There's no doubt that America is enthralled with Wall Street's big hitters. Many of them lead lives that seem more befitting of rock stars than those of MBAs. Making millions is just one benefit of a career that includes rubbing elbows with the rich and famous. Making it big on Wall Street is something that many ambitious professionals set their sights on, especially when they're fresh out of college.
But don't expect to find the Wall Street job of your dreams in Sunday's classified section of your local paper. The most glamorous positions usually go unadvertised and require more hustle than resume - and more moxie than diploma. These positions aren't always handed out to the boss's nephew, either, but instead, to those willing to fight tooth-and-nail for a shot. If you're up for the challenge, here are four of Wall Street's most glamorous jobs and what it takes to land them.
Investment Banking - Classic Wall Street Glamour
Although it's lost a little of its luster since the burst of the dotcom bubble and the nosedive of the financial markets in 2008, investment banking is still one of the most tried-and-true routes to Wall Street riches. Those who have hit the big time can expect to be in the middle of the action when it comes to IPOs, mergers, acquisitions, corporate lending, institutional trading and other big-ticket Wall Street transactions.
Entry-level investment banking associates do pretty well for themselves, often receiving salaries of $75,000 or more in their first year. Within four to five years, seasoned investment bankers rising through the ranks can easily earn $150,000 to $250,000. If you've got what it takes to stick around and land a key role in a huge deal, you could easily walk away with a multimillion dollar paycheck.
Sound like the right career for you? If so, then prepare to pay your dues. After getting the mandatory MBA from a top-tier business school, you can plan on moving to New York and working 80 to 100 hours per week as an analyst for the first couple of years. Make sure to brush up on your accounting and networking skills, too - both are crucial for differentiating yourself from your competition and climbing through the ranks.
Stockbroker to the Stars - Rubbing Elbows with America's Richest
Only in America does an NBA all-star's entourage include his stock broker. While that may seem a little extreme, there may be few people more important to an up-and-coming celebrity than an investment advisor and accountant. Because these celebrities receive large but intermittent paychecks and no guarantees of future employment, it's key for them to manage their windfalls wisely.
Is the paycheck worth tolerating the paparazzi? You bet it is. On average, investment advisors to high-net-worth individuals earn about 1% per year on the assets under their care. So, a broker who manages $5 million for each of 10 up-and-coming talents could easily earn $500,000 per year. Those numbers just keep racking up as your client list grows.
Before you set your sights on becoming the Jerry Maguire of celebrity investing, you need to come to terms with one fact: you'll probably get yelled at - a lot. Athletes, actors and aristocrats tend to be high-performance people who are used to getting their way. If you're not living up to expectations, especially when they compare notes with their wealthy peers, you can bet you'll hear about it.
While a four-year college degree is more than sufficient to get you in the door at many local branches of large Wall Street firms, be prepared to duke it out with every other ambitious broker trying to make a name for themselves. If you plan on being the one to land the big-ticket clients, you'll have to learn how to network your way through the system of talent managers, lawyers and accountants. Because most celebrities have no interest in showing up at a Saturday morning investment workshop at your local brokerage branch, they rely heavily on referrals from their trusted circle of advisors.
Mutual Fund Manager - Masters of the Trading Universe
For some people, the glory doesn't come from closing the big deal or hob-nobbing with the elite - it comes from being the best and from outperforming the pack. For that kind of glamour junky, there's no higher mountain to climb than managing billions of dollars of mutual fund assets. It's the Olympics of the investing world, where the winners receive high ratings for their funds instead of gold medals.
While the days of a single investment guru managing a fund seem to be on the decline, an "entry level" position on a mutual fund management team can easily earn $200,000 to $400,000 per year before bonuses. Climb the ladder to become a senior team member or join one of the most prestigious mutual fund families, and starting pay can easily exceed $1 million dollars per year. Be sure to tuck that money away though - one major mistake or bad investment call and there's a good chance you'll never manage another fund again.
