Comment by gaius
16 years ago
It's not true, is why.
After 10-15 years at one of the top consultancies you could have completed outright the major capital purchases of your life (e.g. a house or two, maybe a boat) and could downshift to something much less stressful but you certainly couldn't stop working altogether. And these houses would be nice, sure, but we're not talking mansions with helicopter pads and servants here. Basically you would be established in a solid upper-middle-class lifestyle, but you would still need to work to maintain it.
The consulting business pays very good wages, but you don't get to build any significant equity - what you need to retire on - until and unless you make partner.
To be able to afford something does not mean you can afford the upkeep of it.
If you live frugal a little goes a very long way.
Exactly.
A good consultant could probably retire at 55 having set up his family well, private education for the kids, a bit of a trust fund, a comfortable retirement and bit of an interitance and so on. But as I say, this is not what most people would consider "rich". There's a good bit in Wall Street where Gordon Gekko is trying to explain this to Bud Fox. $100k salary and flying business class everywhere is not the same as $50M in the bank and a private jet.
Or, as Chris Rock so eloquently puts it, "Shaq is rich; the white man that signs his checks is wealthy."
http://www.youtube.com/watch?v=4m37JkkGjAY
Which you should be within 15 years...
Hah, every newbie analyst thinks he or she is sure to make partner. Maybe 1% actually do.
How many newbie analysts actually stay and put in the work required? How many move on after 5 years? 3 years?