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in this video I'm gonna show you some of the highest-paying career paths of finance and exactly what you need to do to get into these types of jobs these are the same career paths in finance that can put you on track to making a quarter of a million dollars in just three to four years out of school and today I'm gonna go through each of these career paths and finance step-by-step let's go if you're watching this video you're probably thinking to yourself what can I do with my finance or business degree that's gonna maximize my earnings potential so in this video I'm gonna cut through the crap and show you the exact career paths and finance that you should target to maximize your earnings potential and at the same time the types of career paths and finance you want to completely avoid because they can totally flatline your career so what types of careers in finance do you want you want what I call a tier one job tier 1 jobs are front-office analytical type roles where you're actually doing really interesting work whether it's working on different companies working on different deals doing research etc versus a boring back office type job where you're not doing interesting work or maybe plugging numbers in Excel and you know it's not gonna do anything for your career so why are these tier 1 jobs so attractive number one they come with some of the highest pay in the industry number two they're the most prestigious in the business world number three they can lead to some of the best eggs and opportunities which come with even higher salaries and number four they come with the best kind of work so within our career paths in finance we have three main routes number one we have the banking route number 2 we have the asset management route and number 3 we have our stepping stone route now when you're thinking the highest paying jobs for a finance you're probably thinking of stuff at a hedge fund private equity firm bench of capital etc now these career paths are all designed to lead towards those types of jobs because like I mentioned before within 3 to 4 years out of school if you get to the buy-side and you're working at a hedge fund private equity firm or venture capital firm you'll probably be making a quarter of a million dollars three to four years of school which is fantastic so again these career paths are specifically set up to get you to the buy-side as quick as you can but again sometimes people will stick in the roles they have don't want to move but that's totally fine but more than likely if you're a finance major you're a business major and you're looking for that big bucks kind of job that's the buy side and we're gonna get into how to get there in a little bit so first up we have the banking route now the baking route is probably the most lucrative but at the same time the most competitive route finance majors are usually trying to go for so who is this route for primarily this is for students that are on the younger side primarily freshmen sophomores and even some juniors because again the recruiting for this type of route starts very very early so you need to be on your game as soon as possible so why are the jobs and the banking route so competitive obviously it's the money if you get a job within the banking row you're probably gonna make anywhere from 90 thousand to $140,000 in total compensation right out of school but again the requirements are a lot tougher usually it's going to take a year of relevant experience whether it's a relevant analytical type internship or participating an experience based program like RI LTS analyst program usually you have to have a relatively good GPA and by that I mean you're probably looking somewhere from 3 5 and up your school problem needs to be someone well known and at the same time you probably have had to do a little bit of networking to actually get yourself in an interview so one of the jobs within the banking route let's take a look first off the bat we have Investment Banking which is probably the most lucrative and most competitive job for entry-level grads then we have roles like sales and trading corporate banking and even equity research so first up we have invest of banking which like I mentioned before is probably the most competitive yet lucrative role out there you'll be making a lot of money but at the same time you're gonna be working a lot of hours probably in the range of eighty to a hundred hours a week sometimes in some cases I've heard up to a hundred twenty hours a week which is nuts but again Investment Banking is probably the most effective route to go if you're trying to get to the buy side usually if you're an investment banking for about a year - you can do that and then move over to the buy side from there whether you go to a private equity firm or a hedge fund so it's a lot easier to make that jump to the buy side if you started in an investment banking now if you're trying to get more details of how to get into Investment Banking take a look at our guide below we go a lot more detail on this but as a quick overview investment banking is primarily a deal based business you'll be working on things from mergers and acquisitions to IPOs to debt refinancings to leveraged buyouts etc so your job as an entry level analyst will primarily be building different models whether it's a three statement company specific model or a product based model like an M&A model or LBO model but at the same time you'll also be working on pitch books to go over the details of various deals depending on what kind of department you're in within Investment Banking you can be on what's called a industry base team were you're focused on covering a different industry like healthcare TMT resources you can be on a product-based team like leveraged finance or M&A or you could be on the capital market side of things where you're in their equity capital markets group or their debt capital markets group all of them are very very great roles to start into but in terms of which are probably better if you're on the M&A lengthen or an industry based team that's more preferred than something like capital markets although Capital Markets is still a great place