Financial Manager
Financial Manager Career Overview
If you are seeking a career in financial management, two of the most important qualifications you will need are good interpersonal skills and an aptitude for working with numbers. There are many unique and diversified opportunities available for the financial professional. Some of these include:
Financial Manager Training and Education
The qualifications for financial managers vary, but in general you should hold at least a bachelor's degree in finance or economics, and have taken classes in bond valuations, capital markets, interest rates, financial statement analysis, equity strategies, portfolio management, international economics and trade, and computer research. Many employers are also seeking out graduates who possess a master's degree in business administration, economics, finance, or risk management.
Experience counts for a lot in this business and those that have worked as branch managers in banks (usually promoted from the position of loan officers) are often considered for careers in financial management as well.
Beyond this, in today's competitive job market, an increasing number of financial management professionals are required by their employers to get the financial analyst (CFA) designation. This takes a minimum of three years to complete and is run by the CFA Institute.
The main licensing organization for this industry is known as the Financial Industry Regulatory Authority (FINRA). The most basic type of license will required the individual to pass two sets of exams. Some of the areas in which the candidate may be tested will include federal security laws, exchange commission, FINRA rules and regulations, security products, and many others.
Financial Manager Career and Salary Outlook
Financial management careers are expected to grow at the national average in the next ten years. Those individuals who have a master's degree and a certification will undoubtedly have the best chance at employment. Competition for jobs may be tough because the number of jobs is projected to be less than the large number of applicants so make sure to prepare yourself for this by getting as much experience and schooling as possible.
The median salary of financial managers is $90,970, with the lowest 10 percent earning less than $50,290. All in all, financial management is a very lucrative field.
Career Fields/Specializations
Financial Analyst
This is one of the most coveted careers in the financial world. They can work in both junior and senior capacities within a firm, which often lead to larger career opportunities. These individuals are tasked with assessing the current economic performance of companies and industries for firms with money to invest. Financial analysts typically work for large investment banking institutions, insurance companies, mutual funds, and security firms. They assist people in deciding how to invest their money. Often times, they study companies that want to sell stock to the public for the first time, otherwise known as an IPO (initial public offering), helping them to make the right decisions. Financial analysts also study the pros and cons of a merger or takeover. This can be an extremely lucrative career choice and there are several derivatives of the analyst position, which include security analysts, investment analysts, and ratings analysts.
Portfolio Manager
Portfolio managers control the assets of mutual funds for either small or big companies or individuals. It is the job of the portfolio manager to monitor investments and allot the funds accordingly. This can be an incredibly stressful position due to the fact that portfolio managers are in charge of other people's money. In today's often tumultuous stock market, a portfolio manager must be very careful how he or she chooses to invest the large funds in his or her care. Long hours are often required for this job, and individuals working in this field should have excellent leadership and communication skills, as well as a very strong work ethic.
Personal Financial Advisor
Personal financial advisors typically work with many different clients, which they often find on their own. They spend a great deal of time making sales calls and marketing their services to a variety of people and/or firms. Sometimes, they teach classes or hold seminars in order to garner a larger client base. An advisor begins by consulting with a client to determine the current state of the client's financial situation. The advisor must then create a thorough plan, which takes into account the client's current finances as well as his or her future financial goals. Once he or she has these pieces of information, the portfolio manager can create a comprehensive financial plan that identifies problem areas, makes recommendations for improvement, and selects appropriate investments. The personal financial advisor usually meets with his or her clients twice a year to update them on potential investments or to adjust their financial plan due to life changes, such as marriage, divorce, disability, or retirement.
Wealth Manager
Also known as "private bankers", wealth managers act as personal financial advisors for people who have a large amount of money to invest. They cater to affluent clients whose assets generally exceed $500,000. Their compensation is earned by charging clients a percentage of their portfolio on an annual basis. Banks, professional trust companies, and brokerage firms typically provide these services. They also assist the client with investment management and tax management, including estate and retirement planning.
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