5 Investment Jobs Explained (and what they pay)
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- Опубликовано: 13 июн 2019
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Correction: CFP stands for Certified Financial Planner, not Chartered.
It can be confusing trying to understand the jobs that exist within the world of investments, so today I wanted to cover 5 common positions and discuss the tasks they entail, their pros and cons, and the average salary for those working in those positions.
Jobs Discussed: Investment Bankers, Analysts, Traders, Advisors, and Portfolio Managers
If you'd like to support the channel, you can do so at Patreon.com/ThePlainBagel :)
Intro/Outro Music: www.bensound.com/royalty-free...
DISCLAIMER:
This channel is for education purposes only and is not affiliated with any financial institution. Richard Coffin is not registered to provide investment advice and as such does not provide recommendations on The Plain Bagel - those looking for investment advice should seek out a registered professional. Richard is not responsible for investment actions taken by viewers.
Happy Friday everyone! If you've worked in the field, what has your experience been? And if you're looking to enter the industry, where are you aiming to end up? Let me know down below :)
Investment banking analyst who's had a little over a year of experience. I can definitely say the work load part was spot on, considering I'm writing this from my office on a Saturday afternoon. The pay mentioned is usually standard for base salary, especially at a bulge bracket, but with bonus can put you in the 110k-130k range. Additionally, I would characterize us as a financial advisor for whomever we are working with. Before we get into whether or not exiting is the best option, we really dive deep into the company to see if alternatives might be better (such as a dividend recap). Good video as always! Similar to mine in a way :)
I'm 16 and just starting trying my hand at investment by myself your videos are so helpful, it is so easy to make poor decisions when investing! I would love to see some plain bagel merch.
I thought I wanted to enter the financial services industry, but day one of school made it extremely clear that the club is invite only. Unless you want to be a permanent intern, make a legacy friend of the company. No referral, no entry.
P.S.- you don’t have the IQ to work in finance. Try something with fewer moving parts. You’ll be happier.
I have internshiped in Equity and Fixed Income Research and know I am looking for a job in either research, IB or PE. Would the CFA (level 1) help me stand out from other candidates? What do you recommend?
@@mauriciofernandini2252 My own opinion is that the CFA, even just level 1, will help anyone pursuing an analyst role. It's pretty well-respected and some places won't consider applicants unless they have it. That's been my experience - writing even just the first step can take you a long way.
You left out the get rich quick guru, the best paying investment job there is
Lol
@@benchoflemons398 he liked it the day i commented
🤣🤣
Financial dream job: Warren Buffet.
First reply lool
when vacancies starting? will think to apply
This is legit one of the best finance channels out there.
@@Nihlstorp Do you feel cool now lol? You got to say the N-Word lol. Highlight of 2021 perhaps ?
I just dont like you people.
@@Nihlstorp Lol, hey i cant change your mind on that lol.
@@mikeberb Hey man, I hope that guy didn’t affect you too much. Don’t worry about it, there’ll always be people like that in this world.
@@retropetroleum It's all good . Can't get worked up over internet trolls. Says more about them than anything. thanks for the kind words though.
this channel is so underrated
Bc he doesn’t put attractive title. Should put ex-Goldman Sachs employer tell u ...(or any other the bank name
Jason Moy well, you don’t wanna sound like a sellout like tech lead is r smth
rain Alaska its okay youre a fucking nazi
IB may be 80k base starting salary but bonus usually doubles that to around 150-160 first year
And salaries are higher in the US. Richard is using data from Canada only.
Thank you so much for this video. I am a freshman majoring in Finance and this really helped organize my outlook on careers out of college.
Thank you for another good video!
This channel is the Financial Guide book for entry level investors and finance enthusiasts!
Keep up the good work.
Thanks a lot man!
Your channel deserves to have a million subscribers.