to start next up we have our group of corporate banking sales and trading and equity research so obviously these roles are a lot different than each other but I grouped them together here primarily because of the exit opportunities that you can get from them now these are still really really great jobs to have but the eggs in ops won't be as good as the types you'll get from Investment Banking so can't you go direct to the buy side after going through one of these roles yes but sometimes it requires getting some experience in investment banking or also pursuing an MBA and using that to leverage into the buy side so what are these roles so starting with corporate banking it's somewhat similar to Investment Banking but there's also a lot of key differences so within Investment Banking you're primarily working in a deal based environment whereas corporate banking is primarily focused on the credit side of things so for example in leveraged finance which is part of Investment Banking you're primarily working on high-yield debt issuances that would be used for different mergers and acquisitions transactions leveraged buyouts etc whereas in corporate banking you're primarily working on more investment grade type products whether it's a term loan or Evolver etc now with corporate banking obviously you're going to have lower pay but that comes with better hours which might work for someone that wants that better lifestyle sales and trading is pretty much what it sounds like you know you're doing a lot of trading work during trading hours it can be really really intense because obviously you're doing this work in real time but at the same time compared to Investment Banking the hours can work better because when the markets are closed that you're trading in you're pretty much done so if you prefer to handle quick periods of intense situations where you're doing this trading work versus kind of the fixed long hours of Investment Banking sales and trading might be for you but like I said you're not gonna have those eggs and opportunities like you would with Investment Banking then we have equity research which is again pretty much just like it sounds if you've ever been on Yahoo Finance or just kind of looking through Google and you've seen a report that let's say this goldman sachs analysts put out a price target on Tesla that's their equity research department where they're literally just putting out research reports on the different companies that they're covering now key thing here is it's kind of tricky to get right into equity research out of schools so this might not be the best thing to look for in terms of an entry level opportunity but if you can equity research obviously can lead to a full time by side world occasionally depending on where you are but sometimes it might require that baking experience ahead of time or going through your MBA first so as a recap the banking route is probably the best career path in finance to go after number one if you still have time on your side and you know you're a freshman sophomore or junior and can make sure you're prepared ahead of time because once you miss the recruiting cycle it's a lot harder to get into after and it might require a stepping-stone job which we'll cover a little bit later on number two you're absolutely gonna need to have some sort of relevant experience on your resume to show that you've done work similar to this and that you're not just a complete newbie who's never known anything about the space so those are things like having an investment banking internship already having a tier-one type analytical internship that's still relatively close to Investment Banking or going through a program like our invest like the street analyst program where we literally teach you what you need to know for these jobs but at the same time give you experience doing this work so you have something to put on your resume number three you're gonna need to have a pretty darn good GPA so ideally you want to have something that's three five and up as banks tend to have the cutoff at about three five sometimes you can still do it at three two and up as that's kind of the next tier in terms of a GPA cutoff but it gets a little tougher then anything below a three two and you're in a much trickier spot you're probably going to need a really really strong connection to get you in for an interview or you're gonna need to go through a stepping-stone job first which we're gonna cover in a little bit number four you'll probably need to go to a relatively decent school the more alumni that you have in the industry the better it is and the more people that you're gonna be able to network with and number five obviously you're gonna have to do that networking so you have people on the inside of these companies pushing your resume through to actually bring you in for an interview moving on we have our second career path in finance which is the asset management route so what is the asset management route it's kind of similar to the types of requirements you would need for the banking route so again gonna need to have some relevant experience on your resume you're gonna have to have a pretty good GPA you'll probably have to have gone to a pretty well-known in kind of school and obviously you're gonna have to do some networking to even get in for an interview so within the asset management route it's primarily where you're going to be working in the acid departments of a big bank you know like a JPMorgan or at places like fidelity and Blackrock where they're managing their own assets and you'll primarily be doing work in terms of researching different companies doing research on different industries doing work with portfolio management etc so again it's really really interesting work that's obviously a lot more relevant to stuff that you're gonna be doing on the buy side where you're actually working at a hedge fund private equity firm venture capital firm and doing the same kind of at the same point the total compensation that comes with this is also pretty darn high you're probably going to be making anywhere from 85 to $110,000 in total compensation right out of school which again makes the asset management route a pretty competitive