By: Wendy De Los
Annual Salary $93,000.00
Monthly Salary $7,750.00
Savings 10% $775.00
House 30% $2,325.00
Car 15% $1,162.50
Miscellaneous 40% $3,100.00
Retirement 5% $387.50
$ If you talk to business students at college, a lot of
them will tell you that they are interested in
$ Some are attracted by the high salaries.
$ Others are attracted by the glamour.
$ However, for most people, investment banking is still
a mysterious profession.
$ Few understand what investment bankers actually
$ Investment bankers act as middlemen and deal-
makers for large companies, providing advice and
guidance on high-level financial transactions.
$ For instance, some bankers specialize in helping
companies raise money.
$ For example, suppose a company approaches an
investment banker with a proposal to raise $100
million to finance the development of a new mine.
$ The investment banker first looks for people or companies willing
to invest in the project.
$ Then he or she structures the deal, balancing the interests of both
the company and the potential investors.
$ Once the company and the investors agree to the terms of the
deal, the investment banker will monitor the transaction.
$ If all of the money is not raised initially, the banker will try to raise
the remainder of the $100 million through his or her company’s
$ These bankers are sometimes referred to as corporate finance
$ As deal-makers, some investment bankers advise companies
that are seeking to merge with or acquire other companies.
$ If a computer manufacturer wanted to buy a software company
to expand its business, an investment banker would find a
suitable candidate, determine the price, and provide a structure
for the deal.
$ Bankers also generate their own creative financial ideas to help
$ These bankers are sometimes called merger and acquisitions
$ Dealing with top-level executives and large
sums of money lends a certain aura of
glamour to the investment banking
$ However, the long, stressful hours and
sacrifice of personal time can take their toll in
the long run.
$ Investment bankers are typically employed
by banks and investment dealers.
$ They work in clean, comfortable office
$ The bulk of their time is spent working on a
computer or in meetings with co-workers and
$ While investment bankers make a lot of money, they
pay a heavy price in terms of workload.
$ In a normal week, they work at least 50 to 60 hours.
$ During busy periods, the number of hours per week
can increase to as much as 100.
$ Most of these hours are also stressful.
$ Mistakes in a spreadsheet or presentation can cost
their employers or clients enormous sums of money
and ruin an individual’s reputation.
$ Entry-level investment bankers can expect to receive
2 to 3 weeks of vacation.
$ More senior investment bankers receive up to 5
weeks of vacation.
$ However, all investment bankers must be prepared
to cancel their vacation plans at the last minute or
return to work during the middle of a vacation if an
$ The high number of hours and unpredictable
vacation schedules make it difficult for
investment bankers to balance their work
lives with their family obligations.
$ Investment bankers are often required to
spend a great deal of time traveling to meet
$ Investment bankers’ earnings vary depending on
education, experience, geographic location, and
$ The highest incomes are earned by bankers
employed at the leading firms, such as Goldman
Sachs or Merrill Lynch.
$ Bankers with graduate degrees generally earn more
than those with only bachelor’s degrees.
$ Investment bankers receive both an annual salary
and a bonus based on their performance.
$ Entry-level analysts at small to medium-sized firms
can earn anywhere from $35,000 to more than
$70,000 a year, including bonuses.
$ Analysts at the top-tier firms can make more than
$110,000 a year.
$ Bonuses for entry-level analysts typically range from
10% to 50% of their base salary.
$ As they gain experience, the base salary levels off
and the bonuses increase.
$ Experienced investment bankers at small to medium
firms make between $75,000 and $600,000 a year,
$ Top-level bankers at the leading firms can earn
millions of dollars of year.
$ At these higher levels, bonuses are at least one to
three times the base salary.
$ The bonus that investment bankers are paid
depends on two factors: their performance and the
overall profitability of their companies.
$ If an investment banker is responsible for bringing in
$5 million of business, he or she can expect to be
well-rewarded at the end of the year.
$ As well, if the company as a whole has done well
and the banker has been working hard, he or she
can expect to receive a generous bonus.
$ High school students interested in this career
should take courses in math, science,
English, and business.
$ For an entry-level position as an analyst, a
college degree in any discipline or field is the
$ Analysts most often have a bachelor’s
degree in business, accounting, economics,
$ Bachelor’s degrees usually take 4 years to
$ To reach a higher level of responsibility as an
investment banker, you generally need more
$ Most companies require applicants to have a
Master of Business Administration (MBA)
$ MBAs usually take about 2 years to
$ Earning a voluntary professional designation can provide
young investment bankers with a competitive advantage.
$ For example, the CFA Institute offers a program leading
to the designation of Chartered Financial Analyst (CFA).
$ Applicants are required to have a bachelor’s degree or 4
years of full-time professional work experience.
(This experience does not have to be investment-related.)
$ To be awarded the designation, they must pass three
different exams, and have at least 4 years of experience
working in the investment industry.
$ See the Other Resources section for links to more
information about the CFA designation.
$ You should like working in a high-stress
environment where there are serious
demands on you to perform your best every
$ A high level of motivation is essential, and
you must be prepared to work hard.
$ You should enjoy working with money and be
skilled at financial figure work.
$ You must also be able to keep up-to-date on
current events, including business news and
$ Strong analytical skills are important, and
you should also be a good communicator.
$ Mercedes Benz
$ City: 17 MPG - 18 MPG
$ Highway: 25 MPG - 26
$ Seven-speed automatic
Chevrolet Suburban 2500
$ Suburban 2500
$ Mpg n/a
$ 6 speed Automatic
$ City: 17MPG-22MPG
$ Highway:26 MPG-30