When it comes to achieving wealth for yourself and your family, there may be no better investment strategy than hedge funds. Now you might think that the average salary for a hedge fund manager is the type of thing you’d hear about in random cocktail party gossip, but I’m here to set the record straight.
The average salary for a hedge fund manager is $200,000.
Average salary for a hedge fund manager
Every year at the beginning of January, I make a list of goals for the coming year. My first goal is always something grandiose and impossible, like not breaking any dishes or finally learning Esperanto. The second goal is an attempt to save money—to be more frugal than usual and to spend less on the things that I don’t really need. The third goal is a financial one: to grow my wealth by investing in stocks and bonds. The fourth goal is usually something along the lines of “be nicer to my friends.”
I’m currently working on my fifth annual new-year’s-resolutions list, but wanted to mention that as someone who’s made saving money and growing their investment portfolio into a yearly tradition, there are few things more satisfying than seeing your hard work pay off in a big way. To me, being able to save enough money over time to take care of myself through retirement without having to rely on anyone else feels like playing the lottery every single day for months or years straight—and then winning!
According to the U.S. Securities and Exchange Commission, in 2017 hedge fund managers took home an average salary of $2 million and $5 million in bonuses.
According to the U.S. Securities and Exchange Commission, in 2017 hedge fund managers took home an average salary of $2 million and $5 million in bonuses. These numbers are impressive, but they’re not guaranteed: In fact, the SEC has recently raised questions about whether some managers were earning too much on their own merits or simply because of the size of their funds’ assets under management (AUM).
Bonuses are not based on salary; rather, they are often awarded after the end of a given year or quarter and depend on how well your firm performed during that period. If you meet your goals—or even exceed expectations—you may receive a higher bonus than you would have otherwise anticipated getting if your performance had been lackluster during those same months or years.
For those who are willing to risk it all, a career as a hedge fund manager can be very lucrative.
A hedge fund manager is paid based on the performance of his or her fund, so the compensation can be extremely lucrative. Hedge fund managers typically get a salary and a bonus based on profits. Bonuses can sometimes be paid in stock, which can be an attractive option for someone seeking to build wealth over time. To become a hedge fund manager, you must have extensive experience working with financial markets (including investments) and have studied finance in school as well as taken classes on economics and business strategy. You must also work hard to prove yourself if you want to advance up the ladder at your company or earn more money than other investment professionals
Conclusion
Of course, that’s only half the battle. You also need to find a job in hedge funds. The good news is, you can do it from anywhere, whether it’s in New York or San Francisco — or even your home town!
