Is 35 too old to become an investment banker?
You need to work long hours in entry-level IB roles, and older candidates are less willing and able to do so. There are exceptions, but the average 35- or 45-year-old is far less willing to work 70-80 hours per week than an inexperienced, driven 22-year-old right out of university.
Age Range: Associates come from more diverse backgrounds, so 25-35 is the safest bet for the age range. It would be virtually impossible to become an IB Associate much before 25 unless you graduated university at age 18 or 20.
Becoming an investment banker requires several years of higher education in addition to licensure. It also requires strong mathematical and analytical capabilities, which may be challenging for some people. In addition to a bachelor's degree, investment bankers may need a master's in finance or an M.B.A.
The financial profession is a popular choice because it seldom requires obtaining a new degree. Additionally, career-changers over 40 are common. It is an easy transition for people who have been educators and coaches because they are used to shaping the knowledge and skills of others.
Sure, anybody can make a good living being a doctor or a lawyer or an investment banker where you can make ~$200-500K per year a few years after you finish with your studies, but you hit a ceiling very quickly unless you start your own practice (aka start your own business).
And if you have your heart set on banking, it may be possible to get in above the age of 35, but usually only in very specialized situations. If your background does not match the specialized circ*mstances described above, you should spend your time on other pursuits: Start a side business.
It's arguably never too late to change your career if you're armed with the right strategies. If you're in your 30s, 40s or 50s, don't despair. We've put together a guide on how to change careers at 30, 40, 50 that includes steps like networking and developing your online presence.
The lucrative and fast-paced career of an investment banker is a highly competitive one. For instance, in a recent year, 236,000 applicants competed for roughly 3,500 internships at Goldman Sachs. This is common across the industry where acceptance rates for programs are typically less than 2%.
| Position Title | Typical Age Range | Base Salary (USD) |
|---|---|---|
| Analyst | 22-27 | $100-$125K |
| Associate | 25-35 | $175-$225K |
| Vice President (VP) | 28-40 | $250-$300K |
| Director / Senior Vice President (SVP) | 32-45 | $300-$350K |
The typical investment banker has a graduate degree in business from an Ivy League school or other top-tier university and superior educational credentials [i.e., excellent grades (minimum 3.50 GPA), active participation in business and investment clubs, and participation in at least one internship or summer program at ...
Is 37 too late to start a new career?
Whether you are 30, 32, 37 or 39, it is never too late to change careers. In fact your 30s is actually a great time, if not the perfect time, to start a new career.
Age plays a huge factor in the decision-making process. Wall Street is an up-and-out industry. Unless the goal is senior management, most people in finance are out of there by age 50. That's not at just the biggest investment banks, either.
It's never too late to get started. The good news for investors in their 40s is that while your time horizon may be shrinking, there's still plenty of time to make up lost ground if you're an investing late bloomer.
- Work in a traditionally high-paying field like finance, law, medicine, management consulting, etc. ...
- Get exceptionally good at pretty much anything you and other people care about like football, music, and acting (rare and ultra-competitive)
- Start a business (can be both very stable and not too competitive)
Investment bankers make money through the fees charged to their clients. As discussed above, this includes underwriting fees for arranging the sale of securities and advisory fees for providing strategic guidance.
| Annual Salary | Hourly Wage | |
|---|---|---|
| Top Earners | $86,000 | $41 |
| 75th Percentile | $68,500 | $33 |
| Average | $44,910 | $22 |
| 25th Percentile | $24,500 | $12 |
At the VP level, the base compensation is typically between $250,000 and $300,000. Regarding the variable bonus portion, on average, bonuses range from $200,000 to $400,000 at bulge bracket investment banks and elite boutiques.
- Chief financial officer (CFO)
- Investment banking.
- Hedge fund manager.
- Private equity associate.
- Actuary.
Investment banking is a high-profile financial career that requires a great deal of analytical, mathematical and critical thinking skills. Many investment bankers rely on their skills and background training in finance to be successful in this field.
35 can be an ideal age to switch careers because you typically have some job experience but also still have time to obtain more qualifications if necessary. If you're thinking about switching roles, it can help to know how to begin your new career search.
How to switch career at 35?
- Assess your current job. Never jump into another job without preparing for a career change. ...
- Review your options. After contemplating your present situation, consider your available career options. ...
- Update your skills and credentials. ...
- Give your resume a makeover. ...
- Expand your network.
This is usually because age 40+ candidates have a difficult time proving to hiring managers that they can do more of the things that are important to the employer.
Investment banking is one of Wall Street's most coveted roles. It is also one of the hardest. It is no surprise that the average day in an investment banker's life is long and stressful. Those who manage to survive the adjustment period often go on to have long and financially rewarding careers.
That said, investment banking is a highly competitive field. Because the pay is so high and the job is so prestigious, particularly in cities such as New York, applicants far outnumber job openings every year.
Investment banking is a quantitative field, and having a strong foundation in mathematics is essential. If you're considering a career in investment banking, it's important to have a deep understanding of mathematical concepts such as calculus, probability, and statistics.
