Investment Banking (2 Viewers)

[patty4848]

I am interested in becoming an investment banker or possibly a financial planner after school, and have decided on doing a Bachelor Commerce/Law majoring in prob accounting or finance, and was wondering a few things.
Would this qualificaiton be sufficient, or would I be expected to have honours or continue to postgrad study?
What companies actually employ investment bankers (ie. Names)?
Is it true about the long gritty hours, and no weekends or social life?
Is it a hard career to get started in?

Any assistance would be great.

Thanks

 

[Epic_Postings]

Would this qualificaiton be sufficient, or would I be expected to have honours or continue to postgrad study?

sufficient in australia

What companies actually employ investment bankers (ie. Names)?

do your own research on this

Is it true about the long gritty hours, and no weekends or social life?
Is it a hard career to get started in?

yes and yes



basically you'd better be prepared to work your ass off for the next 6 years of your life (HSC + comm/law degree), in order to pave way for the opportunity to shed much more blood and tears for the rest of your I.banking career (while being paid a lot).

 

[CloudStrife]

Comm/Law is enough but you need to be SMART, (not just book smart).
And you should have a very competitive mind to even have a chance in this field.
Major brokers and large banks hire IBs.
VERY long hours are part of the profession. Social life is what you make of it but you might be sacrificing your rest time for a bit of social life.

 

[La Divina]

Hey,

My brother is currently doing his second internship at an investment bank.
Yes the hours are long, like you have to work till 10pm minimum and he claims the 'usual' is till 1am.

Well as far as names go some top banks include: Goldman Sachs JBWere, UBS, Deustch (sp?), Macquarie Bank, JP Morgan, Morgan Stanley, Merill Lynch (sp?)

Anyway he did Com/LLB at USyd and he claims that they usually hire people who do law or honours with commerce, so yes a law degree will suffice.

Well, good luck, it's very competitive.

 

[velox]

Long hours - 100 hours as an analyst depending on deal flow and team. But money pays off in the end if that is your cup of tea.

 

[blue_chameleon]

To make yourself really well equipped, you can do a FINSIA diploma/masters in finance course. If you do that and you're smart, sharp, good-looking and confident, expect $500k base salaries third year into your job (+ bonuses of sometimes up to 2-3million lol).

Or alternatively, you could do a DFP and if you're good with networking, you're equipped with excellent personal skills and really know your strategies well, you could be earning $400k within 10 years. Speaking with a few directors of FP company's, its well known that if you're not earning bare minimum $250+ as a financial planner, then you're in the wrong industry.

 

[velox]

That's because financial planning is a messed up industry with them just recommending products that gives them an awesome commission.

Pretty crappy job though.

In most professional jobs, banking, medicine, law - with 10years experience you will be hittint 250k + anyway.

Edit: And markzada is talking shit. No-one gets $500k base within 3-4 years, and bonuses of 2-3 million. What planet are you on? And finsia is crap compared to overseas unis, so I dont see how it makes you 'really well equipped'?

 

[blue_chameleon]

That's because financial planning is a messed up industry with them just recommending products that gives them an awesome commission.

You haven't worked in the industry, have you? Some might look at Investment Banking and consider it to be a pretty crappy job, considering the commitment to 12+ hours a day (conservatively), 5-6 days a week just for the money. Add to that the fact it's very competitive for good jobs. Each to their own though, every job has its bad points.

As for financial planning being messed up, you're about 6 years behind. After the massive reform the industry went through, one of the improvements was that the written advice (SOA) that planners give has to explicitly state the fee's and commissions that they receive from products recommended. So if clients don't like it, they don't have to proceed.

Different firms have different fee structures, split between commissions from products and fee's for the advice. Granted, some might be pretty shifty, and opt for largely commission based revenues, however id say the majority of successful planners focus more on giving sound advice and a broader service.

All the people I know earning good money in the industry (200k+), have their revenues structured more towards fee for advice. Thats the way the industry is moving, and the greedy older guys who don't have the personality and skills to succeed at it any other way are rapidly retiring/getting caught by ASIC.

But yeah, if you're expecting $500k after 3 years in the job, as Markzada wishfully suggested, no matter what your qualifications and skills, you're going to be disappointed.

 

[La Divina]

What are the hours like for FP? Could you name some firms that hire them?

Thanks

 

[jannny]

so to be an equipped FP, just do a major in Finance and then do a masters in FINSIA unit. This is right?

 

[blue_chameleon]

What are the hours like for FP? Could you name some firms that hire them?

Thanks

The easiest answer for that is: It depends on what your role is. You'll start of as a Para Planner, then work your way to Financial Planning once you get a DFP (Dip in Fin Planning).

It's easiest to establish a career in FP through the major banks, so ANZ, NAB, CommBank, St George and Westpac. They are the most well-known, generic employers. Others include:

AXA
AMP
ING
BT Financial

Some well-known boutique firms:

Centric Wealth
Arcadian
Morrison Carr
Hillross Financial
WB Financial Mgmt

As for the hours worked, that also depends. As a Para-Planner, most work normal office hours. As a Financial Planner, it's a lot more flexible/demanding, as they predominantly go between meetings with clients.