Thank you for this video! I will graduate in some months from my finance/economics major and this helped me clear out some doubts :)
I'm watching this channel along with Ben Felix and a few others, while going on a financial self-study rampage in real estate, trading, budgeting, etc. Channels like these are great and even better when you combine this with excellent life and learning habits, going to forums, reading like crazy and taking notes, writing out and drawing out your own ideas obsessively, coming up with plans vetted by peers in those fields, and the executing on a regular and consistent basis. Wash Rinse Repeat. To hell with distractions. Finance is so much fun, and this channel is fucking awesome.
Perfect mindset
Hey man, how has it been progressing for you? Would love to hear how far along you are now and if you have any advice from the progress you've made
I also would like an update.
I would like to know any information on online jobs if you don't care to give any info.
A clarification on the first bit (IB) - the term tends to have two slightly overlapping / confusing definitions which one might run into; firstly it means the general range of businesses offered by big Investment Banks (e.g. trading, research). Secondly, 'Investment Banking' is itself one of those businesses, typically dealing with M&A and IPO -type operations; this is the sector that is both the most notorius WLB-wise and the most lucrative.
I think one thing that could be added to the list is general buy-side roles in PE / Hedge Funds: firms that directly invest in a company, set out to improve it and sell it after a couple years for major gains. As with IB, one thing that bears mentioning is that both of these fields tend to be highy elitist (the term used is so-called 'prestige finance') demanding qualifications from top unis to stand a chance at getting in.
Great video!
Definitely a CFP. Working with clients and helping them create a successful financial future.
Thank you so much for these clarifications and I’m a freshman in college majoring in Finance as well and this really does help! I’m curious if you can offer any more insight to maybe hedge fund managing or any more specific information about investment banking. I wanted to add I love your videos and it’s great to see you with an awesome sponsor like Blinkist!
hey man it hard but keep with it its worth it dont change to marketing ans management
I just found your channel and I have been watching all your videos since then! Thank you so much for helping me understand more about the financial markets
Specifically the video I was looking for. Great job Thanks !!
Useful overview, good job!
You may add few words on the private banker role.
Great promo. Sincere and detailed. I watched the whole thing.
This video very well may have just changed my life. Thank you
I'd love to see a more in-depth look at a portfolio manager
Hey Richard. Thank you so much for making this video. I am currently changing my career focus from engineering to finance and I was really lost as to where I can start. This video really showed me the options available in the field.
Thank You for this frank discussion most especially after the Video I saw recently about
Investment Analysts starting Salary being in the hundreds of thousands and being paid
Millions after a few years. As a Math Major it did pique my interest, so very happy to have heard the truth.
Very useful. Thank you!
This is my first comment on RUclips. I don't really comment on RUclips videos. I just want to say thank you so much for your amazing videos. 😊
Bro, you deserve more views than Graham and MeetKevin, you are leagues above them......
i haven’t watched much of his videos but graham and meet kevin are the entry level finance you tubers because they bridge the gap between normal youtube entertainment and finance. well deserved.
As an economics major with a finance minor, I want to know what all my options are, as I also own a small business but want to work in this world. Can you make videos about options for those graduating in these fields? Have enjoyed your videos for quite a while, (been a sub for a while too) keep it up they are amazing!
IAR here with a small Investment Adviser an hour outside of Chicago in Indiana. I'm 23 with my BS in financial info sys/accounting currently enrolled in an MBA program and I'm doing 3/5 of these on a normal Tuesday. when you work for small business you take care of whatever needs done. Some days I'm helping the boss build and analyse new portfolio options and some days I clean the toilet and get coffee. Biggest tip, remember how people like their coffee, it's all about building a healthy relationship with your clients.
Good content on this channel . Love this guy .
The fact that this channel only has 96k subscribers reflects how little interest we have in building wealth via investment :\ ~ Great content btw.
Great video, and well articulated!
I appreciate your effort . Nice explanation man.
