As a former investment banker with Union Square Advisors, Paul Inouye likes to see others succeed in the investment banking field. He has some quality advice for anyone considering investment banking as a career.
Where do Investment Bankers Like Paul Inouye Work?
For the most part, investment bankers work at investment banking firms. These are large financial institutions that make money by investing large sums of money and earning interest and other returns. That money is then used for lending, which also creates returns for the investment banking firm.
Benefits of Being an Investment Banker
Investment banking is a highly popular and lucrative career choice that comes with many amazing benefits, including:
Lots of Work Flexibility
As an investment banker, you are pretty much free to make your own hours as long as you produce. The only caveat is that you need to mirror your working hours with the market. So if you have clients with investments in Japan, for instance, you would need to be awake and working when the markets open in Japan. Other than that, you would have a lot of work flexibility in hours, as well as where you work.
Depending upon your employer’s demands, or whether you are working for yourself, you can base your operations anywhere there is a strong internet connection. You could attend family events, go on numerous vacations and travel extensively, all while working as an investment banker.
High Potential For Earnings
Investment bankers command high salaries, no matter where they work. The average salary for an investment banker is over $66,000 a year. However, the most successful investment bankers make well over that, due to raises and the ability to make money on commissions. Basically, the more you earn for your clients as an investment banker, the more you make for yourself and your family.
Generous Benefit Packages
Skilled investment bankers are in high demand. For that reason, you can expect to receive very generous benefit packages in addition to your salary and commissions. It’s not uncommon to have 100% health care coverage, deep discounts on health-related memberships, stock options and more.
Drawbacks of Being an Investment Banker
All the benefits of being an investment banker make this a great career choice for the right person. However, there are drawbacks to be aware of, including:
High Pressure
There is intense pressure related to being an investment banker, as Paul Inouye can tell you. “It’s an enormous pressure to be responsible for the success or failure of your investment decisions. The highs when you are right are amazing, but the lows when you are wrong are just as dramatic.” If you are a person who can’t take a lot of pressure, investment banking may not be right for you.
Long Hours
Inouye warns, “Investment banking is not for people who don’t enjoy working. Even though there is tremendous job flexibility, the working hours are long.” Investment bankers often work 12-14 hour days. This can put a strain on your personal life, and it’s not for anyone who isn’t willing to put in those long hours, at least occasionally.
If you are driven by data, are sales-minded and have a deep core of being ethical, then a career as an investment banker might be right for you. To see if it’s a good fit, “consider taking an internship at an investment banking firm,” recommends Inouye. This is a great way to test the waters and see where the current takes you.