 

[La Divina]

1. Can't you get to financial planning straight from a degree? Or is a dip necessary?
2. Major banks being IBs or like CBA, ANZ? [Nevermind, you answered through your edit =) ]
So are you suggesting that one starts off initially at a bank and then they move into firms?
3. Are there internships for FP
4. How exactly do you become a Para Planner
5. Finally, how is the pay for a Para Planner?

 

[blue_chameleon]

so to be an equipped FP, just do a major in Finance and then do a masters in FINSIA unit. This is right?

No. A major in Finance will help you, but to become a Certified Financial Planner, you need to complete a DFP (Dipl. in Fin. Planning). To get started though, the Finance major will help you score a job with one of the banks, and then do the DFP later down the track when you progress.

 

[jannny]

awesome thank you

 

[blue_chameleon]

1. Can't you get to financial planning straight from a degree? Or is a dip necessary?
2. Major banks being IBs or like CBA, ANZ? [Nevermind, you answered through your edit =) ]
So are you suggesting that one starts off initially at a bank and then they move into firms?
3. Are there internships for FP
4. How exactly do you become a Para Planner
5. Finally, how is the pay for a Para Planner?

1. No, a degree wont be enough to be a Certified FP. Their job is to advise people on financial matters, which carries a lot of responsibility. If you're getting advice on where to put your life savings, or how to distribute wealth to your siblings when you die, then you want to know the advice is sound and the person giving it is credible. ASIC have made the DFP a requisite to become a qualified FP because they want to make sure each FP have certain knowledge and skill levels.

2. Yes. Its much easier to start at a bank, because instead of seeking clients to help, they come to you. Also, the big banks have good programs in place for starting out a career.

3. No. The closest would be a grad program at a bank.

4. You need to get the PS146 knowledge and skill requirements. Basically, you need to have knowledge on areas such as Derivatives, Superannuation, Foreign Exchange etc to work in the industry and the PS146 comprises 4/12 subjects you do in the DFP. If you do a Finance major, you should get the PS146 through the subjects in the major. You'd have to check with the program officer though.

5. If you check out seek.com, there are positions in Sydney paying between $50k up to $100k, depending on experience. There is massive demand for help in the industry, as it is very much an ageing profession.

 

[velox]

You have got no fucken idea. My brother's mate is 3 years out working for Maquarie Bank on $500k base plus bonuses. So shut the fuck up noobs.

EDIT: But he is a fucking genius. With regards to 2-3 million$ bonuses - there have been a few articles that showed IB's getting 300-400% of their base salary so you shouldn't be so surprised.

It's always the 'brothers mate'. The only people who get 1 million base are MDs. (in aus).

Do you even know what department your brothers mate works in? I think I have some idea since I have worked in finance related jobs for 2 years now....

3 Years out would make you still an assosciate. Nearly impossible to get $500k.

 

[Azamakumar]

Bullshit MD's get 1mil.

 

[blue_chameleon]

Good on ya. U think u knw it all because you've been working in the industry for two years... very intelligent aren't ya.

Dude just give up. Starting out by saying what you have and using the "brothers mate" as your source is just asking to be ridiculed.

EDIT:

...expect $500k base salaries third year into your job (+ bonuses of sometimes up to 2-3million lol).

That's where you fail.

 

[velox]

You fuckhead. Did u look at my criteria for getting that sought of salary. NO! Why don't you quote me on that.

EDIT: And i'll get the blokes number off my bro if u want. PM me.

Either your brothers mate is full of it, or he is being paid in yen.

You still dont state what department he is working in.

And sorry, no i'm not going to waste my money/time calling some random to win an internet debate with a high school grad.

I dont see the need for it to be personal?

Bullshit MD's get 1mil.

They do. At least in IBD and Sales and Trading. Ask someone with a clue, like Seraphim, ND or Pungpui or maybe Templar.

 

[blue_chameleon]

You fuckhead. Did u look at my criteria for getting that sought of salary. NO! Why don't you quote me on that.

EDIT: And i'll get the blokes number off my bro if u want. PM me.

If you had half a brain you'd see the light. I know you're relatively new, so please read slowly, k?

You're clearly easy to antagonise, so make it easy on yourself and just find me some credible evidence* to backup what you have stated.

Show me that a person that possesses all the characteristics that you stated, with the qualifications you listed, should expect to earn that much money as a base salary...3 years in the job. Because right now, I can only see that its unachievable if not to all, than to many, whereas you foolishly implied it would be.

You say its to be expected and that straight-forward, yet you're merely finished the HSC. Let me give you a tip. You need a wee bit of credibility son.

I really don't think you know how any department in an IB would justify paying workers so young to the company that kind of salary. Please prove me wrong and contribute rather than bad-mouthing me and highlighting your immaturity.


*Meaning not simply a contact number of somebody I have no way of knowing is who you say he is.


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