What is the best age to get into investment banking?
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.
"Most people who get entry-level jobs in banking are aged 20 to 25 years-old," says one former trader. "Once you get beyond 28 years-old, it becomes a lot more difficult to get a front office job (in trading, sales or M&A) in a bank," he adds. "Of course, there will always be exceptions, but it's tough."
The key point to remember is that if you do not attend a top school or major in finance or a related subject, your grades need to be excellent, you need to complete multiple internships at investment banks or related employers, and minor in business, finance, economics, or accounting.
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%.
Maths, economics, further maths, accounting and business studies will give you a good foundation from which to build your skillset at undergraduate level. Maths, in particular, is a strong academic A-level looked on favourably by universities and employers.
The short answer is: no. There is no age limit that formally disqualifies you from starting a career as an investment banker. It is possible to join the field at 22, 27, 34, 38, or even 50 and above. That being said, it is true that the younger you are, the higher your chances.
Answer: No age is too old to start a career or change jobs as long as you can physically and mentally do the required work.
An investment banking analyst, which is the lowest level of investment banker, can expect an average annual pay of $137,000 to $235,000 in 2024.
Master's in Finance: MIT, Princeton (more of a quant program), UT Austin, UVA, Vanderbilt, WashU, Notre Dame, USC, Claremont-McKenna, and maybe a few others (best to look at employment reports here). MBA: The M7 schools, Yale, Stern, Haas, Ross, Tuck, Fuqua, Cornell (Johnson), and possibly a few others in the top ~20.
- University of Pennsylvania.
- Georgetown University.
- Harvard University.
- Columbia University.
- New York University.
- Cornell University.
- University of Notre Dame.
- University of Michigan.
What GPA is too low for investment banking?
Yes, GPA matters! Bulge bracket banks and almost all other investment banks will look at your GPA when applying for a job and you should include it in your resume. Typically banks screen resumes based on GPA and will often remove anyone below 3.5.
A GPA of a 3.7+ can make up for weaker experience, but is by no means a gimme. Banks prefer good experience to good GPAs (subject to a minimum in the 3.3-3.5 range).
Goldman Sachs is often cited as the hardest investment bank to get into, due to its prestigious reputation, highly competitive hiring process, and rigorous standards for candidates in terms of experience, education, and skills.
In recent years, the GPA cutoffs for investment banking have been trending higher. Currently, a GPA around 3.7 is often preferred for interviews at large banks, while elite boutiques and bulge bracket firms like Goldman Sachs and Morgan Stanley may look for a GPA of 3.8 or higher.
Goldman Sachs is the highest paying bank overall - $398k in combined salaries and bonuses, on average. Goldman Sachs, which paid average salaries of $200k and average bonuses of $199k for 2023, was the highest paying bank we polled. It took top position by virtue a leap in bonus payments.
| Highest investment banking salaries in India | |
|---|---|
| 1 | Portfolio managers |
| 2 | Equity research analysts |
| 3 | Financial analysts |
| 4 | Mergers and acquisitions analyst |
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.
In truth, the concept of being 'too late' to embark on a new career journey at 25 is a myth that requires debunking.
| Position Title | Typical Age Range | Timeframe for Promotion |
|---|---|---|
| Associate | 25-35 | 3-4 years |
| Vice President (VP) | 28-40 | 3-4 years |
| Director / Senior Vice President (SVP) | 32-45 | 2-3 years |
| Managing Director (MD) | 35-50 | N/A |
Peak earning years are generally thought to be late 40s to late 50s*. The latest figures show women's peak between ages 35 and 54, men between 45 and 64. After that, most people's incomes typically level off. Promotions favor younger people with longer futures*.
How to restart my life at 27?
Creating a plan: Develop a plan of action to achieve your goals, including steps you can take, timelines, and resources you will need. Taking action: Start working on your plan and make progress towards your goals.
The truth is success has no deadline! Don't give up on your dreams, it's never too late to be successful in life. You're never too old. Many of the world's most successful people didn't even start working on their dreams until their 50's or 60's.
It has to do with the history of US banks. Way back in the 19th century, you had several banks in one city, and a President and a Vice-President. Over time the banks merged and vice-presidents kept their titles, which resulted in a ton of vice presidents.
Banks don't break out investment banker headcount specifically, but data released last week by research firm Coalition, suggests investment banker headcount across the industry fell only 4% year-on-year in the first half, which is when many of the cuts at Goldman and Morgan Stanley took place.
Despite the many successful introverted professionals in investment banking, there are still misconceptions about their abilities to network. Many assume that introverts are not as outgoing or personable as extroverts and may overlook them for promotions or leadership positions.
