If you’re thinking about aiming for a salary over $400,000, you might want to think twice. Earning that much often means enduring long hours and significant stress, not to mention the 35% federal marginal income tax rate you’d be facing. It’s a common misconception that higher incomes automatically bring fulfillment and ease. In reality, they come with their own set of challenges and sacrifices.
Many of us might fantasize about earning such a hefty salary, imagining that it will solve all our problems. However, the truth is that making that kind of money requires a tremendous amount of hard work and often, a great deal of personal sacrifice. For those already making over $400,000, life may seem rosy, but the daily grind includes endless meetings and constant pressure, which isn’t everyone’s idea of happiness.
A recent survey by Goldman Sachs highlights the intense work environment faced by analysts, suggesting that despite high salaries, the personal cost can be steep. My own experience aligns with this; starting in the demanding world of International Equities, I saw firsthand the toll that such careers can take on one’s health and well-being. Despite industry attempts to improve work conditions, the fundamental nature of these jobs remains incredibly grueling.
In 2021, under pressure from exhausted analysts, Goldman Sachs raised its base salaries significantly. Nevertheless, the allure of investment banking persists, driven by the substantial salaries and bonuses that still draw waves of ambitious graduates. Yet, it’s worth noting that startups and tech giants are increasingly competing for this talent, offering perhaps less grueling paths to similar financial rewards.
Even as salaries in investment banking look enticing on paper, the reality involves working hours comparable to those of a stay-at-home parent managing around-the-clock child care — with both roles pushing the limits of endurance. In the world of high finance, physical and mental health often deteriorate rapidly under the strain of 98-hour workweeks.
Ultimately, if your goal is to earn over $400,000 a year, prepare for intense competition and significant personal sacrifices. The financial rewards are undeniable, but they come at a cost to your health and personal life that can’t be ignored. For those contemplating this path or already on it, it’s crucial to weigh these factors carefully against the potential financial benefits.
