Marina Ristic
CEP 121.2255
CAREER IN FINANCE
Prof Karen Anderson
Career Paper
Financial planning is one of the careers in finance that I am very interested in.
Since the financial planning sector is booming, it offers a variety of career options. Financial
planners help individuals plan their financial futures. They help them with retirement planning,
income tax, college savings, insurance and estate planning strategies. Career in finance is both
personally and financially rewarding and requires excellent interpersonal skills. A good financial
planner understands investments, taxes, estate planning issues and knows how to listen.
This job can be done within a company or by yourself, as a sole proprietorship. Most
financial planners are sole-proprietors or they work within smaller practice. According to the
Wall Street Journal “despite the activity among the big names, there’s a feeling that many
wealthy clients are more attracted to the personalized service offered by small businesses.
Desire has driven the creation of smaller wealth management firms and multifamily offices,
which focus on managing the investments of a small group of wealthy families”.(“Landscape
Changing for Ultra-Wealth Management”, the Wall Street Journal.) In order to become
successful in this field you have to have excellent people skills, communicational skills as well
as creative, analytical and sales skills. Money managers either directly make investments or
help others by providing investment advice. If they are in the first business they are usually
called portfolio managers. If they are in the second, they are generally called financial planners.
Financial planners can be compensated on a flat per-hour fee basis, a commission basis or
both. One of the exciting things about investing is that you get rewarded for knowing how
business works. People who understand and enjoy business are among the most likely to
succeed in this arena.
U. S. News and World Report listed the position of financial planner as one of the
twenty hottest professions for the future. They stated that “the entry of baby-boomers into
middle age with a bewildering array of investment choices will make financial planning a really
hot profession in the future”.(U.S.News and World Report). Financial planners pointed out that
getting a solo practice as a financial planner today can be difficult and highly competitive. In
order to be successful in financial planning you need to know the details of various investments
tax law, estate planning strategies and you need to be good at marketing yourself and listening
to your customers. The field of financial planning is expected to experience substantial future
growth, but it is a hard field to start in, because most financial planners work in entrepreneurial
one or two person businesses and have difficulty affording new hires. Getting that crucial
starting experience is the hardest part. According to the Consumer Federation of America there
are over 250,000 financial planners. The largest company in the field is IDS Financial Services,
a division of American Express. Financial planners are increasingly required to have the CFP
(Certified Financial Planner) designation. “In order to become a Certified Financial Planner, you
must pass an exam approved by the CFP Board of Standards which covers over 175 topics in
investing and financial planning. Today, there are approximately 23,000 Certified Financial
Planners”.(Certified Financial Planner Board of Standards,Inc).
A growth area in financial planning and money management is targeting the high net
worth individual. According to PSI, a financial services consultant, it is estimated that over 4
million US households have a net worth in excess of $1 million. According to Myra A. Thomas
“The attraction of the U.S. consumers spending power and the American capital market is
creating a wave of European company expansion here, presenting opportunities for finance
professionals in a wide range of disciplines”.(Thomas 2). That means that skilled investment
managers, accountants, analysts and CPAs with appropriate knowledge and an understanding
of foreign markets can be an asset to firms considering establishing or expanding their
stateside presence.” Being the point person for such a start up or expansion means a lot of
work and wearing a lot of hats. However, it can also mean tremendous authority and
opportunity for the right person. “"The banking and investment banking field is certainly looking
stateside for expansion of its markets," emphasized Ken April of April International in New
Rochelle, N.Y. His executive search firm specializes in international placement of professionals
in the financial services industry. "The number of European financial institutions expanding their
reach in the U.S. is growing at an ever-increasing rate,"(April qtd. In Thomas 2). One such
expansion involves London-based HSBC, which is growing its American operations by adding
branches in Washington, D.C., Maryland and Virginia. Joining professional organizations not
only helps you meet other professionals, it often provides opportunities to assume a leadership
role and build on your people skills.” Networking is the fundamental principle of getting ahead.
You cannot do it yourself”"(Smith qtd in Thomas). According to Carl Turnipseed, executive vice
president of the Federal Reserve Bank of New York, the people skills you develop through
networking will be essential as you move into more senior positions. “As you move toward the
top of the organization, what you've got to accomplish is going to be accomplished through
people," While you're rising through the ranks, don't be afraid to have people around who are
smarter than you. "Be sure to surround yourself with the best people you can find. In the dogeat-dog world of finance, there is no room for mediocrity in my tent."(Turnipseed qtd in
Thomas).
Duties of financial analyst involve determining financing needs, analyzing capital
budgeting projects, long-range financial planning, analyzing possible acquisitions and asset
sales, visiting credit agencies to explain firm's position, working on budgets, analyzing
competitors, implementing financial plans, monitoring the market price of your firm's securities,
analyzing leasing agreements and determining needs and methods of dealing with derivatives.
Often you will be assigned to a specific area such as revenue, planning, and capital budgeting
or project finance. As a senior financial analyst, you will be responsible for financial analyses in
support of new business development opportunities and cross-portfolio financial initiatives. You
will build financial models and provide key analyses for portfolio acquisitions, new partnerships,
and strategic initiatives around regulatory changes, vendor management, capital allocation, and
strategic planning. You will work with partners at all levels in risk, marketing, and finance to
develop assumptions and validate findings. You will maintain and update financial models and
create audit trail for your valuation scenarios. To be considered qualified for this position you
must have two years of relevant work experience emphasizing financial analysis with an
expertise in building, maintaining, and updating complex financial models. You have to possess
strong communication and presentation skills and have an undergraduate degree in Finance or
Economics.
Financial services career is extremely rewarding, in terms of both financial compensation
and personal satisfaction. This challenging job requires good analytical skills, computer skills
and a broad understanding of finance. I believe that it is amazing to have an opportunity to
make a difference in other people's lives, providing objective financial guidance and support.
You'll become an advocate for your clients and prospects, helping to ensure that they and their
families are protected, now and in the future. In conclusion, in order to be successful in this
field you have to possess the desire to become a trusted financial professional, the ability to
listen and empathize with someone’s hopes and dreams, the fire and the passion of an
entrepreneur and the ability to develop and nurture long term relationship.
.