Great intro vid which well summarises the industry (ex sell side equity analyst)
And agree with others here - your channel has great clarity and deserves big sub #'s. I'm sure you'll quickly gain a following if you keep up the great content
As an automotive sales, I could see myself transitioning to financial planner. Assisting clients to manage their money better, be less emotional about it, and offer options that best fit their needs... for a fee, of course 😉
This video subject has been needed desperately! Thank you for the info. PS, it would be good if you elaborate with more “required” testing and licensing requirements for each position.
givemetoast ...Unfortunately, there are often many ways to become "qualified" in finance/investing work. Some professions, do have a prescribed system of becoming qualified (accountants, actuaries, etc.) while other positions do not necessarily have such prescribed methods.
If you plucked 100 investment analysts (or portfolio managers) and asked their qualifications, my guess is they would range from degrees in quantitative/analytical fields (maths/stats/physics/philosophy/engineering/economics/actuarial science/comp science, etc), degrees in non-quant fields, some CFA holders, some actuaries, maybe some accountants, ....and some folks who learned on the job (back in the day) and became experts.
One issue is that some positions are not really well-defined. An example is a "risk analyst" or "risk manager". I have read many many job descriptions with those titles and few, if any of them, had required skill sets that were similar...strange, but true. I have studied collective risk theory, contingent risk theory/analysis, loss distributions, and risk analysis and management and so on....and none of the job posting for so-called "risk management" positions had anything to do with that.
This certainly will help me to choose which area i want to work
Wow this is such a great help for a young guy like me who is looking to start working in the finance field, My first 2 years of highschool I wasn't doing so good so I plan on going to a community or state college and then transfering
awesome video!! keep it up!!
I rarely subscribe to channels but this one is going to be an exception
Investment banker
Investment analyst
Trader
Financial Advisor
Portfolio Manager
You, sir, are a treasure. Do you have the chance of sharing something like a syllabus for textbooks that build towards the more analytical careers?
Fuck you Elvis!!!
thank you so much for this video
Hey Thanks Richard,
For very interesting insight into the roles, responsibilities and expected pay scale of each fields.
Looking forward to second part✌
Hi Bagel, just wanted to add a bit of insight on investment banking.
- It is a very entrapping field. The skillset you develop is almost entirely untransferable to any field with comparable pay. This is especially disheartening to those who want to leave the grueling hours, but don't want a 50% pay cut.
This is mainly because it focuses so heavily on spreadsheet analytics, which doesn't translate into data analysis or data scientist positions (which require coding).
this is an amazing video! so hard to get the salaries when they vary so much
I'm currently studying to be a financial advisor and this video is sure informative for me!
Best of luck! I hate financial advising because I feel as if it's more of a job to dumb down ideas and products and it just doesn't intrigue me. However, there is an old saying.......
Troy Tang good luck, every advisor I have ever spoken with are snakes.
@@ethans7917 what is that old saying
@@begley09 thats sad
(Coming from a 20 year old investor who is currently in college working on a BBA and even had his own financial channel) There was a lot of wonderful and helpful information in this video! Some of the information I wasn't even aware of! Thank you very much for the wonderful content!😁😎🔥
Great Video man!
I am preparing for CFA and planning to become an equity research analyst
Get back to studying! You only have 6 weeks!
What happened? Did you pass?
@@turtlelover6934 I'll be giving in Nov 2021
@@pranayranka1276 good luck!
In my experience, I feel like an equity research analyst is a dying profession now that many institutional investors are focusing on trading algorithms. Also, the EU made free sell side research illegal as of 2017, meaning clients now have to pay thousands of euro's for reports that they used to get for free, also greatly reducing the need for sell side analysts. I have many friends who work in equity research (and I used to work as a sell side analyst myself from 2011-2016) and they have a really hard time with finding and holding jobs.
Another awesome video!
Great video mate
Really good video, maybe the position of risk managament need a little space.
In university with a passion for investing but little career direction, very helpful thanksn
Great content. 👍
Great video to explain the different roles! I think you undersold the Financial Advisor role. At least for those that work at brokerage firms I know plenty of guys who’s practices bring in mid six figure salaries. It’s a tough industry but really any avenue can be lucrative if you find something you excel in!