If you feel like you're ready to get behind the wheel of a few billion dollars in other people's nest eggs, you may need to start in the mailroom of your favorite mutual fund. It's not uncommon to see newly minted Chartered Financial Analysts (CFAs) fetching coffee for the big guns - in between researching a couple hundred potential companies per week, of course. Mutual funds promote heavily from within their own ranks, most often favoring people who have proved that they can work as part of a closely-knit team.
Media Personality - Becoming a Household Name
If there's a brass ring for those seeking Wall Street glamour, it's the household recognition of becoming a media personality. These are the folks who are giving the market commentaries on the financial channels at the end of the day. They're the ones with the absurdly lucrative TV, radio and book deals. They are the "go to" people for millions of investors and get paid astronomical amounts for simply sharing their opinions.
Considering that folks like Suze Orman and Jim Cramer can earn $10 million to $20 million in a bad year, it's not hard to see why Wall Street has become the new Hollywood for people craving the attention of a home viewing audience. But just like all true celebrities, fame comes with a price. The more visible the person, the more the public is interested in your personal life and unforgiving of your mistakes.
If you think you're ready for your close-up, you've got two main options for getting your foot in the door: First, you can get your journalism degree and work on finding an entry-level position behind the scenes at one of the major media networks. Like many other Wall Street jobs, the best positions are given to insiders who have paid their dues. You can plan on spending three to five years carrying cords and verifying sources before you get that first shot at some airtime. Another option is to become a local expert, parlaying your Wall Street wisdom into recurring guest spots on local TV or radio channels. Many of the biggest names were once hometown favorites who eventually grabbed the attention of one of the national morning shows.
The Bottom Line
Wall Street is still the greatest bastion of individual capitalism in the world and a place where determined individuals can work their way from answering the phones to calling the shots in just a matter of years. But the reward doesn't come easy, free or fairly.
You won't find Wall Street glamour simply by working on Wall Street. It also can't be attained through sheer luck - unless you choose to make your own. As the famous Roman philosopher Seneca said, "luck is what happens when preparation meets opportunity." If Wall Street glamour is what you seek, never stop preparing for that moment of opportunity, when you can step in and prove that you've got what it takes.
Options & FuturesA day in the life of a broker or trader is an exciting and varied one. Find out how to decide between these two financial professions.
ProfessionalsA career as a financial analyst requires preparation and hard work, but the payoff can be especially rewarding.
Options & FuturesSave time and money by following these tips to a smooth career transition.
Options & FuturesChoosing to specialize may be easier for you and more beneficial to your clients.
RetirementBefore you agree to work for another investment firm, be sure you know what you're getting into.
ProfessionalsLearn how these must-watch movies for accountants teach about the importance of ethics in a world driven by greed and financial power.
Personal FinanceLearn 10 good reasons for switching jobs, such as major life changes, ethical concerns, job description creep and upwards mobility.
EconomicsFinance and economics are often taught as separate subjects, but they are interrelated disciplines that influence one another in many ways.
ProfessionalsLearn more about the career of financial analyst, along with specific potential interview questions and answers for this type of position.
ProfessionalsTake a look at a day in the life of an investment banker, one of the most sought-after and stressful jobs in the financial sector.
Mutual fund managers get base salaries, which vary greatly depending on the size and pedigree of the fund company. They may ... Read Full Answer >>
Nearly all financial advisors, particularly when new to the field, have to find their own clients. An employer may provide ... Read Full Answer >>
Financial advisors are not drug tested by any federal or state regulatory body. This means you may receive your Series 6, ... Read Full Answer >>
Financial advisors are not required to have university degrees. However, they are required to pass certain exams administered ... Read Full Answer >>
Financial advisors must possess various securities licenses in order to sell investment products. The specific products an ... Read Full Answer >>
Most financial advisors are required to meet quotas, particularly if they work for firms that pay base salaries or draws ... Read Full Answer >>