This year’s bonus round may not be as painful as was initially anticipated when the credit crunch first hit – total compensation at Goldman Sachs, Morgan Stanley, Merrill Lynch, Lehman Brothers and Bear Stearns rose nine per cent last year at the same time as the combined market capitalisation of those five banks shrank by $50bn. The website breakingviews.com described this system of remuneration as ‘carrot-and-carrot’. In truth, there are significant downsides to a career in the City or on Wall Street, not least that it can be over very quickly.

Given that it now looks like the world economy is in for a prolonged period of slowdown at the least, it might make sense to invest this year’s bonus rather than blow it or, as is most commonly the case, park it in a bank account. City workers are understandably skeptical about financial advice, but on page 44 we highlight some of the factors you should be considering when trying to decide on a Porsche or a pension.