Love this!
I strangely was beginning to think the different careers to pursue in the field on investment. Woke up to this being the first video on my recommended list.....
Great content
Great videos!
I'm only going into investment banking because I live in Toronto it's just one of those things that seem to fit perfectly
it would be more interesting if you could do separate vids on how to become investment analyst etc depending on where you live without having to move.
Thank you!
Hi Richard, I came across this video while trying to understand more on the investment industry job opportunities. Reflecting back to your question about entering the investment industry, nonetheless, I want to enter the Private Equity Industry like David Rubinstein (I'm familiar with his story) but I want to know what to do to enter that field. I come from Marketing/Sales and wanted to see if there's a way to "get me feet wet" to build the foundation to enter the private equity field. Btw, thank for your video and sorry for this lengthy message. I love the function of money, however, shifted too late after years of education in another field (Marketing/Sales).
In my experience working in Finance for 18years, Investment bankers look great on paper. The problem is you live in NY and you work a shit ton of hours. Just to break even, I'd have to make $269,173/yr in Manhattan working 40hours per week. No investment bankers work that little. So lets say you're required to work 60 hours per week. I take my income multiplied by time and a half for 20hours. Now I'd have to make $445,358 in my current role in a lower cost of living state with less stress......just to be even. No thanks.
Most of them have a roommate or 2 and the exponential salary growth is unrivaled in Investment banking, plus it has some amazing exit opportunities
"Just to break even, I'd have to make $269,173/yr in Manhattan working 40hours per week."
How do regular (=most) people live there then (with around a median salary or less)?
@@MichaelKoksharov regular people don't live in manhattan
I’d like to be an investment analyst like you but I’m unsure how I could jump into the role without prior experience or without a salary cut. I think after I have enough of an income I’ll do the studies alone and join a firm which would be happy to take a much more mature individual looking for a brief career change.
I'm in final year of a financial planning degree but I'm thinking of doing my honours in Investment Management as well as my level 1 and 2 CFA exams to become an Investment analyst. Apart from work experience what else do I need to be apart. I'm also thinking of doing excel, SQL and python courses. Long term goal is to work as a quant but I've put that off till my late 30s - 40s at least.
Would you be willing to do more videos on day trading and the info covered on the SIE and Series 7 exams?
thanks . Might be useful for me.
Thanks for the video! I had a couple of questions:
a) When you say good with numbers, do you mean being able to do simple calculations relatively fast or being skilled with abstract math and study the movements of stocks like analysts do in some quantitative hedge funds?
b) If someone is a recent college graduate and is interested in applying as an investment analyst to the firm you work with, what would be the best way to get in touch?
You may or may not choose to answer the second question, of course.
To the first question, it's a bit of both but mostly the first part of just being comfortable with numbers. Since tasks sometimes need to be carried out very quickly, you need to fully understand the numbers you're dealing with and not be bogged down by simply calculations.
As for the second question, I actually work for a really small company and they only hire once in a blue moon; it would be a lot easier to apply for a larger company with more analyst positions and a more formal training process. Hope this helps!
@@ThePlainBagel Thanks!
I LIKE THE VIDEO AND CAN YOU DO ONE ON THE DIFFERENT TYPES OF FUNDS SUCH AS HEDGE FUND, MUTUAL FUND, AND MORE, AS WELL AS THE PAY THE COME WITH.
why the caps?
Thaks a lot for this great video.
I still have a question.
I'm a civil engineer and I've been considering a career change into the finance area, particularly anything near investments. I want to be realistic about it and since at the beginning of my path I'll have to expect a lower salary, compared to my present position, I'd like to know what the entry level jobs are.
Any ideas of where to get more information on the topic? Do you have any other video?
First year Investment bankers as of 2021 are making 100k base and a cool 20-90k bonus. But in exchange for that they put in 100 hour weeks and nearly half of it is taken in taxes. So the post-tax hourly wage can end up being below minimum wage in some jurisdictions, depending on your bonus size and hours worked.
haha not true at all. IB and under minimum wage lol. Where do you pay 50% income taxes?