yet lucrative route to go after so how does the asset management route stack up against the banking route so there's a couple things here so the trickiest part about the asset management route is there's less opportunities available so there's lots of investment banks out there but there aren't as many big asset managers which are gonna have the same prestige and lead to the same exit opportunities like an investment bank would as you'll see a little bit later on I refer to smaller asset managers in the stepping-stone route but the thing about those is while the work might be interesting it's not gonna lead to the same exit opportunities as it would if you're at a big asset manager whether it's a fidelity Blackrock or working in the asset management department of a big bank like a JP Morgan or Goldman Sachs those roles can lead you right to the buy side whereas small asset managers they're not going to get you into those roles as easy and you're either gonna one have to know someone who's gonna be able to get you in to go get some banking experience ahead of time or three go the MBA route and use that to leverage into a really really solid buy side route but we'll cover this a little bit later on in term of the small asset managers so moving on to our last career path and finance and probably our most important one which is the stepping-stone route so if you're like me you probably screwed up in school and a lot of us when you're in college you don't realize how much you need to do to actually land some of these really really good roles in finance just like me so that's where the stepping-stone route comes in the stepping-stone route and the jobs within it are basically jobs that you want to get into which can help redefine yourself and position you from one of the better jobs within the banking route or going direct to the buy-side so how do we get into jobs like this but first off we need to identify our weaknesses here if you're looking at different career paths in finance and you think you need to go the stepping stone route there's a couple things you're probably trying to overcome number one you're probably late to the game meaning you didn't start early enough preparing to land a job in the banking realm and that's okay there's still ways to overcome being late whether you're a senior in college and you're scrambling to find a full-time job or you're out of school and don't have a job or are in a role you don't like isn't taking you anywhere I think your career number two you might not have the best GPA if you're like me you probably didn't have the best GPA in college because you might slacked off you might have partied too much too etc it happens there's still ways to overcome that number three and probably the most important thing here is you don't have relevant experience so you're applying for jobs that are in the banking route and you have no relevant experience on your resume that shows that you've done stuff related to those jobs there's no shot you're gonna get an interview so these three things we need to overcome and there's different ways to do that so in terms of things you can do to overcome a weak GPA lack of experience not going to a good school take a look at our post below where we literally go through the things you can do to overcome your weaknesses lack of experience etc it'll dramatically help you out even if you're on the younger side and you're trying to get an internship when half the internships these days still require some experience so it's worth taking a look below but if you're at this point you think okay I might have some relevant experience I can use here my GPA isn't all that bad and I think I can do something to get myself on track here this is when you want to take a look at some of these stepping-stone jobs so what are the jobs within the stepping-stone route
o within the stepping-stone route we have four main buckets number one we have credit number two we have the big four number three we have lower tier asset managers in number four we have corporate develop so let's start off with credit what is credit it's basically where you're going to be doing work analyzing a company's creditworthiness now this can be jobs like working at a rating agency like a Moody's S&P or Fitch where you're working on different companies analyzing their creditworthiness building models etc it could be working in a credit risk Department within a big bank where they're literally doing the same type of thing or it could be working in commercial banking where essentially you're doing this type of work for a small kind of lesser-known bank whereas if it was a bigger Bank doing bigger deals that would be corporate banking like I said before but again starting off the credit is a really really good space because you can use what you learned in credit to leverage it into a job down the banking route whether it's investment banking or one of the jobs up there and within the credit bucket here you're still probably gonna be making anywhere from seventy five to ninety five thousand dollars right out of school which is pretty darn good for roll next up we have the big four and by big four I'm referring to the big four accounting firms like PwC KPMG etc now within the big four I'm not talking about the typical accounting based jobs like auditor tax which is usually what you do when you're an accounting major I'm referring to the more finance space islands which are valuation and corporate advisory valuation is literally where you're putting together valuation assessments on different companies different deals etc and corporate advisory is where you're literally doing advisory work on certain transactions kind of like you would at an investment bank and the nice thing about these types of jobs is the work is pretty darn relevant to those types of stuff you would do at an investment bank or one of the jobs within the banking route so by going the big four route you'll be able to use what you learned to leverage into a job over in the banking route now within jobs like this you're still probably making a decent amount of money and usually you're starting compensation will be anywhere from seventy five to eighty five thousand dollars right