The Dark Side Of An Investment Banking Career (10 Uncomfortable Truths)

Investment banking is a wild ride. Those who pursue the career sign up for long hours, lots of technical jargon, and back-and-forth negotiations over massively valuable deals. Investment bankers work on the "sell side" of the enterprise equation, meaning they work with clients in an advisory role. Their exposure to any particular investment is usually short term, and they generate money for the firm (and themselves) by advising and facilitating clients and their needs, earning commission and fees for their services.

There's a considerable upside to be explored when thinking about a career in this field. For one thing, investment bankers make a truly staggering amount of money, with first-year analysts earning as much as $190,000 per year after factoring in personal commissions and bonus incentives. That's a heap of money, especially considering that this is just the floor for a career in this arena. Yet, there's a lot to the job that should give a potential future investment banker pause. This is a career path that features demanding schedules and immense competition at all corners. Investment banks make for a workplace that can feel alien and hostile at the best of times, and they demand excruciating attention to detail from their employees. Weighing all these factors, that giant paycheck may not be worth the sacrifices for everyone considering this path.

While the first thing that comes to mind when picturing an investment banker might be the power suit, it's probably more appropriate to think about the hours. No one getting into investment banking should expect to enjoy anything resembling work-life balance. This is not a 9-to-5 job. Investment bankers tend to work from early morning all the way through dinnertime, and they may often do it again on the weekends. Forbes notes that 100-hour work weeks have often been the norm in this industry. To put that into context, that would mean a standard five-day work week would require 20-hour days. Even working six days a week would still mean working 17 hours per day at that rate. Investment bankers head into work knowing that they're essentially pulling a double shift every day they clock in.

Becoming an investment banker is therefore as much a lifestyle commitment as it is a job. With that much time spent in the office, it's not uncommon for investment banking analysts to add couches or other sleeping options to their workspace to reduce how often they commute. The time commitment has become so intense that some firms have placed moratoriums on weekend working hours or added hard caps to analysts' working weeks in recent years. Still, if you're not ready to pour your heart, soul, and virtually every waking hour of your foreseeable future into the role, it's probably not the job for you.

In addition to the overloaded work schedule, investment bankers are often on call around the clock. Even if they're getting a few measly hours of shuteye, a business deal waits for no overtired analyst, and the phone may still ring. Employees in this field are often expected to answer clients' calls to give details on a contract or piece of research whenever the need arises. Naturally, the bulk of this work happens while the majority of the working world is also on the clock. However, clients can run into all kinds of unique and pressing needs with an immediacy that simply isn't seen in other professions.

More to the point, clients who need information overnight or at other strange hours are often working on time-sensitive tasks that involve fast-moving competition. They pay investment bankers huge sums of money to ensure they don't have to worry about tracking down the person with answers when they need them. Unfortunately for newer investment bankers, that additional burden falls frequently to the lower rungs of the business hierarchy.

To land a job in the investment banking world, you'll need to study accounting, finance, or business disciplines in college. This isn't a job you can do without a college degree, even though there are plenty of high-paying careers that don't require a college education. According to the Education Data Initiative, in-state tuition alone averages $9,750 per year, with private schools costing considerably more in addition to living expenses. On top of this hefty investment, a college degree typically isn't enough on its own to move the needle when you start looking for investment banking work.

Investment banking hopefuls might also need to get a Master of Business Administration (MBA) after finishing their undergrad work. While these advanced degrees can make a huge difference to potential employers, the National Center for Education Statistics reported in 2020 that completing an MBA program came with an average cost of over $31,000 per year (via Forbes Advisor). More to the point, the Education Data Initiative reported in 2025 that the average master's degree recipient carries a $76,996 debt load with them. Meanwhile, a U.S. News & World Report survey found that the average undergraduate student already takes out $29,890 in loans just to get through college. The financial returns may be worth those initial expenses to some investment bankers, but the possibility of racking up five figures of debt is something everyone considering going into this field should accept.

For many investment bankers, the job is just that. It's not a career they wish to pursue long term. Investment banking work is more akin to contract work than steady, relationship-based operations. For some, simply moving up the ladder and receiving better and better benefits packages is a viable path. However, many others wind up looking at their work in the investment banking field as a springboard to their next landing spot. In many cases, it takes two or three years in an investment banking role to land a job on the private equity side.

Lots of people who go into investment banking actually want to work in private equity. Private equity analysts tend to make more money, and they enjoy better relationships with clients and partners. They might still spend long workdays pouring over financial data, but the job is generally less demanding and analysts in private equity are far more likely to have free time to spend with loved ones. Private equity firms specialize in asset purchases, and they work with partners to increase the value of the companies and other commodities they're buying.

First-year associates in the private equity space can earn around $300,000 per year, and 401(k) matches, flight upgrades when traveling, and the ability to expense dinners and drinks with coworkers are often par for the course in terms of benefits packages. The jump from investment banking to this related field is therefore substantially enriching — but the time it takes to get there can be gruelling.

Employees within the world of investment banking have few professional niceties to look forward to beyond the paycheck. Senior analysts may end up wining and dining clients or getting to utilize some of the business' perks, but those who are earlier on in their journeys shouldn't anticipate the same highlights. Junior analysts will often spend their entire day balancing spreadsheets and calculating figures. It's not glamorous work by any means, and it can be mind-numbingly tedious.

Despite the monotony of the role, there's no room for error or complacency. A simple miscalculation can spell disaster for the firm and its clients. Mistakes are a luxury that investment bankers can't afford, yet the workplace conditions can easily breed small mishaps. This makes for a high-stakes environment with plenty of potential traps baked into every single workday. So, it's no surprise that those in the industry often estimate the turnover rate surpasses 90%. However, firings tend to be surprisingly rare in this world. Some firms will cull their lowest performers on a semi-regular basis, but this isn't a standard practice. Instead, it seems that burnout and a decision to leave the job behind as a result of pressure to never miss a detail are the norm for those who don't last in the industry.