Starting my job as a Financial Advisor at a large firm focusing on 401ks in the next few weeks. Started here in August and they paid for me to study for the SIE, S7, and S66. I’ll admit that sometimes the role does feel pretty sales oriented, but the advice we offer is regulated by Reg Best Interest. Still, I wish I could switch to an analyst role and snag my CFA just so I don’t have to be in sales, but the money to be made for senior Financial Consultants is huge and we have so many clients that building a book is the least of my worries.
What is your current level of education if you don’t mind me asking? And what was the interviewing process like?
Thank you for the video, The Plain Bagel. I have a question. If a person aims big and wants to become a fund manager of an index fund in the future, what line of job should he enter into if he is a fresh grad? TIA.
Good description of roles but salary figures are extremely low/pulled out of thin air.
Investment Banking salaries for Bulge Bracket New York banks (Including bonuses) at different levels:
Analyst 1 (fresh college graduate) - $150K
Associate 1 - $300K
VP 1 - $500K
Dir 1 - $800K
MD - Starting at $1M, going to $20M+. Median compensation $2.25M, average compensation naturally higher.
What do you think about investment banking analyst? May you help us with videos on DCF, and other valuation techniques
Raj Singh find out what the capital asset pricing model is if you’re looking to getting started for valuation techniques.
I’m 26 and have been thinking of swapping careers into the finance world. It was something I always wanted to get into. I’m great with connecting with people and love seeing people strive and that’s my downfall. You see, i would make pennies for income because if I went through as an advisor, I could not undermine my clients just for a profit like soo many advisors do.
I can’t get enough of the stock market though like so many others.
Hey. Did you end up changing?
@@tafadzwagwaze2016 I did swap careers but not finance. I ended up going into the railroad and still follow the market everyday. Overall, much happier with my line of work now.
I'm a lawyer (soon to be tbh) in Argentina but I'm planning to move to Zurich, it is quite complicated to practice law there and I was thinking about educating myself further and use my law skills to get into investment banking in Switzerland. I do have the skills you mentioned and although I do not possess a deep understanding of investments, i do know enough to reach a high level of knowledge in the mid to near future. do you reckon it is a good idea?
Hi I'm thinking of studying finance in college with the aim of being a financial/investment analyst, do you recommend these as a career? Thanks very much for your time
Cool to have the field demystified.
My personal experience (in Oz) has been that Financial advisors tend to be just anyone and everyone. Often, they are former front desk officers in banking who, once they know a certain range of "financial products", decide that they have enough experience to advise others about what to buy.
There isn't much analysis going on here, just comparing the "best" products that would fit someone's wishes and closing the sales (i.e paperwork).
This is something that an AI algorithm can do for you, meanwhile you complete the forms online. You only need to have a goal in mind. So, I'm really wondering about the future of this profession...
Yea it sort of depends what area of financial advice you look. Robo advisors certainly threaten to take business away from the basic investment advice industries, but when it comes to tax optimization, hedging income needs and things like that, the offering of robo advisors is still pretty limited. I think we’ll see advisors sticking around for a long time yet.
@@ThePlainBagel Thanks for the information! :)
2:15 if you want to skip the advertisment
This is the only way this channel provide you with valuable content for free, five seconds ad won't kill you
@@moelfadul "five seconds"
@@gfuseau You are so me, it is scary to realize that you subscribed to almost the same channels I subscribed to.
Not all financial advisors are commission based, some are flat fee based. Or salary based if hired by a big brokerage.
I'm completing my batchelor's degree next year. I'm planning either to go into ACCA accounting or CFA as a fund analyst. I'm not sure which one to choose.
That's really helpful can you advise me more on being an investment analyst. Like where do I start from? Currently I'm a junior accountant (entry level) which a bachelor's degree in management. So how can I take a leap to be an analyst?
Get a Masters in finance from a highly rated university.
