Careers in Finance: Insurance vs Corporate

It has been eight years since my friends and I graduated from business school, eight long years since we studied all about the law of supply and demand and dreamed about our future careers in the exciting and rewarding field of finance.

There are six of us in our group and we have all managed to stay in touch with each other despite our hectic schedules. Who am I kidding? One big reason why we have stayed in touch with each other is because we help each other with contacts and networking. There’s nothing like a little school spirit to make the wheels of business spin a little faster. That is especially so since most of us have landed in different spheres of the financial industry. Different, yes, but I must also stress that these spheres are inter-connected. It really is a fascinating industry.

One day over drinks at the club, we decided to compare notes about our respective jobs. Much of the discussion revolved around the topic of who had the best job among us. Two of the guys, who were making a splash in insurance, strongly endorsed their field. They said that the insurance industry has annual revenues that surpass the trillion-dollar mark, which makes it a secure and financially-rewarding place to spend one’s career. The guys said that there are over 2.5 million people currently working in insurance now holding jobs as an underwriter, sales representative, customer service rep, asset manager or an actuary. As the guys said, the name of the game now is knowing how to manage risk and anticipate problem areas.

Gregory, the most scholastically gifted among us back in school, had a different opinion. He worked as a financial planner in a major corporation. Gregory argued that it is not the size of the industry that should determine who has the best job, but rather how important that job contributes to his company or clients. As a financial planner, Gregory said his position made him vital to the future of his company because he was the one who planned all the future spending of the company.

All About Careers In Finance Industry

The finance industry is concerned with how individuals and institutions handle their financial resources -- how they raise their money, where they allocate it and how they use it -- and assesses the risks involved in these activities as well as recommends ways to manage these risks.

There are a number of exciting and rewarding jobs in the field of finance. What follows are just a few examples.

The commercial banking sector employs more people than any other facet of the financial services industry. Banks offer individuals the opportunity to interact with a broad spectrum of people and the chance to develop a clientele. People in banking usually start out as tellers and shift to other bank services such as leasing, credit card banking, trade credit and international finance.

As the name indicates, a career in corporate finance means you will work in a corporation and are mainly concerned with sourcing money for the company -- money that will be used to develop the business, make acquisitions and ensure the company's future. In a corporation, you are likely to start as a financial officer.

As a financial planner, you may also work for a corporation but will mainly be concerned with only one aspect of finances -- planning for the future. You have to have a firm grasp of investments, estate planning as well as taxes. Or you may serve as a consultant who provides financial planning for individuals, e.g., planning their retirement needs or how they can put their kids through college.

With annual revenues surpassing the trillion-dollar mark, the insurance industry looms as one of the most attractive areas for a career in finance. In 2005, there were an estimated 2.5 million people in the US who were employed in the insurance field, which is mainly considered with the business of managing risk and anticipating problem areas. Possible jobs in insurance include working as an underwriter, sales representative, customer service rep, asset manager or an actuary.

A career in investment banking means you will be concerned with issuing securing and helping investors buy, manage or trade financial assets. As a bonus, you get the chance to work on Wall Street in a leading investment banks such as Merrill Lynch, Salomon Smith Barney, Morgan Stanley Dean Witter and Goldman Sachs.

Finance Career - Finance Job

Many people are drawn to money. Not just to have more of it (who doesn't?), but to actually participate in the finance industry and make a career out of it.

Did you know that some of the most successful people in finance and investments never pursued finance in college? Did you know many never even went to college? There are people who have built successful careers in investments or the financial industry grew and learned on the job.

Like I said, there are many branches to this tree. Accountants, CPA's, and analysts must go through significant educational requirements before finding finance jobs. While these careers are built on heavy education and commitment, there are other areas of finance that do not require stringent or specialized education before entering the job market.

Stockbroker and Financial Advisor jobs

Stockbrokers, Registered Representatives and financial advisors are basically salesmen in the finance industry. That is not to demean what they do, it's actually true. Once you are a licensed stockbroker and working for a firm, you are a phone broker. Many of the top firms will require 2 or 4 year degrees before hiring you for a job, but a finance or investment related degree is usually not required. Many smaller firms do not require college at all. They are looking for brokers with talent, drive and the ability to communicate and persuade. If you can convince the firm that you can earn money, you can get in. There are successful stockbrokers and advisors who make $200,000 or more and many of them were car salesmen, insurance agents, collections salesmen, real estate agents etc. Training is ongoing and most should decide after 6 months or one year whether this is the finance career or job they want.

The downside to this career, is the compensation you earn. It is largely, if not exclusively - commission or fee based. It's a sink or swim finance career. It is not for everyone, but the requirements are easier, so if you are good at it - you're all set!

Mortgage Broker Career

When Wall Street began losing jobs in late 2000 and for several years after, many brokers and advisors began careers as mortgage processors or mortgage brokers. The mortgage finance industry was booming. With interest rates low and the economy slower, homeowners were looking to take advantage of the equity in their homes or looking to refinance. People who were in these jobs at mortgage companies made a lot of money. People had needs and the environment was ripe for big business.

The problem with mortgage finance jobs is that it is a very cyclical business and it relies on constant new business and referrals for the brokers to earn money. If I had my choice overall, getting a job in the mortgage broker business would be one of my last choices. Good times are real good. Bad times are real bad.

Insurance Jobs and Retirement Finance Careers

With the population of the country living longer and the trend of big companies providing attractive retirement plans on the decline, insurance agents, retirement and estate planners are doing well. Building a finance career and getting jobs in these areas can be very rewarding and the trends are on your side.

There are many areas of finance and investments. You may end up being a bond broker, a trader, a mutual fund broker or something else. The quickest way into a good investment or finance job or career is to get a job as a financial advisor or broker. You have to put in the time and effort, but the openings are there and the experience you gain working with client investments will serve you very well going forward. Either you make a great career doing just that, or you platform that job into another area that better suits you.