5 Finance Careers Explained (and what they pay) | Pt2

what's up everyone kenji here and in this 
video i thought i'd share five career options   in finance so this is actually a part two 
video i made a part one a couple weeks back   and a lot of you requested a 
follow-up video so here it goes   so the five jobs i've picked are quants 
investment analysts financial advisors   commercial bankers and brokers i'm mainly going 
to be focusing on entry level as well as well as   a couple years down the line and we'll be looking 
at things like their work life balance the skills   required the salary and also be providing some 
examples of companies in each category so you   can look further if you want to apply to them and 
just like the part one video if this video does   well i will consider making a part three where i 
cover other jobs like private banking or portfolio   management so make sure you hit that like and 
subscribe all right let's get into the video   so the first job we'll be looking at is quants 
which is short for quantitative analysts   so this role consists of creating algorithms and 
statistical models specifically to solve problems   in the financial markets and as you can imagine 
their backgrounds are in fields like physics   computer science or mathematics now this role is 
actually relatively new and it's increasingly high   in demand especially as the finance industry 
has transitioned into more computer based   now within the quant world there's actually 
many different roles some are more focused   on risk management so trying to control the 
risk of certain trades others are more focused   on algorithmic trading so trying to develop an 
algorithm that will trade in the financial markets   for them while there's many other roles like front 
office squads library quants and so on but that's   maybe for another video and all sorts of financial 
institutions employ quants so the investments the   asset managers and so on but the most famous 
ones are probably the quantitative hedge funds   so these are the likes of the show citadel or two 
sigma and as for the skills required for this kind   of a role it's obviously quite numerical most of 
these people know how to code already and it's   not uncommon to have advanced level degrees so the 
likes of a master's or a phd although it's usually   not required now it's for good reason that they're 
called the rocket scientists of wall street   as for the pay it's extremely high especially 
because they're in high demand and at the same   time they also complete with the big tech 
firms which are also known to pay a lot   so let's say around 120 000 in a big financial 
city like new york is not unheard of when it comes   to the hours they're actually not as short as some 
people might expect i'd say it's more like a 12   hour day so 16 hours a week now it is longer than 
the average 40 hour work week but at the same time   they are compensated quite well so this brings us 
to our next role which is an investment analyst   and ironically enough they don't actually invest 
money themselves that's usually done by the trader   instead what they do has to do with analyzing data 
researching and creating presentations for the   portfolio manager or the investment manager was 
basically their boss and there's tons of different   companies that employ investment analysts from 
asset managers like blackrock to investment banks   like goldman sachs to even insurance companies 
like axa as well overall there is a big split   between the buy side and the sell side so buy 
side is looking to invest money while the sell   side is about doing research for the broker to 
sell securities to clients but because investment   analyst is actually such a vague title they 
usually specialize in a specific asset geography   or even industry so for instance you might have an 
investment analyst that's dealing with government   bonds in the us another one that only deals with 
tech stocks in the uk and so on and so forth   as for the work hours around 50 hours a week 
is normal so it's nothing outrageous say but at   the same time you got to keep in mind that it is 
quite a high pressure environment when it comes to   dealing with money right as far as skills required 
spreadsheets so excel skills are usually one of   the big ones as well as general finance as well as 
accounting at the same time you do have to present   so presentation skills can come handy as well when 
it comes to the designation the cfa is very very   popular here some jobs as investment analysts that 
you might look to apply to if it might require say   having at least a level one or something like that 
in the cfa there's actually three different levels   before you get to the full certificate or the 
full designation as far as salary i'd say around   75 000 is a good rough guide but you got to keep 
in mind that it is a very big industry and there's   many different roles so it may vary depending 
on that next up is the financial advisor role   and in short this is all about advising clients 
on what they should do with their own money   it's also sometimes called a financial planner and 
a typical example of what they might have to do is   say you're looking to retire by the time you're 
60 years old so they look through your taxes your   insurance your billings and so all of the other 
money related stuff and try to make an estimate   of how much you should be saving how much you 
should be spending and so on among the big pros   of this kind of a role is that if you do things 
well you can really have a positive impact on some   people right on the other hand on the coin side 
if your recommendations don't work out and they   end up losing money that can obviously be very 
stressful so uh you got uh you got my money huh oh   yeah i'll pay you soon at the same time if you're 
just starting off it's always very very hard to   get your first few clients especially because you 
don't actually have any experience yourself right   so that can be a hard start i'd say when it comes 
to the work hours especially as you move later on   it does become quite flexible so it depends on 
what the client's needs are but at the first   couple years i'd say around 50 hours 50 to 60 
hours is quite common the skills for this kind   of a role are obviously finance but at the same 