Ideally, I'm looking to become a financial advisor, but that requires sponsorship for the Series 7. I've also been thinking about becoming a broker. Would you consider covering more financial jobs that deal with loans?
Possibly in a future video! There are a lot of other positions people would like me to cover so I'll keep them in mind
You forgot CAIA. CAIA with a specialised MBA can be a more useful path. I did Undergrad in math / economics and Masters in Real Estate Investment then CAIA. It complements my position well in PE RE. CFA had no use for that.
I want to become a full-time trader professionally. Can you make a video on how one can be a Full-time trader for an institution ?
Managing a money market fund would be the job for me. Just deposit cash in various national banks and buy CDs. (Yes I know most money market funds lend cash to companies for less than 90 days to cover short-term liquidity requirements, but my fund won't be doing this).
80% of investment bankers are undergrads. There are some masters but almost no phd.
Starting salary at major banks is 110k a year. Not sure what your source was or if you excluded bonus
Other than that, pretty decent video.
His data was from glassdoor.ca, thats why it's a bit vague. Do you work in the industry? Which place/region is your data from?
what degree do they usually have?
Investment analyst compensation is much higher for Hf/PE but largely influenced by performance
@@jackal8854 You watch too much TV. IA only make more if they are at top level shops (which is 1%)..but then if we compare it to top 1% PE shops, IA make less
If you are more interested in the actual analysis, research, and building (every finance person's favorite) spreadsheets, models, and investment/market/macros theses (finding market or sector shifts, strategic advantages, bottlenecks, etc.), is the only later-life progression in the field to become a manager or have some advisory role? What other tracks are there, for people who have no desire to ever take that track? It seems like you eventually have to hop off to your own fund, or to begin your own business.
Lots of questions, but appreciate any insight that you'd have.
And then there is the backbone of all of this - ops/BO.
Represent
And are they a fiduciary? A person who holds a legal or ethical relationship of trust with one or more other parties. Typically, a fiduciary prudently takes care of money or other assets for another person.
Great job and BEST REGARDS TO ALL ;)!
What designations or career track/experience are generally advantageous for Equity Research? Can you enter through avenues outside of IB? Can you enter/transition in your late 30s, as opposed to those in their 20s?
So much involved in the world of trading that I didnt know
5:29 where the wallstreetbets boys at?
LUL
At their parents’s basement I suppose
@@yudistiraliem135 guh
He got it backwards, we buy high and sell low
@@TraderPulse even bigger guh
would be good if you compare the stress level at the same time, i had a friend who was an investment banker and he started to have kidney failure after 3 years in, from all the drinking and late nights
Are there any part-time investment jobs for people with full time jobs? I am pursuing a degree in computer science and want to be a full time developer but am also interested in the financial realm if that makes sense
How often is obtaining a later-life CPA useful to finance, as opposed to accounting, roles? Assume econ/finance/prior work experience. Do people usually just go the CFA route? Doesn't seem like a good formula for specializing or differentiating yourself.
(2:17) INVESTMENT BANKING - stocks/ bonds, mergers/ acquisitions, taking a company public, venture capitalism, etc. - $86k average salary
(4:07) FINANCIAL ANALYST - Analyze data & track trends to make decisions/ conclusions, can work in banks, insurance, corporations, etc. He specifically discusses Investment Analysts. - $72k average salary
(5:23) TRADER - Buy & sell stocks either for themselves, clients or a bank - $120k average salary -$40k to $200k
(6:35) FINANCIAL ADVISOR - Help individual clients invest & may also advise on taxes, estates, retirement, etc. Examples are brokers, mutual fund reps & fee only financial advisors. - more commission based - $60k average salary
(8:15) PORTFOLIO MANAGER - Construct & maintain a portfolio to meet certain objectives or parameters. Work with analysts & traders to make choices. - $87k average salary
0:04 I can't stop laughing on the way you pronounced that word lmao!!
Yet it's a great video and I love your channel..
We need single title for all 5 because skills are overlap with each other