Everyone has a different answer and only you can decide if it is right for you. I can't speak for you since I don't know, but examine the situation from your own perspective. from that talent pool. An MBA is only worth the expense, time, and effort when the graduate plans to work in a business-related field, in management, or as a company founder. I think BGP2587 has a great response to your questions directed at me. What are your long term goals? you'd be incurring LE regardless of MBA, so only include LE to the extent that it exceeds the LE you'd be incurring had you not gone to school. Besides, someone from a state school could've gotten the same job you have now, and his ROI would've paid off in multiples compared to yours. Posting as : a Consultant 2 . But if you want the network, resume build, experience, higher education, and possibly career switch, it is worth looking into this option. Or, are they to work for F500 in some corporate role? Unlike a full-time MBA … Living expenses shouldn't be much different if you go back to school or not, so they don't count. Just keep this in mind when/if you're a year or two out of business school and looking at your balance sheet. It depends on if the company is paying for it and how much they're covering. Recently I had a chance to have a long conversation with my friend's roommate, who finished MBA business schools">M7 MBA 2 years ago and now works in BB IBD. If you are in the sweet spot, say 60-80K per year, you are a prime candidate. You're taking a super narrow approach to evaluating the value of the MBA. 1st Year Analyst in Hedge Fund - Event Driven">, 2nd Year Analyst in Sales & Trading - Other">. From what I’ve heard, career opportunities are around the same for T15 and M7. The goal is to be at a hedge fund but for some reason, I do want the experience of IB. Being a M7 grad and having done IB (now one of those corp dev people making way less), I would say the work/life balance is way more worth it than staying in IB or staying in M/B/B consulting. Ideally, I would like to pursue top MBA if cost was less of an issue for me and I was more convinced of its potential benefit on my overall career trajectory. I have quite a bit of interest in finance, in things like valuation, etc. Is an MBA really worth it? The term "M7 business schools" is used to describe the seven most elite business schools in the world. have a higher salary curve than BA/BS only people. Posting as : works at. Currently a data scientist and want to stay in the field. If your income is $90K, and you pay 35% total tax (income, state income, social security, etc.) You are going on a slippery slope assuming that all M7 grads are worse off than coming in, and you are only looking at one variable which, on average, shows a different picture. I was reaching a conclusion that for many, a top MBA's purpose is not financial/ income boost but rather qualitative in nature, such as changing industry, job function, or to meet quality classmates and network. These schools do offer scholarships to some of the admitted students. Linda Abraham is president and founder of Accepted.com and co-author of the new, definitive book on MBA admissions, MBA Admission for Smarties: The No-Nonsense Guide to Acceptance at Top Business Schools. +Bonus: Get 27 financial modeling templates in swipe file. While it may be a pay cut to all of those roles, they seem to have enough finance guys willing to take the cut that they can recruit (exclusively?) Likely PE and other high finance jobs will be difficult to obtain. Bottom line is this: yes M7/T15 is worth it, but it's not necessary. This is a topic that is discussed often, so I won't write out a super long response. If so, you'd probably be better off doing MBB out of school - much better chance to work on Due Diligence projects and get into PE that way. My numerous conversations with students from Kellogg and Ross solidified that belief. ©2005-2020 Wall Street Oasis. Please correct me if I'm wrong. Or is it better to wait another year and hope for M7 and if I don’t get it then, just keep working and moving up the ladder? Coming from big 4, is it worth it to go to a non-M7 MBA? If there's one that this economy has reinforced, it is that it's crazy to leave a good job to go to school to "see what happens". I am asking these questions to better inform myself about the reward vs risk trade-off before looking deeper into the MBA program. You're better served attending an M7 full time MBA program. http://www.wallstreetoasis.com/forums/why-you-dont-leave-banking-for-b-school-just-to-come-right-back. Besides F500 Corp Dev type of jobs, do other more 'lucrative' opportunities exist for this population? Pretty myopic view of the world. You might be surprised how quickly you can make up the total cost. If you get into HBS, it's always worth to go because you can become a member of their PE club. Judging from the fact that 80-90% of IBD associates post MBA don't last more than 3-4 years in banking, one has to wonder about the exit ops after BB IBD and what the comps/ career trajectory are in that path. This is also an incorrect way to view life in finance. (1) Tuition Babson is well regarded for its entrepreneurship program, but doesn’t generally make it into the Top 20. Most of the BB IBD associates out of MBA who hadn't done BB IBD analyst stint before MBA didn't have good shot at lateraling over to PE or HF, and many times, their best exit ops were Corp Dev positions at F500 that come with huge pay cut. Though the average years of pre-MBA work experience among the M7 schools starts at 4 years at Stanford GSB up to 5.5 years at ... "No one over 35 is worth … the big unknown is, whether your next 5-10+ years will be significantly different depending on whether you have or don't have a top MBA on your resume. I am assuming that the majority of folks who end up at M7 MBA had good work experiences before MBA anyway and were making good money. I got a substantial one just before the deposit deadline by playing my cards right. No school or a particular gig is a ticket to those highly coveted jobs. The information and advice that you’ll read below have helped thousands of Accepted clients achieve their business school aspirations, and can help […] What he also mentioned - is that the exit ops coming out of BB IBD at associate level - didn't seem too great. It's the irregularity of the hours. A bsc… VIDEO 1:16 01:16. Needless to say, hot chicks melt when they see an HBS jersey or a PE club t-shirt - they start touching themselves instinctively, wanting to bear your offspring. But still, MBA looks to be an enormous cost for me, because I wouldn't bother doing an MBA outside of top 10, and for top 10 programs, I don't have the qualifications that would merit me big scholarship money. The MBA degree is no different with many online MBA and distance learning MBA options available. 