Investment banking is an industry with geographical masses. Wherever there's lots of corporate activity buzzing around, you'll be able to find at least some financial service providers too. Naturally, investment banking offices are concentrated significantly in cities like New York. While there are a few investment banking hubs scattered throughout major cities in the South and Midwest, the majority of jobs in this field are found in New York and Boston. If you want to chase a career in this field or use it as a launching pad to other work within the corporate finance world, odds are you'll have to move to one of these cities.

This might be an exciting change of pace for some, but not every up and comer will be excited about the blistering cold winters of these northern regions. Temperatures can drop well below freezing for weeks at a time, and Fern, the winter storm that hit the Northeast in January 2026, is already estimated to accrue over $1 billion in insurance claims to assist homeowners' recovery efforts. Additionally, the cost of living is rising fastest in New York City, where rent for a one-bedroom apartment can easily fall in the range of $3,500 to $4,500. For young professionals looking to make it big, this can be a pretty hard reset — especially if they're acclimated to more affordable areas.

Those who don't work well under pressure will want to immediately look elsewhere to find their career calling. Investment banking is an industry with short deadlines, lots of big personalities, and a competitive, borderline-hostile edge. While this can make for a tremendously rewarding workplace for some, those with thin skin who struggle to learn on their feet will find it hard to survive in such a fast-paced environment. 

The very nature of the work drives this intense culture. Investment bankers work on projects that almost exclusively feature tight deadlines, placing everyone on edge throughout their day. Those in senior roles can be snappy and short with their juniors as a result, and analysts vying for bigger bonuses and career advancement opportunities can sometimes feel like cutthroat adversaries. Calm Health reports that 36% of workers in the financial sector feel stressed the majority of their waking life. In an industry where work eats up the lion's share of that time, that condition could take a severe toll.

What's particularly twisted about these workplace conditions is that they're essentially the best-case scenario. These stressors become your reality only after a rigorous hiring process that selects just a tiny fraction of applicants after numerous interview rounds and aptitude tests. This immense hiring process ensures that you'll be saturated by the competitive nature of the environment at all levels of the investment banking career path — even before you get hired.

It's a not-so-secret fact that investment bankers don't get much sleep or personal time, and all that time on the clock starts to add up quickly. Many find that they need to drink exorbitant amounts of coffee to stay awake and alert, while others have resorted to using recreational drugs aimed at providing a stimulating edge. In 2024, the Wall Street Journal reported on one young Wall Street analyst who regularly snorted crushed Adderall to stay alert while working consistent 22-hour days. This intense grind mentality has even led to deaths when investment bankers take their commitment to their work too far.

While those might be relatively extreme cases, many investment bankers still face mental and physical health issues that aren't typically present in the general population. Keeping yourself on an even keel mentally and finding the time you need to sleep, let alone exercise or otherwise enrich yourself physically, can be a real struggle for those on an investment banker's schedule. Heart conditions — and even heart attacks — plague young investment bankers at a particularly alarming pace. With an increase in health scares comes a few key financial considerations, too. The cost to see your doctor while insured typically runs anywhere from $20 to $70. But keeping your visit and prescription costs low requires you to maintain your insurance, which is almost certainly tied to your workplace. In other words, investment bankers are kind of trapped, as leaving the job due to health concerns would limit their coverage and raise their cost per visit.

A starting salary well above the six-figure mark is an enticing factor that brings many to the investment banking world. Total compensation for a first-year analyst can rise as high as $190,000, with some sources raising that estimate to well into the $200,000s. However, every check your employer cuts in this business can be something of a rollercoaster ride. Total salary figures are tied substantially to commissions, bonuses, and other inventive structures. Base salary starts high, but getting used to luxury purchasing power can be a poison pill for those who don't budget well enough to hedge against the leaner times. As is the case with personal investment portfolios that are built to weather the storm of a market correction, stashing enough cash to float your budget during times when the salary check is a little light is crucial for an investment banker. It's easy to fall victim to lifestyle inflation, with a few big checks giving you the feeling of financial invincibility. But once you purchase an expensive car and take out a jumbo-sized mortgage on a new home, you'll suddenly need that huge income flow.

The personal finances of an investment banker can experience months or quarters that are flush with cash. Closing a big deal or signing an important client can bring in plenty of additional compensation, but you could also go long periods making little more than your base salary.

Investment banking isn't an industry with a clean conscience. As such, some people considering their career options might be turned off to the idea of working in this arena due to moral concerns. Investment bankers spend their days trying to extract value from companies. Without mincing words, a significant portion of any business' operating budget is its payroll. Employee compensation often takes up around 30% of the total revenue a business generates.

The people are a significant expense, and yet people are seemingly one of the easiest elements to replace in a business structure. Therefore, the number of employees on a company's payroll is one of the first things investment analysts and corporate finance professionals will seek to minimize. That means axing people's jobs, sometimes without much warning. In 2025, Bankrate found that 24% of Americans don't have any emergency savings, which suggests that a large portion of people would enter a period of significant hardship if they lost their job.

On a broader level, investment bankers have also played a key role in marketplace struggles, and even recession conditions. The actions of investment bankers largely led to the housing market collapse in 2008 that stunted the global economy and led to over 8 million Americans losing their homes or getting exposed to the foreclosure process. Working in this field can therefore place employees at odds with the best interests of their friends and neighbors, if not the entire country.