out of school next up we have the smaller lower tier asset managers so if you remember from earlier on in the video I was referring to the bigger asset managers like fidelity Blackrock and the asset management departments of the big banks now the main difference between them and some of these smaller guys are the exit opportunities so while the work might be the same as some of these smaller lower to your asset managers you're not gonna have the same exit opportunities as you would by working at one of the bigger names so within the smaller lower tier asset managers we have things like working on a search fund where you're like helping a private equity company find companies to buy we're also talking about small private equity and small hedge funds where you're literally doing the same types of work as you would at a bigger name but you're not gonna have the same exit opportunities and the same compensation like you would at one of the bigger guys we also have things like investment management where you're literally working in the asset management department of an insurance company to almost offset their liabilities and do work there which again is really interesting work but it's not gonna have the same exit opportunities as you would by going the banking route so within some of these smaller asset managers you're probably gonna make anywhere from 60 to 80 K right out of school but that can vary a lot especially if you're working at a pretty well-known but smaller private equity or hedge fund last but not least we have corporate development now corporate development is a pretty under-the-radar a really really solid role to go into essentially what it is is you're doing mergers and acquisitions org for like a fortune 500 company or like a small roll-up so the work you're doing is really similar to the types of stuff you're gonna do at an investment bank but again you're working for a company internally and you're doing the work in there the nice thing about corporate development is you're also gonna have a much better lifestyle so you're gonna have a lot less hours and you wouldn't have an investment bank but at the same time you're not gonna have that same kind of pay like you would at an investment bank and within corporate development you're probably making anywhere from 75 to $110,000 at a school so again this is a really great route to go because at the end of the day you're doing the same types of work that you might be doing at an investment bank and you can leverage the types of stuff you're doing at a corporate development firm or you know within a fortune 500 company to get into something like banking so if you decided to go the stepping-stone brow what are the next steps in terms of actually getting to the buy side so kind of like I mentioned before there's a couple different ways you can go number one you can use the job from the stepping-stone route to leverage into a baking job which from there you can use to get into the bias number two you kind of stay in your job for a while go get your MBA at a top 10 top 15 school and use that to leverage it to getting a job on the buy side or if you're good enough and you got good enough connections use exactly what you did within your job to go direct to the buy side that's a little tougher and again like I said you might need to have some pretty strong connections and be really good at what you do but it's not totally impossible so as a quick recap who is the stepping-stone route for it's for those of you out there that number one might be late to the game you're maybe in your senior year and you know you didn't prepare enough to land one of the jobs in the banking route or you're out of school and don't have a job or you're out of school in a job you don't like and you need to redefine yourself number two for those of you out there that might not have the best GPA to immediately qualify for a job in the bank hero and number three for those of you that don't really have the relevant experience to get a job in the bank you're out right away so like I mentioned before I would definitely take a look at the post below where we cover the types of things you can do to overshadow a weak GPA lack of experience etc it'll help you out a lot so as a quick overview when you think of the highest paying career path in finance that's the buy side and I know I've mentioned it a bunch of times in this video so it's probably important just to cover briefly so if you've ever watched the show billions or you've heard of these hedge fund managers who make crazy amounts of money that's the types of stuff that you're gonna see on the buy side and like I mentioned before there's three primary categories here you have hedge funds you have private equity firms and you have venture capital firms and at the end of the day your job primarily is going to be doing work in terms of analyzing different companies to invest in doing work on analyzing different industries cetera so there's lots of really really interesting stuff you can do when you're on the buy side and again it comes with some of the craziest pay especially as you move up the ranks but in terms of what you'll make as the first year analyst at one of these buy-side firms you're probably looking at anywhere from 125 to 250 thousand dollars in total compensation so for those of you diehard finance students that are really really looking to get into one of those really cool investing types jobs that's why I keep mentioning that you want to make sure you're on the right route to get into the buy side because at the end of the day that's what the majority of you probably want so if you liked this video feel free to hit like and subscribe to us by clicking the button below so that way you get notifications about future videos that we end up posting but now I'm going to turn it over to you are there any career paths in finance we might have missed or is there more things you would have liked us to cover feel free to let us know by commenting below and if you're looking for more types of posts like this feel free to head over to our site at tier 1 wall street comm where we have plenty more free information in terms of what you need to do to get into jobs like this [Music]
