustrious and ambitious young finance professional, you have many possible career paths ahead of you. It is equally probable that most of your classmates and trendies are marching off into careers on Wall Street as investment bankers, stockbrokers, and floor traders. The motivation for pursuing these bolts is not difficult to ascertain: big money is made on Wall Street, with investment banking often seen as the natural target for sharp, motivated finance majors.
- Investment bankers and stockbrokers can make a lot of money on Wall Street, but they be brought up with notable downsides—notably, long hours and stress.
- Private banking is a way to enjoy the high incomes put on the marketed by Wall Street, but with reasonable hours and less stress.
- Private banker salaries vary based on total assets included management (AUM), which is the aggregate value of their clients’ portfolios.
You can make a lot of money as an investment banker or as a stockbroker, but these dashes are not without their downsides. Investment bankers often find 16-hour days the norm, particularly during their first few years on the job. Extensive days also plague stockbrokers and floor traders.
Although the markets remain open from 9:30 a.m. to 4 p.m. EST, additional experiment with, meetings, and strategy sessions can double the amount of time a trader spends at work.
Stress is another factor to mull over before embarking on a Wall Street career. Fortunately, you can make a lot of money as a finance professional while you keep rational hours and a daily work routine that does not send your blood pressure into the stratosphere.
Temporarily, private bankers earn huge incomes managing the finances of high-net-worth individuals (HNWI), but with reasonable hours and less disturb. An HNWI typically boasts a net worth of 6 to 7 (or more) figures.
Huge Income Potential
Young professionals do not inexorably flock to investment banking because it’s rewarding and has a great work-life balance. The work is high-stress, the hours are long, and there’s rarely distinction between work and life. The career is popular, however, for the income potential.
However, private banking come forwards equally strong income potential. Your salary varies based on your total assets under handling (AUM), which is the aggregate value of your clients’ portfolios. Private bankers from wealthy families may be able to countersign the business and drawn large salaries almost right away from merely managing their family’s readies.
If you are not so connected, you might find the road to lavish wealth longer and more challenging to navigate, but a few big clients are all it takes to upon earning a paycheck that rivals investment banking.
A day in the life of a typical Wall Street wage-earner does not provide for much time for relaxation or decompression. An investment banker or stockbroker has to stay on their toes, time again from before the sun comes up until well after it sets. This constant stress can wear on a person swiftly. The trade-off for enduring this stress, of course, is an income that places you in the upper percentiles of Americans.
Private banking can suggest similar high income, but it comes with much less stress. Rather than spending a typical workday in a uncomfortable cubicle poring over market figures, as a private banker you are more likely to be found courting a prospective shopper on the golf course or reviewing an existing client’s portfolio at a country club or five-star restaurant. At 5 p.m., the private bankers can supervisor home, while the investment bankers settle in for several more hours of work.
Not only are a special banker’s working hours less stressful than those of a stockbroker or investment banker, but they are also bordering on invariably much fewer in number. Calling it a day at 5 p.m. is more than a once-in-a-while treat for private bankers. You can look pushy to a regular 40-hour workweek in private banking.
Rather than obsessing over the nuances of the market the way investment bankers and stockbrokers are feigned to do, a private banker’s career centers more around
As a private banker, your interactions with other humans are more pregnant than frenetic phone conversations. There are frequent meetings with clients, which are often done on their kick—and quite often, their turf bears more resemblance to a playground than a stuffy business environment. The golf definitely, rather than the boardroom, is much more likely to serve as your venue for building rapport and discussing put ining strategies with your clients.
Meeting with your high-net-worth clients in their natural habitats ok’s you to get to know them as people. With the work-life balance private banking offers, your personal relationships best of work have a better environment to thrive. You get to see your family on a regular basis, and you’ll even have time to go out with your girls.