I used to earn a lot when I was in high finance. While many of my colleagues spend their big bonuses on expensive holidays, partying, women, new sports cars and buying expensive, ultra luxury condos and bungalows beyond their means, I invested my salary and big bonuses in undervalued stocks and undervalued properties.
I knew from the start that in my line of work, the good times never last long. I made a lot of money, invested heavily and retired at 43. I am debt free, own multiple income generating properties and dividend generating stocks and live a more meaningful life devoted to lots of charity work.
Those older ex-colleagues in their 50s who were spendthrift are still working hard as they have to keep up with their high expenses, servicing huge credit card debts, car loans and mortgages.
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Originally Posted by Unregistered
Generally if one is smart enough, investment banking pay ought to be able to allow you to invest and retire by late 30s. So if they had planned properly, getting retrenched after 15 years in the game isn't much of an event.
The problem is some of them when younger live beyond their means, i.e. trying to live the life of a tycoon while only getting few hundred k pay. When they finally get retrenched, too late, no savings, unable to adjust to drastic drop in life style.
Most will at first try to get investment /trading related jobs through their networks, but chances are if he/she were retrenched that means the whole industry is in trouble. Your network is busier trying to save himself than help you. If really no choice the common routes are to either try some normal finance related sales like consumer/corporate banking or more generic business analytic jobs in/outside the industry.
I think they still can get decent pme jobs as long as not too old (i.e. < 50), but the prob is can they adapt to a normal pay and normal lifestyle? For most of us paycut 20% already can feel the pinch, for them if end up like that most likely 80% paycut. Some can while others just sink into depression.
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