Why do quantitative finance people make so much money and what degree would enable me to do that?

[PB]

Please, I don't want people posting about who started the financial crisis. I just want answers pertaining to my question. If you post anything inflammatory, then I will have your comment deleted as ranting or raving.

[jeff410790]

A masters degree in Financial Engineering is what many quants have. Its a relatively new major. The the number of graduates from these programs hasnt caught up with demand is probably the reason for the high salaries. Its the new thing in the world of finance and all the institutional firms want them.

[DanielS290]

an undergrad degree in quant finance and an MBA in financial engineering (or another quant related program). You can also go the route of physics (undergrad) & finance for grad school. There are some business schools that can get you in the door with only a bachelors, however they are rare.

Just a thought. I have been looking at this for a while and talked to a couple of people who have gone through similar programs or are going through them and the impression I got was that you could get a great job but your life goes to hell for it (you had the money but no time to enjoy it).

I am not saying don't do it, far from it, but make sure you consider both sides.

[MikeJ369]

I'd say that the best way, by far, to get a top job in quantitative finance is to get a PhD in pure math or computer science for a top program (Berkeley, Stanford, MIT, Caltech, etc.). However, stating the obvious here, this is very hard and requires a lot of talent and pure interest.

Another option, as the person stated above: the Masters in Finance-type programs offered by Princeton, MIT, CMU, Cornell, etc. are a pretty good option as well, but offer somewhat less career flexibility. On the other hand, these programs are also considerably easier (in my opinion) than the PhD programs mentioned above.

Finally, you can get into this field just by getting a job at the appropriate investment bank/fund/etc. with just about any major. Again, having your degree from a "prestigious" (whatever that means) school is a huge help, although by no means requisite; and a "quant" type major helps, too (math, CS, or perhaps physics, engineering, or even finance).

Also, please keep in mind that there are a lot of burnouts/flameouts in this field, even amongst the smartest people with experience and PhD's from top programs. I am not sure whether it's really best to "aim" for this career versus just falling into it due to a strong interest and/or curiosity about "how things work". And it's very wise to have a "backup plan". Things change very quickly.