One way you can boost your chance of landing an investment banking job is to go where the jobs are. That’s the word from Investopedia, which recently published an article on the best states for IB jobs. It was picked up by the San Francisco Chronicle which, not so coincidentally, was among the top areas (California) for investment banking.
No surprise that New York was at the top of the heap. 33 out of 50 top investment banks have their headquarters there. However, New York is also the eighth most expensive city in the world, and has a top marginal tax rate of 45% eating into your earnings.
California is the west coast financial center of the universe. Investment banking jobs cluster around Los Angeles and San Francisco. While there are only three worldwide headquarters in California, most of the big banks have sizeable regional offices there. LA and SF are also expensive cities, but far down the list at 23rd and 36th respectively.
Chicago, Illinois, comes in third. Chicago is well known for its Chicago Board of Trade and Chicago Mercantile Exchanges, involved primarily in the trading of commodities and derivatives. But all the major investment banks such as Goldman Sachs, Morgan Stanley, Deutsche Bank and others have offices there. The other upside: it’s a lot less expensive than living on the coast. Chicago was ranked 50th on the list of expensive cities and the state of Illinois has a much lower income tax rate.
What’s your take? What other cities in the U.S. would you rate as attractive centers of investment banking activity, as well as great places to live? Add your comments below.
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