Devoted to understanding the basics and fundamentals of investing

Larry,

This is completely unrelated to this post, but I would value your feedback...

I am strongly considering a career change into the finance/investment industry. I am 23 with a year out of college (Business Degree from a Big 10 University) and have been working in an industry that I have no desire to make long term.

I consider myself to be pretty fluent in finances, but lack my NASD licenses. I have a few offers from big name companies in Financial Advisor positions. However, I feel they are more sales than actually investment consultant.

I would ideally like to get into investment research & analysis (something more objective), but these companies offer NASD sponsorship for me to take the exams, as well as a 'foot-in-the-door' opportunity.

I want nothing more than to switch into the investment management industry, but is this the correct path to take?

Any and all feedback is appreciated! Feel free to email if you don't want to discuss here - zirotti@gmail.com

Jason,
Many of the big Wall Street firms have research associate programs. You work as a research assistant crunching the numbers and digging into the industry for the Senior Analyst. After two years or so, they would expect you to go to graduate school. They would also sponsor you to take the NASD exams so you can get your licenses. This is a better "foot in the door" than taking a sales assistant position.

Thank you very much for the feedback.

It is extremely frustrating trying to break into such an industry. Although I have no 'professional experience in investment banking', I feel that I know more than most young people my age when it comes to such fortes.

I would love nothing more than to be able to take NASD exams right now as it would add another notch to the resume, but like I mentioned above, it's hard to do considering I need corporate sponsorship.

My situation is the epitome of a catch-22. Not to mention I am in the wrong part of the country...

Jason, Have you thought of getting a Certified Financial Planner certificate or getting a Chartered Financial Analyst (CFA) designation? You could find a fee only financial planner in your town and work with them. They usually have a clearing broker they work with where you can get your licenses. Since you get paid by the hour or by the job there is no pressure to sell a particular product.

With the professional certifcation and your NASD licenses you have a better shot at gettin hired to do what you want. Or you can continue helping people with their financial planning if you find you like it.

I have 3 interviews lined up with pretty well-known financial firms for Financial Advisor pitches, all of them pay for NASD exams.

Fortunately I have a job right now so I don't need to make a quick decision. If I am impressed with the compensation and career development opportunities, I may use this as a stepping stone to get into research and analysis.

Jason, did I give you the feedback you were looking for or have I missed the boat? Is there more info or opinion I can provide?

Your feedback was very good and your advice was dead-on correct, as usual. As far as opinion and comment is concerned, maybe Jason just realized how closely related to your initial August 8th posting his career interest inquiry may actually be!

Haha, nice one Bob!

I am wrapping up a few interviews this week with about 3 firms. So far, I am excited about the prospect of being in the financial industry, but at the same time, frustrated by the lack of credible people that are 'Financial Advisors'. I have too much integrity to get lumped in with the rest of the frauds. (I actually felt that I was more knowledgable about investments than a 'Vice President' I spoke with last week...that was encouraging).

However, the firms do offer sponsorship for the NASD licenses, which is my biggest concern right now. I may actually just use the sponsorship to take the Series 7 and then never sign on with the companies. I would love to get into research and analysis, and I think having my NASD licenses will help.

I think either yourself or Bob should create a post dedicated to careers in the Financial industry! :)

The first problem with trying to use investment banking houses to sponsor your NASD licensing of Series 7 and Series 63 (both of which are universal requirements for seeking and maintaining employment at any bulge-bracket firm) and then blowing them off as prospective employers, is that you must be "associated with" (i.e. employed by) a NASD member firm to have your licensing application and annual renewal fees automatically underwritten by your employer, and annually approved in writing with the NASD by a principal of the member firm, as a part of the renewal process, in order to be allowed to engage in any firm-approved research and analysis. (Don't try to do it on your own, without the appropriate credentials, or you'll get crucified, at best, and imprisoned, at worst).

If, as a result of leaving the employment of a member firm for any reason, your licensing and registration with the NASD is allowed to lapse after a two-year grace period, beyond the termination of your employment with the member firm and without becoming re-employed with another member firm, you will then be required to retake and pass the Series 7 and Series 63 examinations again, and the only way you can do that is through sponsorship of a member firm. This can be a bit of a Catch-22, It isn't the end of the world, mind you, and while certainly nothing as difficult as the third and final qualification level of the C.F.A. exam, the Series 7 is still a pretty comprehensive five-and-a-half hour written examination, and something you might want to think twice about having to retake with any degree of regularity! Finally, I would strongly suggest you do another integrity check before you use a member firm just to sponsor your interest in becoming Series 7 and/or Series 63 licensed, with no sincere interest in working for the sponsoring firm. Although this is admittedly the way the game gets played all too often in that biz, it still ain't the right way to play.

As I see it, Larry's blog IS a post dedicated to helping others through the knowledge he has accumulated as a result of his career in the financial industry. I never had much of a real career there myself, although I spent a lot of time in the securities biz doing a pretty good act of simulating one.