1500 PE firms hire through personal networking. No PE firm goes on campus - just 20 investment banks and 10 consulting firms, who go to every campus. See you on the other side! If you completely negate the intangibles your ROI will definitely turn out negative. Each tier is viewed as more impressive than the next. Lastly - don't write yourself off from getting a scholarship. Is it worth it? There’s no simple answer to that question. The M in M7 stands for magnificent, or magic, depending on whom you ask. A mature, well-adjusted parent who isn't battling insecurity would want their child to go to the school that is the best match for their goals and dream for their future. However, the better the school that you go to, the better off you'll be with less defined goals. I went to an Ivy undergrad but the cost of attendance for my Ivy wasn't much higher than the state flagship school for me due to generous financial aid, so ROI didn't factor into the equation when I was choosing where to go for college. From your analysis, one can argue that you shouldn't even have gotten an ivy undergraduate education (based on your username). I have a full-time MBA from a top-7 Business School. But I want to understand exactly what I’ll be getting into. It's incredibly frustrating to not work during the work day and then spend your entire night working. When I have kids they can go in-state to a Virginia public university, to an Ivy League school not named Columbia (I'm not paying for a radical left wing and utterly useless degree), or to a military academy. He previously worked in consulting. //www.wallstreetoasis.com/blog/is-an-mba-wort... //www.wallstreetoasis.com/forums/to-anyone-co... Financial Modeling Training Self Study Courses, Certified Consulting Professional - 2nd Year Associate, Certified Corporate Finance Professional - Associate Director, WSO Discount - Financial Modeling Courses. Anyone have any thoughts on pursuing Lev Fin post MBA and exit opps for that vertical? It’s not worth getting an MBA outside of a M7/top 10 business school. LOL are you serious? On that same note, you will get a pretty significnt raise from your current ~90k salary, so that alone should make it pay off pretty quickly. I think you’re seeing the trend in the answers here: nobody is too old to learn, but acceptance statistics for full-time, two year MBAs at M7 schools do not favor 37+ year-old applicants. Hopefully you won't be having kids for a while. There is something of a rule of thumb on the cost to acquire the degree. not sure it's worth it. The training could be … Yes, it's easy to get caught up with the herd mentality to do IB and the more traditional routes. The total cost of getting an elite MBA from one of the M7 schools is now between a high of $297,650 at Stanford University’s Graduate School of Business and a low of $270,002 at Northwestern University’s Kellogg School of Management. I think there is a lot of bias in the actual number. Assuming that 200k MBA debt does not include living/eating/travel expense, then your opportunity cost should be post-tax but pre-expense. Probably would get into the startup world out of business school - much better chance to get the relevant experience that way. More specifically, if someone is making 90-100k a year in a 2nd / 3rd tier consulting gig, is it worth the risk and hassle of going for MBA? You'll be able to wear a PE t-shirt when you hit the bars in Boston. I think this is the completely wrong way to approach the degree. You need to get an MBA so you stop thinking like a short sided accountant. Nobody is just "hired" as an MD or VP--you have to know your stuff really well and you have to be able to bring in business. The better question is; how much is an MBA worth? So I'd say apply anyway. Longer term, on average, those with MBAs will likely end up making more than peers without. Yes. it's just that it is difficult to quantify the incremental benefit of attending vs. not. Before the MBA I used to be a Software Engineer. If you don't intend to go into IB, Consulting, PE, VC and want to go into a solid Fortune 500 company in corp fin/ general management and become director/vp later on...is getting a H/S/W MBA really worth it? As a new user, you get over 200 WSO Credits free, I was doing quite well pre-MBA in terms of comp (work life balance wasn't so strong however) and just 2 years in BB IB at the associate level (assuming average comp) would cover my entire MBA cost (excluding my scholarship). Just what I … Do people pursue top MBA knowing this ROI estimate, or do they attend due to something like 'quarter-life crisis' where they think their jobs suck and they believe a shiny M7 MBA degree will somehow completely turn their lives around? All rights reserved. If they are different, factor this in, too. i would agree that for most people there is a long-term financial benefit of going through a top mba program. When deciding on an MBA program, it helps to look at … If everyone has their MBA or is an ex-banker, you should take that into consideration. Enjoy Accepted’s ultimate guide to the M7 MBA programs: the whos, the whats, the wheres, the hows, and the whys – it’s all here. So it’s worth checking out this list of M.B.A.s in the U.S. ranked by return-on-investment, calculated using total tuition cost and average graduate salary. I think it would be foolish for companies to hire only at M7 schools assuming that they have better intellectual horsepower/leadership skills. 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