Is an MFE degree worth it?

[grandunification]

I am going to be teaching high school math in Oklahoma. I graduated from OU in December with close to a 4.0 in math. I have basically zero programming experience, and have not had any luck finding employment outside of teaching. Let's say I put my mind to good use and learn as much C++ as possible over the next two years. Then, say I get into an MFE program (probably can't get into a good one, so let's just say some mid level school). Is getting an MFE really worth it? I do research on this, and it seems that all of the people with these degrees work in NYC making 80K-120K a year. In NYC, that doesn't get you anywhere. The people who are making big bank on Wall Street are those with PHDs in a quant field. It sounds like extremely difficult work for no financial reward. Instead, I could go back to school to study petroleum engineering and make make 80K to start, 120K after a few years of experience and live some place much cheaper. I just don't understand why I hear all this talk about quant finance being some big paying job. Basically, most people with MFEs are broke monkeys doing programming for the rich.

 

[bigbadwolf]

I do research on this, and it seems that all of the people with these degrees work in NYC making 80K-120K a year. In NYC, that doesn't get you anywhere.

They start at that much. After a few years of backbreaking work and inhumanly long hours, coupled maybe with some lucky breaks, it could be $250,000 - $300,000. Maybe more, depending on bonus.

I just don't understand why I hear all this talk about quant finance being some big paying job. Basically, most people with MFEs are broke monkeys doing programming for the rich.

Who is saying that here?

 

[Joy Pathak]

I am going to be teaching high school math in Oklahoma. I graduated from OU in December with close to a 4.0 in math. I have basically zero programming experience, and have not had any luck finding employment outside of teaching. Let's say I put my mind to good use and learn as much C++ as possible over the next two years. Then, say I get into an MFE program (probably can't get into a good one, so let's just say some mid level school). Is getting an MFE really worth it? I do research on this, and it seems that all of the people with these degrees work in NYC making 80K-120K a year. In NYC, that doesn't get you anywhere. The people who are making big bank on Wall Street are those with PHDs in a quant field. It sounds like extremely difficult work for no financial reward. Instead, I could go back to school to study petroleum engineering and make make 80K to start, 120K after a few years of experience and live some place much cheaper. I just don't understand why I hear all this talk about quant finance being some big paying job. Basically, most people with MFEs are broke monkeys doing programming for the rich.

The key is to be the "rich" you mention over time and have programmers do work for you. But, quant developers at hedge funds make tons of money. You can make 200K-300K easy as a quant developer at a hedge fund or at a market making shop in 3-4 years after graduation if you're good. I know a developer who is around 26 who banked $450K last year working at a HFT firm. This is a very small section of the 1000+ MFE's graduating every year now. There are MFE's who are just 3 years after graduation and banked more than $500K last two year consistently at a big bank and just moved to a spin off hedge fund of their prop trading desk.

It all depends on how good you are I believe. DO understand that the figures I mentioned are due to bonus primarily. Not their base by any chance.

Edit:

It might seem like I am saying MFE will make you rich. That is not what I am trying to say. It is POSSIBLE To make that much. The people who do might be less than 1% of all graduates. Most of the people will be stuck in jobs making at the most 150-200K with bonus after 5 years with an MFE possibly in NYC. I think that is absolutely great salary. Live a bit away from the city and you can have a great life.

 

[roni]

If money is all you care about, you don't have to get an MFE.
You can get other degrees, such as, CS, MBA, MFin, etc.
Different degrees, mostly also different career paths.

 

[Andy Nguyen]

Who is saying that here?

I was about to ask the same thing but the post below you just validated the OP.

Edit:

It might seem like I am saying MFE will make you rich. That is not what I am trying to say. It is POSSIBLE To make that much. The people who do might be less than 1% of all graduates. Most of the people will be stuck in jobs making at the most 150-200K with bonus after 5 years with an MFE possibly in NYC. I think that is absolutely great salary. Live a bit away from the city and you can have a great life.

People are just so willing to quote extreme cases of salary and do not bother to mention hordes of MFE grads who can't find a job after taking 100K loan. What happens to them? Nobody is quoting their miserable journey with the MFE degree.
Whenever people look for info about MFE degree, all they see is 300K, bonus this, bonus that. So in a sense, you are not helping. What is the point of using those numbers?
If I were you, I would never mention those isolated cases and set up some unrealistic expectation.

Instead, I could go back to school to study petroleum engineering and make make 80K to start, 120K after a few years of experience and live some place much cheaper. I just don't understand why I hear all this talk about quant finance being some big paying job. Basically, most people with MFEs are broke monkeys doing programming for the rich.

If you can't get a job with your undergrad degree, what are your options? If you are employee, you are working for someone else. Many people are just fine that way. If you are not, be your own boss.
I don't see a lot of people bragging about big money around here. If you see them, they are either: are not working in quant finance, bragging to make themselves look good. People who make money are not going online to talk about how much money they make. Most working members here are very modest and never mention money.

 

[Joy Pathak]

People are just so willing to quote extreme cases of salary and do not bother to mention hordes of MFE grads who can't find a job after taking 100K loan. What happens to them? Nobody is quoting their miserable journey with the MFE degree.
Whenever people look for info about MFE degree, all they see is 300K, bonus this, bonus that. So in a sense, you are not helping. What is the point of using those numbers?
If I were you, I would never mention those isolated cases and set up some unrealistic expectation.

You're right. I could see people misunderstanding that. He did ask about the people making the money. It is a fact that there are people who make that money. If people can use it as motivation then so be it. There is a need of smart people in the areas of risk management and technology where MFE students would be great candidates. You won't make ridiculous money, but you can make a good living.

 

[Tsotne]

BTW, MBA is a better preparation for PhD finance than MFE right?

 

[Anthony DeAngelis]

Trust me, working at a job you absolutely hate, even if it is well paid, will be utterly miserable. Many jobs sucks, but the odds of working in a living hell job increase whenever you deal with finance.

I also think you are discounting yourself too much. 4.o in math from a school a lot of people have heard of is pretty good. Destroy your GMAT and I think you would be competitive at a lot of places.

If you are strictly looking at dollars and careers, have you looked into anything technical with oil/gas? That might be a way for you to stay in OK and make a sizable wage.

 

[AlexandreH]

Hook'em!!!

 

[alain]

BTW, MBA is a better preparation for PhD finance than MFE right?

NO

 

[Tsotne]

...and which is considered as better asset on WS?

 

[Joy Pathak]

BTW, MBA is a better preparation for PhD finance than MFE right?

Waaaaaht. Oh Lord No.

 

[Andy Nguyen]

...and which is considered as better asset on WS?

Your ability to make money, not your school name or the degree you got.