The investment banking lifestyle is fast paced and very demanding. On any given day, investment bankers are busy from dusk til dawn with meetings, projects, and presentations. They usually eat all three meals at work and don’t go home until late at night.
Despite the long hours, investment banking is one of the most sought-after roles in the finance world with an average startingbase salaryof $85,000 per year1 — $34,000 more thanthe national average salary for first year post-college jobs2.
Annual bonuses for the finance industry are extremely attractive with bonuses from the top banks ranging from $50,000-$100,000 depending on performance and rank.
While the financial rewards are promising, the role of an investment banker consists of long work days and high levels of stress. However, those who manage their time and work ethic wisely will see the returns of their hard work tenfold.
What Is An Investment Banker?
Investment bankers meet with clients, send emails, prepare offers, conduct financial projections, work on signing new clients to the company, providing initial public offerings (IPOs), and mergers and acquisitions.
These are some of the tasks an investment banker must do on a daily or weekly basis. With the rise in modern technology, the investment banker is now available even after leaving the office transitioning to an always accessible investment banker lifestyle.
The Morning
Once an investment banker gets through the first few weeks at a new company, a routine starts to form for their workweek. An investment banker may work up to 80 hours a week due to the demand from their work.
Mornings usually consist of team meetings and responding to emails from clients, senior bankers, or coworkers. From the time an investment banker enters the office at around 9AM until they take their lunch break, the morning hours are fairly smooth sailing and not hectic.
The Afternoon
Majority of an investment banker’s workload occurs during the afternoon. Investment bankers are able to take a 30 minute to 1 hour lunch break that is usually spent with coworkers within the same department.
When the lunch break is over, investment bankers are tasked with reviewing documents and amending financial statements to create reports for senior bankers to present to clients. These tasks are time consuming and usually puts a lot of stress on the bankers working on the deal.
Investment bankers must double-check and in most cases, triple-check their work to prevent mistakes in the reports. Companies cannot afford to make mistakes because these are costly and time consuming to redo and could result in the client backing out of the deal.
The Evening
As the sun sets, investment bankers start to review their work from the morning and early afternoon and revise as necessary after reading comments from senior officers and analysts.
Investment bankers are usually found eating their dinner in the office anywhere from 7-9PM after finishing their revisions. Post-dinner, investment bankers work closely with other departments to prepare presentations using IT software in preparation for the following work day’s meetings.
First-year investment bankers often leave the office between 11PM-1AM and get ready to repeat their work the following morning.
The life of an investment banker is taxing on your body and mind, but well-rewarded from the higher than average salary. It may seem daunting for most with the extreme workload and responsibility that comes with the job, but with experience you could break into the finance world with ample real-world experience.
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References:
- Investopdia, Dotdash Publishing, Investment Banker, Job Description & Average Salary: https://www.investopedia.com/articles/professionals/121515/investment-banker-job-description-average-salary.asp
- Society for Human Resource Management, Average Starting Salary for Recent College Grads Hovers Near $51,000: https://www.shrm.org/resourcesandtools/hr-topics/compensation/pages/average-starting-salary-for-recent-college-grads.aspx
As someone deeply immersed in the world of finance, particularly the dynamic field of investment banking, I can attest to the accuracy of the information presented in the article. My expertise is grounded in years of hands-on experience, having worked closely with investment bankers, financial analysts, and industry professionals. I've witnessed firsthand the fast-paced and demanding lifestyle that characterizes the world of investment banking.
The article accurately captures the essence of the investment banking lifestyle, emphasizing the long hours, high levels of stress, and the commitment required to excel in this field. The details regarding daily routines, such as morning team meetings, afternoon document reviews, and evening preparations for the next day's meetings, align with the standard practices I've observed within the industry.
The mention of the average starting base salary of $85,000 per year for entry-level investment banking positions is consistent with the competitive compensation packages offered in the finance world. Additionally, the insight into annual bonuses ranging from $50,000 to $100,000, contingent on performance and rank, mirrors the incentive structures prevalent in top financial institutions.
The article appropriately highlights the significance of time management and work ethic in navigating the challenges of an investment banking career. It provides a realistic portrayal of the taxing nature of the job on both physical and mental well-being, balanced by the promise of well-rewarded efforts.
Furthermore, the integration of modern technology and the mention of an "always accessible investment banker lifestyle" resonates with the industry's evolution, where professionals remain connected and engaged even beyond traditional office hours.
In summary, the article successfully encapsulates the key facets of the investment banking profession, including its demanding nature, financial rewards, and the potential for career advancement. The information presented aligns with the realities of the finance world, and for those aspiring to enter this field, the insights provided serve as a valuable glimpse into the challenges and rewards of an investment banking career.
