Most of us, as a modern-age adult, have at least a bank account. We have our unique reasons to select our bank(s): reputation, convenience, friend's recommendations, etc. We usually have decent knowledge about our bank(s).
How about bankers? What perceptions you have toward this banking profession? Do you wish to become a banker? In this article, I will list out the banker's myths, as I was working as a commercial retail banker for Wells Fargo for a few years. 1) Education. It is easy to think the typical bankers (the ones you see at the local branch) must have a college degree (maybe it has to be something related to finance). The truth is that a typical banker job only requires high school diploma/GED. It's also easier to become a banker if you have previously worked as a teller. 2) Knowledge. I see people usually believe that their local bankers know everything, from economic understanding to tricks of getting a good car deal. The truth is bankers usually know less than you imagine. I am not saying bankers are not knowledgeable. What I want to emphasize are 1) bankers does not and are not required to know all financial aspects 2) even if bankers know a lot, he/she may not be allowed to tell you due to regulations (bankers need to be licensed to give out certain financial advice/comments). 3) Earning. This is probably the biggest misconception about bankers. People assume bankers are very rich! In reality, most retail bankers do not make that much. Their base salary is around $35k-$45k (at this time of writing) plus bonuses. Remember, if you work in a place that has a lot of cash, it does not mean you're rich. 4) Discipline. Bankers are humans too, and they fall into certain psychological traps. We normally assume bankers, who give out saving money advice, should be financially disciplined. This is simply not true since I've seen many bankers struggle with their own finance. Bonus point, from personal point of view, I can also assure you that many bankers spend a lot of money at Starbucks. It's been a blast sharing with you what goes behind the banking scene. For those who are interested in becoming a banker, if you have questions, you can also book a session with me, or you can also email me at theresumekid@gmail.com. Happy Hunting, The Kid
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Working part-time in college is usually a pain; minimum pay, bad environment, and annoying customers. What if there is a way finance students can make some decent money and also feel good about themselves. The answer is helping others who are not sophisticated in finance.
Let me tell you some stories from rag to less-rag. During my years at college, I hated the restaurant I was working at with minimum pay. I knew I always enjoy speaking to people and giving them suggests about money that I've learned from school and books. I was stunned when a lot of people are afraid of money. They thought time value, bonds, stocks, etc. are rocket science. So I saw a good demand and an excess capacity from my brain. Here are the steps that I took: 1) Polish my knowledge. If you are going to advise people, make sure you can answer 90% of questions or at least know where to find the answers. Please throw away hypothetical textbooks and pick up concrete knowledge from credible authors' books (Warren Buffett, Michael Lewis, Tony Robbins,etc.). News are neutral, but be careful, most of them are meant to draw views, not 100% giving information. You can become an expert to most areas if you manage to read 10-20 related books. 2) Find the market and give out free service. I started teaching high school kids for free. I taught them 98% of my knowledge, and in some cases, they/their needed customized service. That was when I was able to charge $50 for a one-year membership. 3) Over-deliver for paid service. It means building trust. I was not only their adviser, but also their friend, their bro, or their life guru. Building trust will help you get more word-of-mouth referrals. I had around 5 kids, who referred me to their parents, and most of them referred me/my blog to their friends. The result? Until, I always have around 5-10 clients per week and 4-5 one-on-one sessions with them. On average, making $1,000 per month in exchange for 7 hours per week (around $30/hour). This seems to be much better waiting tables at a restaurant for $10-$12/hour. Now the secret is out. Now it is your time to make your $1,000! Happy Hunting, The Kid I love finance so much that I decided to dedicate my post-graduate life to something harder and more meaningful. On LinkedIn, I usually see many finance professionals with all kinds of certificates. The most popular are CFA and CFP, but what is the difference? How can you get the biggest bang for your bucks? Here are the main differences that I wish someone has told me two years ago:
1) Difficulty. CFA has 3 exams whereas CFP has one single exam. As you pass each level of CFA, the difficulty will increase drastically. Also, CFA has a "floating" benchmark for passing because they don't want everyone to become a CFA. This means it could be high or low depending on the candidate pool you encounter at each exam. If you see someone passed CFA all 3 levels, that person has some serious knowledge, not just luck. 2) Investment. You probably should think ten times before you start CFA. It is extremely high commitment. Even after you finish three exams, you are still not a CFA yet until the organization entitle you with other requirements. CFP, on the other hand, is more flexible in terms of both money and time. 3) Value. Because of high difficulty, CFA offers extremely good value. Nowadays, many firms start to select CFA as a substitute requirement for MBA. You can use CFA as a resume empowerment in anything you wish from academia to investment banking. CFP offers less value. The designation is deemed for the financial services sector, especially financial advisers and maybe, in some cases, insurance sellers and stock traders. I also took a class called "Investment Valuation" at college taught by a guy with CFA using CFA materials, and it was crazy hard (plus I'm dumb). Be sure to have a clear goal getting these certification, especially CFA. Otherwise, you will find yourself wasting time and money for no reason. Happy Hunting, The Kid You study finance, know all the tricks of derivatives, know how to day-trade stocks and ETFs. But what if your dream of joining Black Rock/Stone, Goldman, or Citadel does not come true for whatever reason; could be your school is not Ivy League or you simply lack experience.
I had no experience in my senior year and decided to test my luck at something called "Financial Advising". I interviewed with Voya, Merill Lynch, Goldman, and many smaller firms and received all offers. Here was my experience: 1) They come with many names. It could be advisor, planner, wealth manager, representative, business development, etc. All of this means you are responsible for selling and receive commission. 2) Good for Internship. The reasons are: a) you don't have to do the most annoying thing, which is the actual sales b) you will learn some valuable experience c) Easy to get accepted d) get some good names on resume (I know many people who used this industry to gain free experience) 3) May not be a stable career. a) commission is main source of income b) the industry is fairly competitive c) it would cost you fair amount of saving to start. 4) Most employers do mass hire. They hire as many people as they could. The reason is it barely costs them anything. Hence, the interview process is extremely easy as long as you are not a psycho. Please note, it is true that Baby Boomers are retiring at double rate as well as many former financial advisors. But, it is still a very tough industry to enter as a young scout. If you can last around 5-7 years of thriving, earning 6-figure is expected. Happy Hunting, The Kid |
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