Advice on going for a PhD at 31?

[Mike O.]

Hi Guys/Gals,

So I've been working as both a quant and non-quant equities trader for various smaller hedge funds over the past 7 years, and I recently started a new job search. I've been noticing all the types of jobs I am interested in (quant analyst, quant strategist, etc) are looking for PhDs. Now, I have a MS in Mech. Eng., and a solid programming background, but I just don't have that darned PhD, nor do I have the tools at my disposal to do that type of higher level analysis. The issue is, I just turned 31, so by the time I get into a program (I was thinking Statistics), and complete it, I'll be 36-37. So the questions I have are 1) Do you think the PhD/Quant type jobs will still be in as much demand as they are now in 5 years, and 2) Will the big banks/funds be interested in a fresh PhD grad that's 37 years old?

Any thoughts or comments would be appreciated, thanks!

 

[Barny]

Do not do a PhD for career progression. Find a topic you love, immerse yourself in it. The rest will figure itself out.

 

[TraderJoe]

You have just nine good years left in your life. And you want to waste six of those years doing a PhD and living in poverty and surviving on Ramen noodles?
Why don't you enjoy your life now. When you are 40 and life starts going downhill, then you can do all the foolish stuff like getting a PhD.

 

[bigbadwolf]

Do you think the PhD/Quant type jobs will still be in as much demand as they are now in 5 years ...

It's impossible -- impossible -- to predict what the financial sector will look like five years from now. I expect profound changes in the USA's geopolitical position -- which will mean profound changes in US financial markets.

 

[Mike O.]

Seems like a lot of negativity towards getting a PhD. However, I like the idea of doing work/research at the leading edge of the industry, and doing something truly new and unique. Let's say I am stubborn and I just want to do a PhD. What are your opinions on types of PhD programs? I was thinking Statistics, but is a PhD in Finance or Comp Sci more highly regarded? Does it matter?

 

[Keith Tan]

both are different fields. do what you are most passionate about. in finance, you would be playing with econometrics and markets all the time. in CS, you probably would be playing with software, some codes and analyzing protocols at bit level.

If you're looking at leading edge industry, finance is probably the last thing you wanna look at. (almost) everyday the market is down and there's no light at the end of the tunnel on eurozone crisis. you might want to consider the healthcare sector and technology, and a CS PhD will definitely benefit many people. Many CS PhD end up at Google go, but hey, seems like every CS PhD in this world would take a shot at getting into Google. Good Luck!

 

[Jose T]

I don't think it's a crazy idea but I agree with Barney's comment. It's better to think of a PhD as an end onto itself, i.e. you're getting it because you have the passion for that field.

There is not usually overlap between the 'leading edge of [the finance] industry' and PhD work in Statistics and CS. I would guess that the many of the dissertations in these areas are not relevant to financial work in any direct way. If you go into such a PhD program, how can you guarantee that you have an adviser and a project that is relevant to Finance? You may be able to pull this off but that will limit your PhD-related options (e.g. you have to work with an unhelpful adviser because he/she is the only one in the program doing finance related CS / Statistics).

When you finish, even if you have done some finance-related work, it's anyone's guess whether that particular project will be relevant to the environment you graduate into. You will have the PhD, though, and you can safely apply to positions requiring one. However, you may not be overestimating the positions today that require a PhD based on some promising ads. I don't know that the market is necessarily *good* right now in finance even for PhDs and, as others have pointed out, what will be the case in 5 years is not possible to know.

With a PhD in Statistics or CS, however, you will certainly have employment options in working as a Statistician or Software Engineer and I doubt having previous work experience will hurt you. It would make sense to get the PhD in Statistics or CS if your priority was to be a Statistician or Computer Scientist regardless of whether you work in Finance or not. Usually that requires loving the field that you are doing your PhD in more than any particular exit opportunities.