collegeBegins

Finance sector seems less and less lucrative these days. Is it worth pursuing a career in a sector where you would be putting tons of hours with lot of uncertainity in the compensation that is paid as a bonus at the end of the year?
If you look at the hourly rate, it comes out to be very low. Now this coupled with the high cost of living in cities like New York where most action is, it appears that it is too much you put in for what you get.
What do you all see as the future for this sector?

Erycus

Considering the financial system in Europe is on fire, this doesn't bode well for finance jobs in the entire globe.

If you're just getting started with college, the finance market might recover enough in other countries where you could have a job prospect, but likely in the U.S. and the peripheral countries in Europe, the finance job market will remain sour.

I'd suggest if you really do like finance, that you begin looking at international companies now, go to their websites, look at openings, and see what they're looking for. Do not restrict your job opportunities to the U.S. if you are thinking about a degree in finance.

And if you are only able to look for a finance job in the U.S. because of extraneous circumstances, then you would be better off considering an alternate career path.

If the whale J.P. Morgan blows up, it will not be pretty for the financial sector globally. If you think Lehman, Washington Mutual, and Wachovia were bad, then all I have to say is, hahaha.

One last thing to consider if you do want to do finance is to look at International Universities. They can be somewhat inexpensive relative to American Institutions. For instance, Hanze in the Netherlands. Tuition per year for non-EU students is 7,500 Euros. If you're frugal with the cost of living, housing and food might be about 600 a month. All together a year there might cost around 19,000 USD per year (For 4 years). Compared to the insane price of private institutions here, for me it's a place worth considering.

morrismm

There is no indication that JPMorgan is about to blow up. Even with their big " error" they made a profit.

Finance jobs are alive and thriving. But if you wánt to compare an ibanking job to an hourly job, like a cashier at store, you are gravely mistaken.

First off, the knowledge requirement is vastly different. Investment banking jobs require passing national tests.

Second, most people working in these jobs love them.

Third, even comparing hourly rates, my D has earned almost 2K a year two years out of college.

hookemhorns

2K a year? how does she survive?

Erycus

J.P. Morgan has about 3.5 billion in student loans. Think they're gonna get it back? Should probably book em as losses already. Even garnishing wages won't solve the ones who have exorbitant amounts of loans.

Why was their credit rating downgraded by Fitch and Moody's with a negative outlook? They were downgraded because of a error? A lot more goes into play downgrading someone than an 'error' which I would think you're somewhat aware of.

"All of the banks affected by today's actions have significant exposure to the volatility and risk of outsized losses inherent to capital markets activities", says Moody's Global Banking Managing Director Greg Bauer. "However, they also engage in other, often market leading business activities that are central to Moody's assessment of their credit profiles. These activities can provide important 'shock absorbers' that mitigate the potential volatility of capital markets operations, but they also present unique risks and challenges."

Finance jobs, thriving? Uh...what? On planet...?
One Word Sums Up Finance in 2012: Layoffs - Finance and Accounting Jobs News and Advice

Finance in the U.S.A
http://i.imgur.com/njYFs.png

Finance in the EuroZone. (Unfortunately the data available to me was only until 2010)
http://i.imgur.com/sqRdG.jpg

Finance in the U.K.
http://i.imgur.com/Gm3HN.png

The only place that has experienced some from of 'recovery' in the finance sector is the U.K. And that's just getting back to 2001.

I don't have the time to go into Asia and Australia etc. although I do believe the finance sector is stronger in Australia. Not sure about Asia. Mining bubble is helping to fuel finance sector jobs in Australia.

Erycus

My guess is she meant 200k.

Erycus

*he or she

morrismm

Haha. 200k it is.

morrismm

And ok Erycus. I may be wrong about thriving, but not about being alive!!

cbreeze

$200K is a significant round up for 2nd yr analyst since their gross salary is at $80K plus there's a lot of weeding out at the end of the 2 year contract for analysts.
I agree with Erycus' take. To be successful in high finance, it is not for the faint hearted who is unwilling to take risks and work hard.

cbreeze

Deal flows in Hong Kong have been terrible. A few friends(including MDs) who have relocated to Asia in the past decade (due to bubble 1999, 2000) are looking to come back to the US.

abcfailure123

Did they say whether it's due to the current global economic malaise, or is it an underlying market change/maturation? In a different board on this forum, someone mentioned that business recruitment at large international business firms (Goldman Sachs, etc.) has gradually shifted from hiring candidates with a predominantly western work background to local candidates. (Don't think this was specifically the finance field.)

astonmartinDBS

all you kids talking about IB/finance losing its luster and being so much less lucrative...hat's your next best alternative?

Consulting pay still doesn't come close to IB, and the kids at MBB don't have it any easier. Banking pay has certainly come down since 2006, but what did you expect going into a recession? Also, hedge funds and PE are still paying astronomical sums. I have a 200k guaranteed minimum bonus at my next job, and I'm 25. Seems pretty lucrative to me.

cbreeze

$200K guaranteed? What is the nature of your next job?
I think you are a Wharton grad and so is my son. He works in buy-side finance and though his total compensation is very high, there's hardly any bonus that is guaranteed.

hookemhorns

^ Startups are the best alternative