time a lot of the interpersonal communication   as well as sales skills are very important 
right at the end of the day you're trying to   persuade them that you can handle their money 
so you really need to convey some trust there   when it comes to designations the chartered 
financial planner is probably the most common   one but it's not uncommon to also have the cfa 
or the cpa as well salary wise it's usually a   combination of a fee and a commission the fee 
is basically for managing the money every year   so they might take something like one percent 
for instance and on the other hand there's a   commission for using their products sometimes some 
advisors only do fees or they only do commissions   as well so salary wise it's actually going 
to vary quite a lot depending on that so for   instance if you have a lot of commission revenue 
then that salary is obviously going to be boosted   same goes if you have a lot of clients and there's 
a lot of fees for you but overall i'd say around   60 000 is a good estimate among the big names 
when it comes to financial advisors are fidelity   state street as well as vanguard all right moving 
on to commercial banking and if you don't know   what commercial banking is in short it's just two 
main things number one has to do with offering   deposits and number two has to do with lending 
money to people like you and i say and companies   of all sizes so small medium and large usually 
if you're fresh out of college you'll start off   as a credit analyst and in this kind of a role 
you're providing clients with credit products like   term loans lines of credit mortgages and other 
products like that and the goal here is obviously   for them to be able to pay you back right so 
you're looking through their credit history their   financial statements spending habits and so on and 
based on that assessing whether they'll be able to   pay the bank back as you can probably imagine the 
skills for this kind of a role are quite numerical   so excel math and finance knowledge can 
definitely come handy a common designation   to work towards is the credit risk certification 
when it comes to hours i'd say around 50 hours a   week is quite normal so i don't think that's 
anything outrageous salary wise around 70   000 dollars a year is a good estimate now when it 
comes to the types of companies out there um it's   basically all of the different commercial banks 
that you see out on the street right so in the us   that's probably the likes of chase bank of america 
or capital one overall people do regard commercial   banking as quite a stable career in which there's 
a good work-life balance and it does have quite a   competitive pay as well now if you want to learn 
more about the differences between a commercial   bank and an investment bank i have made another 
video just on that so you can go somewhere up here   where i'll leave it linked and the last job we 
look at is a broker and in short a broker buys   and sells securities on behalf of the client's 
wishes so these securities can range from shares   to bonds to options and much more than that now 
at this point you might wonder well what's the   difference between a broker and a trader basically 
i am simplifying a bit here but a broker executes   trades on behalf of the client's wishes once a 
trader executes trades on behalf of the portfolio   manager or the investment manager's wishes so a 
broker does have a lot more of a people element   as well because there's obviously many different 
clients that he or she handles right when it comes   to the hours it's not your average 40 hour work 
week it does start very very early in the morning   primarily because the markets open quite early 
right so in the us it starts at 9 30 the market   open time so i have to be in there quite a few 
hours in advance in order to get everything ready   have the research ready um catch up on the news 
and so on and so forth overall around 55 hours i'd   say it's a good estimate and you've got to keep 
in mind that these hours where they're working are   actually very very stressful especially when the 
markets open as there's a lot of money to be made   or loss free when it comes to the pay there is a 
big myth that all stock brokers are millionaires   that's probably because of the wolf of wall street 
but realistically as an entry level broker you'll   probably be making around 60 thousand dollars 
and then there is a high upside though depending   on how much you can earn off commission so there 
is a good potential in that sense among the most   useful skills are communication working well 
under pressure especially when the market is   open and sales because mainly they depend on them 
for earning a commission right when it comes to   licenses the series 7 as well as the series 63 are 
some of the main ones primarily because they give   you the authority to trade on behalf of clients 
when it comes to companies there's actually a   big split between what's known as a full service 
broker and a discount broker a full service broker   does provide investment advice as well so they 
might do some research for you they might analyze   things for you as well whilst they discount 
broker it doesn't do any of that instead it just   does the trade right overall obviously a full 
service broker does have a higher commission   than a discount one for those obvious reasons but 
some examples of full service brokers include city   or morgan stanley while some examples of discount 
brokers could be fidelity or child schwab as well   so those are five when it comes to salaries 
do take it as a bit of a rough guide mainly   because it depends on a city you're in and other 
things like that and same goes for the work hours   because well you might have a bad boss and 
that makes you work longer than usual right   also do let me know in the comments if you'd 
like me to explain some other jobs or maybe   even have a part three lastly go follow me on 
instagram for some behind the scenes footage   and getting to know me a bit more personally 
if you want to hope you found the video useful   if you did feel free to like and subscribe 
and i'll hopefully catch you in the next one

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